The Ministry of Justice officially launched an online registration system for secured transactions in Hanoi on Dec. 6 with support from the International Finance Corporation (IFC), a member of the World Bank Group.
The system is expected to start operating early next year. It is aimed at improving Vietnam's access to credit for micro, small and medium enterprises and consumers. In addition, it will accelerate lenders' loan decisions and minimise lending risks.
"Loan access is listed in the top five most troublesome procedures for enterprises in a study by the Vietnam Chamber of Commerce and Industry. The system will bring great benefits for companies to cut costs and time," said Dang Anh Tuan, deputy director of the VCCI's legislation department.
"The system will help raise transparency in administrative processes and will impact positively the country's business environment," he said.
This would also force local firms to apply information technology to business operations more effectively, he added.
"Following the new decree on secured transactions registration paving the way for an online registry, the system marks a milestone in modernising Vietnam's financial infrastructure," said Nguyen Thuy Hien, vice minister of justice.
"Building on international best practices, the new registry helps streamline administration processes and develop a comprehensive and up-to-date national database of secured transactions," she said.
Currently, the system only focuses on secured transactions relating to machines, equipment, vehicles, stockpiled commodities and debts but experts say it should be expanded to a wider range of sectors such as real estate and maritime.
"The Ministry of Justice would coordinate with other relevant State bodies to continue developing the system to national standard and covering a series of sectors. The ministry hopes to continue receiving support from the IFC," Hien said.
Rachel Robbins, the IFC vice president and general counsel, said Vietnam had witnessed rapid economic growth and this new online model would help enterprises access credit faster and more efficiently.
This project is carried out in partnership with Finland, Ireland, the Netherlands, New Zealand, Switzerland, and FIAS and a multi-donor investment climate advisory programme under the World Bank Group./.
The system is expected to start operating early next year. It is aimed at improving Vietnam's access to credit for micro, small and medium enterprises and consumers. In addition, it will accelerate lenders' loan decisions and minimise lending risks.
"Loan access is listed in the top five most troublesome procedures for enterprises in a study by the Vietnam Chamber of Commerce and Industry. The system will bring great benefits for companies to cut costs and time," said Dang Anh Tuan, deputy director of the VCCI's legislation department.
"The system will help raise transparency in administrative processes and will impact positively the country's business environment," he said.
This would also force local firms to apply information technology to business operations more effectively, he added.
"Following the new decree on secured transactions registration paving the way for an online registry, the system marks a milestone in modernising Vietnam's financial infrastructure," said Nguyen Thuy Hien, vice minister of justice.
"Building on international best practices, the new registry helps streamline administration processes and develop a comprehensive and up-to-date national database of secured transactions," she said.
Currently, the system only focuses on secured transactions relating to machines, equipment, vehicles, stockpiled commodities and debts but experts say it should be expanded to a wider range of sectors such as real estate and maritime.
"The Ministry of Justice would coordinate with other relevant State bodies to continue developing the system to national standard and covering a series of sectors. The ministry hopes to continue receiving support from the IFC," Hien said.
Rachel Robbins, the IFC vice president and general counsel, said Vietnam had witnessed rapid economic growth and this new online model would help enterprises access credit faster and more efficiently.
This project is carried out in partnership with Finland, Ireland, the Netherlands, New Zealand, Switzerland, and FIAS and a multi-donor investment climate advisory programme under the World Bank Group./.
