In accordance with the Decree No. 30/2016/ND-CP dated April 28, 2016 of the Government detailing investment from social insurance, health insurance and unemployment insurance funds, takes a form in the following order of priority: Purchase of government bonds; Provision of loans to the state budget; Making of deposits, or purchase of bonds, promissory notes, bills or deposit certificates at high performance commercial banks as rated by the State Bank of Vietnam; Provision of loans to Vietnam Development Bank and Vietnam Bank for Social Policies in the form of purchase of government-guaranteed bonds that are issued by these banks; investment in important projects under the Prime Minister’s decisions.
Within that, Investment in the two forms: provision of loans to Vietnam Development Bank and Vietnam Bank for Social Policies and investment in important projects shall be applied to the unemployment insurance fund only. The amount of investment in these two forms must not exceed 20% of the preceding year’s balance of the unemployment insurance fund.
The loan limit shall be decided by the Director General of Vietnam Social Security based on the state budget’s demand for loans and the investment plan approved by the Management Board of Vietnam Social Security. The loan term shall be counted from the date of loan provision to the date of debt collection. The specific loan term for each loan amount shall be agreed by Vietnam Social Security and the Ministry of Finance, but must not exceed 10 years.
Deposit amounts at commercial banks shall be decided by the Director General of Vietnam Social Security based on the investment plan approved by the Management Board of Vietnam Social Security. The deposit term shall be counted from the date of making a deposit to the date of recovery. The specific term shall be selected by Vietnam Social Security based on each type of deposit terms of a commercial bank but must not exceed 3 years. Upon maturity for interest or principal payment, if a commercial bank fails to make timely payment, it shall, apart from fully paying the interest or late-paid principal, also pay a late payment interest equal to 150% of the deposit interest rate at the time of payment, calculated on the late-paid amount and late payment period.
This Decree takes effect on June 16, 2016.
Get in touch with us