b) Enterprises, cooperatives, cooperative unions, family households and other business entities that employ ethnic minority people and are eligible to get loans in accordance with this Decree.

2. Ministries, regulatory authorities, provincial People's Committees, organizations and individuals involved in the implementation of policies laid down in this Decree.

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Article 3. Implementation areas

Ethnic minority and mountainous communes and villages defined according to criteria for classification of ethnic minority and mountainous areas adopted in each period.

Article 4. Rules for granting and getting loans

1. VBSP shall consider granting loans to eligible borrowers in a clear, open and transparent manner; review and instruct borrowers to get loans according to the policy laid down in this Decree or another lending policy so as to give them the highest preferential rate in case a borrower is eligible to get loans under VBSP’s different credit programs for purchase of housing, residential land, production land, and vocational training.

2. Borrowers shall use borrowed funds for loan purposes only, and fully repaying principal and interest amounts on schedule to VBSP.

3. Poor and near-poor households that are eligible to get loans under this Decree and other credit programs of VBSP for business purposes, they may get loans under one or different credit programs provided that the borrower’s total outstanding debt does not exceed the maximum loan amount granted to poor and near-poor households in each period.

Article 5. Funding sources and interest rate offseting mechanism

1. VBSP’s funding for granting loans:

a) In 2022 – 2023 period: An amount of VND 9.000 billion derived from the fund earned from issuance of Government-backed bonds by VBSP in accordance with the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly and the Resolution No. 11/NQ-CP dated January 30, 2022.

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2. Grant of subsidy for offsetting costs incurred from application of preferential lending interest rates and management fees to VBSP:

a) SBV shall consider granting subsidies to offset costs incurred from the application of preferential lending interest rates and management fees to VBSP for implementing the Decree in the 2021 – 2025 period according to the mechanism for offsetting costs incurred from the difference in lending interest rates and management fees when granting loans to the poor and other policy beneficiaries included in VBSP’s fiscal management mechanism.

b) Funding used for offsetting costs incurred from difference in interest rates and management fees for implementing the Decree in the 2022 - 2023 period is VND 2 thousand billion specified in Paragraph b Point 1.2 Clause 1 Article 3 of the Resolution No. 43/2022/QH15; after 2023, funding shall be derived from investment and development funding included in the medium-term and annual public investment plans in accordance with the Law on state budget, the Law on public investment and other guiding documents (if any).

Article 6. Settlement of risky debts

Regulations on settlement of risky debts applied by VBSP shall prevail.

Article 7. Loan security

1. The borrowers mentioned in Point a Clause 1 Article 2 of this Decree must not provide security for their loans.

2. The borrowers mentioned in Point b Clause 1 Article 2 of this Decree must provide security for their loans in accordance with VBSP's regulations and regulations of law on secured transactions.

Chapter II

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Article 8. Borrowers

The following entities are entitled to get preferential loans for purchase of residential land:

1. Poor ethnic minority households.

2. Poor Kinh ethnic households lawfully residing in extremely disadvantaged communes or villages in ethnic minority and mountainous regions.

Article 9: Eligibility requirements for a loan

A borrower is required to meet the following eligibility requirements to get a loan:

1. The borrower has a lawful residence in local area and has their name included in the list of households eligible for land supporting policy approved by a competent authority.

2. The representative of the borrowing household must be at least 18 years old and have full legal capacity as prescribed by law.

3. The borrower’s borrowing plan is appropriate to the intended loan purpose.

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Borrowed funds shall be used for covering costs incurred to have residential land.

Article 11. Loan limit

The specific loan amount shall be agreed upon between VBSP and the borrower but shall not exceed VND 50 million/household.

Article 12. Loan term

The specific loan term shall be agreed upon between VBSP and the borrower but shall not be longer than 15 years. Within the first 5 years, the borrower is not required to pay the loan principal.

Article 13. Lending interest rate

1. The lending interest rate is 3%/year.

2. The interest rate charged on overdue debts is 130% of the lending interest rate.

Chapter III

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Article 14. Borrowers

The following entities are entitled to get preferential loans for purchase of housing:

1. Poor ethnic minority households.

2. Poor Kinh ethnic households lawfully residing in extremely disadvantaged communes or villages in ethnic minority and mountainous regions.

Article 15: Eligibility requirements for a loan

A borrower is required to meet the following eligibility requirements to get a loan:

1. The borrower has a lawful residence in local area and has their name included in the list of households eligible for house supporting policy approved by a competent authority.

2. The representative of the borrowing household must be at least 18 years old and have full legal capacity as prescribed by law.

3. The borrower’s borrowing plan is appropriate to the intended loan purpose.

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Borrowed funds shall be used for building or repair of houses.

Article 17. Loan limit

The specific loan amount shall be agreed upon between VBSP and the borrower but shall not exceed VND 40 million/household.

Article 18. Loan term

The specific loan term shall be agreed upon between VBSP and the borrower but shall not be longer than 15 years. Within the first 5 years, the borrower is not required to pay the loan principal.

Article 19. Lending interest rate

1. The lending interest rate is 3%/year.

2. The interest rate charged on overdue debts is 130% of the lending interest rate.

Chapter IV

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Article 20. Borrowers

The following entities are entitled to get preferential loans for purchase of production land or career conversion:

1. Poor ethnic minority households.

2. Poor Kinh ethnic households lawfully residing in extremely disadvantaged communes or villages in ethnic minority and mountainous regions.

Article 21. Eligibility requirements for a loan

A borrower is required to meet the following eligibility requirements to get a loan:

1. The borrower has a lawful residence in local area and has their name included in the list of households eligible for production land supporting policy or the list of households eligible for vocational training and career conversion supporting policy approved by a competent authority.

2. The representative of the borrowing household must be at least 18 years old and have full legal capacity as prescribed by law.

3. The borrower’s borrowing plan is appropriate to the intended loan purpose.

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Article 22. Loan purpose

Borrowed funds shall be used for covering costs incurred from creation of production land or vocational training or career conversion costs.

Article 23. Loan limit

1. The specific amount of a loan for purchase of production land shall be agreed upon between VBSP and the borrower but shall not exceed VND 77,5 million/household.

2. The specific amount of a loan for career conversion shall be agreed upon between VBSP and the borrower but shall not exceed the business loan amount granted to a poor household prescribed in each period. The amount of a loan for vocational training shall not exceed the maximum loan amount specified in student credit policy in each period.

Article 24. Loan term

The specific loan term shall be agreed upon between VBSP and the borrower but shall not be longer than 10 years.

Article 25. Lending interest rate

1. The lending interest rate is 50% of that charged on poor households in each period.

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Chapter V

LOANS FOR INVESTMENT IN AND DEVELOPMENT OF RARE HERB PLANTING AREAS

Article 26. Borrowers

Borrowers include enterprises, cooperatives, cooperative unions, family households and other business entities (hereinafter referred to as “business entities”) that are operating in extremely disadvantaged areas in ethnic minority and mountainous regions, employ ethnic minority people that account for at least 50% of total employees, and participate in projects on development of rare herb planting areas (hereinafter referred to as “rare herb planting projects”) or projects on hi-tech herb propagation, conservation and development centers (hereinafter referred to as “herb propagation center projects”) approved by competent authorities.

Article 27. Eligibility requirements for a loan

A borrower is required to meet the following eligibility requirements to get a loan:

1. It is lawfully established and operating, and has a plan for investment and use of borrowed funds for a rare herb planting project or herb propagation center project approved by a competent authority.

2. Its borrowing plan has been appraised by VBSP before it is submitted to a competent authority for approval.

3. It has provided security for the loan in accordance with VBSP's regulations and regulations of law on secured transactions.

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Borrowed funds shall be used for executing a rare herb planting project or herb propagation center project approved by a competent authority.

Article 29. Loan limit

1. The maximum loan amount shall not exceed 45% of total investment and VND 96 billion of a rare herb planting project or VND 92 billion of an herb propagation center project.

2. The specific loan amount granted to each business entity participating in the rare herb planting project or herb propagation center project shall be determined by VBSP on the basis of its plan for use of borrowed funds and decision to approve the investment project issued by a competent authority but shall not exceed 45% of its total investment in that project.

Article 30. Loan term

The specific loan term shall be agreed upon between VBSP and the borrower but shall not be longer than 10 years.

Article 31. Lending interest rate

1. The lending interest rate is 3,96%/year.

2. The interest rate charged on overdue debts is 130% of the lending interest rate.

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PREFERENTIAL LOANS FOR VALUE CHAIN-BASED PRODUCTION

Article 32. Borrowers

The following entities are entitled to get loans:

1. Poor and near-poor households.

2. Enterprises (including production, processing and trading enterprises), and cooperatives participating in value chains, and employ ethnic minority people who account for at least 70% of their total employees.

Article 33. Eligibility requirements for a loan

A borrower is required to meet the following eligibility requirements to get a loan:

1. Requirements to be satisfied by poor and near-poor households:

A poor or near-poor household is required to meet eligibility requirements to get a loan under VBSP’s credit program for poor and near-poor households, has their name included in the list of participants in the value chain approved by a competent authority, and has a borrowing plan appropriate to the loan purpose.

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a) The borrower is lawfully established and operating, has a plan for use of borrowed funds for participation in a value chain, and has participated in the value chain with approval or certification given by a competent authority.

b) Its borrowing plan has been appraised by VBSP before it is submitted to a competent authority for approval.

c) It has provided security for the loan in accordance with VBSP's regulations and regulations of law on secured transactions.

Article 34. Loan purpose

Borrowed funds shall be used for development of value chain-based production and business.

Article 35. Loan limit and loan term

1. Amounts and terms of loans granted to poor and near-poor households participating in value chains as prescribed in this Decree shall comply with VBSP’s credit program for poor and near-poor households.

2. The maximum loan amount granted to an enterprise or cooperative participating in a value chain is VND 02 billion/borrower. The maximum loan term is 5 year.

Article 36. Lending interest rate

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2. The interest rate charged on loans granted to near-poor households, enterprises and cooperatives participating in value chains under this Decree is 50% of that charged on production and business loans granted to near-poor households prescribed in each period.

3. The interest rate charged on overdue debts is 130% of the lending interest rate.

Chapter VII

RESPONSIBILITIES OF RELEVANT AUTHORITIES AND ORGANIZATIONS

Article 37. Responsibilities of Ministries, ministerial agencies and Governmental agencies

1. SBV shall play the leading role and cooperate with Ministries, relevant authorities and provincial governments in implementation of this Decree; proposing measures and dealing with difficulties concerning loans granted by VBSP during the implementation of this Decree, and reporting issues beyond their competence to the Government and the Prime Minister.

2. The Committee for Ethnic Affairs shall instruct local governments to certify, consolidate and approve lists of policy beneficiaries in Quarter II, 2022 which shall be used as the basis for VBSP's grant of loans.

3. The Ministry of Health shall instruct local governments to complete herb development plans and give approval for investment projects and list of eligible policy beneficiaries, total investment of each project, investment made by a business entity in a project, borrowing plan for each project and business entities participating in projects in Quarter II, 2022 which shall be used as the basis for VBSP's grant of loans.

4. The Ministry of Finance shall play the leading role and cooperate with relevant authorities in consolidating, reviewing and submitting consolidated report to the Government before August 31, 2023 for requesting competent authorities to consider and decide to allocate funding for implementing the policy in the 2024 – 2025 period.

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Article 38. Responsibilities of People’s Committees of all levels

1. Cooperate with the Vietnamese Fatherland Front, socio-political organizations and VBSP to disseminate, organize and implement credit policies laid down in this Decree.

2. Consider giving approval for rare herb planting projects and list of entities eligible to get preferential loans as prescribed in Chapters II, III, IV, V and VI of this Decree

3. Direct local authorities to review and consolidate demands for loans of policy beneficiaries in an open and transparent manner so as to avoid misuse or profiteering from policies.

Article 39. Responsibilities of VBSP

1. Provide borrowers with instructions on loan application, sequences and procedures for getting loans which must be simplified, clear, feasible, open and transparent.

2. Grant loans to eligible borrowers and ensure loan purposes as prescribed in this Decree.

3. Carry out inspection of borrowers’ application for loan, use of borrowed funds and debt repayment so as to ensure proper and efficient use of borrowed funds and debt recovery capacity.

4. Submit reports to the Ministry of Finance, SBV and the Committee for Ethnic Affairs by July 31, 2023 on implementation of credit policies in the 2022 – 2023 period and propose application of credit policies in the 2024 – 2025 period.

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Article 40. Responsibilities of borrowers

1. Borrowers must meet eligibility requirements for loans laid down in this Decree, use borrowed funds for proper purposes, and repay principal and interest amounts in full and on schedule as agreed upon in credit agreements.

2. Borrowers shall not transfer rights to use residential or production land or housing while they still have outstanding debts with VBSP.

Chapter VIII

IMPLEMENTATION

Article 41. Effect

This Decree comes into force from the date on which it is signed.

Article 42. Implementation organization

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of Provincial People’s Committees, Chairperson of the Board of Directors and General Director of VBSP shall be responsible for the implementation of this Decree.

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ON BEHALF OF THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai