Regulations on management of industries’associations

According to data from provincial Department of Home Affairs, after more than 14 years of operating and managing the local industries’associations, Binh Duong province has issued establishment decisions for 94 associations and federations. Among them, provincial Department of Industry and Trade manages 10 industries’ associations and is preparing to launch one more association.

Industries ‘associations play a key role as a bridge to connect enterprises businesses, supporting members in boosting production, exports and exploring new markets while ensuring the sustainable development of industries in the province.

In addition, industries ‘associations also serve as a bridge between enterprises and the State, reflecting obstacles in the production and export processes, with the aim of stabilizing, maintaining and developing production and business activities.

Accordingly, in order to improve management in line with practical conditions, on October 8, 2024, the Government issued Decree No. 126/2024/ND-CP on the organization, activities and management of industries ‘associations, which will take effect from November 26, 2024. The decree consists of 8 chapters and 52 articles, including several new points compared to Decree 45/2010/ND-CP as follows:

Firstly, the new decree increases by more than 10 articles compared to the previous regulations, with the provisions now being more complete, clear and easier to understand.

Secondly, the conditions for establishing an association include a new point in Clause 7, Article 10 of this Decree, which states that the association must "have assets to ensure its activities".

Thirdly, the time frame has been shortened compared to the previous regulations: For the establishment of congresses, they must be held 30 days earlier, as stipulated in Clause 1, Article 16. For congresses that are nearing the end of their term, if the congress has not been held 30 days prior to that, they must report to the State on reasons for the delay and request a 12-month extension, as specified in Clause 4, Article 19.

Fourthly, the rights of associations have been increased to 5 provisions compared to the previous regulations, offering more benefits in the operations of associations, as stipulated in Article 23. Additionally, in Article 24, the obligations and responsibilities of associations have been expanded to 10 provisions, an increase of 10 compared to the previous regulations.

Fifthly, the activities within associations are more clearly regulated such as the provisions for organizations within the association (branches, offices, sub-associations, etc.) as specified in Article 25. Article 26 specifically regulates the finance and assets of associations while other provisions cover aspects such as reward, commendation, discipline and handling of violations related to associations.

Sixthly, a special chapter has been included regarding regulations for associations assigned tasks by the Party and the State, covering six articles from Article 37 to Article 42. Additionally, in "Chapter 7: State Management of Associations", specific responsibilities for managing associations are assigned to different sectors.

The Decree No. 126/2024/ND-CP will take effect from November 26, 2024 and replace Decree No. 45/2010/ND-CP dated April 21, 2010, and Decree No. 33/2012/ND-CP dated April 13, 2012, on the Organization, Activities and Management of Associations.

Reported by Thanh Tam from Division of Industrial Management-Translated by Kim Tin