Support for loans to work abroad under contracts for holders of expropriated land in Vietnam from August 1, 2024

Support for loans to work abroad under contracts for holders of expropriated land in Vietnam from August 1, 2024 (Image from the Internet)

On July 31, 2024, the Prime Minister of the Government of Vietnam issued Decision 12/2024/QD-TTg regarding the mechanism and policy for job creation and vocational training for holders of expropriated land.

1. Support for loans for working abroad under contracts for holders of expropriated land in Vietnam from August 1, 2024

As stipulated in Article 8 of Decision 12/2024/QD-TTg, the support for loans to work abroad under contracts for holders of expropriated land in Vietnam is as follows;

- holders of expropriated land can get preferential loans to work abroad under contracts from the Vietnam Bank for Social Policies.

- Conditions for loan application:

+ Fully capable of civil acts;

+ Have signed a contract with a service enterprise, a non-business organization sending workers to work abroad under contracts;

+ Have permanent residence registration in the area where the Vietnam Bank for Social Policies processes loan application procedures for holders of expropriated land;

+ Have loan security according to legal regulations for loans exceeding 100 million VND.

- The maximum loan amount is 100% of the costs to work abroad under the contract signed between the worker and the service enterprise, non-business organization sending workers to work abroad under contracts.

- Loan interest rates are equivalent to the interest rates for loans to poor households as promulgated by the Prime Minister of the Government of Vietnam from time to time.

- Overdue debt interest rates are 130% of the loan interest rates stipulated in Clause 4, Article 8 of Decision 12/2024/QD-TTg.

- The maximum loan term is equivalent to the duration of the contract sending Vietnamese workers to work abroad, excluding contract extension periods.

- The treatment of risky loan debts is implemented according to the regulations of the Government of Vietnam on the mechanism for handling risky debts at the Vietnam Bank for Social Policies.

- The Vietnam Bank for Social Policies will provide guidance on the dossier, procedures, loan repayment schedules, debt term adjustments, debt extensions, and overdue debt conversion.

2. Support for working abroad under contracts for holders of expropriated land in Vietnam from August 1, 2024

The support for working abroad under contracts for holders of expropriated land is specifically stipulated in Article 7 of Decision 12/2024/QD-TTg as follows:

- People with agricultural land acquisition working abroad under contracts are supported according to the regulations of the Government of Vietnam on policies supporting workers to work abroad under contracts.

- People with business land acquisition working abroad under contracts are supported similarly to workers with agricultural land acquisition as stipulated in Clause 1, Article 7 of Decision 12/2024/QD-TTg.

- The financial support for working abroad under contracts stipulated in Clauses 1 and 2, Article 7 of Decision 12/2024/QD-TTg will be included in the vocational training and job-changing plans and calculated in the project investment costs or the total budget of the compensation, support, and resettlement plan approved by the competent state authority.

- holders of expropriated land are supported to work abroad under contracts once according to the policies stipulated in Article 7 of Decision 12/2024/QD-TTg.

More details can be found in Decision 12/2024/QD-TTg which takes effect in Vietnam from August 1, 2024, and replaces Decision 63/2015/QD-TTg of the Prime Minister of the Government of Vietnam on policies supporting vocational training and job creation for workers with land acquisition.

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