The Prime Minister directs efforts to combat illegal lending and usurious loans.

The Prime Minister has just issued Directive 12 on strengthening the prevention and fight against illegal lending. According to the Government's assessment, illegal lending in many localities has affected security and order with very sophisticated and complex methods.

These individuals exploit telecommunications networks and the Internet, operating under the guise of businesses providing financial loans, debt collection services, and pawnshops, creating a cover to evade authorities in order to offer unsecured loans. They engage in financial business, capital contributions, and asset investments with extremely high interest rates, ranging from 100-300%, and even up to 700% per year, in order to reap illicit profits.

To combat this situation, the Prime Minister instructed the Ministry of Public Security to direct police in provinces and cities to inspect pawn shops, debt collection services, and other businesses suspected of engaging in usurious lending and debt collection. Simultaneously, he called for stricter licensing procedures and increased management and inspection of pawn shops and debt collection businesses; and the revocation of security and order compliance certificates for establishments that violate regulations.

The Ministry of Public Security has been instructed to launch nationwide campaigns to combat and suppress crime, including cybercrime related to illegal lending activities, in conjunction with the fight against and dismantling of gambling rings and fraud schemes involving the misappropriation of assets through various forms of fundraising, informal lending groups, and other similar activities.

Regarding the State Bank of Vietnam, the Prime Minister directed it to strengthen communication efforts, maximize the mobilization of idle capital from the public; promote online lending and payment services, and simplify lending procedures so that all citizens can easily access legitimate loans.

The State Bank of Vietnam issues or advises the Government and the Prime Minister on policies to diversify loan types and banking products and services; develop finance companies and microfinance institutions... in order to meet the borrowing needs of the people.

At the same time, this agency needs to maximize the mobilization of idle capital among the people, unleash the potential and internal strengths of the economy; promote the application of science and technology, and develop online lending and payment services.

Strictly control pawnshop and debt collection businesses.

The Prime Minister also instructed the Ministry of Planning and Investment to strictly control the registration of businesses, including pawnshops and debt collection services, and to coordinate with the police force in issuing certificates of eligibility regarding security and order.

The Prime Minister requested the People's Committees of provinces and cities to direct and issue social security policies, create jobs for workers, prevent illegal lending and other violations of the law, social evils, and crimes.

Local leaders and relevant agencies are mobilizing the public to proactively detect and prevent individuals distributing, posting, or painting advertisements related to high-interest loans; and debt collectors who engage in acts of dumping dirt and waste, causing insecurity and disorder. They are also removing and erasing leaflets and advertisements posted or hung on walls, utility poles, trees, etc., regarding financial loans and pawnshops that negatively impact urban aesthetics, traffic safety, and social order.

The People's Committees of provinces and centrally-administered cities shall direct business registration agencies to issue business and household business registrations in accordance with regulations; and revoke business licenses of establishments engaging in illegal lending.

Public officials are prohibited from contributing capital, raising funds, or acting as intermediaries, accomplices, or assisting in illegal lending, usury, establishing businesses or households engaged in financial services, pawnshops, debt collection, etc., that violate the law. Violators will be severely punished if discovered.