The lesson of predatory lending management for Vietnam from China’s experience

Abstract

Predatory lending includes subprime lendings which are not under the supervision of banking system, in which the lenders carry out unethical and/or illegal acts for personal gains and often cause serious consequences for the borrowers. In Vietnam, predatory lending has caused a number of social problems such as frauds, property misappropriation, and predatory crimes. It is estimated that there are an average of 10,000 cases per year, which are 29 cases per hour or 3.6 cases per hour related to predatory lending discovered in Vietnam. This study highlights China’s predatory lending management system to draw lessons that are relevant to Vietnam in order to address the shortcomings that this phenomenon has caused to society and the economy