As Vietnam commemorates the 80th anniversary of the August Revolution and National Day on September 2, the government has rolled out an ambitious plan to distribute cash gifts of VND100,000 (~US$3.90) to every citizen. Managed by the State Treasury, the initiative has already disbursed over VND5.687 trillion (~US$215.87 million) to nearly 2,000 communes across the country. Yet, the program’s reliance on the VNeID digital identity app for delivery has exposed significant technical challenges, with widespread login failures and system crashes frustrating many citizens eager to claim their benefits.
A Nationwide Gesture of Celebration
The cash gift initiative, approved by the Politburo and directed by Prime Minister Pham Minh Chinh, marks a symbolic gesture to honor Vietnam’s historic milestones. According to the State Treasury’s report on Sunday, funds equivalent to 53.15% of the planned VND10.7 trillion budget have been distributed to 1,929 out of 3,321 communes nationwide. Eleven of the 34 cities and provinces have completed their distributions, with Bac Ninh, Hung Yen, and Quang Tri achieving a 100% completion rate in both fund transfers and cash delivery. Other regions, including Da Nang, Ha Tinh, and Nghe An, are nearing full implementation.
The distribution, which began on August 30 and is set to conclude by September 15, offers citizens flexibility in receiving the funds. Households can opt for direct cash pickups at local distribution points or have the amount transferred to their social welfare accounts via the VNeID app, a digital identity platform integral to Vietnam’s e-governance push. A circular issued by the Ministry of Finance on August 29 outlined these guidelines, emphasizing the government’s intent to ensure accessibility during the National Day celebrations. 
While the scale of the program—covering millions of citizens across urban and rural areas—demonstrates Vietnam’s commitment to inclusive welfare, the execution has revealed critical gaps in the country’s digital infrastructure. For many, the promise of a seamless transaction has been overshadowed by technical failures, raising questions about the readiness of digital systems to handle nationwide initiatives.
Digital Dreams, Technical Nightmares
The VNeID app, a cornerstone of Vietnam’s digital transformation strategy, was thrust into the spotlight following the cash gift announcement on Thursday. Requiring a level-2 account linked to a bank account under the app’s Social Security benefits section, the platform was positioned as a modern solution for efficient fund distribution. However, the system buckled under pressure almost immediately, with users reporting widespread login issues starting at 9 p.m. that evening.
Complaints ranged from error messages stating “System under maintenance. Please try again later” to complete app freezes after entering passwords or using facial recognition. One Hanoi resident from Dai Mo Ward shared the frustration felt by many: “My family has five members, and we tried to log into our accounts on five devices, but none of them worked.” Even by Friday morning, while some could access the app, attempts to enter passcodes for the Social Security section often resulted in messages like “failed to connect to system.”
This is not the first time VNeID has struggled with high user demand. On June 30, a similar wave of login failures occurred as citizens attempted to check updates on hometown registration following provincial reorganizations. The recurring outages highlight a broader challenge for Vietnam’s digital ambitions: ensuring that critical infrastructure can withstand the load of mass participation in government programs.
Balancing Innovation with Accessibility
Vietnam’s push toward digital governance aligns with global trends, where countries increasingly rely on technology to streamline public services. The VNeID app, introduced as part of the national digital identity framework, aims to centralize access to government benefits, personal records, and civic services. Linking social welfare accounts to the platform was intended to simplify the National Day cash gift distribution, reducing administrative overhead and minimizing delays associated with physical cash handling.
Yet, the rollout has exposed disparities in digital access and literacy across Vietnam’s diverse population. Urban centers like Hanoi and Ho Chi Minh City, with higher smartphone penetration and internet connectivity, still faced significant hurdles due to system overload. In rural areas, where access to technology and reliable internet remains limited, many citizens may have no choice but to rely on physical distribution points, potentially delaying their receipt of the funds beyond the celebratory period.
Moreover, the requirement for a level-2 VNeID account—a verified profile linked to biometric data and official documentation—adds another layer of complexity. For elderly citizens or those unfamiliar with digital platforms, navigating the registration process can be daunting. While the government has provided alternative cash pickup options, the emphasis on digital delivery risks alienating segments of the population less equipped to engage with technology.
Government Response and Public Expectations
The Ministry of Finance, tasked with overseeing the funding and distribution alongside other relevant agencies, has yet to issue an official statement on the VNeID app’s technical issues. However, the urgency of the situation is clear, with the initial directive from Prime Minister Pham Minh Chinh mandating that arrangements be made before August 29—a deadline that has already passed for many still awaiting access to their gifts.
Public frustration, while palpable, is tempered by an understanding of the initiative’s intent. The cash gift, though modest at VND100,000 per person, carries symbolic weight during a time of national pride. For many families, particularly in economically strained regions, the amount offers a small but meaningful boost to household budgets during the holiday season. Yet, the delivery mechanism’s shortcomings risk overshadowing the gesture, turning a moment of unity into one of logistical discontent.
Broader Implications for Digital Transformation
The challenges faced by the VNeID app during the National Day cash gift distribution are a microcosm of the broader hurdles Vietnam must overcome in its journey toward a fully digital economy. The government has made significant strides in recent years, with initiatives like the National Digital Transformation Program aiming to digitize public services by 2025. According to reports from local outlets, over 50% of administrative procedures are now available online, a marked improvement from a decade ago.
However, digital transformation is not merely a matter of infrastructure but also of equity and resilience. The VNeID outages underscore the need for robust systems capable of handling peak usage, as well as contingency plans to ensure that no citizen is left behind due to technological barriers. As Vietnam continues to integrate digital tools into governance, addressing issues of scalability, user education, and accessibility will be critical to maintaining public trust.
Economically, the cash gift program itself reflects Vietnam’s commitment to social welfare amid ongoing recovery from global economic pressures. The allocation of VND10.7 trillion for this initiative, while a small fraction of the national budget, signals the government’s willingness to invest in direct support for its citizens. Whether this translates into tangible goodwill, however, depends on the efficiency of delivery—both digital and physical.
Looking Ahead: Lessons for Future Initiatives
As the September 15 deadline for the cash gift distribution approaches, the government faces a tight window to resolve the VNeID app’s issues and ensure that remaining funds reach citizens promptly. Beyond this specific program, the episode offers valuable lessons for future large-scale initiatives that rely on digital platforms. Stress-testing systems before deployment, expanding offline alternatives, and enhancing public communication around technical requirements could mitigate similar challenges down the line.
For now, millions of Vietnamese citizens await resolution, balancing anticipation for their National Day gift with patience for a digital system under strain. As the country celebrates its historic achievements, the path to a seamless digital future remains a work in progress, with each setback providing an opportunity to refine and improve.
