Can Tho’s Loan Program Facilitates Overseas Employment for Vietnamese Workers

Can Tho City is actively supporting its residents seeking overseas employment opportunities, particularly in Japan, through a robust loan program designed to alleviate the financial burdens associated with initial costs. This initiative, backed by the Vietnam Bank for Social Policies (VBSP), is proving instrumental in helping workers secure contracts and improve their livelihoods.

Addressing the Financial Barriers to Overseas Work

Many Vietnamese workers face significant financial obstacles when pursuing employment abroad. Costs associated with visa applications, travel, and initial settlement can be prohibitive. Recognizing this challenge, Can Tho City has partnered with VBSP to offer preferential loans, making overseas work accessible to a wider range of individuals.

Success Stories: Realizing the Dream of Working Abroad

Ho Thanh Nhan, a veteran from Phuoc Thoi District, exemplifies the program’s impact. After completing his military service in early 2025, he aimed to work in the Japanese construction industry for three years. Despite having savings of approximately 33 million VND, he needed 110 million VND to cover all expenses. A low-interest loan of 80 million VND from VBSP enabled him to fulfill his plan. “Without the preferential loan provided by Vietnam Bank for Social Policies (VBSP), it would have been very difficult for me to realize my plan to work abroad,” Nhan stated.

Similarly, Văn Hoàng Trung, a textile worker earning 6-9 million VND per month, aspires to work as a painter in Japan. Facing a total cost of 135 million VND, he secured a 90 million VND loan from VBSP after contributing 40 million VND from his family’s savings. He expressed confidence in the transparent loan application process.

Loan Program Details and Eligibility

The loan program, established in accordance with the 2025 Labor Law and Decree No. 338/2025/ND-CP, offers several key benefits:

• Eligibility: Available to all employees working abroad under a valid contract.
• Loan Amount: Covers up to 100% of the cost of working abroad, excluding expenses already subsidized by the state budget.
• Interest Rate: 127% of the interest rate for loans to poor households (default interest: 130% of the loan interest rate). Lower rates apply to ethnic minorities and Kinh people from particularly difficult socio-economic areas.
• Loan Term: Determined by agreement between VBSP and the borrower, but not exceeding the duration of the employment contract.
• Collateral: Loans up to 200 million VND do not require collateral. Loans exceeding this amount require collateral in accordance with Vietnamese law and VBSP guidelines.

Required documents include a loan application, a copy of the employment contract, a copy of the passport, and supporting documentation for eligibility for preferential interest rates. The bank processes applications within 7 working days of receiving complete documentation.

Expanding Support Services

Beyond financial assistance, the Can Tho City Employment Bureau is enhancing its advisory and information services. These include expanding digital consultation services, hosting job fairs, broadcasting promotional videos, disseminating job offers through Zalo groups, and operating a dedicated hotline at 0767.938.399. The “Job Café” model and advisory services in schools further improve access to official information and protect workers from fraudulent intermediaries.

Positive Outcomes and Economic Impact

From 2020 to 2025, Can Tho City successfully sent over 9,700 workers abroad under contract. These workers are expected to save approximately 600 million VND each over three years, providing a significant resource for investment and entrepreneurship upon their return, ultimately improving their standard of living.

According to the Can Tho City Interior Department, facilitating overseas employment is a viable solution under the 2025 Labor Law, particularly for individuals in vulnerable situations. The program prioritizes support for low-income households, rural residents, and young people facing hardship.

Collaboration and Future Outlook

The Ministry of the Interior is actively disseminating legal provisions regarding overseas worker placement, collaborating with relevant ministries and institutions to protect workers from unofficial channels. In addition to financial support, workers receive assistance with labor market information, legal advice, language training, and professional development.

The preferential loan program is demonstrably increasing opportunities for workers in Can Tho to participate in the international labor market, enabling them to improve their financial well-being and contribute to the city’s socio-economic development.