Employment creation support policies in Vietnam

Employment creation support policies in Vietnam (Internet image)

Employment creation support policies include:

1. Credit incentives for employment creation in Vietnam

(1) Credit incentives for employment creation: The State shall provide credit incentives from the National Employment Fund and other credit sources to support employment creation and maintain and expand employment.

(2) The National Employment Fund

* Sources forming the National Employment Fund include:

+ State budget;

+ Supporting sources of domestic and foreign organizations and individuals;

+ Other lawful sources.

* The management and use of the National Employment Fund must comply with law.

* ​Borrowers of loans from the National Employment Fund

- Eligible borrowers of loans from the National Employment Fund include:

+ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households;

+ Workers.

- The entities defined in Clause 1 of this Article that fall in the cases below may take loans from the National Employment Fund at lower interest rates:

+ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households that employ many people with disabilities or ethnic minority people;

+ Ethnic minority people who are living in areas with extremely difficult socio-economic conditions, and people with disabilities.

* ​Conditions for loan borrowing

- The entities defined at Point a, Clause 1, Article 12 of the Law on Employment 2013 may take loans from the National Employment Fund when fully meeting the following conditions:

+ Having a loan-borrowing project that is feasible in the locality, suits their production and business lines and creates more stable jobs;

+ Having a loan-borrowing project certified by a competent agency or organization in the locality where the project is implemented;

+ Having loan collateral.

- The entities specified at Point b, Clause 1, Article 12 of the Law on Employment 2013 may take loans from the National Employment Fund when fully meeting the following conditions:

+ Having full civil act capacity;

+ Wishing to take loans to create employment for themselves or attract more workers, as certified by a competent agency or organization in the locality where the project is implemented;

+ Lawfully residing in the locality where the project is implemented.

- The Government shall prescribe loan levels, duration and interest rates, the order and procedures for borrowing loans, and loan collateral conditions.

* Provision of preferential loans from other credit sources to support employment creation: Based on socio-economic conditions in each period, the State shall use other credit sources to provide preferential loans for the implementation of indirect policies to support employment creation.

2. Policies to support employment change for workers in rural areas of Vietnam

- Support for occupation or employment change for workers in rural areas

+ Based on socio-economic development strategies and plans, the State shall support occupation or employment change for workers in rural areas.

+ Workers in rural areas who participate in occupation or employment change are entitled to:

+ Vocational training support;

+ Free counseling on policies and laws on labor, employment and vocational training;

+ Free job recommendation;

+ Taking loans from the National Employment Fund as prescribed in Articles 11, 12 and 13 of the Law on Employment 2013.

- Vocational training support for workers in rural areas: 

Workers in rural areas who attend vocational training courses of under three months or at primary level in vocational training institutions are entitled to support of vocational training expenses under the Prime Minister’s regulations.

- Support for small- and medium-sized enterprises, cooperatives, cooperative groups and business households to create employment for workers in rural areas Small- and medium-sized enterprises, cooperatives, cooperative groups and business households are entitled to the State’s support for development of production and business activities and expansion of on-spot employment for workers in rural areas through:

+ Taking loans from the National Employment Fund as prescribed in Articles 11, 12 and 13 of the Law on Employment 2013;

+ Being supported in accessing information on outlet markets;

+ Enjoying tax exemption and reduction in accordance with tax laws.

3. Public employment policies in Vietnam

* Contents of public employment policies

- Public employment policies are implemented through state-funded projects or activities associated with socio-economic development programs in communes, including:

+ Building infrastructure for agriculture, forestry, fisheries and salt production;

+ Building public infrastructure facilities;

+ Protecting the environment;

+ Responding to climate change;

+ Other projects and activities serving the local communities.

- For the projects and activities specified in Clause 1 of Article 18 of the Law on Employment 2013, when selecting contractors under the bidding law, a bidding dossier or dossier of requirement must contain a requirement that the bid-participating contractors propose a plan on employment of the workers defined in Clause 1, Article 19 of the Law on Employment 2013.

- The Government shall detail the organization of implementation of public employment policies.

* Participants in public employment policies

- Workers may participate in public employment policies when fully meeting the following conditions:

+ Lawfully residing in the locality where the projects or activities are implemented;

+ Participating on a voluntary basis.

- The workers defined in Clause 1 of Article 19 of the Law on Employment 2013who are ethnic minority people, members of poor households or households living just above the poverty line or households having agricultural land recovered, and unemployed or underemployed people are prioritized to participate in public employment policies.

- Organizations and individuals are encouraged to employ the workers defined in Clause 1 of this Article when implementing projects or activities other than those specified in Clause 1, Article 18 of the Law on Employment 2013.

4. Other support policies in Vietnam

* Support for guest workers

- The State shall encourage and create conditions for workers who have demand and ability to go abroad as guest workers.

- Workers who are ethnic minority people, members of poor households or households living just above the poverty line or households having agricultural land recovered, and relatives of people with meritorious service to the revolution who wish to go abroad as guest workers, are entitled to the State’s support for:

+ Vocational training and learning foreign languages; getting familiarized with the customs, habits and laws of Vietnam and the host country;

+ Training to improve occupational skills qualifications to meet the requirements of the host country;

+ Taking loans with preferential interest rates.

- The Government shall detail support policies for guest workers as prescribed in this Article.

* Employment creation support for young people

- The State shall encourage organizations and individuals to create employment for young people; and create conditions for young people to bring into play their initiative and creativity in employment creation.

- The State shall provide employment creation support for young people through:

+ Free job counseling, career orientation and job recommendation for young people;

+ Vocational training in association with employment creation for young people who have completed their military or public security obligation and youth volunteers who have completed their tasks in socio-economic development programs or projects;

+ Support for young people to start up their career or business.

- The Government shall detail Points b and c, Clause 2 of Article 22 of the Law on Employment 2013.

* Support for labor market development

The State shall provide support for labor market development through:

- Collecting and providing labor market information, analyzing and forecasting labor markets, and linking labor supply and demand;

- Modernizing employment service activities and labor market information systems;

- Making investment to build the capacity of employment service centers;

- Encouraging organizations and individuals to participate in labor market development.

(Chapter 2 of the Law on Employment 2013)

Diem My

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