Decision No. 16/2023/QĐ-TTg on providing support for loans to post collateral at the Vietnam Social Policy Bank for workers under policy targets going to work in South Korea under the South Korean Foreign Labor Permit Program.

Pursuant to …;

On providing support for loans to post collateral at the Vietnam Social Policy Bank for workers under preferential policies going to work in South Korea

pursuant to the Program on granting work permits for foreign workers in South Korea

according to the Law on Vietnamese Workers Going to Work Abroad Under Contracts dated November 13, 2020;December 10, 2021 Government Decree detailing certain provisions and implementation measures;

Pursuant toLaw on Government OrganizationLaw amending and supplementing some articles of the Law on the Organization of the Government and the Law on the Organization of Local Administration November 22, 2019;Decision No. 108/2023/NQ-QH15

Pursuant toThe Prime Minister issues this Decision on providing support for loans to post collateral at the Vietnam Social Policy Bank for workers under preferential policies going to work in South Korea pursuant to the Program on granting work permits for foreign workers in South Korea.Article 1. Scope of Regulation and Borrowers

Pursuant to Decree No.112/2021/NĐ-CPThis Decision stipulates the implementation of support for loans to post collateral and the management and use of collateral funds by workers going to work in South Korea under the Program on granting work permits for foreign workers in South Korea (hereinafter referred to as the EPS Program) for workers under preferential policies borrowing from the Vietnam Social Policy Bank to go to work abroad under contracts in accordance with current laws.The Prime Minister issues this Decision on providing support for loans to post collateral at the Vietnam Social Policy Bank for workers under preferential policies going to work in South Korea pursuant to the Program on granting work permits for foreign workers in South Korea.;

Decree No. 07/2021/NĐ-CP

1. Workers under preferential policies borrowing from the Vietnam Social Policy Bank to go to work abroad under contracts (hereinafter referred to as workers) who have the need and meet the conditions may borrow from the Vietnam Social Policy Bank to post collateral to go to work in South Korea under the EPS Program.

PART I

GENERAL PROVISIONS

2. Overseas Labor Market Management Center, Ministry of Labor, Invalids and Social Affairs.

3. Vietnam Social Policy Bank.

Article 2. Applicability

4. Other agencies, organizations, and individuals related to workers going to work in South Korea under the EPS Program.

SUPPORT FOR LOANS AND IMPLEMENTATION OF COLLATERAL POSTING

Article 3. Loan Conditions

To be eligible for a loan from the Vietnam Social Policy Bank, workers must satisfy the following conditions:

Chapter II

1. Belonging to the category of workers eligible for loans from the Vietnam Social Policy Bank to go to work abroad under current regulations.

2. Having signed a contract to work in South Korea under the EPS Program with the Overseas Labor Market Management Center.

3. Having a permanent residence registration in the area where the Vietnam Social Policy Bank processes loan procedures for workers.

Article 4. Purpose of Loans

Workers take out loans to post collateral at the Vietnam Social Policy Bank to go to work in South Korea under the EPS Program.

Article 5. Lending Bank and Loan Amount

Workers can borrow from the Vietnam Social Policy Bank where they have registered their permanent residence, with a maximum amount equal to the collateral amount agreed between the Ministry of Labor, Invalids and Social Affairs of Vietnam and the Ministry of Employment and Labor of South Korea, but not exceeding 100,000,000 VND.

Article 6. Loan Term

The loan term is agreed upon by the worker and the Vietnam Social Policy Bank in compliance with the Vietnam Social Policy Bank's regulations and the collateral period recorded in the contract for sending workers to work in South Korea under the EPS Program, but shall not exceed five years and four months.

Article 7. Interest Rate on Loans

The interest rate on loans is applied according to the interest rate for loans to workers going to work abroad under contracts as stipulated by the Vietnam Social Policy Bank for each category.

Workers borrowing from the Vietnam Social Policy Bank to post collateral enjoy an interest rate equivalent to the deposit interest rate for collateral posting.

Article 7. Interest rate for loans

The interest rate for loans shall be applied at the interest rate for loans from the Social Policy Bank to workers going to work abroad under contracts, suitable for each specific category.

Workers borrowing from the Social Policy Bank to deposit collateral shall enjoy the interest rate for collateral deposits equivalent to the loan interest rate for collateral purposes.

Article 8. Guarantee for Loan

Workers borrowing capital under this Decision shall not be required to provide collateral for the loan.

Article 9. Source of Loan Capital

The loan capital is sourced from the annual plan for mobilizing funds assigned by the Prime Minister to the Social Policy Bank.

Article 10. Loan Application Documents and Procedures

1. The loan application documents include:

a) The original Application for Loan with confirmation from the People's Committee of the commune where the worker is registered as a permanent resident (in accordance with the model attached to this Decision).

b) A copy of the Labor Export Contract between the Overseas Labor Center and the worker for sending workers to work in South Korea under the EPS Program.

c) A copy of the Citizen Identity Card or a copy of the National Identity Card or a valid copy of the passport.

In addition to the above documents, if the worker belongs to the category of relatives of those who have rendered meritorious service to the revolution, they must supplement a copy of the Certificate of Meritorious Service Relatives according to Model No. 4 issued together with Decree No. 74/2019/NĐ-CP dated September 23, 2019 of the Government amending and supplementing some articles of Decree No. 61/2015/NĐ-CP dated July 9, 2015 of the Government on employment support policies and the National Employment Fund; in case the worker belongs to the category whose land has been reclaimed, they must supplement a copy of the Land Reclamation Decision of the competent authority.

Copies of documents specified in points b and c of this Clause must be presented along with the originals for verification.

2. Loan Procedures:

After signing the Labor Export Contract for sending workers to work in South Korea under the EPS Program with the Overseas Labor Center, the worker requests the People's Committee of the commune where the worker is registered as a permanent resident to confirm their beneficiary status on the Loan Application Form stipulated in Clause 1 of Article 10 of this Decision.

Within three working days from the date of receiving complete documents as stipulated in Clause 1 of Article 10 of this Decision, the Social Policy Bank will approve the loan in accordance with regulations.

Article 11. Management and Use of Deposit Money

1. The agreement to sign a deposit contract must ensure consistency with the content of the credit contract regarding repayment of principal and interest on the loan; the content recorded in the Labor Export Contract for sending workers to work in South Korea under the EPS Program of the worker and relevant laws.

2. Handling of deposit money borrowed by the worker

a) Upon expiration of the credit contract, the Social Policy Bank that provided the loan will collect the debt and settle the deposit account according to the agreement in the credit contract.

b) In case the worker breaches the obligations under the deposit contract and the Labor Export Contract, the worker's deposit money will be handled in the following sequence: repay the loan amount (including both principal and interest) borrowed from the Social Policy Bank for deposit purposes; any remaining amount (if any) will be handled in accordance with the laws on Vietnamese workers going abroad for work under contracts and other related laws.

Chapter III

IMPLEMENTATION

Article 12. Responsibilities of Agencies and Units

1. Ministry of Labor, Invalids and Social Affairs

a) Lead and coordinate with relevant ministries, sectors, and localities to organize, implement, monitor, and inspect the implementation of this Decision; propose measures to address and resolve difficulties and obstacles arising during the implementation process, and report to the Government.

b) Monitor, inspect, and supervise the implementation of this Decision.

c) In case there is a change in the deposit amount stipulated in Article 5 of this Decision, the Ministry of Labor, Invalids and Social Affairs will notify the Social Policy Bank of the new deposit amount agreed upon between the Ministry of Labor, Invalids and Social Affairs of Vietnam and the Ministry of Employment and Labor of South Korea so that the Social Policy Bank can determine the maximum loan amount for workers.

2. Social Policy Bank

a) Guide the procedures and processes for providing loans for deposits and accepting deposits from workers eligible for loans at the Social Policy Bank.

b) Manage and use the deposit money of workers in accordance with the law and agreements between workers and the Overseas Labor Center.

c) Coordinate with the Overseas Labor Center to execute deposit contracts, manage, and return deposit money of workers in accordance with regulations.

3. Provincial People's Committees, Municipal People's Committees directly under the Central Government

a) Direct specialized agencies under their jurisdiction and lower-level People's Committees to organize propaganda, information dissemination, and advisory services on relevant laws concerning workers going abroad for work under contracts, and regulations of Vietnam and South Korea regarding the EPS Program.

b) Coordinate with the Fatherland Front, political and social organizations, and the Social Policy Bank to promote and mobilize borrowers to comply with loan regulations and commit to returning home on time, implementing this Decision.

c) Direct and inspect the People's Committees of communes to confirm the dispatch of workers to work in South Korea under the EPS Program who are eligible for loan deposits at the Social Policy Bank.

Article 13. Transitional Provisions

For workers who have borrowed capital for deposit and implemented deposit according to Decision No. 12/2020/QĐ-TTg dated March 31, 2020 of the Prime Minister on piloting deposit for workers going to work in South Korea under the EPS Program of South Korea or Resolution No. 83/NQ-CP dated July 8, 2022 of the Government on deposit and support for loans to deposit for workers going to work in South Korea under the EPS Program of South Korea, continue to implement according to the signed contracts.

Article 14. Effective Date

This Decision takes effect from June 1, 2023.

Article 15. Implementation Organization

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial people's committees, Chairmen of the Board of Directors and General Directors of the Social Policy Bank, and related agencies, organizations, and individuals are responsible for enforcing this Decision.

ANNEX

(Attached to Decision No. 16/2023/QĐ-TTg dated June 1, 2023 of the Prime Minister)

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
-------------

APPLICATION FOR LOAN

(For customers borrowing capital for deposit)

Respected Social Policy Bank ………

Customer's Name: … Ethnicity: …

Gender: … Date of Birth …/…/…

Identity Card/Residence Registration Card/Passport Number: …

Issued on: …/…/…; Issuing Authority: …

Place of Permanent Residence Registration: …

Current Address: …

Telephone: … Email: …

Belongs to category:

- The borrower is a member of a poor household □

- The borrower is a member of a near-poor household □

- The borrower is an ethnic minority member □

- The borrower is a relative of a person who has rendered meritorious service to the revolution □

- The borrower belongs to a household or individual whose land has been reclaimed □

- The borrower …

Request the Social Policy Bank to provide me with a loan for deposit to work in South Korea under Contract No. … signed on …/…/… with the Overseas Labor Department under the Ministry of Labor, Invalids and Social Affairs:

Loan Amount: … VND(In words: ...)

Loan Term: … Interest Rate: …%/year.

I hereby commit to using the borrowed funds for the intended purpose, repaying the principal and interest fully and on time; if not, I will bear full responsibility under the law.

APPROVAL OF THE SOCIAL POLICY BANK

Loan Amount: … VND.

Purpose of Loan Usage: Deposit for working in South Korea under the Korean Government's Work Permit Program for Foreign Workers.

Loan Term: … months.

Interest Rate: …%/year. Interest on the loan is collected periodically monthly when the Social Policy Bank pays interest on the customer's deposit.

Repayment Deadline: …/…/………

Note:

(1) Request the People's Committee of the commune to clearly confirm that the borrowing subject belongs to a poor household/near-poor household/ethnic minority household/relative of a person who has rendered meritorious service to the revolution/household whose land has been reclaimed/laborer…