Decision No. 17/2023/QĐ-TTg amends and supplements certain articles of Decision No. 31/2007/QĐ-TTg dated March 5, 2007, of the Government on credit for households engaged in production and business activities in difficult areas, and Decision No. 92/2009/QĐ-TTg dated July 8, 2009, of the Government on credit for traders engaged in commercial activities in difficult areas.

Pursuant to …;
Amending and supplementing some articles of Decision No. 31/2007/QĐ-TTg dated March 5, 2007 of the Government on credit for households engaged in production and business activities in difficult areas and Decision No. 92/2009/QĐ-TTg dated July 8, 2009 of the Government on credit for traders operating in trade in difficult areasdated March 5, 2007 of the Government on credit for households engaged in production and business activities in difficult areas and Decision No. 92/2009/QĐ-TTg dated July 8, 2009 of the Governmenton credit for traders operating in trade in difficult areasDecision No. 92/2009/QD-TTg dated July 8, 2009 of the Government Prime MinisterBased on the Law on Credit Institutions dated June 16, 2010; the Law amending and supplementing certain provisions of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

The Government promulgates this Decision to amend and supplement some articles of Decision No. 31/2007/QĐ-TTg dated March 5, 2007 of the Government on credit for households engaged in production and business activities in difficult areas and Decision No. 92/2009/QĐ-TTg dated July 8, 2009 of the Government on credit for traders operating in trade in difficult areas.

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries;

At the proposal of the Minister of Finance;

Article 1. Amending and supplementing some articles of Decision No. 31/2007/QĐ-TTg dated March 5, 2007 of the Government on credit for households engaged in production and business activities in difficult areas

"Article 2. Difficult Areas

1. Market management agencies at all levels include: the Department of Domestic Market Management and Development under the Ministry of Industry and Trade; the Market Management Business Unit under the Department of Domestic Market Management and Development; the Market Management Sub-department under the Department of Industry and Trade of provinces and centrally-administered cities; and the Market Management Team under the Market Management Sub-department.

1. The difficult areas eligible to benefit from the credit policy for households engaged in production and business activities as stipulated in this Decision include:

a) Communes, wards, towns (hereinafter referred to collectively as communes) specified in the List of Administrative Units at Commune Level in Difficult Areas issued by the Prime Minister for each period;

b) Island districts without administrative units at commune level but included in the List of Particularly Difficult Communes in Coastal and Marine Areas issued by the Prime Minister for each period;

c) Villages not belonging to the communes specified in point a of this clause but included in the List of Particularly Difficult Villages in Ethnic Minority and Mountainous Areas issued by the competent authority for each period.

2. Administrative units established based on the division, separation, or merger of administrative units within the Lists mentioned in Clause 1 of this Article shall also enjoy the credit policy under this Decision."

"Article 3. Borrowers

2. Amending and supplementing Article 3 as follows:

Households as defined by law (including households running farmsteads) engaging in production and business activities in sectors not prohibited by law in difficult areas as stipulated in Article 2 and meeting the borrowing conditions set out in Article 4 of this Decision (hereinafter referred to collectively as borrowers)."

3. Supplementing Clause 4 and Clause 5 of Article 4 as follows:

"4. Borrowers who are not classified as poor households, near-poor households, or newly escaped poor households according to the Prime Minister's Decision.

5. Borrowers who have no outstanding debt with the Vietnam Bank for Social Policies for the following programs:

a) Employment creation loan program and job maintenance and expansion program as prescribed by laws on employment support policies and the National Employment Fund;

b) Investment and development program for precious medicinal plant cultivation areas as prescribed by laws on preferential credit policies implementing the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas from 2021 to 2030, Phase I: 2021-2025 and any subsequent amendments, supplements, or replacements (if any).

c) Other credit programs for households to engage in production and business activities as prescribed by law (if any)."

"Article 7. Maximum Loan Amount

4. To amend and supplement Article 7 as follows:

The maximum loan amount is 100 million VND per borrower."

"Article 8. Interest Rate on Loans

5. Amending and supplementing Article 8 as follows:

1. The interest rate on loans is 9% per annum.

3. Adjustments to the interest rate on loans during each period shall be decided by the Prime Minister based on the proposal of the Board of Directors of the Vietnam Bank for Social Policies.

Article 10. Guarantee for loans

4. The interest rate on loans must cover the average cost of funds and management fees for this Program. The average cost of funds and management fees are determined in accordance with the Ministry of Finance's guidelines on financial management regulations for the Vietnam Bank for Social Policies."

6. Amending and supplementing Article 10 as follows:

"Article 10. Collateral for Loans

Borrowers are not required to provide collateral for loans."

"Article 12. Risk Management

7. Amending and supplementing Article 12 as follows:

Risk management shall be carried out in accordance with the laws on managing non-performing debts at the Vietnam Bank for Social Policies."

8. Supplementing Clause 3 of Article 13 as follows:

"3. The Board of Directors of the Vietnam Bank for Social Policies shall submit proposals to the Prime Minister for decisions on adjusting the interest rate on loans during each period."

9. Amending Point a of Clause 2 of Article 16 as follows:

"a) Implement state management functions in finance within the scope of authority;"

"a) Perform the state management function on finance within the scope of authority;"

Article 2. Amending and supplementing some articles of Decision No. 92/2009/QĐ-TTg dated July 8, 2009 of the Government on credit for traders operating commerce in difficult areas

1. Market management agencies at all levels include: the Department of Domestic Market Management and Development under the Ministry of Industry and Trade; the Market Management Business Unit under the Department of Domestic Market Management and Development; the Market Management Sub-department under the Department of Industry and Trade of provinces and centrally-administered cities; and the Market Management Team under the Market Management Sub-department.

1. The difficult areas eligible to benefit from the credit policy for households engaged in production and business activities as stipulated in this Decision include:

1. The difficult areas benefiting from the credit policy for traders stipulated in this Decision include:

b) Island districts without administrative units at commune level but included in the List of Particularly Difficult Communes in Coastal and Marine Areas issued by the Prime Minister for each period;

c) Villages not belonging to the communes specified in point a of this clause but included in the List of Particularly Difficult Villages in Ethnic Minority and Mountainous Areas issued by the competent authority for each period.

2. Administrative units established based on the division, separation, or merger of administrative units within the Lists mentioned in Clause 1 of this Article shall also enjoy the credit policy under this Decision."

"Article 3. Borrowers

2. Amend and supplement Article 8 as follows:

"Article 8. Loan amount

1. For individual traders: The maximum loan amount is 100 million VND per individual.

2. For economic organizations established legally in accordance with the law: The maximum loan amount is 1 billion VND per organization."

3. Amend and supplement Article 12 as follows:

"Article 12. Guarantee for loans

1. Traders borrowing up to 100 million VND do not need to provide loan guarantees.

2. Traders borrowing more than 100 million VND must provide loan guarantees in accordance with the provisions of the law on guaranteeing obligations and the regulations of the Social Policy Bank."

4. Amend Point a Clause 2 Article 16 as follows:

"a) Perform the state management function on finance within the scope of authority;"

Article 3. Transitional Provisions

1. For credit contracts signed before the effective date of this Decision, the parties continue to implement according to the contents stipulated in the signed credit contract.

2. In cases where the borrower is currently borrowing from the Social Policy Bank but no longer qualifies as a difficult area under this Decision, they shall continue to fulfill the commitments, rights, and responsibilities recorded in the signed credit contract with the Social Policy Bank until the contract ends.

Article 4. Implementation provisions

1. This Decision takes effect from August 8, 2023.

2. The Minister, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, Chairpersons of the Board of Directors, and General Directors of the Social Policy Bank are responsible for implementing this Decision.