Vietnam offers interest-free loans for companies to pay salaries

Companies can now apply for interest-free loans to pay furloughed staff and salaries from the Vietnam Bank for Social Policies.
By: | July 23, 2021
Topics: Compensation and Benefits | Employee Experience | Health and Wellness | News | Vietnam

The bank’s deputy director Bui Van Son said the loans are part of the government’s latest relief package worth VND26 trillion (US$1.13 billion) to support companies and workers struggling to cope with the pandemic. 

About VND7.5 trillion (US$325 million) will be set aside for interest-free loans for businesses to pay salaries. 

Companies can apply for the loans to pay their workers who have contracts with compulsory social security but are furloughed for 15 consecutive days between May 1, 2021 and March 31, 2022. 

To be eligible for the loans that are for up to 12 months, they must not have bad debts, but they do not need guarantees to qualify. 

Companies allowed to take up the loans to pay their staff to resume business include businesses mandated to stop operations temporarily as a COVID-19 preventive measure in that period, and include those in transportation, aviation, tourism, and hospitality, and others that send guest workers abroad. 

READ: Vietnam proposes another US$1.13 billion pandemic aid package

Minister of labour, invalids and social affairs Dao Ngoc Dung said that the application process for the new relief package would be streamlined as much as possible. He added that while last year’s the VND62 trillion (US$2.7 million) relief package took up to 40 days for companies to get loans for work stoppage, it should only take seven to 10 days this round, according to VNA.