Twino has announced the closure of its lending operations in Vietnam and the Philippines.

The decision comes amid what Twino termed an increasingly negative investment environment and concerns over employee safety.

In a blog post today, the European peer-to-peer lending platform cited a new interpretation of local legislation by Vietnamese government authorities as the reason for the withdrawal.

The platform had been operating in both countries through a joint venture with ViaInvest’s parent company, VIA SMS Group, operating under the brand name Vamo.

The joint venture expanded into the Philippines in September, having initially launched in Vietnam in 2019.

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“It is important to emphasise that the suspension of operations in Vietnam was not a proactive decision made by Twino and the VIA SMS Group,” the blog post said. “However, the unforeseen and increasingly challenging local business environment has left companies with no alternative but to discontinue the operations.”

The firm went on to say that it had made great efforts to operate in compliance with Vietnamese legislation but that there had recently been “a significant shift” in regulators’ attitudes and a corresponding clampdown on the non-bank lending sector. 

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The firm said the decision to withdraw from the Philippines was influenced by the Vietnam exit and taken after careful consideration of long-term business priorities and market dynamics.

“Exiting the Asia-Pacific market will enable more effective resource allocation, enhancing the group’s services and offerings in other markets,” it said.

Twino pledged to ensure a smooth transition for Vamo employees, customers, and all stakeholders affected. It said it was fully committed to safeguarding investments and was taking all necessary measures to ensure that investments were repaid according to the agreed terms.

“While the timeline and the action steps of the exit in both markets are still under negotiation, the process is initiated and we will update you on any developments in this matter,” it said.

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