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IFC Helps Improve Access to Credit for Vietnam’s Private Sector

Ho Chi Minh City, Vietnam, April 13, 2010 —IFC, a member of the World Bank Group, is helping Vietnam improve access to credit for micro, small, and medium enterprises and consumers by supporting the State Bank of Vietnam to develop a legal framework for credit information activities.
IFC and the State Bank of Vietnam’s Credit Information Center have organized workshops in Ho Chi Minh City on April 13 and in Hanoi on April 14, 2010, to present key elements of the newly enacted decree on Credit Information Activities. The decree makes borrowers’ credit history available at private credit bureaus, helping accelerate the lender’s loan decision and significantly reducing the lending risk. This will benefit not only the lenders but also small and medium enterprises through more readily available credit and lower interest rates.
“In a country with a fast developing economy such as Vietnam, the consumer credit market has great potential to grow,” said Pham Cong Uan, Director of the State Bank of Vietnam’s Credit Information Center. “With support from IFC, the enactment of a Decree on Credit Information Activities on February 12, 2010 marked a milestone in the development of the legal framework for credit information activities in Vietnam and the credit information management of the State Bank of Vietnam.”
Effective from April 15, 2010, the decree governs credit information-sharing activities among banks, financial institutions, borrowers, and credit information companies.
“The decree, drafted with IFC’s advice, is expected to enable access to credit, and hence support the recovery of the Vietnamese economy,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand. “We are likely to see significant improvement in access to credit in the Vietnamese lending marketplace.”
In Vietnam, IFC’s advisory services are carried out in partnership with Finland, Ireland, the Netherlands, New Zealand, and Switzerland.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by improving access to finance for the private sector.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org .
About Credit Information Center
The Credit Information Center is a nonproductive affiliate of the State Bank of Vietnam. Its function is collecting, processing, storing, analyzing, and forecasting credit information with the aim of supporting State Bank management and providing banking information services in accordance with Constitution and State Bank’s regulations. For more information, visit www.cicb.vn .