Urgent measures needed to prevent the negative consequences of informal lending schemes in Kim Lien commune.

(Baonghean)The collapse of informal lending schemes in Mau Tai village (Kim Lien commune) was reported by Nghe An Newspaper in the article "Widespread and distorted informal lending schemes". The article also warned of potential negative consequences. Indeed, on September 10th, Nghe An Newspaper received information that the security situation in the area was very chaotic, with two brawls occurring after debt collection attempts...

According to informants: The two brawls involved gang leaders Vu Thi Kim Hoa (a teacher at Kim Lien Secondary School) and Nguyen Thi Ngoc Ha, along with Phan Thi Cuc and Le Thi Mien, who were also members of the gang. The informants urgently requested: "We urge the press to speak out so that the authorities can actively intervene; otherwise, the consequences will be unpredictable..."

Mr. Tran Van Thien, Head of the Kim Lien Commune Police, confirmed that there have been some disturbances in the area recently, notably the two brawls mentioned above. However, he stated that everything "is under the control of the commune police force." Regarding the two brawls, Mr. Thien said one occurred on August 23rd and the other on September 9th. The incident on September 9th unfolded as follows: Ms. Phan Thi Cuc went to demand payment from Ms. Vu Thi Kim Hoa (a resident of Mau 1 hamlet) for a debt of over 20 million VND. However, Ms. Hoa was not home, only her husband, Mr. Thang, was there. A quarrel ensued between Ms. Cuc and Mr. Thang, after which Mr. Thang chased Ms. Cuc out of the house. Ms. Cuc then went home and called her brother, Mr. Hung, to come to Thang's house.

The two men argued loudly, and Mr. Thang ran into his house, grabbed a knife, and attacked Mr. Hung. Fortunately, Mr. Hung dodged the attack. They struggled, and both sustained minor injuries. Mr. Hung suffered minor injuries to his ear, neck, and arm. Mr. Thang sustained injuries to his neck and arm and had to be taken to the district hospital. Upon receiving the report, the commune police arrived, dispersed the crowd, and drew up a report at the scene, then transferred the case file to the district police for investigation and handling. "After several days of treatment, Mr. Thang has now been discharged from the hospital..." - Mr. Thien said.

The female ringleaders at the Nam Dan District Police headquarters.


Debt settlement document between Ms. Vu Thi Kim Hoa and Mr. Phan Trong Hung's household.

Regarding the incident on August 23rd: Ms. Le Thi Mien and her son went to the house of Ms. Nguyen Thi Ngoc Ha (in Mau 4 hamlet) to demand money. There, Mr. Minh (Ms. Ha's father-in-law) and Hien (Ms. Ha's brother-in-law) clashed with Ms. Mien and her son. The commune police have documented the incident and mediated between the two families. Mr. Minh admitted his fault, and Ms. Mien's family agreed to let it go. Both families also pledged not to repeat the incident.

According to Mr. Thien, when informal lending groups collapse, it's inevitable that people will demand repayment from each other. "People who went to these groups demand repayment from the group leader. They have to exert pressure for the group leader to worry about paying the debt. The local government and police are urging people to demand repayment but not to act rashly, cause public disorder, or violate the law..." - Mr. Thien said.

According to Mr. Thien, the security situation in Kim Lien commune is under control, but Mr. Le Van Nghia, the permanent police officer of Kim Lien commune, said: "Many times, even in the middle of the night, we have to go and deal with disturbances caused by people participating in informal lending groups." Some residents in Mau 1 hamlet also said: Not only the people but also teachers from Kim Lien Secondary School participate in these informal lending groups and have to endure being extorted when trying to collect debts.

Ms. Nguyen Thi Tu, Principal of Kim Lien Secondary School, confirmed that some teachers at the school participated in informal lending schemes (like "phuong" or "hui"). Ms. Tu stated that after the Nam Dan District Police summoned Ms. Vu Thi Kim Hoa, the school's management board, along with the school's labor union and other organizations, held a meeting with the teachers involved in these schemes to address their concerns. The school's management board emphasized that these teachers must not allow the informal lending schemes or debts to negatively impact their professional work or the students' learning.

Following the brawls and clashes, many residents of Kim Lien commune expressed their concerns: "The informal lending scheme, which was once a very effective form of mutual assistance for business, has been distorted over the past two years, leading to its collapse and causing hardship for many families in Kim Lien. In recent months, Kim Lien has been in turmoil, with incidents occurring every few days, constant threats of violence and murder, creating instability in our lives. We hope the police will investigate and determine the responsibility and charges against those who orchestrated this distorted lending scheme, deceiving the people, in order to stabilize the situation and allow us to focus on our work and production..." A government official residing in Mau Tai village complained: "The consequences of the collapse of these lending schemes are no longer just borne by the scheme leaders and participants, but are spreading to their relatives. We are truly worried. There have been individuals who have recruited and hired people from elsewhere to threaten those involved..."

In Kim Lien commune, there are 39 organized savings groups with hundreds of participants. Many of these individuals have invested all their assets, mortgaged their land titles, and borrowed money to fund these groups. When these groups collapse, the consequences are immeasurable. To prevent similar unfortunate incidents from happening again, the Kim Lien commune government, Nam Dan district authorities, and relevant agencies need to focus on resolving the issue promptly and thoroughly.

Text and photos: Nhat Lan - Dao Tuan