A man reading leaflets offering immediate loans, which have pushed many people into misery. — Photo 24.com.vnViet Nam News HCM CITY — The recent rise in ‘black credit’ has trapped individuals and families in big cities of Hà Nội and HCM City as well as other provinces. When approaching this source of funds, most borrowers fall into the high interest trap and ‘forest law’ constraints. This form of lending has been flourishing in HCM City and neighbouring provinces such as Đồng Nai, Bình Dương and Long An, reported Đời Sống và Pháp Luật (Life and Law) newspaper. Notably, the high-interest loans were offered from financial companies, the paper said. Simple procedures, quick disbursement Understanding the desperate situation of those who need loans, a number of loan sharks have sprung up around the country. When signing up for these loan agreements, the debtors agree to many … [Read more...] about Loan sharks traps poor people
Selling to a pawn shop
BUSINESS NEWS IN BRIEF 22/8
Mekong Capital divests from Asia ChemicalsMekong Enterprise Fund II, a unit of Mekong Capital, has completely divested from Asia Chemicals Corporation (ACC) and taken in US$8.9 million, a 2.6-fold increase over its initial investment, after a seven-year holding period.According to a press release issued by Mekong Capital on August 10, in 2011, MEF II invested US$3.8 million in ACC, which was its 10th investment, after others in Mobile World Investment Group (The Gioi Di Dong), Golden Gate, Vietnam Australia International School and International Consumer Products.However, MEF II has now divested from all of its 10 earlier investments. The divestments have helped the fund generate a gross return multiple of 4.5 and a gross internal rate of return of 22.5%.Early this year, MEF II sold five million shares at Mobile World, generating a gross return multiple of 56.9 and an IRR of 61.1%, making it one of the most successful investments in Asia.Also, the fund’s full exit from Vietnam … [Read more...] about BUSINESS NEWS IN BRIEF 22/8