Circular No. 17/2009/TT-BTC guiding the allocation and use of trade union funds for foreign-invested enterprises and foreign-side management offices under joint venture contracts.

CIRCULAR

Guidelines on the collection and use of trade union funds for foreign-invested enterprises and foreign management offices in joint venture contracts

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- Pursuant to Decree No. 133/HĐBT dated April 20, 1991 of the Council of Ministers (now the Government) guiding the implementation of the Trade Union Law;

- Pursuant to Decision No. 133/2008/QĐ-TTg dated October 1, 2008 of the Prime Minister on the collection of trade union funds from foreign-invested enterprises and foreign management offices in joint venture contracts;

- Pursuant to Decree No. 139/2007/NĐ-CP dated September 5, 2007 of the Government detailing the implementation of certain provisions of the Enterprise Law;

- Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

After reaching consensus with the Vietnam General Confederation of Labor, the Ministry of Finance issues guidelines on the collection of trade union funds for foreign-invested enterprises and foreign management offices in joint venture contracts  as follows:

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Circular stipulates the collection and use of trade union funds for foreign-invested enterprises and foreign management offices in joint venture contracts operating in Vietnam where there is a trade union organization functioning under the Trade Union Law.

2. Scope of Application

a. Foreign-invested enterprises established by foreign investors to carry out investment activities in Vietnam;

b. Vietnamese enterprises in which foreign investors hold more than 49% of shares;

c. Foreign management offices in joint venture contracts operating in Vietnam.

3. Amount and Basis for Collection of Trade Union Funds

a. The amount of trade union fund collection is 1% of the total wage fund payable to Vietnamese workers employed by foreign-invested enterprises and foreign management offices in joint venture contracts.

b. The wage fund for the purpose of collecting trade union funds includes all wages paid to Vietnamese workers that are deductible as reasonable and legitimate expenses for calculating corporate income tax.

4. Time of Collection and Accounting Method

a. Enterprises and management offices must collect trade union funds quarterly in the first month of each quarter to the enterprise-level trade union or the immediate superior trade union of the enterprise's trade union upon request of the enterprise-level trade union.

b. At the end of the accounting period, after preparing financial statements, enterprises must pay any outstanding trade union funds to the enterprise-level trade union.

c. The amount collected for trade union funds shall be recorded as production and business expenses for the period.

5. Use of Trade Union Funds

a. All trade union funds collected shall be used by the enterprise-level trade union to serve trade union activities at the enterprise level, to cover welfare activities for Vietnamese workers, and to pay salaries and allowances (if any) to trade union officials in the enterprise according to the guidance of the Vietnam General Confederation of Labor.

b. Any surplus of trade union funds from the previous year will automatically be carried over to the next year.

6. Implementation organization.

a. The Vietnam General Confederation of Labor guides the enterprise-level trade union in managing and using trade union fund revenues in accordance with the Trade Union Law and the Charter of the Vietnam Trade Union.

b. The enterprise owner and the head of the foreign management office have the responsibility to implement the regulations on the collection of trade union funds as stipulated in this Circular. The enterprise owner shall not interfere in the management and use of trade union funds by the enterprise-level trade union, and shall facilitate inspections by competent authorities regarding the collection of trade union funds by the enterprise and management office.

c. The enterprise-level trade union has the responsibility to manage and use the collected trade union funds to serve the interests of its members in accordance with the law and the guidance of the Vietnam General Confederation of Labor.

d. Trade union bodies at various levels shall coordinate with finance departments and tax authorities in their respective areas to inspect the collection and use of trade union funds in enterprises and management offices.

e. The time for collecting trade union funds as stipulated in this Circular shall be implemented according to Article 3 of Decision No. 133/2008/QĐ-TTg dated October 1, 2008 of the Prime Minister on the collection of trade union funds from foreign-invested enterprises and foreign management offices in joint venture contracts.

7. Implementation Provisions

a. This Circular takes effect 45 days from the date of issuance.

b. During implementation, if difficulties arise, please report to the Ministry of Finance and the Vietnam General Confederation of Labor for guidance on resolution./.