VNBA to draft code of conduct in debt collection activities

This is a concrete activity to implement Resolution No. 181/NQ-HDHH dated April 16, 2025 of the Council of Vietnam Banks Association, agreeing on the policy of developing and promulgating a specialized code of conduct in the field of debt collection. This code is one of two key documents deployed by VNBA with technical support from the International Finance Corporation (IFC), in addition to the Handbook on Out-of-Court Debt Restructuring.

Speaking at the meeting, Dr. Nguyen Quoc Hung emphasized: Debt collection is a big challenge for credit institutions in the context of both promoting credit growth and controlling bad debts. Some unpleasant incidents in the debt handling process have affected the image of the industry, increasing social pressure on debt collection activities.

According to Dr. Hung, the Code of Conduct will be an internal guidance document, not a legal document, aiming to build civilized and transparent standards of conduct, in accordance with current regulations and international practices. Unlike the previously issued General Code of Conduct, this Code of Conduct focuses on debt collection, an activity that is prone to disputes and affects the reputation of credit institutions.

On that basis, VNBA determined that the development of a specialized code of conduct in the field of debt collection is an urgent requirement. This will be an internal guidance document, not a legal document, helping credit institutions to review the debt handling process in a transparent, civilized and legally compliant manner. The goal of the Code of Conduct is to standardize behavior, enhance professionalism, and at the same time strengthen the trust of customers and society in the humanity of the banking system.

Accordingly, the code will be developed based on international experience and professional recommendations from IFC. Lawyer Nguyen Hung Quang - Director, legal expert of IFC, will directly coordinate with the Drafting Team to complete this code.

At the meeting, Lawyer Nguyen Hung Quang - Director, legal expert of IFC, said that the code is being developed based on international practice and revolves around three pillars: (1) Clearly defining what can and cannot be done; (2) Establishing a monitoring and compliance mechanism; (3) Transparent complaint receiving and handling process. In addition, the code also provides specific guidance on posture, communication language and principles of customer information confidentiality.

In particular, the draft stipulates that employees are strictly prohibited from receiving gifts or money from customers to delay debt repayment obligations, and does not allow direct cash collection to ensure transparency and safety. Payment must be made through official payment documents or instruments.

In addition, the draft also emphasizes the role of customer complaints as an important feedback channel, helping credit institutions improve processes and enhance service quality. At the same time, it is recommended to periodically verify customer information to ensure interaction with the right subjects, in the context that personal information can change frequently.

At the meeting, credit institutions said that each unit already has a code of conduct in debt collection, however, representatives of banks and consumer finance companies all agreed that the issuance of a Common Code of Conduct is important and necessary content and that all members of the Vietnam Banking Association must participate. Representatives of banks and consumer finance companies also proposed to clearly distinguish the debt collection process for individual and corporate customers; at the same time, assign specific tasks in the Drafting Team according to professional areas to ensure efficiency and responsibility.

Vietcombank representative said that during the drafting process, it is necessary to fully regulate both personal debt collection and corporate debt collection; at the same time, it is necessary to assign clear and specific tasks so that the implementation process can achieve the highest efficiency.

Meanwhile, VietinBank representative said that the Code of Conduct also needs to promote the building of corporate culture in the process of debt collection implementation to be both civilized and effective.

Meanwhile, HD SAISON representative suggested that it is necessary to add regulations allowing debt collection officers to use legal authorization documents or letters of introduction when working with customers, in addition to work cards. Regarding information security, the delegate emphasized the need to provide specific guidance on situations where conflicts may arise between professional requirements and personal data protection regulations according to Decree 13/2023/ND-CP and the Law on Personal Data Protection to be issued soon.

Delegates also said that the draft Code of Conduct has absorbed the spirit of Decree 43/2016/ND-CP, adding specific regulations on the time, place and form of contact with customers. One of the principles emphasized is to ensure respect for personal space, especially for those with special health conditions or difficulties in accessing. Many opinions also said that the Code of Conduct needs to reflect the core values of corporate culture such as integrity, intelligence, dedication, understanding and adaptability. Inviting staff directly involved in the profession to participate in developing the Code of Conduct will help increase practicality and enforceability. However, this participation also needs to be selected in accordance with capacity, avoiding overload or formality.

At the meeting, Ms. Chu Thi Quynh Hoa - Deputy Head of the VNBA Legal and Professional Affairs Department was assigned as the Head of the Drafting Team. At the same time, it was proposed to establish an additional Working Group to provide in-depth support, ensuring progress and quality in the process of completing the Code of Conduct.

Dr. Nguyen Quoc Hung requested the Head of the Drafting Team to assign tasks to each member, and at the same time set out a specific roadmap for the time to complete the draft Code of Conduct. The draft Code of Conduct will be implemented through many steps of collecting opinions from member organizations and reviewing, editing, and completing. After reaching a consensus, the Drafting Team will continue to seek opinions from legal agencies and the Legal Department of the State Bank to complete the Code of Conduct.

Concluding the meeting, Dr. Nguyen Quoc Hung affirmed that the Code of Conduct in debt collection activities not only aims to protect the legitimate rights and interests of customers and credit institutions, but also aims to spread a positive, professional, and humane image of the banking industry. This is a common task, requiring commitment and substantial contributions from relevant parties. Dr. Nguyen Quoc Hung expressed his wish to receive active and responsible participation from all members of the Drafting Committee and member organizations in the process of developing the Code.

T.Đ