Highlights of the last week's documents (March 13 – March 19, 2023)

1. The State Bank of Vietnam to reduce re-discount interest rates

Decision No. 313/QD-NHNN dated March 14, 2023 on the refinancing rate, rediscount rate, overnight rate for inter-bank electronic payment, and interest rate for loans for covering the capital shortfall regarding clearing of the State Bank of Vietnam is promulgated on March 14, 2023.

To be specific, the re-discount interest rate was reduced to 3,5%/year as prescribed in Decision No. 313/QD-NHNN; (reduced by 1,0%/year in comparison with Decision No. 1809/QD-NHNN dated October 24, 2022)

Besides, the overnight rate for inter-bank electronic payment and interest rate for loans for covering the capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions and foreign bank branches also were reduced by 1% to 6,0%/year.

In addition, the maximum short-term loan interest rate in Vietnam dong of credit institutions for borrowers to satisfy the capital requirements for certain economic fields and sectors was reduced from 5,5%/year to 5,0%/year in comparison with Decision No. 314/QD-NHNN (replacing Decision No. 1813/QD-NHNN dated October 24, 2022);

The maximum short-term loan interest rate in Vietnam dong of the People's Credit Funds and microfinance institutions to satisfy the capital requirements for certain economic fields and sectors was reduced from 6,5%/year to 6,0%/year in comparison with Decision No. 314/QD-NHNN.

2. Prison selection criteria for piloting vocational training for inmates outside of prisons

On March 13, 2023, the Government of Vietnam promulgates Decree No. 09/2023/ND-CP guiding Resolution No. 54/2022/QH15 on pilot management of models for labor, career orientation and vocational training for inmates outside of prisons.

According to the Decree, prisons eligible for pilot management must satisfy the following criteria:

- Facing difficulties in material facilities used for labor, career orientation and vocational training serving community reintegration for inmates in prisons.

- Having demands for seeking work, capacity for management and arrangement of officers, men and inmates to cooperate with domestic organizations in labor, career orientation and vocational training for inmates.

- Ensuring security and safety when providing models.

Based on the above criteria, the Ministry of Public Security shall promulgate a list of prisons eligible for pilot management.

Decree No. 09/2023/ND-CP comes into force from the day on which it is signed.

3. Vietnam’s detailed regulations on requirements for appointment of mediators at Court

Circular No. 01/2023/TT-TANDTC provides guidance on requirements for appointment of mediators of the Law on Mediation or Dialogue at Court, which is promulgated on March 09, 2023 by the Supreme People's Court of Vietnam.

This Circular elaborates requirements for appointment of mediators according of the regulations in Article 10 of the Law on Mediation or Dialogue at Court.

To be specific, this Circular provides guidance on identification of other experts and professionals prescribed in Point a Clause 1 Article 10 of the Law on Mediation or Dialogue at Court as follows:  

Other experts and professionals are thoroughly trained persons with practical skills, practical experience and strong arguments for a specific field.

For example: psychology experts, financial experts, intellectual property (IP) specialists, etc

In addition, the Circular also provides guidance on identification of persons being knowledgeable about customs and traditions and having prestige in the community prescribed in Point a Clause 1 Article 10 of the Law on Mediation or Dialogue at Court as follows:  

Persons being knowledgeable about customs and traditions and having prestige in the community are persons being knowledgeable about traditional cultures, customs and ethnic groups; having close connections and exerting influences on family lineage, ethnic groups and population community; having the ability to gather and rally fellow citizens within a certain range, and being trusted, heard and followed by people in the community.

For example: traditional chiefs and heads of villages, etc. who live in mountainous, remote and isolated areas, ethnic minority areas and are persons being reputable and knowledgeable about customs in the community.

Circular No. 01/2023/TT-TANDTC of the Supreme People's Court of Vietnam comes into force from April 25, 2023.

4. Penalties for administrative violations against regulations on state audit of Vietnam

Ordinance No. 04/2023/UBTVQH15 on penalties for administrative violations against regulations on state audit of Vietnam is promulgated on February 28, 2023.

According to the Ordinance, penalties and remedial measures are prescribed as follows:

- An organization or individual that commits each of administrative violations against regulations on state audit of Vietnam must face one of the following main penalties:   

+ Warning;

+ Fines.

- Remedial measures imposed on punishment for administrative violations against regulations on state audit of Vietnam include:

+ Mandatory rectification of information, documents and data that are inaccurate or incorrect;

+ Mandatory return of the illegal profits (if any) generated by administrative violations against regulations on state audit of Vietnam.

Ordinance No. 04/2023/UBTVQH15 of the Standing Committee of the National Assembly of Vietnam comes into force from May 01, 2023.

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