return icon Vietnamnet.vn

Chinese lending apps leave Vietnam quietly

Vietnam’s fintechs have discovered that some Chinese apps which have lent money at exorbitant fees have been leaving Vietnam quietly.

In early June, the HCM City Police inspected the head office of Cashwagon Co Ltd, which was believed to be related to app-based lending at exorbitant fees.

 

 

{keywords}

Tran Viet Vinh, CEO of Fiin

 



Prior to that, the police investigated a case of lending money at sky-high interest rates committed by Chinese. They found that some foreigners had established finance companies, registered business under Vietnamese names and provided loans online via apps. “Vaytocdo”, “Moreloan” and “VD online” are the best known apps.

Analysts said that the moves by the Chinese government to tighten management over the P2P market prompted Chinese lenders to flock to Vietnam.

In Vietnam, the Chinese lenders tried many ways to attract Vietnamese borrowers. They advertised loans at low interest rates and with no collateral required.

In Vietnam, the Chinese lenders tried many ways to attract Vietnamese borrowers. They advertised loans at low interest rates and with no collateral required.


The existence of Chinese usury apps has affected clients and genuine fintechs, and in the long term, will affect the Vietnam’s credit market.

After the media rang the alarm bell over Chinese apps and the police began taking action to stop the black credit, some apps stopped operation.

A Vietnamese fintech specializing in providing P2P loans said some Chinese online lenders focus on collecting debts while some others have shut down.

“After the Cashwagon case, usury lending apps have become more cautious with their operations," the CEO of the fintech said.

“Some borrowers have exploited the current situation to ‘fish in troubled waters’. I know many borrowers use forged documents and forged information to borrow money from 50 lenders,” he said.

The Chinese online lending apps have disrupted the market, seriously affecting Vietnam’s lenders.

Some borrowers confirmed that they have received notices from the apps that the ‘accounts are invalid’, while information about the accounts of lenders has also disappeared.

“I have received messages from ‘vaytot’ and ‘vivuive’ that I have paid all the debts and the debts have been cleared, though I really have not paid,” a borrower said.

Tran Viet Vinh, CEO of Fiin, said there are signs of Chinese apps leaving Vietnam. However, he said it is still too early to make such a conclusion.

Vinh of Fiin, interviewed by the local press in May, said there were 20 Chinese companies operating under the names of Vietnamese businesses and providing loans as finance companies. However, the businesses did not have licenses for providing finance services.

The Ministry of Public Security has affirmed that black credit is a type of crime that the police take seriously.

Le Ha

 

VN Public Security Ministry warns about online lending apps

VN Public Security Ministry warns about online lending apps

The Ministry of Public Security has warned about the risk of black credit provided by online lending applications which could threaten social security.  

Many Vietnamese trapped by Chinese lending apps

Many Vietnamese trapped by Chinese lending apps

Chinese apps in Vietnam are luring borrowers who have to pay back debt at high interest rates within a short period of time.

MORE NEWS

Vietnam needs extra US$368 billion to achieve net zero emissions

As the energy industry has a crucial role in achieving net zero emissions by 2050, it requires a structural transition toward green growth. Therefore, Vietnam needs assistance from developed countries regarding both financial and technical issues.

Labor Minister proposes harsh punishment for child offenders

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed an official letter requesting to have harsh punishment for child offenders and strengthening measures to prevent violence against children.

Pu Sam Cap Cave: the hidden charm of Lai Chau

Pu Sam Cap Cave in Pu Sam Cap Commune, Sin Ho District, in the northwestern province of Lai Chau, is known for its wild, beautiful and mysterious beauty.

Hanoi’s three largest parks are seriously degraded

Many public works in the parks of Thu Le, Bach Thao, and Thong Nhat in Hanoi are in disrepair, affecting urban beauty and public experiences.

Why are thousands of public employees taking private-sector jobs?

Many public employees have recently quit their jobs and taken a job in the private sector. This indicates that the public sector is not attractive and that many problems need to be addressed.

Kon Tum Province records 300 earthquakes over a year

The Central Highland province of Kon Tum has recorded more than 300 earthquakes since April 2021, according to the provincial administration.

Highly-infectious BA.2.74 Omicron sub-variant detected in Vietnam

Vietnam has detected a number of new, highly-contagious Omicron sub-variants, including BA.2.74, said the General Department of Preventive Medicine on August 17.

Relaxing visa policy to attract more foreign tourists to Vietnam: insiders

Vietnam’s visa policy should be more open to lure international tourists, insiders have said.

Vietnam Airlines resumes, increases frequency of several flights in September

The national flag carrier Vietnam Airlines will resume flights connecting the central city of Da Nang with Malaysia’s Kuala Lumpur and Thailand’s Bangkok from September 1 and September 15, respectively, the carrier has announced.

Da Lat listed among world’s best places for binge-worthy dating

Booking.com has named Vietnam's Da Lat city among the world's six places for the summer’s binge-worthy dating shows.

Quang Ninh refutes allegations of sea encroachment in Ha Long Bay

The authorities of Quang Ninh province has refuted information that it has allowed a project to conduct sea encroachment and subdivide land plots for sale, which seriously undermined the conservation of the UNESCO-recognised Ha Long Bay.

VN extends time of anti-dumping investigation on tables, chairs from Malaysia, China

The Ministry of Industry and Trade (MoIT) has decided to extend time limit of investigation on applying anti-dumping measures on table and chair products originating from Malaysia and China by six months.

EVFTA and UKVFTA: the same sweet spot

With many similarities, the UK- Vietnam Free Trade Agreement (UKVFTA) could be called a direct copy of the EU- Vietnam Free Trade Agreement (EVFTA).

Credit package for social housing not as productive as hoped

Few have benefited from the VND15 trillion credit package for social housing as there is a limited supply of low-cost homes.

VIETNAM BUSINESS NEWS AUGUST 17

More effective tax collection of e-commerce necessary
back_to_top