According to the new amendments, the interest rate ceiling should not exceed 20 percent per year, and the rate itself should not exceed 200 percent of the base rate set by the State Bank of Vietnam, unless subject to other provisions. The amendments aim to prevent black credit and increase transparency. However, many National Assembly deputies believe that these amendments should not apply to credit institutions. In fact, the Law on Credit Institutions stipulates that these institutions can negotiate interest rates as prescribed by law.
The draft law does not clearly define exclusions, which might lead to difficulties in implementation. Many economists believe that credit institutions should be allowed to operate under this specialised law in order to facilitate market demand interest rates and eliminate black credit in the future.
