Vietnam Biggest City Plans VND70B Loans for Poor Households Annually

Authorities in Ho Chi Minh, the most populous of Vietnam, will allocate VND50 billion-VND70 billion ($2.38 million-$3.33 million) per year from its budget to the municipal Poverty Reduction Fund to provide business loans to poor households. This is part of several new policies on financial support for the poor announced by the municipal People’s Committee in the 2012-2015 period. Poor households with per capita annual income of VND12 million or less will also get a 15% subsidy on healthcare. The poor only pay 15% of treatment expense if they have health insurance. University, college, and vocational students will see their tuitions fully subsidized if their families have a per capita income of VND10 million or less. Half the fees will be covered if their families have an income of VND10-VND12 million. The city will also continue all other allowances for poor people, social beneficiaries, war invalids, families of martyrs and revolutionary contributors, and public employees. Local authorities have been taking several measures to assist the poor – like social security policies and soft loans for them to do business. The Poverty Reduction Fund has so far lent to 225 production units that have hired more than 2,200 poor laborers, according to the city’s Steering Committee for Poverty Reduction. Ho Chi Minh City has around 55,400 households with 301,000 poor people, accounting for 3.64% of its population. (Vietnam News Sept 12)