Operating principles of provision of credit information in Vietnam

Operating principles of provision of credit information in Vietnam (Internet image)

1. What is provision of credit information?

According to Clause 2, Article 3 of Decree 58/2021/ND-CP, provision of credit information refers to when credit information companies provide credit information products to users on the basis of collecting, processing, and storing credit information of credit information companies according to Decree 58/2021/ND-CP.

2. Operating principles of provision of credit information in Vietnam

The operating principles of provision of credit information include:

- Credit information companies shall provide credit information only after receiving certificate issued by the SBV.

- Provision of credit information must comply with regulations and law, ensure truthfulness, objectivity, and not affect legal rights and benefits of relevant organizations and individuals.

- Agreements and commitments in provision of credit information specified under this Decree must be made into records or other equally legitimate forms as written documents as per the law.

- Credit information companies shall only collect credit information of debtors from participating organizations when the debtors allow the participating organizations to provide their credit information according to Annex I attached hereto.

- Principles of providing credit information products:

+ Credit information companies shall provide credit information products according to Article 21 of Decree 58/2021/ND-CP;

+ Credit information companies shall only provide credit information products which contain identification information of debtors to other participating organizations under consent of the debtors under Annex II attached hereto, except for cases where the organizations receive consent of the debtors according to Clause 4 of Article 4 of Decree 58/2021/ND-CP;

+ Credit information companies shall not provide credit information products which contain identification information of debtors to other organizations and individuals under Point dd Clause 1 Article 21 of Decree 58/2021/ND-CP.

(Article 4 of Decree 58/2021/ND-CP)

3. Restrictions in provision of credit information service in Vietnam

According to Article 6 of Decree 58/2021/ND-CP, restrictions in provision of credit information service include:

- Do not illegally collect, provide information classified as Government secret.

- Do not intentionally deviate credit information thereby affecting legal rights and benefits of relevant organizations and individuals.

- Do not exchange credit information, or provide credit information for the wrong individuals, for the wrong purposes or illegally.

- Do not exploit provision of credit information for personal gain, violating benefits of the Government, or legal rights and benefits of organizations and individuals.

- Do not obstruct legal collection and use of credit information of organizations and individuals.

4. Entitlement of regulatory agencies in Vietnam

According to Law on State Bank of Vietnam 2010, SBV shall perform state management for provision of credit information service according to Law on State Bank of Vietnam, including:

- Drafting, requesting competent authority to issue or issuing within their competence legislative documents on provision of credit information service;

- Issuing, reissuing, revising, and revoking certificate of credit information companies;

- Inspecting and supervising provision of credit information service of credit information companies.

(Clause 1, Article 8 of Decree 58/2021/ND-CP)

Thanh Rin

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