Building strong enough financial resources to well perform the tasks of the Trade Union organization

A strategic, long-term issue

Finance is a material condition that directly determines the operating capacity of all organizations. For the Vietnam Trade Union, which is a large socio-political organization of the working class and of workers with the main function and task of representing, caring for and protecting the legitimate and lawful rights and interests of trade union members and workers; being the sole representative of workers at the national level in labor relations and international relations on trade unions; propagating and mobilizing workers to study, improve their qualifications and professional skills, comply with the law, build and protect the Fatherland, the role of finance is not only limited to maintaining the apparatus but also closely linked to ensuring resources to perform the functions and tasks of the Vietnam Trade Union.

Over the years, Vietnam Trade Union Finance has achieved important results: The scale of revenue sources has increased, the revenue structure is relatively stable, spending tasks and financial decentralization mechanisms are increasingly oriented towards grassroots levels. However, with the increasingly rapid and profound changes in the labor market, the rapid increase in the non-state enterprise sector, non-traditional labor, and the requirement to streamline the organizational structure according to Party Resolutions have posed new challenges for trade union finance work.

The 2024 Trade Union Law, Law No. 97/2025/QH15 and new legal documents on trade union finance have marked an important shift in institutional thinking: from purely revenue and expenditure management to financial resource management associated with the functions and tasks of socio-political organizations. In that context, the requirement to "build strong enough financial resources" needs to be approached as a strategic, long-term issue, rather than just a short-term budget balancing problem.

Trade union financial management in the Vietnam Trade Union organization

Trade union finance is relatively independent:

Studies on trade union finance and the non-profit sector all point out that stable and highly autonomous trade union financial resources are a prerequisite for organizing the effective implementation of its role. For the Vietnam Trade Union organization, as a member of the political system led by the Communist Party of Vietnam, directly under the Vietnam Fatherland Front, this is even more meaningful because the organization's main functions and tasks are associated with labor relations - a field that inherently has power asymmetry between employees and employers. Strong enough trade union financial resources will help the Trade Union organization: Ensure proactiveness in caring for, representing, negotiating and protecting the rights of employees; improve the capacity to participate in supervision, policy criticism and participation in responding to social risks; strengthen union members' trust in the Vietnam Trade Union.

Trade union finance as a form of institutional finance of a specific nature:

The State Budget Law of 2025 does not stipulate that trade union finance is the State budget, however, trade union finance is also not purely private finance and is managed and used according to the Trade Union Law and legal regulations. This is a type of organizational finance of a specific nature because it is formed from compulsory contributions according to the Law (trade union funds), contributions of union members and other legitimate sources of income, managed according to the principles of publicity, transparency and subject to state supervision. This approach is consistent with international trends in financial management of employee representative organizations, in which the State establishes a strict legal framework but still ensures the necessary autonomy space for representative organizations.

Changes in the legal framework on trade union finance:

The 2024 Trade Union Law and Law No. 97/2025/QH15 have further clarified the Government's responsibility in detailing trade union finances, and at the same time established a mechanism for reporting, auditing, and supervising trade union finances for the Vietnam Trade Union. This is an important step towards strengthening accountability and transparency in trade union finance management. Some contents in building institutions are breakthrough, such as: clearly stipulating the deadline for payment and the mechanism for handling late payment of trade union funds; establishing a mechanism for exemption, reduction, and temporary suspension of trade union fund payment for businesses facing difficulties; clarifying the role of the state budget in ensuring trade union financial balance in special cases. These adjustments reflect pioneering institutional thinking, towards harmony between fiscal discipline and social security goals.

Effective management, digitalization takes the lead in trade union financial management:

In the period 2026-2030, building strong enough financial resources to well perform the tasks of the Trade Union organization cannot be separated from innovating management methods. Trade union finance needs to be managed in a direction closely linked to the results of task implementation, taking the effectiveness of caring for and protecting employees as the central measure. In parallel with that, digitalization is considered a key driving force to improve the capacity of trade union financial management. Building a unified, interconnected financial data system connecting revenue - expenditure - union member - business information not only helps increase transparency, but also supports forecasting, early detection of revenue loss risks and improves the quality of financial decision-making. This is the content of the "digitalization leading" orientation in trade union financial management.

Sustainable finance associated with union member development:

Building strong enough trade union finance to well perform the tasks of the Vietnam Trade Union organization is not only from the perspective of expanding revenue scale, but also needs to focus on improving the efficiency of resource use... In the new context, reducing loss of trade union funds, especially in the non-state business sector, needs to be identified as a priority task. At the same time, the exploitation of other legitimate sources of income needs to be carried out cautiously, ensuring the goal of having a mechanism to care for and support union members and workers (without reducing the non-profit nature) and the role of care, representation, and protection of the Vietnam Trade Union.

In addition, it is necessary to have a consistent orientation of prioritizing direct expenditures for union members and workers, reducing administrative expenditures and formalist movement activities. This approach not only contributes to improving the efficiency of trade union finances, but also creates a foundation for the development of union members - a core and long-term goal of the Trade Union organization.