Vietnam: What does the application for loans submitted by production and business establishments include?
- What are the changes in the application for loans submitted by production and business establishments in Vietnam?
- Is there a change on the application form for loans submitted by production and business establishments in Vietnam?
- Are production and business establishments in Vietnam required to provide collateral?
What are the changes in the application for loans submitted by production and business establishments in Vietnam?
Pursuant to Clause 2 Article 28 of Decree 61/2015/ND-CP (amended and supplemented by Clause 6 Article 1 of Decree 74/2019/ND-CP) as follows:
Application for loans
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2. Application for loan
a) An application for loan submitted by a employee includes: The application form for loan which must bear the Commune-level People’s Committee’s certification of the borrower's legal residence and the borrower’s eligibility for priority entity status as prescribed in Point b Clause 2 Article 12 of the Law on employment (if any) using the Form 1a or Form 1b enclosed with this Decree;
b) An application for loan submitted by a business entity includes:
- The project which will use the borrowed fund and must bear the Commune-level People’s Committee’s certification of the project location, using Form 2 enclosed with this Decree;
- The copy of the enterprise registration certificate, certificate of co-operative registration, business cooperation contract or certificate of household business registration;
- Documents proving the business entity’s eligibility for priority entity status as prescribed in Point a Clause 2 Article 12 of the Law on employment (if any), including:
+ If at least 30% of total employees of the business entity are disabled: The copy of the Decision on recognition that at least 30% of the business entity’s total employees are disabled, issued by the Provincial Department of Labour, War Invalids and Social Affairs;
+ If at least 30% of total employees of the business entity are ethnics: The list of employees who are ethnics; copies of ID card or family register or temporary residence register and the labour contract or employment decision of each listed employee;
+ If at least 30% of total employees of the business entity are disabled and ethnics: The list of employees who are disabled and ethnics; copies of disability certificates of the disabled employees issued by Commune-level People’s Committees; copies of ID cards/passports/family registers/temporary residence registers of employees who are ethnics; and copies of labour contracts or employment decisions of listed employees."
Pursuant to Clause 2, Article 1 of Decree 104/2022/ND-CP as follows:
Amendments to Decree No. 61/2015/ND-CP dated July 9, 2015 on policies to support job creation and the National Employment Fund amended according to Decree No. 74/2019/ND-CP dated September 23, 2019
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2. Replace some phrases at Point b, Clause 2, Article 28 as follows:
Replace the phrase "a copy of the identity card or household register booklet or temporary residence register booklet" and the phrase "a copy of the identity card or passport or household register booklet or temporary residence register booklet" with the phrase "a copy of the identity card or citizen identity card or birth certificate”.
According to Decree 104/2022/ND-CP, some phrases in the regulations on the application for loans of production and business establishments are replaced.
Specifically, the phrase "a copy of the identity card or household register booklet or temporary residence register booklet" and the phrase "a copy of the identity card or passport or household register booklet or temporary residence register booklet" are replaced by the phrase "a copy of the identity card or citizen identity card or birth certificate”
Thus, regulations on the application for loans of production and business establishments are amended as follows:
- The project which will use the borrowed fund and must bear the Commune-level People’s Committee’s certification of the project location, using Form 2 enclosed with this Decree;
- The copy of the enterprise registration certificate, certificate of co-operative registration, business cooperation contract, or certificate of household business registration;
- Documents proving the business entity’s eligibility for priority entity status as prescribed in Point a Clause 2 Article 12 of the Law on employment (if any), including:
+ If at least 30% of the total employees of the business entity are disabled: The copy of the Decision on the recognition that at least 30% of the business entity’s total employees are disabled, issued by the Provincial Department of Labour, War Invalids and Social Affairs;
+ If at least 30% of total employees of the business entity are ethnics: The list of employees who are ethnics; copies of the identity cards or citizen identity cards or birth certificates and the labor contract or employment decision of each listed employee;
+ If at least 30% of total employees of the business entity are disabled and ethics: The list of employees who are disabled and ethics; copies of disability certificates of the disabled employees issued by Commune-level People’s Committees; copies of the identity cards or citizen identity cards or birth certificates of employees who are ethnics; and copies of labor contracts or employment decisions of listed employees.
Is there a change on the application form for loans submitted by production and business establishments in Vietnam?
Pursuant to Clause 3 Article 1 of Decree 104/2022/ND-CP as follows:
Amendments to Decree No. 61/2015/ND-CP dated July 9, 2015 on policies to support job creation and the National Employment Fund amended according to Decree No. 74/2019/ND-CP dated September 23, 2019
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3. Replace Form No. 1a issued with Decree No. 74/2019/ND-CP dated September 23, 2019 with Form No. 1 issued together with this Decree.
Annul Form No. 1b issued together with Decree No. 74/2019/ND-CP dated September 23, 2019.
Accordingly, Form No. 1b issued together with Decree No. 74/2019/ND-CP stipulating the application form for loans to support job creation, maintenance, and expansion of jobs (Lending to employees through households) has been annulled.
Are production and business establishments in Vietnam required to provide collateral?
Pursuant to Article 27 of Decree 61/2015/ND-CP (amended and supplemented by Clause 5 Article 1 of Decree 74/2019/ND-CP) as follows:
Article 27. Collateral
If the loan amount is VND 100 million or more, the business entity is required to provide the collateral for such loan in accordance with regulations of the law on secured transactions.
Accordingly, production and business establishments applying for loan amounts from VND 100 million or more must provide collateral in accordance with the law on secured transactions.
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