It is capital nature to seek advantage and avoid disadvantages.

Editor’s note: This article is from WeChat public account “A bear has something to say” (ID: Axiong19831983), author author: A bear, Thunder veterans.

China cash loan fled Vietnam

Mixed Vietnamese street (A Xiong photo)

For many people, Vietnam is especially like China in the 1990s, a paradise for gold diggers and adventurers. In my opinion, the Vietnamese also have the characteristics of the Chinese in the early days of reform and opening up. Be bold, take risks, be good at exploring the boundaries of various rules and laws, and even trample on rules.

When I was at Ho Chi Minh Airport, when I was preparing for customs to enter the city, there were long queues in front and uniformed staff. I asked the Chinese in the queue directly. Does anyone want to go through the formalities in advance? The premise is to pay 100 yuan, and then you can enter the team to go through the customs formalities in advance. But in the queue of white people, there is no staff to ask.

Walking on the streets of Vietnam, you will find that the interest of Vietnamese banks is high. In China, demand deposits are generally more than 2 points per year, and they are kept for five years, which is about 4 points. But in Vietnam, the annual interest rate on deposits in 2019 can be as high as 9%.

But deposits are actually very risky. Most locals don’t have the money. In Ho Chi Minh City, a Chinese Internet company, the monthly salary of a customer service clerk is 2-3000 yuan, which is still the adjusted salary this year. It is less likely that foreigners will save money. Because Vietnam’s exchange rate fluctuates greatly. It is very likely to earn interest and lose the principal. So foreigners like to use US dollars. This is very similar to some countries in South America, where the interest rate of Argentine banks is as high as 27% and Venezuela is 20%, but no one will save money.

In Vietnam, the interest rate on loans is lower than the interest rate on deposits. The government also encourages corporate loans. At present, the scale of bank loans in Vietnam is growing. More than 50% of the current industry is in the industrial, construction, and trade companies.

In order to stimulate corporate loans, Vietnamese banks have lowered their lending rates twice this year. On January 10, 2019, the Vietnam Investment and Development Commercial Bank (BIDV) cut the annual interest rate of all priority areas by 0.5 percentage points, from 6.5% of the annual interest rate to 6%. On August 1, 2019, the Vietnam Investment and Development Commercial Stock Bank once again engaged in the export of goods.The annual interest rate ceiling for the three types of priority support loans in the areas of services, auxiliary industries and high-tech applications is lowered to 5.5%.

This is already lower than the lower interest rate limit set by the National Bank of Vietnam. Because of the Vietnamese state system, state-owned enterprises are more likely to borrow money than private companies. The debt of state-owned enterprises far exceeds that of private enterprises.

In this case, it is difficult for ordinary people to borrow money. Because there is no mortgage, it is hard to borrow money. Financial companies that are P2P and cash loans, online usury, and licensed consumer loans are growing fast. It blooms everywhere in Vietnam just like the spring bamboo shoots. As of 2019, there are about 50 P2P formal platforms in Vietnam and more than 10 in China. Others do not rule out companies that Chinese people use in the name of others. As for underground illegal statistics, it is estimated that there are more than 100. .

China cash loan fled Vietnam

Fashioned Vietnamese Cafe (A Xiong Photo)

There were many factors that constrained the Vietnamese P2P platform earlier. One of the most important factors is mobile payments. First, mobile payment was underdeveloped at that time, only a few were there, and by 2019, it has grown to more than 30. Second, because the premise of local third-party payment access is that there must be relevant approvals and licenses, this has strict requirements. In general, Chinese companies can’t do all the procedures in a short period of time, including the Ministry of Commerce registration and Internet business access licenses.

There was a Vietnamese agent who was actually a hacker. To put it bluntly, it is pimping. These people basically have certain connections and government resources in the local area.

They can do two things for Chinese companies. One is to help you to lobby the relevant departments, carry out the management, and carry out the formalities and related licenses. The other is to cooperate with the local companies and the Vietnamese companies. Xunzi, operating, but dominated by Chinese bosses and Chinese funds. However, the latter is very risky. It is very easy for the company to be encroached on assets by the Vietnamese when it is bigger. It will not be effective until the lawsuit is over. Many Chinese companies will choose the first one, which is more expensive, but it will be more insurance, and it will be more reliable in the long run.

The Chinese company in Vietnam has moved its original gameplay in China to Vietnam. The cash loan loan cycle is short and the annualized interest rate is high. 20-50% is very common, but some high artillery loans and beheading loans have gradually emerged. From 1% interest per day to up to 4% interest per day, a variety of patterns are emerging.

The moreThe South Government is concerned about the rapid development of cash lending business, and the relevant laws are becoming more and more sound. In March 2019, Vietnamese Deputy Prime Minister Vng ình Hu said that the government will issue formal legal supervision of P2P loans. At the request of the Vietnamese government, the mainstream Internet promotion channels such as local Google stores in Vietnam can no longer apply for cash loans that do not comply with the law, which means that they are blocked by the application market, which adds new costs to the promotion.

At the same time, due to frequent incidents such as violent collections, the Vietnamese government, the police began to increase inspections, monitoring, and illegal personnel involved in the arrest of Chinese companies, especially in October. In terms of taxation, Vietnam, like the domestic ones, is required to pay turnover tax and income tax. As long as it is operating this business, it must pay taxes according to the regulations, which imposes a great burden on the operators.

Chinese cash lending companies began to withdraw from Vietnam. At present, it is estimated that about 10% of Chinese companies are leaving or preparing to leave, but more are still operating and waiting.

Someone left, more people continue to join, in addition to Chinese players, there are many other international cash loan players. Singapore’s SME financing platform Validus Capital and Indonesia’s P2P lending platform Investree launched ELOAN in Vietnam. The cash lending platforms of Russia, South Korea and other countries have developed in Vietnam. Vietnam’s cash loans, the Internet, are still far from the climax.