Hanoi, Vietnam, December 6, 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 Ministry of Justice in developing an online registration system for secured transactions.
With support from IFC, today the Ministry of Justice launched its online registration system for secured transactions to be operational in early 2011. Replacing the paper-based and time-consuming registration procedures, the new Web-based registry will make it much more efficient for lenders to register the debtor’s collateral.
“Following the new decree on secured transactions registration paving the way for an online registry, the system marks a milestone in modernizing Vietnam’s financial infrastructure,” said Nguyen Thuy Hien, Vice Minister of Justice. “Building on international best practices, the new registry helps streamline administrative processes and develop a comprehensive and up-to-date national database of secured transactions.”
The system will significantly reduce the processing time of secured transaction registration, helping accelerate the lender’s loan decision making and minimize the lending risk. This also will help improve access to credit for small and medium enterprises as a result of increasing the range of assets that can be registered as collateral, easier and faster registration, and reduction in cost of getting credit.
“In a country with a fast-developing economy such as Vietnam, the credit market for smaller enterprises has great potential to grow,” said Rachel Robbins, IFC Vice President and General Counsel. “Establishing the online registry is an important part of modernizing the financial infrastructure by promoting lending against a broader range of assets, including machinery and equipment, and expanding SME lending portfolios while reducing credit risks.”
IFC has been working with Vietnam’s Ministry of Justice and its National Registration Agency for Secured Transactions to improve the secured transactions system in the country, including the legal framework for a Web-based registration system of secured transactions, helping establish such a system and provide training and awareness-raising to promote lending against moveable assets like machinery and equipment. This project is carried out in partnership with Finland, Ireland, the Netherlands, New Zealand, Switzerland, and FIAS, the multi-donor investment climate advisory program under Investment Climate Advisory Services of the World Bank Group.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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