Vietnam Unveils Support for Vocational Training: Decision 17
- The Vietnamese government recently issued Decision 17/2021/QD-TTg on vocational training support for employees participating in unemployment insurance.
- The development underlines Vietnam’s continued effort in improving the labor landscape as the country experiences strong growth, both economically and socially.
- Vietnam Briefing highlights the main aspects of Decision 17 which took effect on May 15 and the entities eligible for vocational training.
On March 31, the Vietnamese Prime Minister issued Decision 17/2021/QD-TTg (Decision 17) on vocational training support for employees participating in unemployment insurance. This decision brings a positive difference in improving Vietnam’s human resources (HR). The Decision took effect from May 15, 2021, and offers training assistance for various support levels.
Decision 17 highlights
Decision 17 is applicable for all workers participating in unemployment insurance. Vietnamese Briefing explores the key highlights of Decision 17.
There are several entities that are eligible for benefits under Decision 17, such as:
- Employees – as prescribed in Article 55 of the Law on Employment. To elaborate, Article 55 states that employees who pay unemployment insurance are entitled to vocational training support if they meet the following conditions:
- Terminate the labor contract or work contract;
- Submit an application form asking to receive unemployment benefits at the employment service center as prescribed;
- Are unable to find a job 15 days from the day they filled the application form for unemployment benefits;
- Paid unemployment insurance for nine months or more within 24 months before their labor contract or working contract was terminated.
- Vocational institutions and higher education institutions who have registered for the provision of vocational education at the college level. Also, enterprises, regulatory bodies, and organizations are permitted to provide vocational education and participate in occupational training.
- Ministry of Labor – War Invalids and Social Affairs (MoLISA), social insurance authorities, employment agencies established by employment authorities, and regulatory bodies involved in occupational training for workers.
Vocational training support rate
Different types of labor and vocational training will receive different amounts of financial support. There are two levels based on which the vocational training program will be accessed to decide how much support the worker will receive.
- First level: for workers participating in a vocational training course for up to three months, the support level is determined according to the tuition fees of the vocational training institution and the actual training time. However, the actual support amount must not exceed 4.5 million VND (US$196)/person/training course.
- Second level: for workers who participate in a vocational training course exceeding the length of three months, the support level is determined monthly, by the tuition fee rate and the actual training time. However, the actual support amount must not exceed 1.5 million VND (US$65)/person/month.
Apart from the two levels above, occasionally there are cases where workers participate in a vocational training course in which the duration does not make up a full month according to the syllabus and structure of the training institution, the odd days are calculated as follows:
- If there are a total of 14 odd days or fewer, it will be regarded as half a month;
- If there are a total of 15 odd days or more, it will be regarded as one full month.
Applications and documents for vocational training support
Application for vocational training and provision of vocational training support are specified in Article 24 and Article 25 of Decree 28/2015/ND-CP (Decree 28) issued by the government in March 2015 and Decree 61/2020/ND-CP (Decree 61) in May 2020 which amends several articles in Decree 28. Decree 28 details enforcement of some Articles of the Law on Employment on unemployment insurance. Decree 61 lists adjustments in unemployment insurance allowance among other categories
Procedures for provision of vocational training support
Regarding the source of funding, the Vietnamese government has stated that social insurance authorities will cover vocation training allowances for regulated entities, using financial resources from the unemployment insurance fund.
As mentioned previously, Decision 17 takes effect on May 15. Workers that have submitted their application before the effective but who have not received vocational training are also eligible for these support schemes.
Government support for vocational training and the unemployed
From the scope and the elements listed in Decision 17, the Vietnamese government is emphasizing improving the labor market and supporting the unemployed in Vietnam.
However, this support program is only applicable for the unemployed who participate in unemployment insurance. The Vietnamese labor market can be further enhanced if the government improves either two issues: lowering the level of unemployment insurance or offering a more extensive support scheme that is more affordable and less costly for all Vietnamese citizens.
Vietnam Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. Readers may write to firstname.lastname@example.org for more support on doing business in Vietnam.
We also maintain offices or have alliance partners assisting foreign investors in Indonesia, India, Singapore, The Philippines, Malaysia, Thailand, Italy, Germany, and the United States, in addition to practices in Bangladesh and Russia.
- Previous Article Overtime Regulations and Compensation in Vietnam
- Next Article Long An – A Promising Investment Hub in Southern Vietnam