Reduce the burden when relatives work abroad

Preferential loans for workers working abroad under contracts implemented by the Vietnam Bank for Social Policies (VBSP) have partly helped many families reduce the burden of having relatives working abroad.

In recent years, many workers in Huong Tra have chosen to work abroad under contract to seek opportunities to change their lives.

Having the opportunity to visit Mrs. Hoang Thi Thu's house, Tu Ha ward, Huong Tra town on a rainy afternoon, in a small, simple house, Mrs. Thu emotionally told about her decision to send her son Pham Huu Gia Lac to work in Japan at the end of 2023.

Mrs. Thu said: My family is poor, and I have a heart disease, so life for both mother and child is very difficult. When researching job opportunities in Japan, Gia Lac decided to register to work under a contract to reduce the burden on the family, while looking for opportunities for future economic development. However, the initial cost of going to Japan to work is quite large, from training fees, airfare and deposits... Even though I borrowed money everywhere, I still could not manage to cover the expenses for my child. Fortunately, during that difficult time, the women's cadre of Tu Ha ward guided me to access preferential loans from the Vietnam Bank for Social Policies. After that, I was disbursed 80 million VND from the preferential capital, thereby covering part of the expenses for my child to go abroad.

“Now, my son has a stable job in Japan with an income of 20-25 million VND/month. Every month, he sends me 10-15 million VND to pay off debt and cover some of the medical expenses. I also save some money so that when he finishes his labor contract and returns home, he will have some capital to invest in economic development,” Mrs. Thu smiled contentedly.

Concerns about the initial costs for relatives working abroad under contract are not unique to Ms. Thu but are quite common today, especially for families in difficult circumstances. Many people have to seek informal credit sources with high interest rates or mortgage assets to cover the initial costs. This not only creates a large financial burden for workers, but also poses many potential risks.

Mr. Le Xuan Trung, Director of the Transaction Office of the Social Policy Bank of Huong Tra informed that the loan program for workers going to work abroad under contract has preferential interest rates equal to the lending interest rates for poor households in each period as prescribed by the Government and the Prime Minister and flexible repayment periods. Thanks to that, this credit source has partly reduced the debt repayment pressure for workers, especially families with difficult circumstances in Huong Tra.

According to statistics from the Transaction Office of the Social Policy Bank of Huong Tra town, by the end of February 2025, the whole town had 57 customers accessing preferential loans for workers working abroad under contracts with outstanding loans of more than 3 billion VND. Currently, these workers all have stable jobs, with an average income of 20-30 million VND/month/worker.

“To promote the effectiveness of this preferential credit program, the Transaction Office of the Social Policy Bank of Huong Tra town will actively implement many measures to disseminate information about the loan regime and policies according to the regulations of the Social Policy Bank for central capital sources and the regulations of the City People's Committee for local entrusted capital sources transferred by the City People's Committee. At the same time, coordinate with the government, the Fatherland Front, unions, and savings and loan groups to promote the dissemination of information about the overseas labor market; continue to accompany, guide, and support workers to complete loan applications and procedures and promptly disburse capital to workers; strengthen inspection and supervision to ensure that loans reach the right beneficiaries,” Mr. Le Xuan Trung shared.

Article and photos: Hoang Anh