Having financial difficulties, employees easily fall into the trap of black credit.
According to the Labor Relations Board of the Vietnam General Confederation of Labor, workers resorting to black credit comes from many causes and most workers have difficulty accessing legal loan sources at commercial banks and social policy banks because they do not have collateral or do not meet loan conditions.
Faced with the above situation, the Vietnam General Confederation of Labor issued Official Dispatch No. 2355/TLD, dated November 30, 2018 on propaganda, prevention and suppression of illegal credit activities among workers to all levels of trade unions.
Next, implementing the direction of the Prime Minister, on October 7, 2022, the Vietnam General Confederation of Labor signed Cooperation Agreements with HD SAISON Company Limited (HD Saison) and Vietnam Prosperity Bank Finance Company Limited SMBC (FE Credit) to enhance welfare and benefits for union members and workers, contributing to gradually repelling and eliminating black credit among workers.
750,000 employees use products and services
Based on the signed Cooperation Agreement of the Vietnam General Confederation of Labor and the directive document of the Vietnam General Confederation of Labor, the provincial and municipal labor federations, the central and equivalent industry trade unions, and the general corporation trade unions under the Vietnam General Confederation of Labor have discussed and agreed to sign a memorandum of understanding or cooperation agreement with HD Saison and FE Credit to implement and direct and guide the affiliated trade unions at all levels to propagate the content, meaning, effects, and benefits of employees and trade unions at all levels when participating in the implementation of the Cooperation Agreement.
By the end of March 2024, 43 provincial and municipal labor federations had signed memorandums of understanding or cooperation agreements with HD Saison and FE Credit, and issued documents to implement and guide affiliated trade unions in implementation.
According to the Cooperation Agreement, the partners of the Vietnam General Confederation of Labor provide 3 types of products and services to employees. In particular, the partners of the Vietnam General Confederation of Labor provide cash consumer loans (interest rate of 15-25%/year; 50-70% interest rate reduction compared to regular customers, committed to the lowest interest rate on the market); installment loans to buy vehicles, household appliances and equipment (lowest interest rate of 0%, down payment from only 0 VND at the partner system of HD Saison, FE Credit); credit cards (free annual fee for at least the first year, 0% - 25% interest rate for shopping spending transactions. Fixed monthly payment. No card opening fee. Credit limit from 06 - 60 million VND/card).
By the end of March 2024, more than 750,000 employees had used products and services worth over VND 11,500 billion, with an average value of about VND 15.3 million per employee.
According to the assessment of the Labor Relations Board, the Cooperation Agreement between the Vietnam General Confederation of Labor, HD Saison and FE Credit has contributed to reducing and repelling the situation of black credit among employees; in accordance with the aspirations and needs of employees...
In recent times, trade unions at all levels across the country have participated in supporting and solving employment issues effectively with a system of 13 capital support funds for self-employed poor workers, microfinance organizations (CEP), and the National Fund for Employment from state capital, which has solved loans for more than 1.4 million union members and workers with a total amount of VND 5,166 billion.
