Decision 16/2023/QD-TTg loan support to make deposits in VBSP for migrant workers in South Korea

DECISION

Providing loan support to make deposits in the Vietnam Bank for Social Policies for workers being policy beneficiaries who work in South Korea under South Korea's Employment Permit System

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Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Vietnamese Guest Workers dated November 13, 2020;

Pursuant to the Government’s Decree No. 112/2021/ND-CP dated December 10, 2021, on detailing a number of articles of, and providing measures for implementing, the Law on Vietnamese Guest Workers;

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

The Prime Minister promulgates the Decision on providing loan support to make deposits in the Vietnam Bank for Social Policies for workers being policy beneficiaries who work in South Korea under South Korea's Employment Permit System.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and borrowers

This Decision prescribes provision of loan support to make deposits, management and use of deposits of migrant workers in South Korea under South Korea's Employment Permit System (hereinafter referred to as the EPS Program), for workers being policy beneficiaries who are entitled to borrow loans from the Vietnam Bank for Social Policies to work abroad under contracts under current law provisions.

Article 2. Subjects of application

1. Workers being policy beneficiaries who are entitled to borrow loans from the Vietnam Bank for Social Policies to work abroad under contracts (hereinafter referred to as the workers), have the demand and are eligible for a loan in the Vietnam Bank for Social Policies to make deposits to work in South Korea under the EPS Program.

2. Center of Overseas Labor under the Ministry of Labor, Invalids and Social Affairs.

3. The Vietnam Bank for Social Policies.

4. Other agencies, organizations and individuals engaged in the migrant workers to South Korea under the EPS Program.

Chapter II

LOAN SUPPORT AND PERFORMING DEPOSIT

Article 3. Conditions for loan borrowing

To be eligible for a loan in the Vietnam Bank for Social Policies, a worker must fully satisfy the following conditions:

1. Being policy beneficiaries who are entitled to borrow loans from the Vietnam Bank for Social Policies to work abroad under current provisions.

2. Having signed a contract to work in South Korea under the EPS Program with the Center of Overseas Labor.

3. Having registered permanent residence in the locality where the local Bank for Social Policies handling the procedures for his/her loan is located.

Article 4. Loan purpose

Workers borrow loans for making deposits in the Vietnam Bank for Social Policies to work in South Korea under the EPS Program.

Article 5. Lenders and loan amount 

A worker may borrow a loan in the local Bank for Social Policies of the locality where the worker registers permanent residence with the loan is equal to the deposit amount agreed upon by the Ministry of Labor, Invalids and Social Affairs and South Korea's Ministry of Employment and Labor and does not exceed VND 100 million.

Article 6. Loan terms

The loan terms shall be agreed upon by workers and the Vietnam Bank for Social Policies and are in accordance with the Vietnam Bank for Social Policies’ provisions and the loan terms stated in the contracts of sending the migrant workers to South Korea under the EPS Program of the borrowers but do not exceed 5 years and 4 months.

Article 7. Loan interest rates

The loan interest rates shall be the loan interest rates of the Vietnam Bank for Social Policies applicable to workers working abroad under contracts and in conformity with each subject.

Workers borrowing loans in the Vietnam Bank for Social Policies for making deposits shall be entitled to the interest rate of deposit equal to the lending interest rate for making deposits.

Article 8. Loan security

Workers borrowing loans under this Decision shall not apply to loan security.

Article 9. Funding sources for loans

Funding sources for loans shall be the sources of raised funding according to the plan annually assigned by the Prime Minister to the Vietnam Bank for Social Policies.

Article 10. Dossiers and procedures for loan

1. A dossier for loan must comprise: 

a) A loan application form certified by the commune-level People's Committee of the locality where the worker registers permanent residence (using the form issued together with this Decision).

b) A copy of the contract of sending the migrant worker to South Korea under the EPS Program signed by the Center of Overseas Labor and the worker.

c) A copy of valid citizen’s identity card or people’s identity card or passport.

Addition to such above-mentioned documents, workers being relatives of people with meritorious services to the revolution shall submit a copy of the certificate of relatives of people with meritorious services to the revolution made according to Form No. 4 issued together with the Government's Decree No. 74/2019/ND-CP dated September 23, 2019 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; workers subject to land recovery shall submit a copy of the decision on land recovery issued by the competent authority.

Copies of papers specified at Points b and c of this Clause must be presented together with their originals for comparison.

2. Procedures for loan:

After a contract of sending the migrant worker to South Korea under the EPS Program is signed by the worker and the Center of Overseas Labor, such worker shall request the People's Committee of the commune where he/she registers permanent residence to certify the beneficiaries stated in the loan application form specified in Clause 1 Article 10 of this Decision.

Within 03 working days from the date of receiving a complete dossier specified in Clause 1 Article 10 of this Decision, the Vietnam Bank for Social Policies shall approve the loan in accordance with regulations.

Article 11. Management and use of deposits

1. An agreement on signing the deposit contract must be consistent with the content of payment of principal debt and interest rate stated in the credit contract; the content of the contract of sending the migrant worker to South Korea under the EPS Program of the worker and relevant laws.

2. Handling of workers’ loans for making deposits

a) Upon the expiry of the credit contract, the local Bank for Social Policies being the lender shall collect the debt and settle the deposit account in accordance with the agreement in the credit contract.

b) In case the worker violates his/her obligations under the deposit contract or the contract of sending the migrant worker to South Korea, such deposit shall be handled according to the following order:  repaying the loans (including the principal debt and interests) borrowed by the worker in the Vietnam Bank for Social Policies for making a deposit; settling the remaining amount  in accordance with law on Vietnamese guest workers and other relevant law.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 12. Responsibilities of agencies and units

1. The Ministry of Labor, Invalids and Social Affairs

a) Assume the prime responsibility for, and coordinate with relevant ministries, sectors, and localities in, organizing, implementing, monitoring and inspecting the implementation of this Decision; propose measures to handle and remove obstacles arising in the course of implementation, and report on them to the Government and the Prime Minister.

b) Monitor, examine and supervise the implementation of this Decision.

c) In case there is a change in the deposit amount specified in Article 5 of this Decision, the Ministry of Labor, Invalids and Social Affairs shall notify the Vietnam Bank for Social Policies of the new deposit amount agreed upon by the Ministry of Labor, Invalids and Social Affairs and South Korea's Ministry of Employment and Labor in order that the Vietnam Bank for Social Policies uses it as a basis for determining the maximum loan to the workers.

2. The Vietnam Bank for Social Policies

a) Guide the process and procedures for provision of loans for making deposits and receive deposits for workers eligible for loans in the Vietnam Bank for Social Policies.

b) Manage and use deposits of workers in accordance with law and agreements between workers and the Center of Overseas Labor.

c) Coordinate with the Center of Overseas Labor in implementation of signing deposit contracts, management and refund of workers’ deposits under regulations.

3. People’s Committees of provinces and centrally-run cities

a) Direct the affiliated specialized agencies and the People's Committees at lower levels to organize propaganda, provision of the information and advice on the law related to workers working abroad under contracts, regulations of Vietnam and South Korea on the EPS Program.

b) Coordinate with the Vietnam Fatherland Front, socio-political organizations and the Vietnam Bank for Social Policies in propagating borrowers to abide by loan regulations and commit to return home on time, and implement this Decision.

c) Direct and inspect commune-level People's Committees’ certification of migrant workers to South Korea under the EPS Program being subjects of loan to make deposits in the Vietnam Bank for Social Policies.

Article 13. Transitional provisions

For employees who have borrowed loans to make deposits and made deposits in accordance with the Prime Minister's Decision No. 12/2020/QD-TTg dated March 31, 2020 on piloting deposit for migrant workers in South Korea under the Employment Permit System of South Korea or the Government’s Resolution No. 83/NQ-CP dated July 08, 2022 on making deposits and providing loan support to make deposits for migrant workers in South Korea under South Korea's Employment Permit System, to continue to implement according to their signed contracts.

Article 14. Effect

This Decision takes effect on June 01, 2023.

Article 15. Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees of provinces and centrally-run cities, Chairperson of the Board of Directors and General Director of Vietnam Bank for Social Policies, relevant agencies, organizations and individuals shall take responsibility for the implementation of this Decision.

* All Appendices are not translated herein.