COVID-19 Update | Government’s Support to Those Affected by Covid-19 Pandemic | Vietnam
Government’s Support Measures for People and Businesses Affected by Covid-19 Pandemic
Dear Clients and Friends,
Amid the wake of the Covid-19 pandemic, a majority of people and businesses have disproportionally been exposed to the income shortfall that has adversely impacted on their lives at subsistence level and business operation in various sectors.
In response, the Government has issued Resolution No. 42/NQ-CP on April 9, 2020 on support measures to those severely affected by Covid-19. The support package is estimated to be VND62 trillion (approximately USD2.66 billion) and expected to benefit 20 million of affected people nationwide (*).
The policy aims to support the following 6 targeted groups that have been hit hard by Covid-19 pandemic, in particular low-income people:
|Target Beneficiaries||Support Measures||Payment|
|1/ Poor and near-poor households (**)||Cash support of VND250,000/person/month||Upfront one-off 3-months payment|
|2/ People who are currently entitled to monthly social allowances (including those who served in Vietnam’s wars)||Cash support of VND500,000/person/month||Upfront one-off 3-months payment|
|3/ People who are unemployed and not entitled to unemployment benefits||Cash support of VND1 million/person/month||Monthly payment|
|4/ Business households who cease business operation and have annual taxable income of less than VND100 million||Cash support of VND1 million/household/month||Monthly payment|
|5/ Employees who are asked to take unpaid leave for 1 month or longer||Cash support of VND1.8 million/person/month||Monthly payment|
|6/ Companies with financial difficulties which have already paid at least 50% salary to employees during the period from April through June 2020||Entitled to free-interest, unsecured loans of up to 50% of mandatory minimum wages for employees covering maximum period of 3 months|
(**) The key criteria to determine poor and near-poor households is monthly income per capita. Among others, poor and near-poor households include households in rural areas having a monthly income per capita of VND 700,000 or lower and in urban areas having a monthly income per capita of VND 900,000 or lower.
The provincial People’s Committees and the State Bank of Vietnam will have a key role in implementing the policies of Resolution No. 42/NQ-CP.
- Provincial People’s Committees will compile the lists of eligible households, people and companies to provide support in the relevant provinces and cities. Funds to provide support will be allocated from local budgets and central budgets; and
- The State Bank of Vietnam will extend to the Vietnam Bank of Social Policies an interest free facility up to VND16 trillion for on-lending to eligible companies in category 6 above.
We want you to know that the safety and wellbeing of our clients and our teams are very important to us. If you have any questions or concerns, we encourage you to reach out to your contact partner or you can email us at [email protected]
YKVN Covid19 Taskforce