Home agency to provide business credit rating

Business credit rating has been required for long but there was no agency to do this until now. What is the reason for this?
4 years ago, we set up a credit rating plan to submit to the Governor. However, this was then a new, sensitive field in Vietnam. If it was not done well, the SBV, credit institutions and businesses would be negatively affected. Therefore, it was just a period for experiment.
2 years later, we obtained positive results, which served as basis for the Governor to issue Decision 473/QD-NHNN dated April 28, 2004 on approval of the plan, allowing the CIC to provide this service to SBV divisions and credit institutions only. However, after the plan was adjusted on June 21, 2006, the Governor permitted the CIC to rate businesses.

What is new in the decision?
There are more subjects to receive business credit rating report. That reflects significance of credit rating to economic development in Vietnam, especially when the country is going to join the WTO.
Those to have the report are SBV divisions, credit institutions and other requiring organizations. In particular, businesses which want to rate themselves can use our rating results for reference.

How are credit rating results important?
The CIC is reliable for businesses that want to have their performance rated. It is considered as a clinic for businesses. Credit rating is very important to businesses, especially when they apply for loan from credit institutions because it helps calculate the amount of money should be delivered.
 
The CIC planning establishment of a credit rating firm. Can you provide more information about this?
Presence of a credit rating firm is significant to improvement of infrastructures of the financial market in Vietnam. Many monetary institutions like WB, ADB and IMF have requested Vietnam to set up such a firm. Moreover, the Prime Minister Directive 21/2005/CT-TTg requires the SBV to soon carry out experiment of business credit rating to provide investors with business information.

What will be the major functions of the new firm?
It will provide business credit and business bond rating. First, the firm will help credit organizations issue right decision in loaning, better controlling risks, etc. Second, it will help investors and the securities market choose good investment portfolio, manage risks and facilitate capital mobilization. Third, it will help Vietnamese businesses to promote a good image in international integration. And last, the firm will also facilitate State management.

Source: VnEconomy, July 25