According to the provisions of the Law on Public Investment, Ho Chi Minh City will implement a preferential credit policy through the Ho Chi Minh City Social Policy Bank to support cadres, civil servants, and part-time workers to borrow capital.
The maximum loan amount is regulated to be 300 million VND/person. However, the specific amount will be considered and decided by the Ho Chi Minh City Branch of the Social Policy Bank, based on factors such as capital needs, production - business cycle, existing capital sources and borrower repayment capacity.
This can be said to be a particularly humane policy, both a social security measure and an important boost for civil servants, public employees and workers who have just left the public sector.
Streamlining the apparatus is an inevitable trend to build a streamlined and efficient administration, reducing the burden on the budget. However, if the streamlining process stops at paying one-time subsidies, without creating conditions for people quitting their jobs to reintegrate into the labor market, that reform will lack sustainability.
Ho Chi Minh City has looked beyond that, so instead of giving money, the city "grants opportunities", through unsecured loans with a preferential loan of up to 300 million VND, term up to 10 years, interest rate equal to 0 in the first 5 years.
It is worth mentioning that this policy does not require property mortgages - which often makes new employees hesitant and having difficulty, but only needs to confirm the correct subject and reasonable capital use plan.
The city government does not focus on material security, but puts faith in the aspiration to rise up, the spirit of independence of those who have served the State.
Preliminary statistics show that out of more than 5,000 cadres, civil servants and public employees affected by the restructuring of the apparatus in Ho Chi Minh City, 231 people have proactively proposed the need to borrow capital to start a business. It is expected that about 1,600 people will participate in the first phase.
This proves that: leaving the public sector is not an "end", but for many people, it is an opportunity to rebuild another journey, more proactive, more motivated.
Another issue is that Ho Chi Minh City's policy is not only suitable in the context of a densely populated urban area and a dynamic economic life, but also suggests a model that can be replicated in many other localities with civil servants, public employees and non-professional workers quitting their jobs due to streamlining like in Ho Chi Minh City.
If localities learn from the way Ho Chi Minh City is doing, by using the Social Policy Bank as a preferential credit center, using local budgets to support interest rates, then streamlining the payroll will be an opportunity to truly transform the whole system.
"Giving opportunities" to cadres, civil servants, public employees and non-professional workers who quit their jobs due to streamlining with preferential loans is also a way to create conditions for those who have worked in the apparatus to continue to contribute to society, but in a new role: small business owners, service providers, creators...
