DECISION

AMENDMENTS TO DECISION NO. 31/2007/QD-TTG DATED MARCH 5, 2007 OF THE PRIME MINISTER OF VIETNAM ON CREDIT FOR HOUSEHOLD BUSINESSES AND PRODUCTION IN DISADVANTAGED AREAS AND DECISION NO. 92/2009/QD-TTG DATED JULY 8, 2009 OF THE PRIME MINISTER OF VIETNAM ON CREDIT FOR MERCHANTS ENGAGING IN COMMERCIAL ACTIVITIES IN DISADVANTAGED AREAS

Pursuant to the Law on Organization of the Government of Vietnam dated June 19, 2015; the Law on Amendments to the Law on Organization of the Government of Vietnam and the Law on Organization of the Local Government of Vietnam dated November 22, 2019;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law on Amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government's Decree No. 78/2002/ND-CP dated October 4, 2002 on credit for poor people and other policy beneficiaries;

At the request of the Minister of Finance of Vietnam;

The Prime Minister of Vietnam hereby promulgates the Decision on amendments to Decision No. 31/2007/QD-TTg dated March 5, 2007 of the prime minister of Vietnam on credit for household businesses and production in disadvantaged areas and Decision No. 92/2009/QD-TTg dated July 8, 2009 of the prime minister of Vietnam on credit for merchants engaging in commercial activities in disadvantaged areas.

...

...

...

1. Amendments to Article 2: 

“Article 2. Disadvantaged areas

1. Disadvantaged areas eligible for policies on credit for household businesses and production according to this Decision include:

a) Communes, wards, and commune-level towns (hereinafter referred to as “communes”) included in the list of administrative divisions of communes in disadvantaged areas promulgated by the Prime Minister of Vietnam for each period;

 b) Island districts with no commune-level administrative divisions included in the list of extremely disadvantaged communes of river islet areas, coastal areas, and islands promulgated by the Prime Minister of Vietnam for each period;

c) Villages not subject to communes prescribed in Point a of this Clause but are included in the list of extremely disadvantaged villages of ethnic minority areas and mountainous areas promulgated by competent authorities for each period.

2. Administrative divisions established based on the full or partial division or merger of administrative divisions included in the list prescribed in Clause 1 of this Article may also receive benefits from credit policies under this Decision.”

2. Amendments to Article 3: 

“Article 3. Entities eligible for loans

...

...

...

3. Clause 4 and Clause 5 are added to Article 4:  

“4. Borrowers that are not poor households, near-poor households, and households escaped from poverty under the Decisions of the Prime Minister of Vietnam

5. Borrowers with no outstanding debts at the Vietnam Bank for Social Policies regarding:

a) Program on loans for creation, maintenance, and expansion of employment according to laws on laws on employment creation support policies and the National Employment Fund;

b) Program on loans for investment in and support for the development of precious medicinal herb cultivating areas according to laws on policies on preferential credit for the implementation of the National Objective Program on Socio-Economic Development of Ethnic Minority Areas and Mountainous Areas during 2021-2030, stage 1: from 2021 to 2025 and amendment documents (if any).

c) Other credit programs for loans for households for production and business as prescribed by laws (if any).”

4. Amendments to Article 7: 

“Article 7. Loan amount

The maximum loan is 100 million VND per borrower.”

...

...

...

“Article 8. Loan interest

1. The loan interest rate is 9% per year.

2. The overdue debt interest rate is 130% of the loan interest.

3. Adjustments to loan interest rates shall be decided by the Prime Minister of Vietnam in each period based on proposals of the Administrative Council of the Vietnam Bank for Social Policies.

4. The loan interest rate shall ensure the principle of offsetting the average interest rate of capital sources and management costs of this Program. The average interest rate of capital sources and management costs shall be determined according to guidelines for financial management of the Ministry of Finance of Vietnam for the Vietnam Bank for Social Policies.”

6. Amendments to Article 10: 

“Article 10. Loan security

Borrowers are not obligated to perform loan security.”

7. Amendments to Article 12: 

...

...

...

Risk handling shall be performed in compliance with laws on handling risky debts at the Vietnam Bank for Social Policies.”

8. Clause 3 is added to Article 13:

“3. The Administrative Council of the Vietnam Bank for Social Policies shall provide presentations for the Prime Minister of Vietnam for decisions on adjustments to loan interest rates for each period.”

9. Amendments to Point a Clause 2 Article 16:

“a) Perform state financial management under its jurisdiction;”

Article 2. Amendments to Decision No. 92/2009/QD-TTg dated July 8, 2009 of the Prime Minister of Vietnam on credits for merchants engaging in commercial activities in disadvantaged areas

1. Amendments to Article 2: 

“Article 2. Disadvantaged areas

1. Disadvantaged areas eligible for policies on credit for merchants according to this Decision include:

...

...

...

 b) Island districts with no commune-level administrative divisions included in the list of extremely disadvantaged communes of river islet areas, coastal areas, and islands promulgated by the Prime Minister of Vietnam for each period;

c) Villages not subject to communes prescribed in Point a of this Clause but are included in the list of extremely disadvantaged villages of ethnic minority areas and mountainous areas promulgated by competent authorities for each period.

2. Administrative divisions established based on the full or partial division or merger of administrative divisions included in the list prescribed in Clause 1 of this Article may also receive benefits from credit policies under this Decision.”

2. Amendments to Article 8: 

“Article 8. Loan amount

1. For merchants who are individuals: the maximum loan is 100 million VND per borrower.

2. For merchants that are economic organizations legally established under laws: the maximum loan is 1 billion VND per organization.”

3. Amendments to Article 12: 

“Article 12. Loan security

...

...

...

2. Merchants borrowing more than 100 million VND shall perform the loan security under laws on assurance of obligation fulfillment and regulations of the Vietnam Bank for Social Policies.”

4. Amendments to Point a Clause 2 Article 16:

“a) Perform state financial management under its jurisdiction;”

Article 3. Transitional provision

1. Regarding credit contracts concluded before the effective date of this Decision, related parties shall continue to perform the contents prescribed in such contracts.

2. In case borrowers with loans at the Vietnam Bank for Social Policies are no longer in disadvantaged areas according to this Decision, they shall continue to perform commitments, entitlements, and responsibilities prescribed in credit contracts concluded with the Vietnam Bank for Social Policies until such contracts expire.

Article 4. Implementation provision

1. This Decision comes into force as of August 8, 2023.

2. Ministers, directors of ministerial agencies, directors of governmental agencies, Chairpersons of People’s Committees of provinces and centrally affiliated cities, Chairperson of the Administrative Council, and General Director of the Vietnam Bank for Social Policies shall implement this Decision.

...

...

...

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai