Expanded preferential credit access creates more opportunities for workers to take up employment abroad

Opening up employment opportunities and enhancing income for workers, the lending program for overseas employment under contracts continues to affirm its important role in sustainable poverty reduction and local economic development.

VBSP Hau Loc Transaction Office (Thanh Hoa) staff disseminate new policy updates on loans supporting overseas employment to local residents

Pursuant to Decree No. 338/2025/NĐ-CP dated December 25, 2025 of the Government, the policy introduces a notable new feature of expanding eligible borrowers, including loans for deposits to work in the Republic of Korea and loans for overseas employment. This creates favorable conditions for all workers in need to access preferential credit.

To ensure the policy is effectively implemented, VBSP Thanh Hoa Provincial Branch has directed its Transaction Offices to strengthen communication efforts, and to implement lending in a transparent, public, and compliant manner, ensuring loans are provided to the right beneficiaries in accordance with regulations, thereby bringing preferential credit closer to the people.

Escaping poverty through preferential credit for overseas employment

Three years ago, the family of Ms. Le Thi Thuan in Do Huy hamlet, Trieu Son commune, was classified as a near-poor household, facing many hardships. After her husband passed away early, she single-handedly raised two children by collecting scrap metal, with unstable income. Her daughter got married after graduating from high school, while her son worked as a factory worker earning about VND 4.5 million (approximately USD 180) per month. Such income was only sufficient for basic living expenses, leaving little room for improving their living conditions or saving for the future.

The lending program supporting overseas employment has enabled Ms. Le Thi Thuan’s son ( in Do Huy hamlet, Trieu Son commune) to work in the Republic of Korea, thereby helping her family escape poverty

A turning point came when the family was advised by staff of VBSP Trieu Son Transaction Office and gained access to a loan of VND 100 million (approximately USD 4,000) from the overseas employment lending program. With financial support and strong determination to improve their lives, in 2023, her son went to work in the Republic of Korea under a fixed-term contract.

Since then, a steady remittance of around VND 30 million (approximately USD 1,200) per month sent home has significantly transformed the family’s living conditions. Their once dilapidated house has become more stable thanks to accumulated savings. Not only was the loan fully repaid on time, but Ms. Thuan was also able to purchase an additional plot of land adjacent to her home for her son’s future. “In the past, we never even dreamed that we would have enough money to buy land and save for the future,” she shared emotionally.

Beyond generating stable income, the time working in the Republic of Korea has also enabled her son to acquire welding and mechanical skills - valuable assets for his future career. Upon completing his contract and returning home, he plans to use his savings and skills to establish a production workshop in his hometown, creating jobs and further developing the family economy. From being a near-poor household with an uncertain future, Ms. Thuan’s family has now achieved sustainable poverty exit, secured financial stability, and developed a clear direction for the future.

To effectively implement the lending program under Decree No. 338/2025/NĐ-CP, VBSP Trieu Son Transaction Office has proactively advised and closely coordinated with local Party committees and authorities to carry out a range of synchronized solutions. The focus has been on strengthening communication and policy dissemination down to hamlets and residential groups through loudspeaker systems, community meetings, mass organization activities, and commune transaction sessions. The Transaction Office has coordinated in reviewing and selecting eligible borrowers in a transparent and democratic manner, ensuring compliance with regulations, while also enhancing supervision and monitoring of loan utilization to minimize risks and improve the effectiveness of the funds.

Mr. Dang Xuan Hung, Deputy Director in charge of VBSP Trieu Son Transaction Office, noted that a key highlight of Decree 338 is the expansion of eligible borrowers, enabling all workers with demand for overseas employment under contracts to access preferential credit. This expansion is expected to provide more workers with opportunities to access funding, confidently register for overseas employment, generate stable income, improve household living standards, and contribute to local socio-economic development. The unit will continue to closely coordinate with commune authorities to further strengthen communication so that people can fully understand and benefit from the new policy.

Creating opportunities for high income employment

The lending program supporting overseas employment has enabled the family of Ms. Tran Thi Huong, from Chien Thang hamlet, Van Loc commune, to fully repay their home renovation debts and achieve a stable living

As a near-poor household in the commune, for many years the family of Ms. Tran Thi Huong in Chien Thang hamlet, Van Loc commune, struggled to make a living through unstable jobs. She worked as a part-time domestic helper, while her son and daughter-in-law were engaged in informal labor, earning only around VND 4-5 million (approximately USD 160-200) per month. Meanwhile, their house had seriously deteriorated, forcing the family to borrow money for renovation from early 2025, further increasing their financial burden. With such limited income, even covering daily living expenses was difficult, let alone repaying the debt.

A turning point came in 2025 when her son and daughter-in-law were supported by VBSP Hau Loc Transaction Office with a loan of VND 150 million (approximately USD 6,000) to work overseas under fixed-term contracts in Taiwan (China). The preferential loan helped the family overcome the biggest barrier - overseas placement costs, opening up opportunities for higher and more stable income.

After just a few months of working in Taiwan (China), the regular remittances sent home each month not only enabled Ms. Huong to fully cover living expenses but also quickly repay the house renovation debt and gradually build savings for the future. She no longer had to work as a domestic helper, staying home to take care of her grandchildren and manage the household so that her children could work with peace of mind. “Thanks to this program, our family’s economic situation has changed significantly; we no longer face constant financial hardship as before”, she shared.

According to Mr. Nguyen Van Tho, Vice Chairman of the People’s Committee of Van Loc commune, the commune currently has nearly 40,000 working-age laborers, of whom 413 are working overseas under fixed-term contracts, mainly in markets such as Japan, Taiwan (China), and the Republic of Korea. In practice, overseas employment not only addresses immediate job needs but also generates stable income, making an important contribution to sustainable poverty reduction and improving local living standards.

Mr. Le The Nam, Deputy Director of VBSP Hau Loc Transaction Office, stated that in implementing Decree No. 338/2025/NĐ-CP dated December 25, 2025 of the Government on expanding eligible borrowers for overseas employment loans, the Transaction Office has introduced a range of synchronized solutions to promptly bring the new policy to the people. Recognizing communication as a key step, the unit has coordinated with local authorities to disseminate the policy directly at hamlet and commune levels, integrating it into meetings of mass organizations so that residents clearly understand the new provisions, eligibility criteria, loan limits, and procedures.

At the same time, credit officers have closely followed the local areas, directly guiding workers in completing loan applications and promptly addressing any arising difficulties. The appraisal process is conducted rigorously yet flexibly, shortening approval and disbursement time to ensure workers meet their departure schedules. Loan disbursement is carried out publicly at commune transaction points, ensuring proper beneficiaries and purposes, thereby maximizing the effectiveness of state preferential credit.

According to Mr. Nguyen Ngoc Thanh, Deputy Director of VBSP Thanh Hoa Branch, immediately after the issuance of Decree No. 338/2025/NĐ-CP, the Branch promptly directed its Transaction Offices to bring the policy into practice. From reviewing demand at the grassroots level, intensifying communication down to each village, to providing professional guidance and strengthening inspection and supervision of lending procedures - all measures have been implemented in a coordinated manner to ensure that people fully understand the policy and can access loans conveniently and in compliance with regulations.

“In practice, each worker employed overseas under contract not only secures a stable income for their family but also contributes to strengthening local development resources. After returning, most workers accumulate capital, experience, and industrial working discipline, enabling them to confidently invest in production and business activities, create jobs, and generate income in their hometowns. This is the sustainable value of the program, making a practical contribution to sustainable poverty reduction and new rural development”, Mr. Thanh emphasized.

Khieu Tu/TTXVN