Regulations on the conditions for establishing an association in Vietnam

Regulations on the conditions for establishing an association in Vietnam (Internet image)

1. What is an association?

According to Clause 1, Article 2 of Decree 45/2010/ND-CP, an association means a voluntary organization of Vietnamese citizens or institutions with the same business or interest or in the same circle that unite for a common goal and operate regularly and disinterestedly to protect lawful rights and interests of the association, its members and the community; and support one another to operate effectively, contributing to national socio-economic development. Associations shall be organized and operate under this Decree and relevant legal documents.

Associations may be called differently as society, union of associations, general association, confederation, association, club with the legal entity status and other names under law (below collectively referred to as associations).

(Clause 2, Article 2 of Decree 45/2010/ND-CP)

2. Regulations on the conditions for establishing an association in Vietnam

Specifically, in Article 5 of Decree 45/2010/ND-CP, the conditions for establishing an association are as follows:

- The association operates for purposes not contrary to law. Its name and main activity are not identical with those of associations which have been lawfully established earlier in the same locality.

- It has a charter.

- It has a head office.

- The number of Vietnamese citizens and institutions applying to join and establish the association is provided as follows:

+ For a national or an inter-provincial association, at least 100 citizens and/or institutions in different provinces meeting membership criteria and filing an application lo voluntarily join and establish the association;

+ For a provincial association, at least 50 citizens and/or institutions in the province meeting membership criteria and filing an application to voluntarily join and establish the association;

+ For a district association, at least 20 citizens and/or institutions in the district meeting membership criteria and filing an application to voluntarily join and establish the association;

+ For a communal association, at least 10 citizens and/or institutions in the commune meeting membership criteria and filing an application to voluntarily join and establish the association;

+ For a national or provincial association with members being representative of Vietnamese economic organizations with the legal entity status, at least 11 legal entity representatives in different provinces or 5 legal entity representatives operating in the same business or domain, respectively, meeting membership criteria and filing an application to voluntarily join and establish the association.

For a professional association of particular specialty, the minimum number of citizens and institutions voluntarily joining and establishing the association shall be considered and decided on a case-by-case basis by competent state agencies specified in Article 14 of Decree 45/2010/ND-CP.

3. Scope of operation of associations (territory-based) in Vietnam

The scope of operation of associations (territory-based) is as follows:

- Associations operating nationwide or inter-provincially;

- Associations operating within a province or centrally run city (below referred to as provincial associations);

- Associations operating within a district, town or provincial city (below referred to as district associations);

- Associations operating within a commune, ward or township (below referred to as communal associations).

(Clause 3, Article 2 of Decree 45/2010/ND-CP)

4. Principles of organization and operation of associations in Vietnam

According to Article 3 of Decree 45/2010/ND-CP, the organization and operation of associa­tions must adhere to the following principles:

- Voluntariness: autonomy;

- Democracy, equality, publicity,, transparency;

- Self-financing:

- Not for profit:

- Observance of the Constitution, law and association charters.

Thanh Rin

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