Vietnam has spent VND14 trillion (USD630 million) on subsidising national associations and unions since the beginning of this year, but much of the spending has proved ineffective said a local expert.
On September 9, National Assembly deputies discussed the draft law on the operations of associations and unions.
Hoang Ngoc Giao, head of Vietnam’s Institute of Policy Research and Law, said that so far this year USD630 million had been spent, double the budget estimates for the Ministry of Education and Training and higher than that for the Ministry of Agriculture and Rural Development.
Hoang Ngoc Giao, head of Vietnam’s Institute of Policy Research and Law
The total assets of these organisations are worth around VND68 trillion, accounting for 1.7% of the country's GDP, Giao cited a report from Hanoi National University.
According to Giao, Vietnam has 8,000 associations and unions, and they run on state funding as administrative bodies, adding more pressures to the state budget.
State spending on social organisations like the Women's Union, Farmers' Union and Youth Union reached VND1.2 trillion in 2016, double the figure in 2006. Meanwhile, the report also indicated that that expenditure on specific associations like the Red Cross, the Union of Writers and the Vietnam Football Federation haven’t been published since 2010.
Many of the associations and unions operate ineffectively and it is also difficult for the government to manage. There is often operational overlapping, which means easy opportunities to waste the state budget, said National Assembly Deputy Nguyen Sy Cuong.
Cuong clarified that for instance, one official of the Ministry of Industry and Trade who has the right to licence fertiliser also works at the fertiliser producers' association; or someone who works at both banks and gold association.
Sharing the same opinion with Cuong, Deputy Luu Binh Nhuong, suggested that these organisations should be financially independent to reduce the state budget burden. Only organisations appointed to carry out government projects should receive money.
The draft law on associations and unions was discussed 20 years ago, but it has not yet been issued.
