The Government will soon issue a decision to allow a pilot implementation of peer-to-peer (P2P) lending in the country before officially developing laws for the new form of business, Deputy Prime Minister Vương Đình Huệ said.

With peer-to-peer lending becoming increasingly popular in Việt Nam, experts said a legal framework is needed to regulate the activity to prevent loan-sharking.

The State Bank of Việt Nam (SBV) has warned local people and firms to consider carefully and be cautious before taking part in peer-to-peer (P2P) lending as there are many potential risks related to the service.

The State Bank of Việt Nam is carefully studying international models of peer-to-peer lending (P2P) to develop a legal framework to effectively manage the country’s nascent fintech business, according to SBV deputy governor Nguyễn Kim Anh.

Peer to peer, or P2P, lending has been developing rapidly around the world in recent years with the establishment of many online lending companies, experts have said.