HCMC Encourages Delivery of Financial Support Program Via Bank Account | Ho Chi Minh City

In July 2021, HCMC provided approximately 773 billion VND (approximately US $ 34 million) to assist nearly 500,000 vulnerable people. A month later, he sent 3.2 trillion dong ($ 141 million) to around 2 million needy cases. Since the end of September, it has distributed third-round financial aid, worth more than VND 7,300 billion ($ 323 million), to 7.3 million citizens of the city facing hardship due to Covid -19.

Of the roughly 10 million recipients supported over three rounds, only less than 100,000 selected a bank account as a way to get money. The fact that so many people have chosen to take money has created unnecessary pressure on state officials, some of whom have to work until 10 p.m. just to hand over money to citizens and prepare corresponding reports. to their manager.

Explaining the situation, the director of the Department of Labor, Invalids and Social Affairs of HCMC, Le Minh Tan, said that many self-employed and poor people in the city still do not have bank accounts. In addition, when giving them money directly, state officials have the opportunity to learn more about their current living conditions in order to avoid errors in the distribution of financial aid.

“Forcing people to open a bank account just to receive the support of 1 million VND ($ 44) each case can become a waste because these poor people do not really need such an account”, Vice-president of the People’s Committee of the district of Nha Be Le Thi Anh Jeu.

District 7 People’s Committee Chairman Hoang Minh Tuan Anh added that giving money through a bank account is convenient, fast and safe. But most money receivers are not interested in this method because they have a greater need to use cash, while their habit of using cashless payment channels has not yet been developed. socket.

According to associate professor Dr Nguyen Duc Loc, director of the Institute for the Study of Social Life, HCMC now has a large number of informal or migrant workers, representing 40 to 50 percent of the total workforce. In the long run, it makes more sense to use bank accounts to provide financial support to these people, along with a corresponding social security number to add to the city database.

This action effectively avoids overlaps and ensures transparency, which unfortunately happened in some areas of the city during the third round of distribution. Using money transfer through a bank account can also help reduce direct contact and partially lighten the workload, making this process more professional and accurate.

Reality has shown that it is not too difficult to switch from delivering cash to transferring money through bank accounts as the HCMC Social Insurance Agency carried out a similar task of bringing financial support worth over 5,422 billion dong ($ 239 million) from unemployment. Insurance fund for workers and employers in recent times.

About 5 percent of eligible workers do not yet have a bank account and have also been carefully instructed on how to open one for future use. After two days, a bank account is created and these workers can receive their card a few days later by mail.

Obviously, providing support to informal workers is not so quick and easy as there is a lack of some necessary personal information. However, this is not an impossible mission; and most people have felt a great need to use cashless payment in such a pandemic and are gradually getting used to the techniques of this convenient method.

In related news, the HCMC Social Insurance Agency submitted a proposal to the HCMC People’s Committee for the payment of pensions of approximately 235,000 retired workers through a bank account. Those who do not have such an account will be helped to open one. With an additional 50,000 people receiving pensions through this channel in December, the city achieved an 81 percent rate of pension payment through bank account.

By Manh Hoa – Translated by Vien Hong

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