System of financial management organization of trade unions in Vietnam according to Decision 1408/QD-TLD

System of financial management organization of trade unions in Vietnam according to Decision 1408/QD-TLD​ (Image from Internet)

The Presidium of the Vietnam General Confederation of Labor promulgated Decision 1408/QD-TLD on August 1, 2024, regarding Regulations on management of financial assets, union property, revenue, distribution of income, rewards, and penalties in union financial contributions.

System of financial management organization of trade unions in Vietnam according to Decision 1408/QD-TLDv

According to Article 6 of the Regulations issued together with Decision 1408/QD-TLD on August 1, 2024, the system for managing union financial assets includes:

- Level 1 Budgeting Unit: Vietnam General Confederation of Labor.

- Level 2 Budgeting Unit: Provincial and municipal labor federations and equivalents.

- Level 3 Budgeting Unit: Direct upper-level grassroots unions.

- Level 4 Budgeting Unit: Grassroots unions, trade divisions, agencies, public service providers for unions.

Regulations on decentralization of union financial management in Vietnam

In Article 7 of the Regulations issued alongside Decision 1408/QD-TLD on August 1, 2024, the decentralization of union financial management is as follows:

- The Executive Committee (Standing Committee) of the grassroots union is responsible for organizing the implementation of revenue, expenditure, and financial management tasks according to the decentralization of the General Confederation; drafting budgets, organizing budget implementation, settlement, publicizing budget, settlement of union finance; drafting and implementing the spending regulations of the grassroots union.

- The Standing Committee of direct upper-level grassroots unions is responsible for implementing revenue, expenditure, and financial management tasks according to the General Confederation's decentralization; drafting budgets, organizing budget execution; settlements; publicizing budgets, settlements; inspecting, guiding lower units in implementing revenue, expenditure, financial management tasks, and remitting funds to upper-level unions; approving budget, settlement reports of lower units.

- The Standing Committee of the provincial and municipal labor federations and equivalents is responsible for implementing union revenue, expenditure, and financial management tasks as per the General Confederation's decentralization; deciding principles for budget drafting, allocation, and approval for subordinate units in accordance with General Confederation regulations; drafting budgets, organizing budget implementation, settlements; publicizing budgets, settlements; inspecting, guiding subordinate units in carrying out revenue, expenditure, financial management tasks, and remitting funds to upper-level unions; approving budget, settlement reports of subordinate units.

- The Presidium of the General Confederation is responsible for directing, organizing the implementation of revenue, expenditure, and financial management tasks of the Vietnam confederation; deciding principles for the drafting, examination, allocation of annual financial budget forecasts; consolidating approval of budgets, settlements at the Total budget, and subordinate units; guiding, checking subordinate units in executing revenue, expenditure, financial management tasks, remitting funds to the General Confederation; issuing regulations, guidelines on the collection, distribution, use, financial management of unions under Clause 2 Article 12 of Decree 191/2013/ND-CP of the Government of Vietnam on detailed regulations for union finance; approving annual budgets and financial statements.

- Authority to decide on the use of union financial resources for financial investment, provision of charter capital; borrowing, and mobilizing capital:

+ Authority of the Presidium of the General Confederation:

++ Approving financial investment policies (excluding fixed deposits at banks).

++ Approving projects for capital provision (excluding regular expense support) for public service providers and single-member limited liability companies.

++ Allocating capital for public service providers and single-member limited liability companies under the General Confederation.

++ Approving borrowing, capital mobilization policies for investment execution by public service providers guaranteeing regular expense and investment costs; public service providers guaranteeing regular expenses under the General Confederation.

+ Authority of the Standing Committee of provincial and municipal labor federations and equivalents:

++ Draft financial investment plans from union financial resources of the unit to submit to the General Confederation for approval (excluding fixed deposits at banks).

++ Assess project proposals for capital provision (excluding regular expense support) for public service providers and single-member limited liability companies under the provincial and municipal labor federations and equivalents, submitted to the General Confederation for approval.

++ Providing capital to public service providers and single-member limited liability companies under the provincial and municipal labor federations and equivalents after getting approval from the General Confederation.

++ Approving borrowing, capital mobilization policies for investment execution by public service providers ensuring regular expense and investment costs; public service providers ensuring regular expenses under the provincial and municipal labor federations and equivalents.

For the Defense Union Committee, where there is no Standing Committee, authority is vested in the Unit Head.

+ Authority of public service providers under the General Confederation: Units ensuring regular expenses and investment costs; public service providers ensuring regular expenses may borrow, mobilize capital for investment based on the General Confederation's approved guidelines.

Decision 1408/QD-TLD takes effect from December 1, 2024.

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