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

It is now easier than ever to borrow money through apps, but paying back the debts can be difficult since interest rates can be 700-1,400 percent per annum.

Peer to peer lending (P2P Lending) will become legal in Vietnam after a draft decree on fintech management is compiled.

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.

After the lending model collapsed in China, many P2P lenders flocked to Vietnam to seek opportunities in the country.

The demand for capital in the national economy usually increases in the second half of year. However, banks have nearly used up the credit quotas granted to them.

The State Bank of Vietnam (SBV) has warned Vietnamese credit institutions and foreign banks in the country to be cautious before working with peer-to-peer (P2P) lending companies as there are many risks related to the service.

Online lending has become more popular, but there is still no legal document and no agency supervising the business activity.

VietNamNet Bridge - FE Credit and HD Saison have reported lower growth rates as they have had to settle problems arising after a hot development period.

VietNamNet Bridge - Peer to Peer Lending (P2P), under which lenders and borrowers connect via apps, has been developing rapidly in Vietnam.

VietNamNet Bridge - Peer to Peer, or P2P lending, became more popular over the last year with the establishment of many online lending companies.