Conditions for loan borrowing from the National Employment Fund in Vietnam

Conditions for loan borrowing from the National Employment Fund in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Sources forming the National Employment Fund in Vietnam

Sources forming the National Employment Fund under Clause 1, Article 11 of the Law on Employment 2013 include:

- State budget;

- Supporting sources of domestic and foreign organizations and individuals;

- Other lawful sources.

2. Regulations on the use of National Employment Fund in Vietnam

According to Article 20 of Decree 61/2015/ND-CP, National Employment Fund (hereinafter referred to as Fund) shall be used in the following operations:

- Granting concessional loans to small and medium-sized enterprises, cooperatives, artels, business households and employees for job creation, maintenance and extension.

- Granting concessional loans to guest workers.

3. Borrowers of loans from the National Employment Fund in Vietnam

 Borrowers of loans from the National Employment Fund under Article 12 of the Law on Employment 2013 are as follows:

- Eligible borrowers of loans from the National Employment Fund include:

+ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households;

+ Workers.

- The entities defined in Clause 1 of this Article that fall in the cases below may take loans from the National Employment Fund at lower interest rates:

+ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households that employ many people with disabilities or ethnic minority people;

+ Ethnic minority people who are living in areas with extremely difficult socio-economic conditions, and people with disabilities.

4. Conditions for loan borrowing from the National Employment Fund in Vietnam

Conditions for loan borrowing from the National Employment Fund under Article 13 of the Law on Employment 2013 are as follows:

- The entities defined at Point a, Clause 1, Article 12 of the Law on Employment 2013 may take loans from the National Employment Fund when fully meeting the following conditions:

+ Having a loan-borrowing project that is feasible in the locality, suits their production and business lines and creates more stable jobs;

+/ Having a loan-borrowing project certified by a competent agency or organization in the locality where the project is implemented;

+ Having loan collateral.

- The entities specified at Point b, Clause 1, Article 12 of the Law on Employment 2013 may take loans from the National Employment Fund when fully meeting the following conditions:

+ Having full civil act capacity;

+ Wishing to take loans to create employment for themselves or attract more workers, as certified by a competent agency or organization in the locality where the project is implemented;

+ Lawfully residing in the locality where the project is implemented.

- The Government shall prescribe loan levels, duration and interest rates, the order and procedures for borrowing loans, and loan collateral conditions.

5. Assessment and approval for application for loans from the National Employment Fund in Vietnam

Assessment and approval for application for loans from the National Employment Fund in Vietnam according to Article 29 of Decree 61/2015/ND-CP as follows:

- With respect to a project for which the fund source is managed by the People's Committee of province:

+ Within 10 working days, from the date on which the application for loans is received, the local VBSP shall assess and submit it to the President of People’s Committee of district where the project is executed for approval;

+ Within 05 working days, from the date on which the application for loans is received, the President of People’s Committee of district where the project is executed shall consider approving. If the application is rejected, they must provide explanation in writing for the local VBSP.

- With respect to a project for which the fund source is managed by an organization in charge:

+ Within 10 working days, from the date on which the application for loans is received, the local VBSP shall assess and submit it to the Head of provincial agency of the organizations in charge for approval;

+ Within 05 working days, from the date on which the application for loans is received, the Head of provincial agency of the organizations in charge shall consider approving. If the application is rejected, they must provide explanation in writing for the local VBSP.

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