Falling in line with the common trend of the world economy, Vietnam economy also gets positive achievements in recent years. Whereas, the banking industry playing the role as vessel circulations in the economy, has been contributing much in the process of renovation.

Commercial banks are the important link in the operating process of the economy. Commercial banks are a combined industry, are currency and credit center, and the level to encourage the development of the economy. Therefore, the quality and the growth level of the capital and capital lending activities will have great impacts on the sustainable growth of the companies in particular, and on the overall economy in general.

Vietnam economy starts integrating into the world economy and participating in world and regional economic organizations such as ASEAN, WTO, and AFTA. These events have become the opportunities as well as the challenges for both the enterprises and the whole Vietnam economy. Integration leads to the severe competition among domestic and international companies. Sharp rivalry also leads to the risks in production process of the companies. The companies’ risk is the banks’ risk as well. Nowadays, credit risk is becoming a bulging problem and become the worry of commercial banks. As the result, “safe” must be the top principle in precluding risk. Especially, preventing credit risk is one of the important tasks of commercial banks in Vietnam. The bank that has efficiently risk precluding methods will ensure capital security and has advantage in competition in credit market.

Risk preventing is also the urgent issues of banking industry in Vietnam. In the past few years, activities of commercial banks must operate in accordance with market mechanism and innumerable credit risk, bringing about losses to the banking industry and the entire economy. Many commercial banks and credit organizations has very huge unprofitable debt ratio, even some banks must be bankrupt unless there is interference from the government.