RESEARCH APPROVAL: ILLEGAL CREDITS – CURRENT SITUATION AND THEIR IMPACTS ON FACTORY WORKERS IN SOUTHERN PROVINCES OF VIETNAM

Illegal credits, often known as “black credit”, have been an enduring social issue, resulting in serious consequences both in life safety and social security. Not only does loan-sharking harm citizens but also damages Vietnam banks’ financial system. The current situation has called for effective and practical research studies to pinpoint causes and completely solve the problem.

On August 27^th afternoon at room A001, authors of the research “Illegal credits: Current situation and its impacts on factory workers in Southern provinces of Vietnam”, including Dr. Tran Dinh Lam - Lead author- Director of Center for Vietnam Southeast Asian Studies and Pham Thanh Thoi M.A - Co-author - Deputy Director of CVSEAS, presented their research work in front of the Board of Reviewers. The project is funded by LienVietPostBank.

The Board of Reviewers is examining and assessing the research project.

Members of the Board of Reviewers included Dr. Phạm Thanh Duy - Head of General Administration Department - University of Social Sciences and Humanities; Assoc. Prof. Dr. Hạ Thị Thiều Dao - Vice Principal of University of Banking Ho Chi Minh City - Member; Dr. Hồ Ngọc Phương - University of Economics Ho Chi Minh City (UEH) - Member; Assoc. Prof. Dr. Nguyễn Minh Tuấn - Dean of Faculty of Political Studies - UEH; Mr Nguyen Dinh Thang - Former Member of LienVietPostBank Board of Directors.

The researchers presented in brief the results of the study in front of the Board of Reviewers. illegal loans have negatively affected factory workers and been frequently addressed by the media. However, there have not been any specific measures taken thoroughly to tackle the problem. Credit organizations and banks in Vietnam are dealing with challenges in making personal loans due to shortage of personal information and debt paying capability. Thus, factory workers find it hard to get access to legal credits and easily get involved in illegal lendings.

Dr. Pham Thanh Duy  - President of Board of Reviewers leading the meeting.

To resolve the issue, there must be a coherence between legal documents and changes in regulations of interest for loan credits to bring legal credits closer to citizens. Financial institutions should transform into digital banks so that they can be able to reach more types of borrowers and fulfill their financial demands. Only when people get access easily to legal financial sources with affordable interest, will loan-sharking in Vietnam be entirely suppressed.

Members of the Board of Reviewers are discussing and evaluating the research project

Regarding research methods, the Board of Reviewers stated that the study had chosen appropriate researched subjects and applied methods relevant to the theoretical basis that can be put into practice. On the other hand, some sections need to be improved such as other impacts of illegal credit on workers, adding more graphs to better illustrate data and references from reliable scientific materials in the financial industry.

Mr. Nguyen Đinh Thang -  Former Chairman of  LienVietPostBank is speaking at the Inspection meeting.

Afterwards, the Board of Reviewers appreciated the practical values of the research project which meets requirements of research methods & methodology. Besides, it also made useful contributions to funder’s benefits. Academically, the project will become a credible reference for undergraduates and postgraduates majoring in Social Sciences, Economics, Finance and Banking. As final remarks, the Board of Reviewers hoped that the research could be continued conducting to investigate a wider scope of participants and regions. Particular recommendations for banks and financial institutions in Vietnam to enhance their service quality were the other tasks that the following research is expected to take on.

The Board of Reviewers and other participants taking a group photo.

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