In the era of digital transformation, electronic signatures have become an essential tool that enables businesses and individuals to sign documents quickly, securely, and legally. But what exactly is an electronic signature? Does it have legal validity? How can it be created and used? This article provides a comprehensive overview, covering the definition, legal framework, and practical applications of electronic signatures.
What Is an Electronic Signature?
An electronic signature is data created in electronic form that is attached to or logically associated with a data message to identify the signer and indicate their consent to the contents of the document.
Unlike handwritten signatures on paper, electronic signatures are used in digital environments, allowing parties to sign contracts, approve documents, and conduct online transactions without meeting in person.
Today, electronic signatures are widely used for:
- Signing electronic contracts.
- Signing electronic employment contracts.
- Signing electronic invoices.
- Approving HR documents.
- Signing internal corporate documents.
- Conducting transactions with government authorities.
In simple terms, electronic signatures provide the foundation for businesses to digitize document signing and authentication processes, gradually replacing traditional paper-based signatures.
What Is a Digital Signature?
Many people use the terms electronic signature and digital signature interchangeably. In reality, however, a digital signature is a specific type of electronic signature that provides a higher level of security and authentication.
A digital signature is an electronic signature created using Public Key Infrastructure (PKI) technology. It relies on a pair of cryptographic keys—a private key and a public key—along with a digital certificate issued by a licensed digital signature certification service provider.
When a document is signed using a digital signature:
- The signer’s identity is authenticated.
- Any modification made after signing can be detected.
- The document’s integrity is protected against unauthorized changes.
- The signature can be verified by the recipient or competent authorities.
Today, digital signatures are widely used in transactions that require a high level of legal assurance, including:
- Signing electronic contracts.
- Signing electronic employment contracts.
- Signing electronic invoices.
- Filing and submitting electronic tax declarations.
- Conducting transactions with government authorities.
- Approving corporate documents and records.
Thanks to their robust authentication mechanism, digital signatures have become the most widely adopted form of electronic signature for businesses undergoing digital transformation.
What’s the Difference Between a Digital Signature and an Electronic Signature?
Although closely related, electronic signatures and digital signatures are not the same. An electronic signature is the broader concept, while a digital signature is a type of electronic signature that uses cryptographic technology to authenticate the signer’s identity.
| Criteria | Electronic Signature | Digital Signature |
| Definition | A method of verifying the signer in an electronic environment. | A type of electronic signature based on PKI technology. |
| Technology | Can use various authentication methods. | Uses public-key and private-key cryptography. |
| Security Level | Depends on the authentication method used. | High level of security with strong protection against forgery. |
| Legal Validity | Legally recognized when statutory requirements are met. | Commonly used for transactions requiring a high level of legal assurance. |
| Applications | Document signing, contract execution, and internal approval workflows. | Electronic tax filing, electronic invoicing, electronic contracts, and transactions with government authorities. |
Does an Electronic Signature Have Legal Validity?
Yes. Electronic signatures are legally recognized in Vietnam, provided they satisfy the requirements set out in the Law on Electronic Transactions and other relevant legal regulations.
To be legally valid, an electronic signature must:
- Accurately identify the signer.
- Demonstrate the signer’s consent to the contents of the document.
- Ensure that the signed data remains unchanged, or that any subsequent modifications can be detected.
- Be created and stored in accordance with applicable legal requirements.
When these conditions are met, an electronic signature can replace a handwritten signature in various transactions, including:
- Electronic contracts.
- Electronic employment contracts.
- Electronic invoices.
- HR records and personnel documents.
- Internal corporate documents.
In addition to ensuring legal compliance, electronic signatures help businesses streamline document processing, reduce administrative turnaround time, and lower printing and storage costs.
Latest Regulations on Electronic Signatures for Electronic Employment Contracts (Effective from 2026)
Effective July 1, 2026, the execution and management of electronic employment contracts are governed by Decree No. 337/2025/ND-CP and Circular No. 08/2026/TT-BNV, providing a clear legal framework for organizations implementing electronic employment contracts nationwide.
According to Article 6 of Decree No. 337/2025/ND-CP, both the employer and the employee must use digital signatures when signing an electronic employment contract.
In addition, the contract must include a timestamp in accordance with the regulations governing electronic transactions to:
- Accurately verify the signing date and time.
- Ensure the integrity of the signed data.
- Strengthen the document’s evidential value in the event of disputes.
How to Create an Electronic Signature
Creating an electronic signature is now straightforward with the help of electronic signing platforms or digital document management solutions.
The typical process includes the following steps:
- Choose an electronic signing platform or a digital signature service provider that meets your business needs.
- Verify the signer’s identity in accordance with the platform’s or service provider’s authentication requirements.
- Upload the document to be signed and specify the signature placement.
- Sign the document electronically using a digital signature or another supported authentication method.
- Store and share the signed document. The system records the signing time, signer information, and document status for future reference and audit purposes.
When implementing electronic signatures within an organization, businesses should prioritize solutions that seamlessly integrate with HR management systems, electronic contract platforms, and approval workflows to optimize operational efficiency.
Applications of Electronic Signatures in Businesses
Electronic signatures not only replace handwritten signatures but also enable businesses to digitize their entire document approval and storage processes.
Common applications include:
- Signing electronic contracts: Shorten contract execution time with customers and business partners.
- Signing electronic employment contracts: Complete recruitment and employee onboarding processes remotely.
- Managing HR records: Approve personnel decisions, employee requests, and contract appendices within a unified system.
- Signing electronic invoices: Meet tax authority requirements while standardizing accounting processes.
- Approving internal documents: Process proposals, decisions, workflows, and standardized forms quickly without circulating paper documents.
Integrating electronic signatures with enterprise management systems also helps reduce errors, improve transparency, and ensure complete traceability of the signing history.
SunFish HR is currently collaborating with VNPT to integrate VNPT eContract and VNPT SmartCA into its HR management platform. This enables businesses using SunFish HR to sign electronic employment contracts, HR records, and internal documents within a single unified system—streamlining workflows while ensuring compliance with legal requirements.
Frequently Asked Questions (FAQ)
How do I register for an electronic signature?
Businesses and individuals can register through licensed digital signature certification service providers. Once identity verification is completed, users will be issued a digital certificate for use.
When is a personal electronic signature used?
A personal electronic signature is commonly used to sign contracts, documents, conduct online transactions, or complete electronic administrative procedures in accordance with applicable regulations.
How do I create an electronic signature in Microsoft Word?
Microsoft Word allows users to insert an image of a signature or create a Signature Line. However, to ensure legal validity, users should apply a digital signature through a certified electronic signing platform.
Can I create an electronic signature for Word and Excel files?
Yes. Many digital signing solutions support signing Word, Excel, and PDF documents directly while preserving the integrity of the signed files.
What is an electronic invoice digital signature?
An electronic invoice digital signature is a digital signature used by businesses to authenticate and issue electronic invoices in compliance with Vietnam’s regulations on taxation and electronic invoicing.
How do I update a digital signature on the eTax system?
Businesses need to log in to the Vietnam eTax Portal, update their new digital certificate information, and complete the authentication process according to the instructions provided by the tax authority or their digital signature service provider.
