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Press Release

Updated: 2016-11-07 22:09:08

Press Release: More supports needed for higher effectiveness of lending to migrant workers

Many rural areas have been changed by exporting labors, many families turned to a new page by sending their members working overseas for a limited time. Behind such joy is the effort of VBSP during the last decade to channel loans to the poor and policy beneficiaries and poor districts.

At present, VBSP offers loans to workers working abroad following various programs:

Decision No 365/2004/QD-NHNN dated 13/04/2004 of the Governor of the State Bank on lending to Vietnamese labor to work abroad (Decision 365), Decision 71/2009 / QD TTg dated 29/4/2009 of the Prime Minister to approve the Scheme of supporting poor districts to boost labor export contributing to sustainable poverty reduction in the period of 2009 to 2020 (Decision 71) and Decision No 1465 / QD-TTg of the Prime Minister on pilot implementation of laborers going to work in Korea under the Employment permit program for foreign workers in Korea launched in 2013.

After 10 years of implementation of labor export programs (labor export) VBSP has disbursed loans to nearly 106,000 households with loan outstanding of VND 2,500 billion, helping nearly 107,000 workers from poor households, policy households and labors in the poor district to go working abroad. Debt collection turnover is VND 2,014 showing high performance of the programs.

As of 31/12/2015, the total loan portfolio for labor export reached nearly 462 billion. Particularly in 2015, total loans disbursement reached VND 131.5 billion, debt repayment reached over VND 129 billion with more than 2,400 borrowers.

It can be said that, lending for labor export of VBSP has helped poor households, policy households and households living in disadvantaged areas, especially the ethnic minorities to improve their skills, living conditions. Labor export loans are highly appreciated by the people, contributing to local poverty reduction in particular and to the National Target Program on Poverty Reduction in general. Besides, the labor export movement has brought the country a significant amount of foreign currency, expanding cooperation between countries, helping the country to integrate and develop.

In addition, labors working abroad have chances to access advance science and technology, modern and dynamic work style to improve their working attitude, skills, productivity and get precious experiences for their work later at home. Many of them after working abroad, open SMEs at home, creating job for family members and local community.

According to statistics, it is worth noting that since the implementation of Decision 71, lending of the two Decisions 71 and 365 has different tendency. While loans to poor households, policy households for labor export in accordance with Decision 365 tend to decrease rapidly over the years, the outstanding loans for labor export in poor districts accordance with Decision 71 has slow growth and then slow down:

Unit: billion dong

    Loan portfolio/year



Lending to Vietnamese labor to work abroad (Decision 365)


Lending for labor export in poor districts (Decision 71)























This reality is due to the following reasons:

First, under Decision 71, labors are offered with free vocational training, language training, accommodation, travel and education and a preferential loan with maximum amount equaling to expenditures of borrowers for labor export with interest rate of 50% to the current rate of interest applied to borrowers for labor export from poor households and ethnic minorities (interest rate is 0.275%/ month). Meanwhile, labor export borrowers under Decision 365, loan policies are tighter, basically does not meet the cost for labors to go and work abroad, with a loan amount of VND 30 million only and an interest rate of 0.55% / month.

Second, for the successful implementation of the project "Supporting poor districts to boost labor export contributing to sustainable poverty reduction in the period of 2009 to 2020 ", employees in poor districts working abroad in accordance with Decision 71 can borrow larger loan amount with more preferential interest rate, thus they can choose market with higher and more stable income (mainly South East Asia, Korea, Japan and Taiwan etc,.) whereas borrowers under Decision 365 can borrow only a small amount which discourage them from good working markets where higher fees required.

To resolve these difficulties, recently, the Board of Management of VBSP has decided to rise lending amount to 100% of fees presenting in the labor contracts signed between labors from poor and policy households and enterprises, service enterprises or agencies taking the labors abroad.

However, in recent years, labor export activity also raises many complex issues in social life. Some organizations and individuals took advantage of the open policies of the State on labor export to cheat employees ... Besides, due to the economic downturn, job demand in the world market also decline notably, needs to work abroad thus, fell sharply, employees working abroad also encountered a lot of difficulties in their work, a number of employers do not comply commitments signed with workers. In some cases, workers has not really changed in work manner and awareness leading to low discipline and violation of the labor contract etc,.

To gradually solve the issues and improve efficiency and quality of the programs, there must be closer coordination, further synchronization between the ministries involved and the localities, labor export enterprise in which propaganda should be seriously focused. Further strengthen state management of labor export activities, there should be strict legal framework for labor export service units to protect the rights of workers, to avoid cases of deceptions; and enhancing accountability and quality of labor recruitment of labor export service enterprises; promulgating legal penalties for enterprises fail to comply with labor contracts, causing damage to the workers and risk for loans from the State budget.

The ministries involved open exchange forums periodically to the participating units to capture information on the situation and results of the program, resolve any difficulties and obstacles arise to make the programs more effective.

Businesses and services when hiring employees should actively improve competitiveness, expand markets through increasing investment in the organizational structure, finance, training, strengthening management and protection of interests of workers; focus on education and vocational training for workers to equip them with necessary knowledge to meet job requirements, improve the quality of employees recruited to work abroad.

Hopefully with further efforts in the journey channeling loans for labor export of VBSP with the support and companionship of the State management agencies, labor export enterprises and the people, labor export policy lending will continue to bring high efficiency, positive contribution to poverty reduction programs of the Government.





Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year