DECREE

AMENDMENTS TO THE GOVERNMENT’S DECREE NO. 61/2015/ND-CP DATED JULY 09, 2015 PRESCRIBING EMPLOYMENT CREATION POLICIES AND NATIONAL EMPLOYMENT FUND

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

Pursuant to the Law on employment dated November 16, 2013;

At the request of the Minister of Labour, War Invalids and Social Affairs;

The Government promulgates a Decree providing amendments to the Government’s Decree No. 61/2015/ND-CP dated July 09, 2015 prescribing employment creation policies and national employment fund (hereinafter referred to as “Decree No. 61/2015/ND-CP”).

Article 1. Amendments to some Articles of Decree No. 61/2015/ND-CP

1. Clause 1 and Clause 2 Article 21 are amended as follows:

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2. Provincial People's Committees and central-level agencies of Vietnam Women's Union, Ho Chi Minh Communist Youth Union, Vietnam Farmer’s Union, Vietnam General Confederation of Labor, Vietnam Veterans Association, Vietnam Cooperative Alliance, and Vietnam Blind Association (hereinafter referred to as “program-implementing organizations”) shall manage and use fund sources of the Fund in accordance with regulations of this Decree."  

2. Article 24 is amended as follows:

“Article 24. Loan amounts

1. The maximum loan amount granted to a business entity is VND 02 billion/project but shall not exceed VND 100 million/employee benefiting employment creation, maintenance and development policies.

2. The maximum loan amount granted to each eligible employee is VND 100 million.

3. The specific loan amount shall be subject to the consideration and agreement between Vietnam Bank for Social Policies (VBSP) and the borrower according to fund sources, business cycle and solvency of that borrower.”

3. Article 25 is amended as follows:

“Article 25. Loan term

Loans shall be offered for a maximum period of 120 months.  The specific loan term shall be subject to the consideration and agreement between VBSP and the borrower according to fund sources, business cycle and solvency of that borrower.”

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“1. The interest rate on a loan offered to any of the entities defined in Clause 1 Article 12 of the Law on employment shall be same as that on the loan granted to a near-poor household as regulated in the law on credits granted to near-poor households.” 

5. Article 27 is amended 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.”

6. Clause 2 Article 28 is amended as follows:

“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;

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- 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.”

7. Clause 3 Article 28 is abrogated.

8. Clause 3 Article 30 is amended and Clause 4 and Clause 5 are added to Article 30 as follows:

“3. VBSP shall submit reports to the Ministry of Labor, War Invalids and Social Affairs for requesting the Prime Minister to consider and decide the adjustment of sources of borrowed funds derived from the Fund between local governments and program-implementing organizations.  VBSP shall adjust sources of borrowed funds according to the Prime Minister’s decision.  

4. Each Provincial Department of Labour, War Invalids and Social Affairs shall take charge and cooperate with VBSP in submitting reports to the Provincial People's Committee for considering and deciding the adjustment of sources of borrowed funds derived from the Fund in that province. Provincial branch of VBSP shall adjust sources of borrowed funds according to the decision made by the Provincial People's Committee.

5. Central-level agencies of program-implementing organizations shall consider and decide the adjustment of sources of borrowed funds derived from the Fund between provincial-level agencies of program-implementing organizations.  VBSP shall adjust sources of borrowed funds according to the decision central-level agencies of program-implementing organizations.”

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“1. VBSP shall manage and record earned interests on loans as its incomes.  Interests on loans shall be used as follows:

a) Loan interests shall be used for setting aside the reserve fund and covering expenses of VBSP in accordance with law regulations on financial management of VBSP;

b) 0.3% of interests on loans received by the Fund shall be used for funding the performance of management, consolidation and inspection tasks of the Ministry of Labor, War Invalids and Social Affairs;

c) 15% of interests on loans received by the Fund in a province shall be used for funding the performance of management, consolidation and inspection tasks of the Provincial Department of Labor, War Invalids and Social Affairs and District-level Offices of Labor, War Invalids and Social Affairs;

d) 10% of interests received by the Fund on loans offered in a province or a program-implementing organization shall be added to fund sources of the Fund managed by that Provincial People’s Committee or program-implementing organization.”

10. Article 33 is abrogated.

11. Article 34 is amended as follows:

“Article 33. Raising funds for granting loans for employment creation, maintenance and development

1. Differences in interest rate and management costs incurred by VBSP when mobilizing funds for granting loans for employment creation, maintenance and development shall be made up by the Government in accordance with law regulations on financial management of VBSP.

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12. The numerical order of Article 35 and Article 36 are changed into Article 34 and Article 35.

13. Article 37 is amended as follows:

“Article 36. Collateral

If the loan amount is VND 100 million or more, the borrower who applies for a concessional loan for working abroad under a labour contract must provide collateral in accordance with law regulations on secured transactions.”

14. The numerical order of Articles 38, 39 and 40 are changed into Articles 37, 38 and 39.

15. Clause 2 Article 40 is changed into Clause 2 Article 39 and amended as follows:

“2. Application for loan

a) If the borrower is a member of a near-poor household:  The application form for loan which must bear the Commune-level People’s Committee’s certification of the borrower’s legal residence and near-poor household using Form 3a or Form 3b enclosed with this Decree;

b) If the borrower is a relative of the person with meritorious services to the revolution:

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- The copy of certificate of relatives of the person with meritorious services to the revolution made using Form No. 4 enclosed with this Decree.”

16. The numerical order of Articles 41, 42, 43 and 44 are changed into Articles 40, 41, 42 and 43.

17. Article 45 is abrogated.

18. Article 46 is amended as follows:

“Article 44. Raising funds for granting loans to Vietnamese workers working abroad under labour contracts

1. Differences in interest rate and management costs incurred by VBSP when mobilizing funds for granting loans to Vietnamese workers for working abroad under labour contracts shall be made up by the Government in accordance with law regulations on financial management of VBSP.

2. VBSP shall submit reports on fund raising results in accordance with regulations of the Ministry of Labor, War Invalids and Social Affairs.”

19. Article 47 is changed into Article 45.

Article 2. Effect

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2. Amounts, terms, interest rates and collaterals for loans granted to projects on employment creation, maintenance and development, and collaterals for loans granted to Vietnamese workers for working abroad under labour contracts with funds derived from the National Employment Fund under applications for loan approved before the effective date of this Decree shall comply with regulations of the Decree No. 61/2015/ND-CP.

Article 3. Implementation

Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant agencies, enterprises, organizations and individuals shall be implement this Decree./.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Xuan Phuc