Enterprises may possess valuable inventory yet face significant constraints in converting these assets into liquid capital to fund their production and business operations. Concurrently, commercial banks and credit institutions remain prepared to extend credit facilities, provided they receive absolute assurance that the pledged collateral physically exists, conforms to specified quantities, maintains its qualitative integrity, and remains under stringent oversight throughout the tenure of the loan.

Vinacontrol's Collateral Management Services provided establish an independent control mechanism over assets pledged to secure credit facilities. This system enables credit providers to mitigate exposure to default and operational risks while empowering borrowing enterprises to efficiently leverage their inventory to secure vital working capital.

Service Background

Collateral Management refers to the comprehensive process of verification, custody, monitoring, and control of physical commodities pledged by an enterprise as collateral for credit facilities.

Pursuant to the structured protocols mutually agreed upon by the lender, the borrower, and relevant stakeholders, Vinacontrol executes on-site warehouse management. This encompasses tracking all inbound, outbound, and inventory balance movements; inspecting storage and preservation conditions; and issuing independent reports throughout the collateralized period of the commodities.

Vinacontrol’s services enable clients to:

• Verify the physical existence of commodities at designated storage locations;
• Control and verify the quantity, volume, specifications, and physical condition of the assets;
• Track inbound, outbound, and inventory balance activities in accordance with approved protocols;
• Mitigate the risk of unauthorized movement, substitution, or release of collateral;
• Monitor storage and preservation conditions to prevent quantitative shrinkage and qualitative degradation;
• Detect discrepancies or early warning signs of collateral risk;
• Provide independent, objective data to facilitate loan disbursement and credit risk management.

Common Eligible Collateral

Vinacontrol manages a highly diversified range of commodities and assets.

Scope of Services

With nearly 70 years of experience in independent inspection and testing, along with a nationwide network, Vinacontrol is proud to be a pioneer in Collateral Management Services in Vietnam. We serve as a trusted bridge of trust, connecting banks and businesses in asset-backed and trade finance transactions.

1. Inventory Verification

• Checking the actual existence of the goods;
• Reconciling physical stock against warehouse records and ownership documents;
• Identifying classifications, batch numbers, shipping marks, and exact storage locations;
• Confirming if the assets meet the required criteria to be placed under custody.

2. Commodity Inspection

• Determining the exact quantity and weight/volume of the goods;
• Checking the quality, specifications, and physical condition;
• Taking samples and conducting laboratory testing when required;
• Assessing storage conditions that could affect the value of the assets.

3. Warehouse Supervision

• Evaluating the physical security of the warehouse and storage areas;
• Monitoring the segregation, identification, and preservation of the managed goods;
• Supervising to prevent loss, unauthorized substitution, or damage;
• Controlling physical access to the assets within our managed perimeter.

4. Collateral Monitoring

• Conducting regular or continuous inventory audits;
• Tracking all inbound, outbound, and inventory balances;
• Reconciling physical counts with warehouse ledgers and documents;
• Detecting and flagging any discrepancies or unusual stock movements.

5. Release Control

• Verifying all inbound and outbound warehouse documents;
• Controlling the release or transfer of goods strictly according to the pre-agreed protocol;
• Tracking the remaining stock balance after each authorized release;
• Issuing immediate alerts if the stock falls below the minimum required threshold.

6. Independent Reporting

• Providing physical inventory and stock balance reports;
• Providing reports on the quality and condition of the goods;
• Generating inbound and outbound transaction reports;
• Providing incident reports and risk notifications.