StoxPlus & CIC: Key Messages from Conference "Credit Risk Management for Trade and Investment in Vietnam"

On 11 January 2018, StoxPlus and the National Credit Information Center of Vietnam (CIC) co-organize a conference on "Credit Risk Management for Trade and Investment in Vietnam" at Lotte Hanoi Hotel in Hanoi.

Participating at the conference included Deputy Head of the Central Economic Commission, Mr. Ngo Dong Hai and Deputy Governor of the State Bank of Vietnam, Mr. Nguyen Kim Anh and more than 200 delegates.

This is one of three seminars in the framework of the Second Vietnam Economic Forum organized by the Central Economic Commission of the Communist Party.

The workshop was successful and conveyed the following important messages to the guests, mainly representatives of businesses, investors at home and abroad.

First, risk management is not only vital to the banking system but also important for trade and investment as Vietnamese economy is too dependent on FDI and import / export. It is important for foreign investors investing in Vietnam, trading with Vietnamese businesses and being able to export to a million Vietnamese enterprises.

Second, the fact that business interruption due to risks from counterparty in supply / value chain management is greater than most people would think of. Studies in the US show that it can cut 37% of shareholder returns, decrease 7% in revenue and increase up to 11% in costs.

In fact, in Vietnam, the number of companies that have been closed and suspended has tended to increase even in the current good macroeconomic context, not to mention the fact that many businesses close down but they do not file bankruptcy under the Law!

Thirdly, Vietnamese enterprises have almost no information from their foreign counterparts and are completely dependent on bank guarantees or expensive hedging products. StoxPlus and Nikkei are willing to help Vietnamese businesses learn about, study and assess the credit risks of their foreign counterparts, as well as assist the Government in reviewing foreign investors for investment licensing procedures to reduce pending projects or big projects but no capacity.

Fourthly, we cannot have one-way fair trade transactions by always spreading the red carpet to foreigners, instead, we should improve both the flow of information for both Vietnamese businesses and investors who invest abroad. Currently, information is provided mainly through Vietnamese trade promotion agencies but with low efficiency, especially in the trend of data technology and big data today.

Fifthly, building business enterprise database is one of the six national key databases in the way to e-government in accordance with Decree 714/2015, which the Government of Vietnam is pursuing. Completing the database is also a prerequisite and it paves the way accessing finance for tens of millions of small and medium enterprises and micro-businesses in Vietnam. This is a priority that many international organizations such as WB are supporting Vietnam and is also a topic of APEC 2017.

Finally, many credit institutions want to develop credit channels for microenterprises in Vietnam but they do not know where to start without the application of data analysis and retail risk management system.

Stox Plus is proud to be associated with the National Credit Information Center of the State Bank of Vietnam in supporting the Central Economic Commission and other Government Ministries and Agencies to improve the business environment through the reform of the Information Infrastructure within the framework of Vietnam Economic Forum 2018 on January 11, 2018 in Hanoi! This is one of the three workshops which are "Technology, green energy, and sustainable development"; "Improving productivity in the context of industrialisation" and "Improving the business environment through credit risk management in trade and investment"

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