DECISION

CREDITS FOR WORKERS IN POOR DISTRICTS WORKING ABROAD UNDER CONTRACTS UNTIL 2020

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to Law on Vietnamese workers working abroad under contracts dated November 29, 2006;

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

Pursuant to Resolution No. 30a/2008/NQ-CP dated December 29, 2008 of Government on rapid and sustainable poverty reduction program for 61 poor districts;

At request of Minister of Labor – War Invalids and Social Affairs;

Prime Minister promulgates Decision on credits for workers in poor district working abroad under contracts until 2020.

Article 1. Scope of regulation and regulated entities

1. Scope:

This Decision prescribes credits for workers in poor districts working abroad under contracts.

2. Regulated entities

a) Workers in poor districts having the need to work abroad under contracts;

b) Enterprises and service providers permitted by the state to bring Vietnamese abroad for working under contracts (hereinafter referred to as “enterprises and service providers”);

c) Vietnam Bank for Social Policy;

d) Entities and persons involved in provisions under Clause 1 Article 1 of this Decision.

Article 2. Credit eligibility

1. A worker having permanent residence registration from at least 12 months in poor districts and having the need to work abroad under contracts.

2. A worker accepted by a foreign party for employment and subject to contract for sending workers for overseas employment signed by that worker and the enterprises or service providers as per the law.

Article 3. Credit limit

1. Credit limit shall equal 100% of the payment paid by the workers under the contracts for sending workers for overseas employment signed by the enterprises or service providers as per the law.

2. The workers may obtain credit specified in Clause 1 of this Article without credit guarantee.

Article 4. Lending interest rate

1. The workers from poor households and workers who are ethnics may obtain credit with interest rate equals to 50% of interest rate applied to poor households according to Government.

2. Other workers living in the poor districts may obtain credit with interest rate equals to the interest rate applied to poor households according to Government.

3. Overdue interest equals 130% the lending interest rate specified in Clauses 1 and 2 of this Article.

Article 5. Credit period

The credit period must not be longer than the working period specified in the contracts for sending workers for overseas employment signed by the workers and the enterprises or service providers as per the law.

Article 6. Credit application filing, appraisal and approval

1. A worker shall file the credit application and send directly or via the enterprises or service providers to Vietnam Bank for Social Policy of the district where he/she registers permanent residence.

2. The credit application includes:

a) 01 master of credit application form (using Form No. 01 or Form No. 02 attached to this Decision) verified by Commune-level People’s Committee regarding beneficiaries of credit policy according to this Decision;

b) 01 verified copy of the contract for sending workers for overseas employment signed by the workers and the enterprises or service providers as per the law;

c) 01 verified copy of passport of the worker with adequate effective date to execute the contract signed with the enterprises or service providers as per the law.

3. Within 10 working days from the date on which a complete application is received, Vietnam Bank for Social Policy of the district shall appraise and approve. In case of rejection of approval, respond the worker in writing specifying reasons.

Article 7. Repayment of principal debt, interest and default provisions

1. Vietnam Bank for Social Policy shall enter into an agreement with the worker on repayment of principal debt but interval between 2 installments must not exceed 12 months. If a worker fails to repay the debt before the payment date, Vietnam Bank for Social Policy shall supervise on the next payment date.

2. The interest shall be repaid in payment date agreed in the credit agreement or loan book. If the workers request to pay by monthly installment, Vietnam Bank for Social Policy shall agree with the request of the workers.

3. Vietnam Bank for Social Policy shall take actions against any default with respect to workers working abroad under contract as per the law.

Article 8. Credit source

The credit is allocated from remaining financing of policy on preferential credit for workers in poor district under Decision No. 71/2009/QD-TTg dated April 29, 2009 of Prime Minister on approval of scheme for assisting poor districts and boosting labor exports in order to sustainable reduce poverty in period of 2009 – 2020 (hereinafter referred to as “Decision No. 71/2009/QD-TTg”) approved for state budget, turing to credit obtaining according to this Decision.

Article 9. Implementation

1. Ministry of Labor – War Invalids and Social Affairs shall:

a) direct, encourage, examine and inspect implementation of this Decision;

b) monitor and provide guidelines for handling difficulties arising during the implementation of this Decision.

2. People’s Committees of provinces having poor districts shall:

a) publicize and provide guidelines for the implementation of this Decision;

b) direct, encourage, examine and inspect the implementation of this Decision by regulatory authorities and People’s Committees of districts and communes.

3. Vietnam Bank for Social Policy shall provide guidelines for obtaining credit according to this Decision.

Article 10. Entry into force

1. This Decision comes into force from October 25, 2019 and shall be disbursed until December 31, 2020 inclusively.

Decision No. 71/2009/QD-TTg dated April 29, 2009 of Prime Minister on approval of scheme for assisting poor districts and boosting labor exports in order to sustainable reduce poverty in period of 2009 – 2020 expires from the effective date of this Decision.

2. Transition clauses

a) Workers obtaining credit at Vietnam Bank for Social Policy according to Decision No. 71/2009/QD-TTg before the effective date hereof and the credit is still effective shall continue to comply with the signed credit agreement.

b) If workers have signed contracts for contracts for overseas employment before the effective date hereof but have not obtained the credit, they may obtain the credit following provisions of this Decision.

Article 11. Implementation clause

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant entities and persons shall implement this Decision./.

APPENDIX

(Attached to Decision No.27/2019/QD-TTg
dated September 9, 2019 of Prime Minister)

Form 01

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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APPLICATION FOR CREDIT FOR WORKING ABROAD UNDER CONTRACTS
(credit is granted directly to worker)

To: Vietnam Bank for Social Policy of ………. District (1)

First and last name …………………………………  Date of birth: ……/……/…….

Ethnic group: ………………………………….. Gender: ……………………………………….

ID card/Passport/Citizen Identity Card No. …………………………………….

Date of issue: .................................................................. Place of issue: …………………………………………………

Permanent resident address: ……………………………………………………

Phone: ……………………………..

Eligibility:

- Residents in poor households o

- Ethnics o

- Permanent residents in poor districts o

I have the need to obtain credit from the financing for workers in poor districts working abroad under contracts No. .......................................................... in ................................................ (country/territory) signed on ......../......../........ with ..............……………………. (enterprise or service provider bringing workers abroad for overseas employment), address ……………………………………… in …………………………. months.

Hereby I request a credit amount of: VND ……………………………………………………

(In words: ……………………………………………………………………………………………………)

Credit period: …………………..months. Principal repayment: ………………………………. Interest repayment: ……………………………….

I hereby guarantee to use the credit for the right purpose and repay the principal and interest within the time limit, if fail to do so, I will be legally responsible./.

Note:

(1) Specify name of the district where the worker register permanent residence

(2) Specify name of the commune, ward and town where the worker register permanent residence

(3) Specify whether the worker is living in poor households, ethnics or of other eligibility

Form 02

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
----------------

APPLICATION FOR CREDIT
FOR WORKING ABROAD UNDER CONTRACTS

(credit is granted to worker via household)

To: Vietnam Bank for Social Policy of (1)………. District

Full name: ………………………………… Date of birth: ……/....../.........

Ethnic group: ………………………………….. Gender: ……………………………………….

ID card/Passport/Citizen Identity Card No. …………………………………….

Date of issue: .................................................................. Place of issue: …………………………………………………

Phone: ……………………………..

I am authorized by members of household to represent the household permanently residing at: ………………………………………………………………………………………….

I apply for an amount of credit extracted from the financing for workers in poor districts working abroad on behalf of Mr/Ms: …………………………………………………………….. who is a member of my household.

Date of birth: ……/……/…… Ethnic group: ……………………………. Gender: ……….

ID card/Passport/Citizen Identity Card No. …………………………………….

Date of issue: ...................................... Place of issue: ……………………………………..

Relationship with the representative of the household: …………………………………………….

Eligibility:

- Resident in poor households o

- Ethnics o

- Permanent residents in poor districts o

To be able to work abroad under contracts No. .......................................................... in ................................................ (country/territory) signed on ......../......../........ with ..............……………………. (enterprise or service provider bringing workers abroad for overseas employment), address ……………………………………… in …………………………. months.

Hereby I request a credit amount of: VND ……………………………………………………

(In words: ……………………………………………………………………………………………………)

Credit period: …………………..months. Principal repayment: ………………………………. Interest repayment: ……………………………….

I hereby guarantee to use the credit for the right purpose and repay the principal and interest within the time limit, if fail to do so, I will be legally responsible./.

Note:

(1) Specify name of the district where the worker register permanent residence

(2) Specify name of the commune, ward and town where the worker register permanent residence

(3) Specify whether the worker is living in poor households, ethnics or of other eligibility

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