Social Affairs
Usury leaves many Vietnamese people miserable: NA deputies
A number of borrowers had to move houses or escape from their places to avoid aggressive hunting by lenders and their gangs.
Unofficial money lending at exorbitant interest rates is widespread in Vietnam, leaving many people poverty-stricken and causing social problems, deputies said at the National Assembly (NA)’s ongoing plenum.
Deputy Ngo Duy Hieu said that usury has become a thorny issue seen in every part of the country, mostly in big cities, and among workers and students. Many of them were beaten and arrested, even faced death threat if they were unable to pay interests or principals.
A number of borrowers had to move houses or escape from their places to avoid aggressive hunting by lenders and their rings.
Many borrowers were aware of abusive interest rates and possible risks before getting the money but desperate difficulties and unexpected matters forced them to do. The interest rates are around 200% per annum.
Worse, loan sharks held affrays for scramble of influence, causing social disorder. It can be said that predatory lending results in deceptive, coercive, exploitative, and unscrupulous actions, causing social insecurity and challenging authorities, noted Mr. Ngo, who is currently vice president of Vietnam General Confederation of Labor.
Earlier last month, deputy Nguyen Quang Tuan and some others showed their concerns over social evils that usury has caused across the country, mostly in rural areas.
Minister of Public Security To Lam at the NA’s session admitted that usury, literally is civil deals but backed by criminal gangs. From April 2015 to 2018, the ministry reported more than 7,600 cases, including 56 murder cases, 389 deliberate injury cases, 629 appropriation, and 1,809 swindling cases.
Police are keeping an eye on 124 gangs with more than 800 loan sharks and debt collectors.
Experts said that wiping out usury is not simple as according to the World Bank (WB), around 70% of Vietnamese people are unable to access bank loans.
Public Security Minister To Lam speaking at the NA's session. Photo: Lao Dong
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A number of borrowers had to move houses or escape from their places to avoid aggressive hunting by lenders and their rings.
Many borrowers were aware of abusive interest rates and possible risks before getting the money but desperate difficulties and unexpected matters forced them to do. The interest rates are around 200% per annum.
Worse, loan sharks held affrays for scramble of influence, causing social disorder. It can be said that predatory lending results in deceptive, coercive, exploitative, and unscrupulous actions, causing social insecurity and challenging authorities, noted Mr. Ngo, who is currently vice president of Vietnam General Confederation of Labor.
Illustrative photo
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Minister of Public Security To Lam at the NA’s session admitted that usury, literally is civil deals but backed by criminal gangs. From April 2015 to 2018, the ministry reported more than 7,600 cases, including 56 murder cases, 389 deliberate injury cases, 629 appropriation, and 1,809 swindling cases.
Police are keeping an eye on 124 gangs with more than 800 loan sharks and debt collectors.
Experts said that wiping out usury is not simple as according to the World Bank (WB), around 70% of Vietnamese people are unable to access bank loans.
