return icon

'Black-credit' lenders pose serious threat to borrowers

Experts have repeatedly rung the alarm bell over black credit, which is causing serious consequences to families and society.



In August 2017, Nguyen Thi Be in HCMC borrowed VND7 million from Vu Duc Thinh, for which she had to pay VND310,000 a day in both principal and interest. Be, who was then in difficulties, made payments for 10 days and then fell into insolvency. Thinh told Be to pay VND13.5 million in total, but she couldn’t.

This started a succession of terrible days for her family. Thinh used all possible threats to demand debt payment. Shrimp paste, rotten frog heads and paint were thrown into Be’s house. The family felt worn down and depressed.

Under the threat, Be’s son, Nguyen Van Binh, 33, had to make a commitment to pay the debt of her mother within one week.

When Thinh did not receive the money, he went to Be’s house with his friend, Huynh Ba Thien An, on January 22, 2018 to throw shrimp paste into the house.

Binh, who was then sleeping, heard a loud noise on the roof and realized that Thinh had once again come to harass the family. This time Binh used a knife and slashed Thinh to death. After that, he cut An with the knife, causing 73 percent trauma.

When Binh was brought to trial, he admitted the murder, but said he was under unbearable coercion.

Other families have suffered as well.

In May 2020, in Chau Thanh District in Can Tho, family members discovered that N.M.K, born in 1993, was taking drugs to commit suicide.

They found out that the lecturer at a college in the locality had decided to commit suicide because he borrowed money at exorbitant interest rates via an app and could not pay the debt.

At first, K borrowed VND5 million, but since he could not pay the debt after seven days, the amount of debt increased day by day.

To ‘help’ K pay the debt, the app advised K to continue borrowing money via other apps. As a result, the total amount of money rose to VND200 million.

As the apps chased K to ask to pay debts, while strangers called to threaten and terrorize him, K quickly panicked and did not have the mind at work. Finally, the young man decided to see suicide as a way to free himself.

The Ministry of Public Security discovered 1,152 cases and 2,423 individuals or groups related to black credit from April 15, 2019 to April 15, 2020. It prosecuted 602 cases with 1,427 defendants, and imposed administration fines on 382 cases and 911 subjects.

Seeking ways to stop usury

Commercial banks have begun using Big Data and AI to assess clients’ reliability.


The Ministry of Public Security discovered 1,152 cases and 2,423 individuals or groups related to black credit from April 15, 2019 to April 15, 2020. It prosecuted 602 cases with 1,427 defendants, and imposed administration fines on 382 cases and 911 subjects.


TPBank, for example, uses technology to assess clients’ solvency, which allows it to shorten the time needed to consider clients’ applications for online loans without collateral from one week to 10 minutes, thus satisfying business demand for quick loans.

However, banks provide loans online without requiring mortgaged assets to businesses, and still don’t dare to provide loans to small business households and individuals, the clients with very high demand for day loans.

The high demand is attributed to the young population of working age accounting for more than half of the population. They have high financial demand, but face barriers when accessing official finance sources, especially people in rural areas.

This is the ‘fertile land’ for black credit. Meanwhile, the market remains unexploited by commercial banks, because banks’ high tech application is not strong enough.

While banks remain reluctant to exploit the market, some fintechs have moved one step ahead, entering the market and providing access to individuals and small business households.

Tima’s CEO Tran The Vinh said there are a lot of apps which provide online loans under the disguise of P2P lending. The lending activity is illegal and listed as black credit.

Analysts say that in order to settle the problem of black credit to the root, it is necessary to provide access to official financial sources. To do this, the Government needs to apply a sandbox, or a pilot legal framework, for fintechs to provide loans.

Fintechs in Vietnam are using technologies to analyze clients’ reliability before deciding to provide loans without requirements on collateral. They set credit limits suited to each client based on their solvency.

If borrowers can access official financial sources, black credit will have no more reason to exist.

Fiin CEO Tran Viet Vinh said state management agencies need to set a pilot legal framework for this type of lending to make the market transparent. The transparency will help keep borrowers away form black credit, and Vietnam’s fintechs will have more opportunities to develop in the home market.

The Government has instructed the State Bank of Vietnam to join forces with relevant ministries and branches to draft and propose a pilot mechanism to manage P2P and other payment modes which have not been legalized yet. 

T. Nhung - T. Khang

The poor, as well as businesses, fall into 'black credit' trap

The poor, as well as businesses, fall into 'black credit' trap

The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims.

P2P lending needs better management to avoid black credit

P2P lending needs better management to avoid black credit

The Ministry of Planning and Investment (MPI) has warned about the increasing use of foreign peer-to-peer (P2P) lending in Vietnam with potential risks of black credit.



Vietnamese become famous for gold-wearing ‘hobby’

The hobby of wearing gold all over the body has attracted the attention of the public, even foreign news sites.

Hue Festival 2022 opens with glamor show

The week-long Hue Festival 2022 was kicked off on June 25 evening by a unique art programme and Ao Dai (Vietnamese traditional gown) show.

Bach Long Glass Bridge - A news tourist attraction in Moc Chau

A glass-bottomed bridge named Bach Long (White Dragon) was recently inaugurated in Moc Chau and it has immediately become a new tourist attraction.

Vietnam among few countries totally re-open int’l tourism market

Vietnam is the only only Southeast Asian country that has reopened international tourism without any COVID-19 restrictions, the World Tourism Organization (UNWTO) said.

Foreign Ministry spokeswoman’s story of being a writer

Assistant to Minister of Foreign Affairs, Spokesperson of the Ministry of Foreign Affairs Le Thi Thu Hang says journalism not only means reporting information, but it also has the function of leading public opinion.

Another S.Korean airline resumes direct service to Khanh Hoa

An Air Seoul flight carrying 187 passengers from the Incheon international airport arrived at the Cam Ranh International Airport in Khanh Hoa Province on June 24.

Interest subsidy vs monetary loosening

Some recent reports have indicated that the monetary policy of the State Bank of Vietnam (SBV) is not in sync with the global trend.

Developers expect smoother LNG policy planning

In Vietnam, about 20 LNG-fired power projects are in the pipeline. Some of these programmes, however, have yet to identify a fuel source.

National Assembly Chairman arrives in Budapest for Hungary visit

A high-ranking delegation of the National Assembly (NA) of Vietnam led by NA Chairman Vuong Dinh Hue arrived in Budapest on June 25 afternoon (local time), beginning an official visit to Hungary.

Next Top model crowned Miss Universe Vietnam 2022

Ngoc Chau, the winner of Vietnam’s Next Top Model 2016, was crowned Miss Universe Vietnam 2022 at a grand finale held in Ho Chi Minh City on June 25 evening.

WB, FTSE Russell pledge regular coordination in upgrading Vietnam's stock market

Representatives of the World Bank (WB) and FTSE Russell have committed to further supporting Vietnam to build a sustainable stock market, particularly via regularly exchange and coordination in the market upgrading matter.

Regions, sub-regions must be linked for development

In 2004, the Politburo released Resolution No 39-NQ/TW on socio-economic development and assurance of national defense and security in the northern part and southern coastal area of the central region by 2010.

Ensuring information security for digital platforms the top priority

Deputy Minister of Information and Communications Nguyen Huy Dung stressed that ensuring information security for digital platforms must be considered the key task, inseparable from the digital transformation process.

Aircraft fuel price reaches 8-year high

The continued air petrol price increase has caused headaches to air carriers. Airfares change from day to day.


Exhibition spotlights Hue’s enameled bronze art