What is credit information? 07 Subjects of credit information use in Vietnam

What is credit information? 07 Subjects of credit information use in Vietnam (Internet image)

1. What is credit information?

According to Clause 2, Article 3 of Circular 03/2013/TT-NHNN, credit information means information on borrowers and information related to borrowers at credit institutions, foreign banks’ branches.

2. 07 Subjects of credit information use in Vietnam

Subjects of credit information use include:

(1) State management agencies use credit information products in direct service for professional operation on inspection, supervision, investigation, prosecution, trial, execution of judgments; social investigation and statistic and other purposes as prescribed by law. 

(2) Units of the State bank use credit information products in service for requirement on state management of the State bank

(3) Credit institutions, foreign banks’ branches use credit information services for searching customers, assessment on customers' solvency, credit risk control and other professional banking activities.

(4) Voluntary organizations use credit information services for customer assessment and other purposes as prescribed by law.

(5) Borrowers use credit information services for checking individual information and other purposes as prescribed by law.

(6) Apart from subjects specified in above clauses, if an organization or individual use credit information services of a borrower, it is required to have consensus in writing of such borrower. 

(7) Foreign credit information organizations are allowed to access credit information products concerning enterprises, including information published in accordance with applicable laws, according to the memorandum of understanding, cooperation agreement or service contract signed with CIC.

(Article 10 of Circular 03/2013/TT-NHNN, amended in Clause 4, Article 1 of Circular 27/2017/TT-NHNN)

3. Prohibited acts regarding credit information activity in Vietnam

Specifically, in Article 6 of Circular 03/2013/TT-NHNN, prohibited acts in credit information activity include:

- Illegally collect, supply, use information in the State's secret scope or list.

- Intentionally falsify content of credit information, impacting to lawful rights and interests of relevant organizations, individuals.

- Illegally supply credit information for unrelated organizations, individuals.

- Misuse credit information activity for individual interest, infringe benefits of the state, lawful rights and interests of organizations, individuals.

- Obstruct organizations, individuals in lawful activity of credit information collection and use.

- Supply credit information products for subjects not be specified in Article 10 of Circular 03/2013/TT-NHNN.

4. Principles of credit information activity in Vietnam

Principles of credit information activity specified in Article 5 of Circular 03/2013/TT-NHNN (amended in Clause 2, Article 1 of Circular 27/2017/TT-NHNN) are as follows:

- Comply with applicable laws on protection of state secrets, information privacy and other relevant laws when providing or using credit information.

- Ensure honesty and objectiveness in credit information activity.

- Ensure rights and benefits of organizations and individuals in provision of credit information, use of credit information products.

5. Purpose of credit information activity in Vietnam

According to Article 4 of Circular 03/2013/TT-NHNN, credit information activity aims to create a database of national credit information in order to support:

- The State bank of Vietnam (hereinafter referred to as the State bank) in implementation of function on management and supervision of banking activity, contributing in assurance for safe Vietnam bank system.  

- Credit institutions in risk prevention and limitation in business activity.

- Borrowers in accessing credit capital source of organizations of Credit extension, contributing in promotion for socio-economic development.

Thanh Rin

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