Vietnam: 05 important policies regarding near-poverty households

What is a near-poverty household? According to the law, what policies should be implemented for near-poverty households? - Ngoc Hoa (Long An, Vietnam)

Vietnam: 05 important policies regarding near-poverty households

1. What is a near-poverty household?

According to Point b, Clause 2, Article 3 of Vietnam's Decree 07/2021/ND-CP stipulating the near-poverty household standard in 2022-2025 as follows:

- Near-poverty household in rural areas: A household with a monthly per capita income of VND 1,500,000 or less and lacking under three indicators measuring the level of basic social service shortage.

- Near-poverty household in urban areas: A household with a monthly per capita income of 2,000,000 VND or less and lacking under three indicators measuring the level of basic social service shortage.

Thus, near-poverty households are understood as households in rural or urban areas with low monthly per capita income and an index measuring the level of shortage of social services under regulations.

2. 05 important policies regarding near-poverty households

2.1. Health policy for near-poverty households

Health policy for near-poverty households according to Article 1 of Vietnam's Decision 705/QD-TTg dated May 8, 2013 stipulating that from January 1, 2013, the state budget will support 100% of health insurance premiums for certain entities from near-poverty households according to the national poverty line, including:

- People from near-poverty households have just escaped poverty. The support period is 5 years after escaping poverty.

If a person belonging to a near-poverty household has escaped poverty before January 1, 2013, but the time to escape poverty by January 1, 2013 is less than 5 years, for the remaining time, 100% of the health insurance premiums will be supported by the state budget. The minimum support period is 1 year.

- People from near-poverty households living in poor districts according to Vietnam's Resolution 30a/2008/NQ-CP on the program to support rapid and sustainable poverty reduction for 61 poor districts and districts with high poverty rate mechanisms and policies are applied.

For the remaining near-poverty households, the state budget will support the health insurance premiums according to the provisions of Vietnam's Decision 797/QD-TTg dated June 26, 2012.

2.2. Policy on social assistance for near-poverty households

Policy on social allowance for near-poverty households according to Articles 5 and 6 of Vietnam's Decree 20/2021/ND-CP with the following subjects:

(1)  Individuals who live in poor, near-poverty households and have not married; individuals who are married to spouses that are deceased or missing as per the law and raising children under 16 years of age or children from 16 to 22 years of age that are pursuing formal education, vocational education, professional secondary education, college education or first higher education degrees according to Clause 2 of this Article (hereinafter referred to as “poor single parent”).

(2) Ederly from 75 to 80 years of age, living in poor or near-poverty households, not specified under Point a of this Clause and living in ethnic minorities in communes, hamlets and mountainous regions; or

Except for cases of elderly living in poor households, having no individuals with obligations and rights to care for, inadequate to live in community, adequate to be admitted to social support facilities and receiving care, nurture in community.

(3) Children under 3 years of age, living in poor households or near-poverty households and living in ethnic minorities in communes, hamlets and mountainous regions, except for the following cases:

- Children under 16 years old with no source of nourishment;

- Children living in poor households and contracted HIV/AIDS.

- People with severe disabilities, people with extremely severe disabilities according to the provisions of the law on people with disabilities.

The level of social allowance for the above subjects is as follows:

- Subjects (1): 360,000 VND/month/child;

- Subject (2): 360,000 VND/month;

- Subject (3): 540,000 VND/month.

2.3. Policies on support to build and repair houses for near-poverty households

Policies on support for house construction and home repair according to Clauses 1 and 3, Article 15 of Vietnam's Decree 20/2021/ND-CP are as follows:

- Poor households, near-poverty households and households facing disadvantages when their houses collapse, drift or burn entirely due to natural disasters, fire or other force majeure and having no other place to live shall be considered for financing for house construction with a minimum amount of VND 40,000,000/household.

- Poor households, near-poverty households and households having severely damaged houses due to natural disasters, fire or other force majeure which render the houses uninhabitable shall be considered for financing for house repair with a minimum amount of VND 20,000,000/household.

2.4. Policy on loans for near-poverty households

According to Section 1 of Vietnam's Official Dispatch 866/NHCS-TDNN dated February 22, 2019, near-poverty households can borrow up to 100 million VND/household without loan security.

2.5. Policy on tuition fee exemption and reduction for students from near-poverty households

* According to Clause 2, Article 85 of the Law on Education 2019, the state has a policy of subsidizing and exempting and reducing tuition fees for learners who are the following subjects:

- The beneficiaries of social policies;

- Ethnic minorities in areas with extremely difficult socio-economic conditions;

- Orphans;

- Children without support;

- People with disabilities;

- People from poor households and near-poverty households.

* Reduced tuition fees for near-poverty households:

According to Point b, Clause 2, Article 16 of Vietnam's Decree 81/2021/ND-CP stipulating a 50% reduction in tuition fees for children attending kindergarten and high school students, students studying at continuing education institutions according to the educational program people with parents or both parents or grandparents (in the case of living with grandparents) are near-poverty households according to the Prime Minister's regulations.

* Free tuition for near-poverty households:

Pursuant to Clause 12, Article 15 of Decree 81/2021/ND-CP stipulating the exemption of tuition fees for pupils and students studying at vocational and higher education institutions of ethnic minorities whose fathers or mothers mother or both parents or grandparents (in the case of living with grandparents) belonging to poor and near-poverty households according to the Prime Minister's regulations.

Quoc Dat

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