The Ministry of Justice is reviewing the draft Decree detailing a number of articles of the Law on Employment on policies to support job creation. The draft Decree assigns the Ministry of Home Affairs to preside over the development.
According to the draft submission, the Ministry of Home Affairs proposed to increase the loan level to support job creation, maintenance and expansion for workers to 200 million VND; the loan level for production and business establishments to 10 billion VND.
At the same time, the draft decree also adds principles for cases where production and business establishments and employees borrow capital under various projects to support job creation, maintenance and expansion at the Social Policy Bank, the total outstanding loans for projects of production and business establishments; employees do not exceed the above maximum loan level.
In addition, the draft decree also amends regulations on the loan term to support job creation, maintenance and expansion to suit the lending practice of the Social Policy Bank. The Ministry of Home Affairs also proposed to remove the regulation based on the production and business cycle to negotiate with borrowers on specific loan terms.
The draft also shows the amendment of interest rates to support job creation, maintenance and expansion of jobs for subjects in general at 125% of interest rates for loans for poor households in each period prescribed by the Prime Minister, equal to lending interest rates for newly escaped poverty households and interest rates to support job creation, maintenance and expansion of jobs for subjects with preferential interest rates equal to lending interest rates for poor households.
The Ministry of Home Affairs also proposed amending the regulations on maximum loan levels to comply with the provisions of the law on Vietnamese workers working abroad under contracts, and adding regulations on specific loan levels for loans to support working abroad under contracts.
The proposed interest rate for supporting work abroad under contracts is 125% of the loan interest rate for poor households equal to the lending interest rate for newly escaped poverty households, the interest rate for subjects with preferential interest rates equal to the lending interest rate for poor households in each period prescribed by the Prime Minister.
Previously, the loan interest rate to support working abroad under contracts was equal to the loan interest rate for poor households, applied generally to the following subjects: Ethnic minorities; poor households, near-poor households or households whose agricultural land was recovered; relatives of people with revolutionary contributions...
In addition, the Ministry of Home Affairs also proposed raising the loan level to ensure loans for loans to support job creation, maintenance, expansion of jobs and loans to support work abroad under contracts to over 200 million VND to comply with the regulations on raising the loan level for workers.
