Sacombank provide financial solutions for Vietnamese labour export


Labor export is not only solving employment problems, increasing incomes for local people and localities, but also bringing benefits to the country, such as the increasing human resources quality and skills, bringing in foreign currency from overseas remittances to the economy, and strengthening cooperation between Vietnam and recipient countries.

The labor force in the central coastal provinces of Vietnam and the North of Vietnam is predominantly concentrated in the traditional agricultural and fishery sectors, so the income is usually lower than the country average. In addition, harsh natural conditions, natural disasters, and pollution of the marine environment over the years have made life more difficult for them. Under that situation, according to the guidance of the Government, the local authorities in these provinces have oriented, and facilitating export labor policy to improve income.

According to statistics from 2013 to 2016, Vietnam annually export labour force was over 100,000 workers to about 27 countries around the world. Of which, the record is made in 2016 with 126,000 employees, mainly from Nghe An, Ha Tinh, Quang Binh, Thanh Hoa, Hai Duong ...

Knowing that labor export will bring more income, but most people lack the initial financial resources to cover the costs of processing documentary or brokerage fee for agency as well as to proof financial capacity with hiring organizations. Previously, exported labour often manage, borrow from family, acquaintances or sometimes have to go to usurers for loan-shark. Understanding this need, some banks have the implementing credit product for export labour. As in Sacombank branches located in the Northern and Northern Central provinces, exported labor force and their families can borrow up to 80% of the above mentioned costs (up to a maximum of VND500 million). The loan term is 5 years, the collateral is real estate. Usually when borrowing from bank, the borrower must prove current and future income. However, for the exported labor, it is difficult to prove income at the time of borrowing. Therefore, the flexible application scheme is applying for this labour force which untangled the "knot" in need of financial support for them,

Mr. Tran Minh Khoa - Deputy General Director of Sacombank, said that in addition to supporting the initial cost for export labour force, the Bank also linked with prestigious export companies and labor supply centers to consult legal procedures, selecting suitable employment markets for clients wishing to export, minimizing regulatory, abusive and expulsion risks, etc. 

The Central Region is a low development area, especially in the coastal provinces, so it needs high capital and suitable financial solutions. Therefore, the bank's companion to the process of economic development and people's life is very important. Mr. Khoa also shared that apart from the mechanism of labor export loans, Sacombank also deployed other mechanisms to meet the needs of small business for local residents such as agricultural development, forest plantation, loans for building and repairing offshore fishing boats, trusted loans to employees including remote areas...

 From the beginning of 2017 till now, Sacombank has implemented 11 packages of preferential loans with the total value of almost VND 18,000 billion for individuals and enterprises, focusing on the industries such as exporting sectors, applying hi-tech areas, agricultural and rural development in accordance with the objectives of the Government and the State Bank in promoting the socio-economic development.