INSTRUCTIONS

COLLECTION OF TRADE UNION SUBSCRIPTIONS IN BUSINESS SECTOR VIA THE ACCOUNT OPENNED AT VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

- Pursuant to the 2012 Law on Trade Unions;

- Pursuant to the Government’s Decree No. 191/2013/ND-CP dated November 21, 2013, elaborating on the trade union finance;

- Pursuant to the Decision No. 1610/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labour on adopting Regulations for management of trade union funds and assets, collection, distribution of receipts, grant of rewards and imposition of sanctions arising from collection and transfer of trade union receipts;

- Pursuant to Regulations on cooperation between Vietnam General Confederation of Labour and Vietnam Bank for Agriculture and Rural Development No. 500/QCPH-TLD-AGRIBANK dated May 28, 2020;

Vietnam General Confederation of Labour issues instructions for collection of trade union subscriptions in the business sector via the Vietnam Trade Union account opened at Viet Nam Bank for Agriculture and Rural Development (Agribank) to all-level trade unions as follows:

I. GENERAL INFORMATION ABOUT THE TRANSACTION SYSTEM

1. Information about the account used for receiving trade union subscriptions

Account title: Vietnam Trade Union

Account number: 1400 288 668 989

Opened at:  Viet Nam Bank for Agriculture and Rural Development.

2. SMS banking syntax

When receiving the notification of collection of trade union subscriptions from the superior trade union accorded collection authority, enterprises and units should pay trade union subscriptions according to the following syntax:

TIN <Tax Identification Number> <Company/unit’s name> pays trade union subscription for month/quarter/year

Example: TIN 1111222233 ABC Company pays trade union subscription for Quarter I, 2020.

Notes:

+ Tax identification number is a series of numerals written without special characters in between (for example, the sign "-", the space " " or the period ".", etc. is not accepted

+ For entities with no dependent units, their tax code is a sequence of 10 consecutive numeric characters. + For dependent units, their tax code is a sequence of 13 consecutive numeric characters.

3. Running the transaction system

- The software automatically allocates the funds used for trade unions at all levels within 24 hours from the time the software records the trade union subscriptions paid by businesses and units. In case the bank reports a credit to the Vietnam Trade Union account at the end of the afternoon on a Friday, Agribank will give allocations on the Monday of the following week. For businesses or units where no trade union is established, the unit issuing the Notification of collection of trade union dues will receive them and put a usable portion of fees into the custodial account and make payments to employees in accordance with the regulations of the General Confederation of Labor.

- 2% of trade union subscriptions paid to trade unions at all levels shall be announced on an annual basis. In 2020, the rate of allocation of trade union subscriptions shall be the same as that of the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).

- The software allows access to various types of reports used for monitoring and managing the collection and distribution of trade union receipts in the business sector of businesses and units under the authority delegated by the General Confederation.

4. Performing bookkeeping activities

Units can record accounting entries of trade union subscriptions in the business sector via the Vietnam Trade Union account according to the Instructions No. 1990/HD-TLD dated October 3, 2018. Whenever there is any change in new accounting regulations, the General Confederation will provide further instructions later.

5. Complying with the opinions of the State Audit to ensure consistency with Point 1, Article 8 in the 2018 Competition Law 2018. Provincial, municipal-level Labor Confederations; central- or equivalent-level Trade Unions; Trade Unions of the Corporations under the direct control of the General Confederation; directly superior grassroots-level Trade Unions continue to open accounts to receive trade union subscriptions at the Vietnam Bank for Agriculture and Rural Development; allow grassroots-level trade unions to use Vietinbank or Agribank account or use both accounts to automatically receive trade union subscriptions.

II. IMPLEMENTATION

1. Vietnam General Federation of Labour (Level 1)

- Cooperate with the Vietnam Bank for Agriculture and Rural Development in developing the software for the collection, management and allocation of trade union subscriptions of production and business entities to trade unions at all levels.

- Direct and guide trade unions at all levels to collect trade union subscriptions in the business sector via Agribank.

- Annually, the General Confederation and the Vietnam Bank for Agriculture and Rural Development can alternately conduct a review and evaluation of cooperation and supervision of timely actions against difficulties and problems that may arise.

2. Labor Confederations of provinces and cities; central and equivalent-level Trade Unions; Trade Unions of Corporations directly controlled by the General Confederation (level 2)

- Actively select local branches of the Vietnam Bank for Agriculture and Rural Development to develop the program for cooperation and opening of their accounts.

- Cooperate with local branches of the Vietnam Bank for Agriculture and Rural Development in reviewing and making a list of enterprises and units that pay trade union subscriptions under their management (including enterprises, units with trade unions and enterprises or units without trade unions) as well as units that are allocated trade union fees. The list must fully provide the following information: Tax identification numbers of paying enterprises, account numbers of grassroots trade unions, amounts of trade union subscriptions within the year.

- Issue the notice of collection of trade union subscriptions to businesses and units classified as payers under their management only when they have completely imported data into the software.

- Make payments to employees at enterprises and units that do not have trade unions according to the regulations of the General Confederation.

- Verify the legal status of grassroots trade unions and subordinate units (based on the list) upon the request of the Agribank branch where the account is opened to facilitate account opening in case where the establishment decision is lost.

- Direct district-level Labor Confederations and directly superior grassroots-level authorities to notify collection of trade union subscriptions in the business sector via Vietnam Trade Union accounts to enterprises and units required to pay trade union subscriptions.

- Implement regulations on cooperation in providing information, periodical or irregular reports on the process of disseminating collection of and collecting trade union subscriptions through Agribank at the request of superior-level authorities.

3. Labour Confederations of urban/rural districts; directly superior grassroots-level Trade Unions (Level 3)

- Actively select local branches of the Vietnam Bank for Agriculture and Rural Development to register for opening of their accounts.

- Cooperate with local branches of the Vietnam Bank for Agriculture and Rural Development in reviewing and making a list of enterprises and units that pay trade union subscriptions under their management (including enterprises, units with trade unions and enterprises or units without trade unions) as well as units that are allocated trade union fees. The list must fully provide the following information: Tax identification numbers of paying enterprises, account numbers of grassroots trade unions, amounts of trade union subscriptions within the year.

- Issue the notice of collection of trade union subscriptions to businesses and units classified as payers under their management only when they have completely imported data into the software.

- Make payments to employees at enterprises and units that do not have trade unions according to the regulations of the General Confederation.

- Verify the legal status of grassroots trade unions and subordinate units (based on the list) upon the request of the Agribank branch where the account is opened to facilitate account opening in case where the establishment decision is lost.

- Direct grassroots-level Trade Unions to notify collection of trade union subscriptions in the business sector via Vietnam Trade Union accounts to enterprises and units required to pay trade union subscriptions.

- Implement regulations on cooperation in providing information, periodical or irregular reports on the process of disseminating collection of and collecting trade union subscriptions through Agribank at the request of superior-level authorities.

4. Grassroots-level Trade Unions (Level 4)

- Fully provide required documents to register the opening of accounts with the Viet Nam Bank for Agriculture and Rural Development.

- Provide necessary data, such as tax identification numbers of paying enterprises, account numbers of grassroots trade unions, amount of trade union subscriptions payable within the year of enterprises to directly superior trade unions for the purposes of input of data into the electronic system.

- Based on the amounts of trade union subscriptions payable by enterprises and units according to the notice of collection of trade union subscriptions of superior trade unions, grassroots trade unions may request business owners to speed up payment of trade union subscriptions on a monthly/quarterly/yearly basis.

- Cooperate with and instruct professional accountants in payment of trade union subscriptions by using the correct SMS syntax; check amounts of trade union subscriptions already paid or to be paid; exchange information about, cooperate in handling problems arising in the process of paying trade union subscriptions.

Based on these instructions, all-level trade unions must take initiative in carrying out these activities from the date of release of these instructions. In the course of implementation, should there be any difficulty that arises, the General Confederation (via the Finance Department) must be informed to give further directions and instructions./.

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