IFC helps develop Vietnam’s financial market
The recent signing of the Cooperation Agreement marks the start of a second phase of technical assistance that will target further reforms in the legal framework for the secured transactions registry and support the procurement, set-up, and management of the nation’s first web-based registry system. The project will run from August 2008 to December 2009.
According to Nguyen Thuy Hien, NRAST Director, the registry system, the most modern in Southeast Asia, will enable every individual and organisation to do secured transactions registration and get registration information as quickly and easily as possible. The project will help the business community increase access to credit, reduce loan collection costs, and expedite the loan collection process,” says Mrs Hien.
Margarete O. Biallas, Programme Manager of IFC Mekong Private Sector Development Facility (MPDF)’s Access to Finance Programme, states, “We are pleased to continue to support MOJ develop a legal framework and services that will satisfy the lending needs of Vietnam’s various market segments. The legal reforms that will have opened up collateral-based lending, coupled with an effective online registry system, will enhance the flow of information and benefit all involved”.
During the first phase, IFC MPDF analysed Vietnam’s lending environment through a baseline survey of the country’s financial sector. The findings enabled MOJ to better understand the concerns of the country’s lending institutions, as well as the issues facing the private sector in accessing credit. A second survey will be conducted at the end of Phase II in order to measure the impact of technical assistance on reforms in the legal framework and registration process. It will also determine the value-added from the operation of the web-based registry on increasing access to credit. The findings will be used to measure the enforceability of legal and institutional reform, and will also serve as the basis for recommendations for further improvements. (VOV)
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