6 March 2017
VIETNAM: 20% Cap on Lending Rates Set to be Abolished
The 20% cap on lending rates for banks and other credit agencies in Vietnam is to be abolished as of 15 March. In line with a directive from the country’s central bank, lenders will now be free to agree on rates with borrowers on an ad hoc basis.
Borrowing in five specific sectors - agriculture and rural development, SMEs, export-oriented businesses, high-tech, and support industries - will, however, continue to be capped. The move is designed to bring the country’s lending activities in line with international best practice.