Supporting more than 7,200 union members
From the initial capital of 5 billion VND in 2014, up to now, the Poor Workers' Capital Support Fund (City Labor Federation) has developed to 60 billion VND, supporting 7,205 union members to borrow capital with a total turnover of more than 194.6 billion VND. Every year, nearly 1,000 employees borrow capital to invest in production, business, small services... the average income of each family increases by 2-4 million VND/month.
Currently, the Fund has implemented an emergency loan package that allows union members to borrow up to 80% of their salary and allowances; a maximum borrowing period of 1 month; interest rate of 6.6%/year. The loan package helps workers immediately solve urgent situations such as: Paying tuition fees, treating diseases, giving gifts, overcoming natural disasters, paying rent, improving housing... without needing to mortgage or mortgage property. This is also a loan package being promoted by the City Labor Federation through the Huong Cong App - Hai Phong Trade Union, helping workers access capital quickly, safely and transparently.
From the beginning of 2025 to now, the Fund has disbursed nearly 100 emergency package loans in the form of direct or Huong Cong App - Hai Phong Trade Union. The loans are mainly used to serve union members facing sudden difficulties such as illness, tuition fees, anniversaries, natural disasters... For example, Ms. Pham Thi Hue - a worker at Nhat Hung Company Limited - urgently borrowed to pay for her children's tuition; Ms. Nguyen Thi Nhan, a union member of Sao Vang Company Limited (Dong Hai ward) borrowed 5.5 million VND to buy household items...
Along with that, the City Labor Federation maintains a short-term loan package (maximum 20 million VND/lender), a loan term of 1-12 months for needs such as treatment, tuition payment, hospitalization, natural disaster recovery, epidemics... The medium-term loan package with a maximum loan of 50 million VND/person, a maximum loan term of 36 months for small-scale production and business, improvement of means of living, construction and repair of housing, treatment, vocational training support, child care... Interest rate applies from 6.6% to 7.8%/year/real debt ( gradually decreased according to monthly installment capital) depending on loan needs.
Striving for 50% of grassroots trade unions to access loans
According to the Hai Phong City Labor Federation, although the operation of the Capital Support Fund has achieved many positive results, it is still limited. First of all, new capital only meets about 1/3 of the actual needs of workers. Many grassroots trade unions and enterprises want to deploy loans to workers, but the Fund does not have enough resources to expand. Not to mention, the maximum loan of 50 million VND according to current regulations is no longer suitable, while the price of goods and living expenses have increased. The fact that some businesses are still hesitant to sign a loan guarantee for workers because they are afraid that workers will "jump jobs" also makes the rate of workers in the enterprise sector accessing capital low, only about 10%.
According to Mr. Nguyen Anh Tuan - Chairman of the City Labor Federation, the upcoming goal of the City Labor Federation is to maintain, preserve and develop capital, striving not for bad debts or risks. At the same time, expand the borrowers to many grassroots unions and enterprises. In the immediate future, in the period of 2025 - 2030, the City Labor Federation strives for 50% of grassroots unions to access loans from the Fund. The City Labor Union will also open additional microfinance program No. 2 or advise on increasing charter capital by 50 billion VND if there are new instructions from the State Bank to support more disadvantaged workers.
Along with that, the City Labor Federation promotes the application of technology, completes the Huong Cong - Union App, builds an automatic risk management and control system; strengthens professional training, closely coordinates with grassroots unions in inspection, supervision, ensuring loans are used for the right purposes...
