S&P downgraded American credit rating and caused global impact in recent days. It shows that credit rating is vital to global socio-economic development. However, it remains new to Vietnam. On the occasion of the announcement by VCCI of the Vietnam Credit Rating Annual Report 2011, Vietnam Business Forum interviewed Mr Nguyen Van Lang, Vice Minister of Science and Technology on the issue. Huong Ly reports.
How do you evaluate the report on credit ranking this time?
It is indeed a great effort to make a report on business credit indexes for the second time as the work is still new to Vietnam. There are still some shortcomings due to inevitable difficulties. I believe it will be better from 2012 onwards.
I think the number of samples must be increased as some hundreds businesses cannot fully represent thousands of businesses.
Have you any remark on the norms of credit rating this time?
The credit rating should focus on important economic sectors that are vital to the future of the nation. I think the most important thing for a nation is to develop technology so as to promote production and turnover. The report this time is quite appropriate as it based on technology to evaluate 100 big enterprises including 20 banks in Vietnam.
However, it is necessary to compare with regional countries and APEC economies, or in a smaller scale, between businesses to find which one is leading in the sector, the Number One in software or other production.
How can we verify the correctness of credit rating?
First, it is necessary to compare our rating with those of the world famous organizations and magazines. If our rating is close to theirs, it is reliable.
Second, we must make Vietnamese businesses fully aware of the value of rating.
Third, State officials and policy makers must recognize the rating and the methodology of the report.
Finally, mass media must intervene to make the whole society accept the rating.
How to make the rating acceptable to the community?
Although there are several rating methods and many evaluators, for Vietnam, the rating must be: objective, scientific and truthful. Furthermore, there must be appropriate rating methods and norms as well as participation of more organizations sharing common view instead a single organization.
Is it necessary to make rating a standard and ask an organization to implement it?
I think report on Vietnam credit indexes is under the sponsorship of the President’s Office and implemented by VCCI. VCCI represents Vietnamese businesses and continues its work on provincial competition index. Other countries have also asked their chambers of commerce and industry to conduct credit rating. However, concerned rating organization must continue to promote its own brand.
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