According to a media release, 2 Vietnam companies owned by Singapore group are investigated by the Vietnam authorities. They are suspected of lending money with a high-interest rate.
The 2 companies investigated are Cashwagon Co. Ltd and Lendtech Co. Ltd. They are operating out of 17-19 Ton That Tung Street in District 1. Cashwagon has offices in several countries including Sri Lanka, Indonesia and the Philippines.
Cashwagon has been reported providing money lending services with ridiculous high-interest rates even though they are just registered as a financial consultant firm.
Lendtech Co. Ltd. is a pawning business that offers loan services. Apparently both companies work closely to provide loans between VND500,000 to VND10 million to locals with a monthly interest rate ranging from 22 to 44 percent. The interest rate is much higher than the local bank which offers 7 to 28 percent per annum.
The 2 companies will split the earning with Cashwagon taking a bigger cut. Currently, investigation is ongoing. The bank accounts of both companies has been freezed by the Vietnamese police.