Proposal to expand the subjects eligible for loans to work abroad

The Ministry of Labor, War Invalids and Social Affairs said that Directive No. 20-CT/TW affirmed: "Review, supplement and perfect the laws related to sending Vietnamese workers to work abroad, ensuring comprehensive regulation of all subjects and types of workers".

The current Law on Employment stipulates that the subjects who can borrow capital to work abroad under contracts are limited to only 5 groups of workers: ethnic minorities, workers from poor households, near-poor households, workers whose agricultural land has been recovered, relatives of people with meritorious services to the revolution, while in reality, some other groups of subjects such as young people who have completed military service, police service, young volunteers who have completed tasks to implement socio-economic development programs and projects, and other labor subjects have not been regulated or according to the regulations of each locality, not ensuring equality in opportunities to access preferential credit sources to work abroad.

On the other hand, currently, many localities have signed agreements to send workers to work abroad with competent authorities abroad (on a seasonal basis), but these are not specifically regulated in the Law, so many workers have not had access to capital.

In the draft, the Ministry of Labor, War Invalids and Social Affairs proposed to amend and supplement regulations on subjects borrowing capital to work abroad, including: (1) Workers working abroad under contract and (2) Workers working abroad under an agreement between the provincial-level state employment management agency and the competent foreign authority.

Priority loans for working abroad under contract

The Ministry of Labor, War Invalids and Social Affairs proposes to amend and supplement regulations on priority loans for working abroad under contracts for the following subjects:

1- Workers are ethnic minorities.

2- Workers are from poor or near-poor households.

3- Workers from newly escaped poverty households and households with average living standards.

4- Workers are relatives of people with revolutionary contributions.

5- Workers from ethnic minority and mountainous areas.

6- Workers in particularly difficult communes in coastal and island areas.

7- Workers whose land is recovered.

8- Workers are young people who have completed their military service, police service, youth volunteers after completing programs, projects, and young intellectual volunteers after completing their work duties in economic -defense zones.

Subjects specified in points 1, 2, 4, 5, 6, 7, 8 above are entitled to borrow capital to support working abroad under contract with lower interest rates.

Loan conditions

According to the draft, workers under the above regulations are eligible for loans to support working abroad under contracts when they meet the following conditions:

1- Have full civil capacity.

2- Signed a contract with a service enterprise or career organization to send employees to work abroad under a contract or selected to work abroad under an agreement between the provincial employment agency and a competent foreign agency.

3- Register permanent residence in the locality where the loan is needed.

4- Loan security is provided in accordance with the law.

The Government regulates the loan amount, term, interest rate and loan security conditions.

Loan procedures and processes

According to the draft, workers who need to borrow capital to support working abroad must prepare a loan application and send it to the Social Policy Bank where they register their permanent residence.

Within 10 working days from the date of receiving the loan application, the Social Policy Bank shall appraise and approve the loan application. If no approval decision is made, the Social Policy Bank shall notify the employee in writing and state the reasons.

The Government prescribes the procedures for borrowing capital.

Source