In the context of businesses increasingly owning large amounts of data, the problem is not only in quantity but also in quality, connectivity and reliability of data. This is also an increasingly important factor for international investors when evaluating Vietnamese businesses and markets.
Lao Dong Newspaper had an interview with Mr. Nguyen Minh Tu - General Director of CRIF D&B Vietnam - about data quality, risk management and the ability to attract high-quality capital flows.
When approaching the Vietnamese market, what types of business data do foreign investors usually care about?
Mr. Nguyen Minh Tu: There are three key data groups. The first is legal data, first of all, it must verify legal status, the existence of the enterprise and information about the final beneficiary owner (UBO). These are the first information appraised by international investors.
The second is financial data and data reflecting the actual transactions of the enterprise that investors can access and independently control.
Third is data related to green capital flows and environmental, social and governance (ESG) standards. This is a group of factors that are increasingly of interest to international investors. However, data on green capital and ESG in Vietnam is currently lacking, while data sources in general are still relatively scattered.
What problems does data dispersal pose to investors?
Mr. Nguyen Minh Tu: Foreign investors can seek information from management agencies such as business registration agencies, foreign investment management agencies or financial agencies. However, the data infrastructure between agencies is still isolated, not connected and interconnected to create a complete data ecosystem.
It can be imagined as data "islands" existing in parallel but without connections. This is an issue that needs to be improved if investors want to be more facilitated when participating in the Vietnamese market.
What is the role of data transparency in attracting capital?
Mr. Nguyen Minh Tu: Vietnam has a very large need for financial resources for infrastructure development, especially long-term loans and credit sources. To mobilize these resources, information transparency is a very important condition.
Transparency of business data in particular and the economy in general will build trust, provide an authentication database for international investors to confidently participate and accompany the Vietnamese market in the long term.
At the business level, how can data truly become a tool to serve business operations and risk management?
Mr. Nguyen Minh Tu: Businesses should start from the activities that are taking place every day, because the operation process has continuously generated data. After that, businesses can find more data sources that are really necessary for core operations, instead of scattered investment.
When there is a relatively clean source of data, businesses can use analytical tools or invest in AI to exploit data more effectively.
How can data help businesses identify risks early?
Mr. Nguyen Minh Tu: Customer and supply chain monitoring cannot be carried out only once when starting cooperation, but needs to be carried out periodically by month, quarter and year.
In addition to financial indicators, businesses can monitor early warning signals such as whether partners have tax or social insurance debts; whether there are continuous changes in senior management personnel; or whether order sources have decreased significantly.
These fluctuations can all become input data for businesses to assess and proactively manage risks.
