Capital increased 12 times in 10 years
Based on the actual situation and needs of workers, in 2014, the Hai Phong Labor Confederation established the Capital Support Fund for Poor Employees to help union members and employees borrow capital to create jobs for themselves , increase income... Thereby, contributing to reduce poverty, improve workers' lives, connect and attract workers to join trade unions.
After 10 years of operation, the fund is currently managing 60 billion VND, an increase of 12 times compared to 2014 and an increase of 2.7 times compared to 2020. The fund launched and deployed many loan products with loan levels from 2 to 50 million VND, interest rate calculated based on loan balance gradually decreasing (from 6.6% to 7.8%/year). Products include medium-term loan packages (maximum loan period of 36 months), short-term loans (maximum loan period of 12 months) or most recently, emergency loan products (maximum loan period of 31 days, solution maximum 8 working hours).
Fund activities have covered 15/15 districts. The number of units implementing loan activities is increasing. In the past 10 years, 519 grassroots trade unions received policies and implemented capital support activities, and 7,205 union members received loans from the Fund.
Ms. Tran Thi Nhi - Director of the Capital Fund - said: Every year, nearly 1,000 employees borrow capital to invest in livestock farming, production and business, small services... creating jobs for relatives in the community. family, community. The average increase in income of each family is from 2 - 4 million VND per month, in some cases the increase in income is from 5 - 10 million VND/month.
It must be mentioned that Ms. Vu Thi Binh - Vinh An Kindergarten (Vinh Bao district) - used loan capital to buy breeding cows, bringing an income for her family of 20-30 million VND/year; Ms. Nguyen Thi Hong Thuy, Thuy Huong Kindergarten (Kien Thuy district) invested in a family mechanical workshop, creating more jobs for 2 people, earning 7 million VND/month; Ms. Nguyen Thi Hang, Kien Quoc Kindergarten (Kien Thuy district) used the loan to open a business and phone repair shop, increasing her family's income by an average of 3.7 million VND/month...
Replicate effective loan models
Not only does it support union members to borrow capital , the Capital Fund in coordination with grassroots trade unions also supports union members' product consumption by borrowing capital, helping to increase income for union members. Thanks to that, in the past 10 years, more than 1,000 employees in difficult circumstances borrowed capital from the fund but did not re-borrow, their family conditions have improved, stabilized, and their spiritual life has been enhanced.
The activities of the Fund also contribute to performing well the function of caring for and protecting the legitimate rights and interests of union members and employees in the city.
From 2019 up to now, the Fund has coordinated with trade unions at all levels to select, approve, and give gifts to 440 union members and 125 children of union members who are in difficult circumstances with a total cost of 654 million VND. The fund mobilizes philanthropists to provide additional support to 6 families in Hai An district, An Lao district, Thuy Nguyen... part of the funding for medical treatment and living expenses...
Mr. Nguyen Anh Tuan - Chairman of Hai Phong City Confederation of Labor - said: To further meet the growing loan needs of union members and workers, help workers access capital and stay away from "black credit", the City Confederation of Labor Hai Phong directed the Capital Support Fund to advise on the development of a project to increase the capital scale. Along with that, effectively applying digital transformation in fund operations, first is to deploy lending procedures through the Hai Phong Trade Union Huong Cong application to ensure quick and effective service for union members quickly and promptly. time.
