The Ministry of Labor, War Invalids and Social Affairs (MOLISA) reports that commercial banks have disbursed VND11.6 trillion from the VND62 trillion support package. In many localities, excessive caution has made the money unreachable to many.

The ministry has proposed expanding the beneficiaries from the loans and loosening the conditions for enterprises to access the package.

MOLISA Deputy Minister Le Tan Dung said at an event organized by the ministry some days ago that Covid-19 has caused the highest unemployment rate in the last 10 years. He reported that the unemployment rate has reached 2.56 percent, higher than the 1.98 percent rate in 2019.

MOLISA has estimated that the labor market scale has reduced from 54 million workers to 52 million. A high number of businesses have suspended their operation or have been dissolved. Freelancers are to some of the hardest hit.

MOLISA has estimated that the labor market scale has reduced from 54 million workers to 52 million. A high number of businesses have suspended their operation or have been dissolved. Freelancers are to some of the hardest hit.

According to the ministry, many workers at small enterprises have had to stop working. The situation may occur in larger enterprises as well, or even foreign invested enterprises (FIEs).

Workers in the fields of textile and garment, e-commerce, tourism, hotel and restaurant, transport, and freight and forwarding have been the most vulnerable in the pandemic.

Dung cited a report of the State Treasury as showing that VND11.6 trillion has been disbursed for 11.5 million people out of 15.8 million approved to get the loans, and 9,425 business households hit by the epidemic.

MOLISA Deputy Minister Le Quan said that the beneficiaries of the VND62 trillion package would be expanded, which may include teachers at private schools. He said that many conditions would be eased to ensure that more enterprises can borrow money at the preferential interest rate of zero percent. This is expected to encourage businesses to retain their labor force.

According to Quan, after the government agreed on MOLISA”s proposal on easing the conditions and expanding the subjects to the credit package, MOLISA on July 15 sent a dispatch to the Ministry of Education and Training (MOET) on figures about private school teachers and a report that assessed the impact of Covid-19 on private school teachers.

It is estimated that the figure is 30,000-50,000. Each of them is subject to financial support of VND1.8 million a month and may receive 1-3 months of support, depending on the impact on them.

The teachers subject to the credit package, according to Quan, are mostly from nursery schools, which could not collect tuition during the social distancing months. 

Le Ha

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