-
 In
Vietnam there is a legal framework for credit information
reporting, specifically in regulations about the exchange and
provision of information services regarding monetary and banking
activities among financial institutions, organizations,
individuals and the SBV. The CIC was set up under this legal
framework as a public registry, started operations as part of
the SBV's Credit Department, and became an independent unit in
1999. CIC's main functions include the collection, analysis,
forecasting, processing and provision of information on
enterprises and their monetary and banking operations to
relevant parties.
However, given that the market demand for credit and related
information is growing very rapidly and that we urgently need to
meet the global requirements for integrating and reporting
credit information, CIC cannot work alone. Vietnam's credit
information reporting industry is small and starting from a
basic level. There is major informational asymmetry that
negatively affects the development of our financial markets. It
is estimated that there are potentially over 25 million
individual customer files, credit card accounts and consumer
loans, which CIC alone cannot serve. By 2010, the forecast is
that CIC will only be able satisfy only 10 million clients, of
whom 500,000 will be corporate customers, and the rest
individuals. It is time to consider private credit bureaus that
can better serve the rest of the market.
From now to 2010, CIC intends to cooperate with private credit
bureaus to better serve this high volume industry. We must
closely work together to create a sound credit environment in
Vietnam.
Mr. Pham Cong Uan, Deputy Director,
Credit Information Center (CIC)
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In recent years, Vietnam's banking sector has undergone
tremendous reform and made great achievements towards regional
and international integration. Credit, especially for SMEs and
consumers, has demonstrated sustained growth at average rate of
20% per year. This rapid credit growth in both product
diversification and volume has presented commercial banks and
non-bank financial institutions with great challenges,
particularly in terms of improving credit appraisal skills,
speeding up credit decision making processes, and ensuring good
risk management practices to maintain and improve the quality of
loan assets.
By collecting and sharing credit information from and among
lending institutions, the CIC, under the SBV, has significantly
helped Vietnam's banking sector improve the quality of its
credit activities in terms of safety, efficiency, sustainability
and risk management. However, the very fast growth of consumer
credit, particularly credit cards, has raised the demand for
credit information to a point where it outstrips CIC's current
capacity and structure as a public credit registry.
Recently, the SBV has been receiving technical assistance from
the International Finance Corporation in mapping out a strategy
framework for developing private credit bureaus. The SBV is
considering how to coordinate the activities of both the public
credit registry and private credit bureaus so as to best serve
the increasing demand of Vietnam's banking sector in a
sustainable manner. However, credit information activities are a
very sensitive area; they are related not only to the rights and
responsibilities of credit institutions, but also to the privacy
and secrecy of businesses and individuals. This is a fairly new
area for Vietnam, so we need to understand and refer to
international best practices as we select a model that is
suitable for both our country's context and global standards.
Mr. Phung Khac Ke, Deputy Governor,
State Bank of Vietnam
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