According to a report by the Ministry of Labour, Invalids and Social Affairs, in February, about 10 per cent of enterprises had to scale down production. In March, especially in the second and third weeks, this increased to 15 per cent. In response to the situation, the Ministry of Labour, Invalids and Social Affairs has proposed six packages of solutions to support enterprises and workers affected by COVID-19 in terms of social insurance; unemployment insurance; assistances allocated from the State budget; credit policies towards small and medium enterprises, cooperatives, cooperative groups, household businesses; suspension and reduction of labour union contributions.

On social insurance

Suspend contributions to the retirement and survivorship allowance fund regulated in Article 88 of the 2014 Law on social insurance and the Government’s Decree No 115/2015/ND-CP of November 11, 2015 of enterprises affected by COVID-19. Duration: Temporarily halt the contribution by up to 12 months (without late payment interest) from the month the enterprise sends a written request to the social insurance agency.

Estimated funding: if it is applied for 1.5 to 3 million workers (equivalent to 105,000 to 121,000 enterprises), the amount of suspended contributions and exempted late payment interest will be VND24.7 trillion to 49.5 trillion (US$1.05 billion to 2.1 billion).

In case of unpaid absence for medical treatment which is verified by a medical facility, a worker will be considered receiving sickness allowance as regulated.

On unemployment insurance

All enterprises and workers are allowed to waive contributions to unemployment insurance from February to December 2020. Enterprises and workers will have to make up for the contribution later without late payment interest.

Enterprises and workers are allowed to waive contributions to unemployment insurance from February to December 2020. During the time, they will be considered as participating in unemployment insurance. The policy is applied to enterprises and workers who have stopped working.

Enterprises will be supported to improve capability for employers.

On assistances from the State budget

Enterprises affected by the COVID-19 pandemic will be offered preferential interest rates to borrow money covering paid suspension, social insurance, health insurance and unemployment insurance contributions.

Enterprises affected by the COVID-19 pandemic will be offered preferential interest rates to borrow money covering severance pay and unemployment benefits.

Enterprises dissolved or bankrupt are supported to pay unemployment benefits.

On assistances from local budgets

Localities get advance payments from the local budget which will be reimbursed from the revenues after liquidating assets of enterprises. In case of insufficiency, localities have to report to the Prime Minister for further actions.

Credit policies towards workers of small and medium enterprises, cooperatives, collaborative groups, household businesses:

Preferential loan interest rates for workers, especially ethnic minorities, uncontracted workers in rural areas and informal workers in urban areas.

Support small and medium enterprises, cooperatives, collaborative groups, household businesses to sustain, expand and create jobs, especially small businesses in urban areas. Duration: maximum 12 months. Loan interest: 3.96 per cent/year (equivalent to 50 per cent of interest applied to near-poor households). Agency-in-charge: Viet Nam Bank for Social Policies.

Estimated funding: support some 350,000 workers (average loan of VND30 million ($1,289) per worker) and 20,000 enterprises (average loan of VND500 million ($21,483) per enterprise), the total allocated amount of money is VND20 trillion ($859.3 million). The funding for interest rate compensation is about VND800 billion ($34.3 million).

The Ministry of Labour, Invalids and Social Affairs discussed with Viet Nam General Confederation of Labour to halt labour union contributions and consider reducing fees in the following period./.