Usury in Vietnam- Origin, consequences and solutions

Abstract

Usury, or black credit, is a term used to describe lending between individuals or organizations which bypass the official credit system. Black credit lending usually occurs underground and quietly. The most fundamental characteristic of usury is lending with super high interest rate and often are prohibited by the laws. The consequences of black credit collapsing affect the life of many people, breaking social orders and causing social unrest, inhibiting production, negatively impact the performance of credit institutions and businesses and creating many other social issues. Therefore, most laws and regulations strive to stop the development of black credit. 

This article study the origin, situation as well as the consequences of black credit in Vietnam, laws and regulations on black credit and on that basis, make recommendations to restrain and repel black credit operations.