Trade unions stand as guarantors to help more than 40,300 workers get loans, staying away from black credit

In Dong Nai, to prevent black credit from entering workers' lives, grassroots trade unions have stood up to guarantee and build legal loan channels specifically for workers.

Accordingly, the Trade Union coordinates with banks and financial institutions to implement a consumer loan package for workers with appropriate procedures and interest rates. Thanks to these safe loan channels, workers do not have to resort to illegal lending services when encountering unexpected difficulties.

Mr. Le Nhat Truong - Chairman of the grassroots Trade Union of Pou Sung Vietnam Co., Ltd. (with about 17,000 workers) also shared good practices to improve the welfare of union members, contributing to preventing black credit among workers.

According to Mr. Truong, from 2010 to now, the Trade Union has coordinated with banks and CEP Microfinance Institutions to provide more than 40,300 loans with an amount of 1,176 billion VND.

The loan amount will be based on the working seniority of the employee, if there are 3 years of working experience or more, it will be approved with levels from 20-50 million, the highest is 100 million VND, the repayment period is within 10 months or 24 months depending on the needs of the employee" - Mr. Truong said.

In addition to organizing lending, the Trade Union also helps workers to receive flexible salary advances to serve urgent needs in daily life such as: paying rent, electricity and water bills, tuition fees for children, money to buy necessities... before receiving salary. Currently, there are about 4,500 people with an advance amount of nearly 8 billion VND per month. The highest advance amount is up to 7 million VND/person/month.

Mr. Dang Tuan Tu - Chairman of the grassroots Trade Union of Chang Shin Vietnam Co., Ltd. said that with more than 40,000 workers, the company's Trade Union has linked with reputable banks and financial institutions to support workers to borrow capital when facing difficulties, with reasonable interest rates, avoiding the problem of black credit.

The grassroots trade union of Chang Shin Vietnam Co., Ltd. also established the ChangShin Family Support Association, the Compassionate Arms Fund... to help workers have financial resources to solve difficulties without having to borrow black credit from outside...

Trade union levels have also promoted forms of care to reduce difficulties for workers through union member welfare programs.

According to Mr. Le Nhat Truong, to implement the improvement of welfare for union members to contribute to preventing black credit among workers, when organizing loans and salary advances, the Trade Union needs high consensus from the Board of Directors of the Company to be able to implement it.

Dong Nai has 58 industrial parks with about 700,000 workers working in factories, of which about 70% are migrant workers.

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