Overall on Legal Framework for
Civil Society Organizations
Presentation to PPWG Workshop
By Nguyen Thi Bich Diep
VNAH
Hanoi, 5-2007
Purposes and Approaches
Purposes

Introduce the Legal Framework for Civil Society
Organizations in general and in Vietnam

Share internal and international experiences in
improving this Legal Framework
Approaches

Broadly and generally

Civil Society Organizations focused
I.
Civil Society Organizations (CSOs)
in Vietnam
 Common charateristics:
 Non-state and non-market; and
 Voluntary; and
 Self management; and
 Self finance; and
 Not-for-profit
CSOs in Vietnam
Membership (known as association/ society)

Mass organizations*;

Associations, Unions, Federations, etc;

Các hiệp hội nghề nghiệp*

Community based organizations
Non-membership (known as fund/foundation/NFP corporation)

Non-membership organizations: research institutions,
scientific institutions, centres working on development,
education, training, poverty reduction, ect*;

Social funds, charity funds, development funds;

Not for profit companies/ corporations*
Not sure
1.
Religious organizations*;
2.
Informal groups*;
3.
International NGOs*
II. Improvement of the legal framework shall
enhance participation and contribution of CSOs in
the socio-economic development
1. Increasing roles
Economic impact

Active workforce: all countries: 4.4%, Netherlands

In Vietnam: no exact statistic is known
(14.4%), US (9.8%), France (7.6%), In some
transitioning countries: Czech Rep : 2% (74,000
employees); Hungary: 1.1% (~ 62,000 full time
employees)
Social impact

Increasingly engage in health, culture, education,
recreation, research, consultancy and comment on
policies, social services, community development,
and other activities relating to evaluation and
monitoring, etc.
Enhance participation and contribution of CSOs in
the socio-economic development
Scarce Government Resources

Help fill the gaps and assure that missing public
goods are provided where there is lack of
government resource or failure of market
Delivering public goods and services more
efficiently, thanks to:

Fact of volunteerism

Competition

Access to real needs
Enhance participation and contribution of CSOs in
the socio-economic development
2. Ensure the transparency and
accountability
 For those CSOs with tax incentives or exemption/
deduction
 For those for public benefit CSOs who receive
public support, government fund or donations
 As a legal base for certifying both CSOs and State’s
transparent and fair management exercises
Current legal framework for CSOs
in Vietnam
1.
Policies and directions by the Party and the State to
encourage the growth of CSOs
2.
Laws/bylaws that directly regulate the rights,
establishment and operation of CSOs

The Constitution (Art. 69)
The Decree-law No 102/SL-L (1957) on Regulations on the
Rights to Set Up Associations
The Civil Code 1995, revised 2005

Laws on distinguished mass organizations (*)

Decree No. 177/1999/ND-CP on Social Funds and Charity
Funds
Decree No. 88/2003/ND-CP on Associations
Decree 35/1992/HDBT on management of scientific and
technological activities
Others





III. Current legal framework for CSOs
in Vietnam
3.

Laws/bylaws closely related to

Taxes

Social services, public services

Finance, funding, aids, donations, ODA

Assurance of people participation

Decentralization, grass-root democracy

Examining, investigating, filing petition

Others
Currently, Vietnam is in the process of drafting the
Law on Associations (upgraded from Decree 88/2003
on Associations) and reviewing relevant legal
documents.
Legal framework (con’t)

Comparatively comprehensive in terms of number of
laws/bylaws for distinguished CSOs

Legal base for CSOs to engage in various activities (i.e. Art.22
Decree 88/ 2003 on Associations)

… To provide consultation and comments on matters of concerns,
and to contribute opinions on legal documents


To propose and coordinate with concerned agencies and/or
organizations on matters of concerned

To raise funds and receive lawful financial supports of domestic
and foreign sources

Join international and regional organizations and activities …
Certain types of taxes exemption and deduction available
(subject to procedures)
Legal framework (con’t)
 Issues for further improvement

Complex

Need be more comprehensive

Not clear mechanism of state management

Not sufficient mechanism for effective evaluation and
monitoring

Not sufficient tax incentives and supporting
mechanism for sustainable finance

Not sufficient dialogues and linkage among broad
CSOs and Government and the Private sector
IV. Khảo sát các tiêu chí xây dựng khung
pháp lý tốt cho các tổ chức XHDS
Purposes of a good legal framework



Compromise rights, benefit and responsibilities, duties of relevant
stakeholders
Create a legal base to create a supportive, easy and transparent
environment for CSOs to effectively develop and best contribute
Promote stable and sustainable social and economic development
Results of a good legal framework





Protect Fundamental Freedoms when registration and operation
Integrity and Good Governance
Financial Sustainability
Accountability and Transparency
Create linkage between CSOs and the State sector, the private
sector and the others
1. Protecting Fundamental Freedoms when registration and
operation
Registration




CSOs should be allowed to come into existence and not be required to
obtain legal personality in order to engage in lawful activities
Registration should be relatively quick, easy, and inexpensive
Registration agency/ies should be fair, clearly directed and adequately
staffed with competent professionals
Right to file a petition should be available
Activities (not limited to)




Be permitted to engage in activities for the benefit of their members and in
public benefit or “charitable” activities
Be certificated with Public Benefit Status in order to obtain more
preferences
Conduct research, discussion, consultation and comments on matters of
concerns, and policies and programs of the State
Be expose to mass media for and state media to inform their own activities
* Those activities should be in accordance with laws and bylaws or morality or
customs, and shall satisfy required procedures or conditions if any.
2. Integrity and Good Governance

Mandatory Provisions for Governing Documents





Strengthen monitoring and evaluation, and supervision
Avoid any actual or potential conflict between their personal or
business interests and the interests of the CSOs
Make clear and prohibit distribution of profits
Encourage voluntary Self-Regulation upon operation and
management
Encourage formation of umbrella organizations or network
to adopt and enforce principles of voluntary self-regulation.
3. Financial Sustainability

Fund raising: through legally acceptable and culturally appropriate
fundraising activities
Requirement: registration with a state organ or an independent
supervisory organ, which will issue permits, badges, and other
identification materials to the fund raisers, set standards for public
solicitation activities, provide information to the public, and sanction
inappropriate conduct

Lawful economic, business, or commercial activities
Requirement: Within the area of operation; no distribution of profits,
certificated if required; possible tax durable

Tax deduction and exemption,
organizations, donors and donations
specially
for
public
benefit

Special treatment for donation and investment in public benefit areas
Foreign funding and aids: registered CSOs are allowed to

Encouragement of volunteers

receive cash or in-kind donations or transfers from aid agencies of another
country
4. Accountability and Transparency

Reporting


Report to the licensing and/or management agency/ies: at least
annually on its general finance and operation
Report to tax and audit organs
* All reports required of CSOs should be as simple to complete and as
uniform among state organs as is possible, with appropriate provisions
to protect the legitimate privacy interests (if any)

Disclosure or Availability of Information to the Public

required for significant activities or assets or with substantial public
support

Audit by authorized agencies or donors

Subject to sanction when there is violation

As equal to any legal person or subject as in the Civil code, and for
violations of laws/ bylaws peculiar to CSOs
5. Improvement of Partnership



Provide for regular or irregular, formal or informal
exchanging and cooperating mechanism
Encourage cooperation of Government – CSOs, CSOs –
CSOs, and CSOs – Private sector
Encourage Government funded programs and projects
implemented by CSOs through signing a contract or
granting
V. Making a good legal framework for CSOs



This is a long lasting, continuing and repeating process
that needs lots of efforts and contribution of relevant
stakeholders
Revise, draft and newly promulgate laws/ bylaws, at the
same time make cross-sectoral changes where
appropriate and relevant.
Combine a series of research, assessment,
implementation, capacity for implementation, monitoring,
evaluation and propose for changes when necessary
Making a good legal framework for CSOs

During the process of drafting, promulgating, implementing,
and reviewing the legal framework for CSOs:


Raise concerns and encourage participation by cross-sector
and different stakeholders
Create a strong partnership among state agencies and
institutions and public including businesses, domestic and
international supporters, independent experts and researchers,
and especially CSOs – the resources, the beneficiaries, the
implementers, at the same time, the monitors
Thank you very much!
Nguyen Thi Bich Diep,
LL.M. t.Lawyer
diepnguyen@vnah-hev.org