VGP – PM Nguyen Xuan Phuc has signed Decision 27/2019/QD-TTg on credit subsidies for laborers from poor districts to work abroad under contracts by 2020. 

Specifically, credit lending conditions included (1) laborers must have permanent residence books from above 12 months at poor districts and hope to work overseas in labor contracts; (2) they were permitted by foreign side in accordance with the law.

The maximum loan subsidy is equivalent to 100% of expenditures which laborers have to pay in labor contracts. Guest workers are allowed to borrow money without any secured loan. 

Regarding interest rates, laborers belonging to poor households and ethnic minority group are allowed to borrow money with interest rates which are a half of that for poor households. Meanwhile, other laborers at poor districts are permitted to borrow money with interest rates which are similar to that of poor households in line with the Government’s regulations. Overdue interest rates are equal to 130% of lending interest rates. 

Time of lending is not longer than the time written in the labor contracts. 

The decision shall take effect from October 25, 2019. Disbursement process will last until December 31, 2020./.