Several issues of public concern were mentioned during a press conference following the monthly Government meeting in Hanoi on June 2.

About 60-70 Chinese businesses have come to Vietnam to set up legal entities and provide loans at exorbitant interest rates under the names of Vietnamese businesses, according to Nextech president Nguyen Hoa Binh.

The State Bank of Vietnam (SBV) has issued a document requesting credit organisations and branches of foreign banks to expand credit activities serving production, business and consumption as part of efforts to limit “black credit”.

With an annual 20-30 percent growth rate, the consumer credit market has become an attractive sector.

Lieutenant General Le Dong Phong, Director of the Ho Chi Minh City Department of Policy, speaks to Thanh Niên (Young People) newspaper on his agency’s commitment to tackle ‘black credit’ in the city.

The Ministry of Public Security has been asked to tighten security for upcoming important events, including the Party Congress at all levels, according to Government Resolution No. 50/NQ-CP issued recently.

Prime Minister Nguyen Xuan Phuc has directed the Ministry of Information and Communications in co-ordination with the State Bank of Vietnam to develop a “mobile money” project.

The VND5 trillion credit package initiated by the State Bank (SBV) will be ineffective if it is not managed well, analysts warn.

 VietNamNet Bridge – Several weeks before the Lunar New Year (Tet holiday), the demand for cash is on the rise, making it the best time for loan sharks.

It is estimated that the outstanding loans provided by “underground lending system,” or “black credit” accounts for 30 percent of the outstanding loans provided by the banking system, or roughly $50 billion.

 VietNamNet Bridge – The black credit, which was burning low, has flared up when the official credit channels get frozen. It has been described by economists as a serious defect of the financial system.

VietNamNet Bridge - On April 24, the police of Le Chan District, the northern port city of Hai Phong confirmed that a case of black credit insolvency had occurred in the city, shaking the local public.