Peer-to-peer lending in Vietnam and experience from other countries

Abstract

Peer-to-peer (P2P) lending is gaining popularity in Vietnam, especially in the past two years. In fact, this form of lending appeared a long time ago in the world with the establishment of Zopa in the U.K. in 2005. There is neither much research nor a strict legal framework on P2P lending in Vietnam. As a result, P2P lending platforms encounter many problems, especially legal issues during their operation in Vietnam. The article aims to provide a theoretical framework on P2P lending and the practical situation in developed markets such as the U.S. and European. We also present an overview of the P2P lending market and the performance of P2P lending platforms in Vietnam which we find not operating up to their essence. Based on the analysis and experience from other countries, we suggest some solutions to increase the effectiveness of this form of lending in Vietnam’s market.