VIETNAMESE GOVERNMENT’S SUPPORTING POLICIES

1. Context:
As we all know, the pandemic with its deadly danger has had an adverse effect on both
the world economy and Vietnam economy. This results in the increasing attenuation in
terms of financial basis of a large number of people in Vietnam.
In the face of complicated movements of the COVID-19 disease, under the direction of
the Prime Minister, the Ministry of Planning and Investment was assigned to assume the
prime responsibility and coordinate with the concerned ministries and other central
agencies in implementing the measures to support people who are facing difficulties
caused by this pandemic. This directive has led to a positive result later. On April 25th,
the government has passed a VND62 trillion (which is equivalent to $2.6 billion) financial
support package for poor people and businesses affected by the Covid-19 pandemic. The
basic content of the decision will be presented below.

2. Beneficiaries
The package, approved by Prime Minister Nguyen Xuan Phuc on last Friday, targets six
following categories of individuals and businesses:

First are the group of employees suspending the performance of the labor contract and
taking leave without being paid. The period of postponement of performance of labor
contracts as well as unpaid leave of work within the valid time of labor contract should
be 1 month or more from April 1st to June 30th.

Secondly, household businesses are also one of the beneficiaries of the decision. Similar
to the employees leaving work without being paid, they will be support if were forced to
suspend business from April 1st, 2020 under the Decision of the President of the
provincial people’s committee. Besides, the revenue earned is decided to be less than
VND 100 million and is determined by January 15th, 2020 in accordance with tax
administration law.

The third group is the employees having a labor contract or employment contract
terminated but are not eligible for unemployment benefits as prescribed. To be more
specific, they must have entered into a labor contract or working contract before the
date of April 1st, 2020 and are participating in compulsory social insurance. Additionally,
they must be having no income or having income lower than the near-poverty line, and
their employment contract is terminated from April 1st to the end of June 15th, 2020.

Workers who do not enter into labor contracts lose their jobs (hereinafter referred to as
freelance workers) are the fourth beneficiaries of the decision. If they lose their jobs and
earn incomes below the poverty line and are legal residence inn locality, they will be
 supported. They are categorized to be working in non-agricultural fields which are jobs
with instability.

Another group of people benefiting from this is the people who have contributed to the
revolution; poor and near-poor households; people of social protection. People with
meritorious services to the revolution are receiving monthly preferential allowance,
along with social protection beneficiaries are receiving monthly social allowance, should
be in the list of beneficiaries in April 2020.

The last are employers borrowing money to pay workers' discontinued wages. They, in
general, must be in financial difficulties, unable to balance the sources to pay workers to
stop working, the salary reserve fund has been used to pay workers to stop working.
Other specific provisions are also clarified in the Decision.

3. Expectations

In principle, a social security policy is implemented to achieve three missions: to stabilize

the socio-economy; to help the weak, low-income and precarious people to integrate
into society; and to all classes of society can work together to develop.
In the situation of the provoking pandemic, the recently enforced Decision is expected to
meet those three goals. Speaking in a more specific way, it is to support those in difficult
circumstances, the poor, the weak and the most vulnerable to epidemics to ensure their
well-being of life, and also contributes to maintaining total supply and demand for the
economy.

4. Conclusion
Now we have come through the very basic content of the support package. This is the
end of my presentation on it. If you all have any questions, do not hesitate to raise your
hand. Thank you very much.