Playing “hụi” is a form of capital mobilization and mutual assistance that has been established for a long time in Vietnam. There are many cases of "shocked", "broken" of “hụi” reported on television and radio, causing people to struggle. So what is hui? Is playing hui against the law?
Article table of contents
What is “hụi” in Vietnam?
“Hụi”, or also referred to “họ”, “biêu”, “phường” (hereinafter referred to as "tontine") means a form of transaction regarding property in accordance with customary practice on the basis of an agreement reached by a group of people who assemble together and jointly determine the number of people, the term, the amount of money or other property, the form of contribution and payment of tontine, and the rights and obligations of the members of the group. (Article 471 of the Civil Code 2015 of Vietnam)
The purpose of the organization of tonetine is to provide mutual assistance among the people and must be carried out in accordance with the provisions of the law, specifically to be in accordance with the Decree No. 19/2019/NĐ-CP of Vietnam’s Government on tontine.
- Membership eligibility requirement: Member is a person aged at least 18 years of age and does not lack legal capacity, have limited legal capacity or have limited cognition or behavior control as prescribed in the Civil Code.
However, a person aged from fifteen to under eighteen having private property may become a tontine member. If the private property is real estate or movable property required for registration to participate in the tontine, he/she must obtain the consent of his legal representative.
In addition, other requirements as agreed upon among tontine members must be met.
- Tontine holder eligibility requirements: Tontine holder is a person aged at least 18 years of age and does not lack legal capacity, have limited legal capacity or have limited cognition or behavior control as prescribed in the Civil Code.
If members self-organize a tontine group, the tontine holder is a person who is voted by more than a half of members, unless otherwise agreed by members.
In addition, other requirements as agreed upon among tontine members must be met.
Thus, tontine is just a form of financial organization for people in accordance with the law, and players who participate in the game need to pay attention to comply with the regulations to ensure their legitimate rights and interests.Tontine only violates the law in case the organization is in the form of usury. Depending on the violation, violators may be sanctioned for administrative violations or constitute the crime of loan sharking in accordance with the criminal law of Vietnam.
Hoa Hong
- Key word:
- Decree No. 19/2019/NĐ-CP
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