DIGITALIZATION OF BENEFICIAL OWNERSHIP INFORMATION IN STATE-OWNED ENTERPRISES: CHINA’S EXPERIENCE AND LESSONS FOR VIETNAM

Abstract

The article aims to analyze the legal framework for transparency and digitalization of beneficial ownership (Beneficial Owner - BO) information in accordance with the standards of the Financial Action Task Force (FATF), while comparing the approaches of Vietnam and China in the context of digital transformation. The study employs legal analysis, comparative law, and synthesis of academic literature.

The research findings show that Vietnam has initially established a legal framework for BO and implemented digitalization of information through the enterprise registration system; however, the identification of substantive control and the utilization of BO data remain fragmented and not yet linked to risk management. Meanwhile, China has developed a data-driven governance model, integrating BO information into the national financial supervisory system. Based on the approach to BO grounded in substantive control, the article uses the criterion of “the ability to trace substantive control” as a measure to assess the effectiveness of information digitalization mechanisms. On that basis, the article proposes several directions for improving Vietnam’s legal framework, focusing on codifying the principle of substantive control, enhancing data interoperability, and using BO information as a governance tool for state-owned enterprises in the digital environment.