Nguyen Quang Thuan, CEO from data analysis firm StoxPlus (Photo courtesy of StoxPlus) Hanoi (VNS/VNA) - Credit-riskmanagement should be enhanced to make sure business information was transparentand reliable to improve Vietnam’s trade, economic and investment conditions,according to Nguyen Quang Thuan, CEO from data analysis firm StoxPlus.
Thuan said credit-risk management was normallyreferred to as a core business activity done only by the banking-financialsector. However, he said potential risks may also pose threats to the country’strade and investment environment if they were not fully addressed.
Transparent business and economic informationand data would help strengthen international trade between Vietnam and othereconomies, draw more attention from foreign investors, improve the performanceof local businesses and help them access foreign capital markets, Thuan said ata workshop on January 11.
At the moment, “the reliability of data inputsin Vietnam is still weak given the fragmented data-source infrastructure andpoor financial reporting environment,” Thuan said.
In addition, better credit risk and businessdata management would provide local banks better insight of the finance andoperation of local businesses, he said.
“As banks conduct insightful reviews of companyprofiles, they are able to determine whether the businesses are strong enoughand whether lending rates should be high or low based on the financial risksthat the business may encounter,” Thuan said.
Credit risk and data management would help localauthorities prevent foreign companies from transfer pricing, which is used toavoid taxation, and improve the quality of foreign investment in the economy,he added.
In fact, there was a big difference between acompany’s financial statement sent to the tax authority and the one sent tocredit institutions for making loans, Thuan said.
“We find out in some cases that if companies donot issue tax invoices for the products sold in the market, they do not have torecord the transactions in the financial reports for tax purposes to avoidbusiness income tax. But they can record the transactions in the financialstatements submitted to the banks for credit purposes.”
Therefore, Thuan urged authorities to empowerindependent third-party vendors that have technological advances, such asStoxPlus, to collect and analyse financial and economic data so that theinformation was transparent and reliable for investors.
Agreeing with StoxPlus CEO, World Bank Vietnamlead financial sector specialist Alwaleed Alatabani said that the local authoritiesmust compel companies to improve their financial statements and reports to meetinternational standards.
He said that local authorities also needed towork with financial institutions on corporate earnings reports so that thecountry would provide better business environment and give foreign investorsbetter insight into the Vietnamese economy.-VNA
Thuan said credit-risk management was normallyreferred to as a core business activity done only by the banking-financialsector. However, he said potential risks may also pose threats to the country’strade and investment environment if they were not fully addressed.
Transparent business and economic informationand data would help strengthen international trade between Vietnam and othereconomies, draw more attention from foreign investors, improve the performanceof local businesses and help them access foreign capital markets, Thuan said ata workshop on January 11.
At the moment, “the reliability of data inputsin Vietnam is still weak given the fragmented data-source infrastructure andpoor financial reporting environment,” Thuan said.
In addition, better credit risk and businessdata management would provide local banks better insight of the finance andoperation of local businesses, he said.
“As banks conduct insightful reviews of companyprofiles, they are able to determine whether the businesses are strong enoughand whether lending rates should be high or low based on the financial risksthat the business may encounter,” Thuan said.
Credit risk and data management would help localauthorities prevent foreign companies from transfer pricing, which is used toavoid taxation, and improve the quality of foreign investment in the economy,he added.
In fact, there was a big difference between acompany’s financial statement sent to the tax authority and the one sent tocredit institutions for making loans, Thuan said.
“We find out in some cases that if companies donot issue tax invoices for the products sold in the market, they do not have torecord the transactions in the financial reports for tax purposes to avoidbusiness income tax. But they can record the transactions in the financialstatements submitted to the banks for credit purposes.”
Therefore, Thuan urged authorities to empowerindependent third-party vendors that have technological advances, such asStoxPlus, to collect and analyse financial and economic data so that theinformation was transparent and reliable for investors.
Agreeing with StoxPlus CEO, World Bank Vietnamlead financial sector specialist Alwaleed Alatabani said that the local authoritiesmust compel companies to improve their financial statements and reports to meetinternational standards.
He said that local authorities also needed towork with financial institutions on corporate earnings reports so that thecountry would provide better business environment and give foreign investorsbetter insight into the Vietnamese economy.-VNA
VNA
