Eligibility for issuance of operation certificate of credit information companies in Vietnam

Eligibility for issuance of operation certificate of credit information companies in Vietnam (Internet image)

1. What is credit information company?

According to Clause 5, Article 3 of Decree 58/2021/ND-CP, credit information company refers to an enterprises established and operating according to the Law on Enterprises 2020 in order to provide credit information service according to Decree 58/2021/ND-CP.

Company name must consist of the phrase “thông tin tín dụng” (credit information).

2. Eligibility for issuance of operation certificate of credit information companies in Vietnam

Specifically, in Article 9 of Decree 58/2021/ND-CP, the eligibility for issuance of operation certificate of credit information companies is as follows:

- Having information infrastructure that satisfies the following minimum requirements:

+ Having at least 2 data transmission lines, each transmission line belongs to a separate service provider; and

+ Having information infrastructure that is capable of integrating and connecting to information systems of participating organizations; and

+ Having server systems located in Vietnam, computer software systems, and technical solutions that are capable of providing credit information for at least 5,000,000 debtors; and

+ Having information safety assurance solutions; and

+ Having disaster aversion measures to guarantee uninterrupted provision of credit information service for more than 4 working hours.

- Having charter capital of at least VND 30 billion.

- Having enterprise managers and members of Boards of Supervisors that satisfy the following requirements:

+ Enterprise managers and members of Boards of Supervisors have not been sentenced for any serious crime or worse, sentenced for possession charges without having their criminal records expunged;

Enterprise managers and members of Boards of Supervisors of credit information companies having certificate revoked (except for cases of revocation under Point d, Point dd, or Point e Clause 1 Article 14 of Decree 58/2021/ND-CP);

+ Chairpersons of Board of Directors, Chairpersons of Board of Members, and Chairpersons of companies having at least university graduate degrees and at least 3 years of working in financial, banking, accounting, auditing, or information technology sector;

+ Members of Board of Directors, members of Board of Members, and general partners having at least university graduate degrees with 50 of the individuals having at least 3 years of working in financial, banking, accounting, auditing, or information technology sector;

+ General Directors, Deputy General Directors having at least university graduate degrees and at least 2 years of holding enterprise managerial positions and operating in financial, banking, accounting, auditing, or information technology sector;

+ Members of Boards of Supervisors having at least university graduate degrees and at least 2 years of working in financial, banking, accounting, auditing, or information technology sector.

- Having business measurers and not conducting other businesses other than provision of credit information service.

- Having at least 15 participating organizations that are credit institutions, and branches of foreign banks (other than policy banks, cooperative banks, people's credit funds, and microfinance institutions). Participating organizations are under no commitment to provide credit information for other credit information companies.

- Having written agreement on provision of credit information and credit information products between credit information companies and participating organizations which include at least the following information:

+ Contents and scope of provided credit information;

+ Time, location, means of provision and transmission of information, data, and credit information products;

+ Principles, scope, and purposes of credit information products;

+ Obligations to notify and agree with debtors on using credit information of debtors;

+ Responsibilities of parties in revising and amending errors in updating, transmitting, processing, storing, extracting and using credit information;

+ Responsibilities of parties in reviewing, comparing, conducting quality control and storing credit information;

+ Responsibilities and cooperation of parties when revising errors of credit information of debtors;

+ Penalties for violations, settlement of disputes;

+ Effectiveness of agreements and unilateral termination of agreement implementation;

+ Other rights and obligations of parties in collecting, processing, storing and providing credit information.

3. Rights and obligations of credit information companies in Vietnam

* Rights of credit information companies

- Exchange credit information with other credit information companies in a manner satisfactory to Decree 58/2021/ND-CP and relevant law provisions;

- Enter into contracts with organizations and individuals on collecting, providing credit information, and charging fee for provision of credit information according to Decree 58/2021/ND-CP and relevant law provisions.

* Obligations of credit information companies

- Guarantee principles, conditions, contents of provision of credit information service throughout operation;

- Issue warnings to allow users to acknowledge the principles of using credit information products;

- Cooperate with participating organizations in detecting and dealing with errors in credit information; processing documents on rectifying credit information errors at request of debtors;

- Openly post price for provision of credit information according to Law on Prices and relevant law provisions;

- Publicize information according to Law on Enterprises 2020, Decree 58/2021/ND-CP, and relevant law provisions.

In addition, exercise other rights and obligations according to agreements with organizations, individuals specified under Decree 58/2021/ND-CP and relevant law provisions.

(Article 24 of Decree 58/2021/ND-CP)

Thanh Rin

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