Decree No. 74/2019/ND-CP amending the Decree No. 61/2015/ND-CP

DECREE

On amending and supplementing a number of articles of the Government’s Decree No. 61/2015/ND-CP dated July 09, 2015 on job creation policies and the National Employment Fund

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Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Employment dated November 25, 2015;

At the proposal of the Minister of Labor, War Invalids and Social Affairs;

The Government promulgates the Decree on amending and supplementing a number of articles of the Government’s the Decree No. 61/2015/ND-CP dated July 09, 2015 on job creation policies and the National Employment Fund (hereinafter referred to as the Decree No. 61/2015/ND-CP).

Article 1. To amend and supplement a number of articles of the Decree No. 61/2015/ND-CP

1. To amend Clause 1 and Clause 2 Article 21 as follows:

“1. The Ministry of Labor, War Invalids and Social Affairs shall perform the state management of the National Employment Fund (hereinafter referred to as the Fund).

2. Provincial-level People s Committees and central agencies of Vietnam Women s Union, Ho Chi Minh Communist Youth Union, Vietnam Farmers Union, Vietnam General Confederation of Labor, Vietnam Veterans’ Union, Vietnam Cooperative Alliance and Vietnam Blind Association (hereinafter referred to as program implementation organizations) are assigned the task of managing and using capital from the Fund according to the provisions of this Decree.”

2. To amend and supplement Article 24 as follows:

“Article 24. Loan levels

1. For production and business enterprises, the maximum loan is VND 2 billion for a project and VND 100 million of creating, maintaining and expanding jobs for an employee.

2. For an employee, the maximum loan is VND 100 million.

3. On the basis of the capital resources, production and business cycle, and the debt repayment capacity of borrowers, the Vietnam Bank for Social Policies shall consider specific loan level and negotiate with the borrower for it.”

3. To amend and supplement Article 25 as follows:

“Article 25. Loan duration

The maximum loan duration is 120 months. On the basis of the capital resources, production and business cycle, and the debt repayment capacity of borrowers, the Vietnam Bank for Social Policies shall consider specific loan duration and negotiate with the borrower for it.”

4. To amend and supplement Clause 1 Article 26 as follows:

“1. With regard to those prescribed in Clause 1 Article 12 of the Law on Employment, the loan interest shall equal the loan interest applicable to near poor households according to regulations on credit for near poor households.”

5. To amend and supplement Article 27 as follows:

“Article 27. Loan collateral conditions

In cases of loan levels of VND 100 million and more, the production and business enterprise must have loan collateral as prescribed by secured transactions regulations.”

6. To amend and supplement Clause 2 Article 28 as follows:

“2. Dossier for loans

a) Dossier submitted by an employee consists of: An application for credit facilities with the confirmation of the commune-level People’s Committee of legal residence and of priority entity prescribed in Point b Clause 2 Article 12 of the Law on Employment (if any) according to Form No. 1a and Form No. 1b promulgated together with this Decree;

b) A dossier submitted by a production and business enterprise consists of:

- The loan project document with the confirmation of the commune-level People s Committee of the project implementation location according to Form No. 2 promulgated together with this Decree;

- A copy of any in the following documents: Enterprise registration certificate; cooperative registration certificate, cooperation contract, or certificate of business household registration;

- Documents proving that the production and business enterprise is priority entity prescribed in Point a, Clause 2, Article 12 of the Law on Employment (if any), including:

+ For production and business enterprise that employs 30% or more of the total being disabled employees: A copy of the Decision on recognition of production and business enterprise that employs 30% or more of the total being disabled employees granted by the Department of Labor, War Invalids and Social Affairs;

+ For production and business enterprise that employs 30% or more of the total being ethnic minority employees: List of ethnic minority employees, copies of identity cards or household registration or temporary residence books and copies of labor contracts or recruitment decisions of the employees on the list;

+ For production and business enterprise that employs 30% or more of the total being disabled and ethnic minority employees: List of disabled and ethnic minority employees, copies of certificates of disabilities issued by the commune-level People s Committee for disabled employees, copies of identity cards or passports or household registration or temporary residence books for ethnic minority employees and copies of labor contracts or recruitment decisions of the employees on the list.”

7. To annul Clause 3 Article 28.

8. To amend and supplement Clause 3, Clause 4 and Clause 5 Article 30 as follows:

“3. The Vietnam Bank for Social Policies shall report to the Ministry of Labor, War Invalids and Social Affairs to submit the Prime Minister for consideration and decision on adjustment to loan capital from the Fund among localities and the program implementation organizations. The Vietnam Bank for Social Policies shall adjust loan capital according to decision of the Prime Minister.

4. The Department of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the local Vietnam Bank for Social Policies to report to province-level People s Committee for consideration and decision on adjustment to loan capital from the Fund in locality.

5. The central agency of the program implementation organization shall consider and decide on adjustment to loan capital from the Fund among provincial-level agencies of program implementation organization. The Vietnam Bank for Social Policies shall adjust loan capital according to decision of program implementation organization.”

9. To amend and supplement Clause 1 Article 31 as follows:

“1. The Vietnam Bank for Social Policies shall manage and account for the loan interests as the Vietnam Bank for Social Policies income. Loan interests are used as follows:

a) Deduction for setting up the reserve fund and paying expenses of the Vietnam Bank for Social Policies in accordance with the provisions of financial management regulations applicable to the Vietnam Bank for Social Policies;

b) Deducting 0.3% of loan interests from the Fund to support management, synthesis, inspection and supervision funds of the Ministry of Labor, War Invalids and Social Affairs;

c) Deducting 15% of loan interests from the Fund in locality to pay for management, synthesis, inspection and supervision of the Department and Division of Labor, War Invalids and Social Affairs;

d) Deducting 10% of loan interests from the Fund in locality, program implementation organization to supplement the Fund s capital managed by the provincial-level People s Committee and program implementation organization.”

10. To annul Article 33.

11. To amend and supplement Article 34 as follows:

“Article 33. Capital mobilization for lending to support job creation, job maintenance and expansion

1. The Vietnam Bank for Social Policies mobilizing capital for lending to support job creation, job maintenance and expansion shall be subsidized by the State interest rate differences and management fees according to the provisions of financial management regulations applicable to the Vietnam Bank for Social Policies.

2. The implementation results shall be reported by the Vietnam Bank for Social Policies in accordance with guidance of the Ministry of Labor, War Invalids and Social Affairs.”

12. To amend in turn ordinal of Article 35 and Article 36 to Article 34 and Article 35.

13. To amend and supplement Article 37 as follows:

“Article 36. Loan collateral conditions

For a loan of VND 100 million or more, an employee working abroad under contract must have loan collateral in accordance with secured transactions regulations.”

14. To amend in turn ordinal of Articles 38, 39, 40 to Articles 37, 38, 39.

15. To amend and supplement Clause 2 Article 40 to Clause 2 Article 39 as follows:

“2. Dossier for loans

a) A dossier submitted by an employee of near poor households includes: An application for credit facilities with the confirmation of the commune-level People’s Committee of legal residence and being near poor households according to Form No. 3a and Form No. 3b promulgated together with this Decree;

b)  A dossier submitted by an employee being relatives of people with meritorious services to the revolution includes:

- An application for credit facilities as prescribed at Point a of this Clause;

- A copy of the certificate of being relatives of people with meritorious services to the revolution according to Form No. 4 promulgated together with this Decree.”

16. To amend in turn ordinal of Articles 41, 42, 43, 44 to Articles 40, 41, 42, 43.

17. To annul Article 45.

18. To amend and supplement Article 46 as follows:

“Article 44. Capital mobilization for lending to support employees working abroad under contracts

1. The Vietnam Bank for Social Policies mobilizing capital for lending to support employees working abroad under contracts shall be subsidized by the State for interest rate differences and management fees according to the provisions of financial management regulations applicable to the Vietnam Bank for Social Policies.

2. The results shall be reported by the Vietnam Bank for Social Policies in accordance with guidances of the Ministry of Labor, War Invalids and Social Affairs.”

19. To amend ordinal of Article 47 to Article 45.

Article 2. Effect

1. This Decree takes effect on November 08, 2019.

2. Loan levels, duration, interests, loan collateral conditions for the project of lending to support job creation, job maintenance and expansion; loan collateral conditions for the project of lending to support employees working abroad under contracts from the National Employment Fund that are promulgated before the effective date of this Decree shall continue to be implemented in accordance with regulations of the Decree No. 61/2015/ND-CP.

Article 3. Responsibility for implementation

Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies and Chairpersons of People’s Committees of provinces and central affiliated cities and related agencies, enterprises, organizations and individuals shall take responsibilities for the implementation of this Decree./.

* All Appendices are not translated herein.