VietNamNet Bridge – Many business associations in Vietnam are heavily relying on State assistance in finance, human resources and facilities to maintain their operations during the tough economic times.

This is the key finding of research titled “Capacity of business associations in Vietnam” announced by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi last Friday.

The research was conducted with 78 of the 400 provincial-level business associations and national-level trade associations.

The research finds that many associations have asked for direct support from the State budget. This affects the independence and professionalism of local business associations, said VCCI.

Up to 83% of association staff members used to be State officials. They are either young or quite old, with just a few middle-aged.

Local associations have been active in policy advocacy, but 53% of them said that it is sometimes effective, sometimes not. Meanwhile, 8% found this activity having little effect and 2% said it is not effective at all.

Of all associations, the Vietnam Food Association is said to be the most powerful as it is empowered by the State to perform some functions of a State management agency, such as deciding the rice export floor prices.

Meanwhile, other associations are operating inefficiently due to the lack of financial and human resources and especially mechanisms.

Up to 76% of the surveyed associations do not have a department in charge of legal affairs, and 68% even have no staff members responsible for the legal issues relating to the activities of the associations.

Therefore, when their members require protection of rights and interests, 43% of the associations solve the problems themselves, 25% ask lawyers for advice and the rest seek help from the State agencies.

VCCI chairman Vu Tien Loc said the legal framework for operation of associations in general and business associations in particular had not been completed.

The right to freely establish associations is specified in the Constitution, but the Law on Associations is still in its draft form and has not been passed yet, after many years.

Source: SGT