The grassroots trade union establishment service in Vietnam helps enterprises and employees follow the correct establishment order, prepare the dossier, organize the congress, and register for recognition of the grassroots trade union in accordance with current regulations. From July 1, 2025, the Law on Trade Unions 2024 took effect and, at the same time, the Charter of the Vietnam Trade Union, 13th tenure, was issued, creating a new legal basis for organizing trade unions at enterprises. In particular, from May 16, 2026, Decree 105/2026/ND-CP provides more specific regulations on trade union funds, as well as the method and deadline for payment. In the article below, Viet An Law Firm will help you better understand this topic.
What is a grassroots trade union at an enterprise in Vietnam?
- A grassroots trade union is a grassroots organization of the Vietnam Trade Union, established at one or several enterprises, gathering employees and recognized by the competent trade union.
- Under the Charter of the Vietnam Trade Union, 13th tenure, an enterprise grassroots trade union is established at the enterprise and operates under the direction of the immediate superior trade union. The grassroots trade union has the function of representing and protecting the lawful and legitimate rights and interests of union members and employees; participating in dialogue, collective bargaining and building harmonious labor relations at the enterprise.
- The establishment of a grassroots trade union is carried out on the basis of the voluntariness of employees; the enterprise may not obstruct or create difficulties for employees in exercising their right to establish, join and participate in trade union activities.
Conditions to form a labor union in a company in Vietnam
Under Article 15 of the Charter of the Vietnam Trade Union, 13th tenure, issued together with Decision 2399/QD-TLD 2024, a grassroots trade union is established when it satisfies the following main conditions:
- The enterprise operates lawfully;
- There are 05 union members or 05 employees or more;
- Those employees have voluntarily applied to join the Vietnam Trade Union;
- It is recognized by the immediate superior trade union or the competent trade union.
Accordingly, an enterprise having at least 05 employees does not mean that the enterprise is obliged to establish a grassroots trade union. The establishment is attached to the right of employees to voluntarily join and establish a trade union organization.
Who has the right to set up a grassroots trade union in Vietnam?
Under the current Charter, at a place where no grassroots trade union has been established, union members or employees have the right to voluntarily form a Campaign Committee for the establishment of a grassroots trade union.
The Campaign Committee has the following tasks:
- Communicating with and mobilizing employees to join the trade union;
- Receiving applications to join the Vietnam Trade Union;
- Preparing the conditions for the establishment;
- Organizing the congress for the establishment of the grassroots trade union;
- Registering with the superior trade union for consideration and recognition.
Dossier for the establishment of a grassroots trade union at an enterprise in Vietnam
The actual dossier may be specifically guided by the superior trade union according to the situation of each enterprise. In principle, the enterprise and employees need to prepare the documents relating to the establishment, the joining and the organization of the congress.
Documents commonly included are:
- Voluntary applications of employees to join the Vietnam Trade Union;
- List of employees/union members participating in the establishment of the grassroots trade union;
- Documents or papers on the formation of the Campaign Committee;
- Plan for organizing the congress for the establishment of the grassroots trade union;
- Program of the congress;
- Minutes of the establishment congress;
- Resolution of the congress;
- List of personnel of the Executive Committee;
- List of personnel of the Inspection Committee, if such a committee must be established;
- Other documents as required by the immediate superior trade union.
Note: The dossier for recognition of a grassroots trade union is not an enterprise registration dossier. Therefore, the enterprise does not submit the trade union establishment dossier to the business registration authority but carries out the work with the competent superior trade union. Under Article 17 of the Charter of the Vietnam Trade Union, the superior trade union considers and recognizes the grassroots trade union, and the grassroots trade union operates lawfully once the recognition decision has been issued.
Trade union establishment procedure at a Vietnam enterprise
Step 1: Forming the Campaign Committee
- At an enterprise that does not yet have a grassroots trade union, employees voluntarily form a Campaign Committee.
- The Campaign Committee carries out communication and mobilization work and receives applications to join the Vietnam Trade Union.
Step 2: Mobilizing employees to join the trade union
When 05 or more employees voluntarily join, and the conditions are fully satisfied, the Campaign Committee carries out the necessary work for the establishment of the grassroots trade union.
Step 3: Preparing and organizing the establishment congress
The congress for the establishment of a grassroots trade union carries out the following main contents:
- Announcing the purpose and the program of the congress;
- Reporting on the mobilization process for the establishment;
- Adopting the orientation of activities;
- Electing the Executive Committee of the grassroots trade union;
- Electing the titles as prescribed;
- Adopting the resolution of the congress.
Step 4: Register a grassroots trade union with the superior trade union
After the congress, the dossier is submitted to register a grassroots trade union with the superior trade union for consideration and recognition.
Step 5: Receiving the recognition decision
When the conditions are satisfied, the superior trade union considers and issues a decision recognizing the grassroots trade union.
Under the Charter of the Vietnam Trade Union, a grassroots trade union operates lawfully once the recognition decision of the superior trade union has been issued.
Level of trade union funds a Vietnam enterprise must pay in 2026
Under the Law on Trade Unions 2024, trade union funds are paid at 2% of the salary fund used as the basis for paying compulsory social insurance for employees. This regulation continues to apply in 2026.
Formula:
Trade union funds payable = 2% × Salary fund used as the basis for paying compulsory social insurance
Example:
An enterprise has a monthly salary fund used as the basis for paying compulsory social insurance of VND 500 million.
→ Trade union funds payable: 500,000,000 × 2% = VND 10,000,000/month.
What is the difference between trade union funds and trade union membership dues in Vietnam?
| Criteria | Trade union funds | Trade union membership dues |
| Payer | Enterprises and units subject to payment | Trade union members |
| Basic payment level | 2% of the salary fund used as the basis for paying compulsory social insurance | As prescribed by the Charter and by the Vietnam General Confederation of Labor |
| Nature | Financial obligation of the employer | Obligation of union members |
| Does it depend on having a grassroots trade union? | No | Attached to the status of union member |
| Main legal basis | Law on Trade Unions 2024, Decree 105/2026/ND-CP | Charter/regulations of the Trade Union organization |
| Purpose | Ensuring the financial source for trade union activities | Financial contribution of union members |
The Law on Trade Unions provides that membership dues are one source of trade union finance, while trade union funds are an amount paid by enterprises and other entities subject to payment.
Method and deadline for paying trade union funds in Vietnam 2026
From May 16, 2026, Decree 105/2026/ND-CP takes effect and specifically provides for the method and deadline for paying trade union funds.
For ordinary enterprises, trade union funds are paid once a month, at the same time as the payment of compulsory social insurance for employees.
The payment deadline is no later than the last day of the following month.
Example:
- Trade union funds for July 2026;
- The enterprise pays on a monthly basis;
- The payment deadline is no later than the last day of August 2026.
Some enterprises in agriculture, forestry, fishery and salt production that pay salaries according to the production and business cycle may apply the method of paying once every 03 months on the basis of registration with the trade union organization
Frequently asked questions
Can an enterprise be exempted from or given a reduction of trade union funds?
Yes. An enterprise falling into a case prescribed by law may be exempted from, given a reduction of, or allowed to suspend the payment of trade union funds if it satisfies the conditions and follows the correct procedures.
How much is the fee for establishing a grassroots trade union?
The establishment of a grassroots trade union has no fixed establishment fee as in the case of enterprise registration. If a legal service is used, the cost depends on the number of employees, the scope of work, the dossier and the level of support for organizing the congress.
Are the 2% trade union funds paid by employees?
No. This is an amount paid by enterprises and other entities subject to payment. Employees who are union members are obliged to pay trade union membership dues under separate regulations.
How many people are needed to form a labor union in a company?
There must be 05 union members or 05 employees or more who have voluntary applications to join the Vietnam Trade Union, together with the other conditions under the Charter of the Vietnam Trade Union.
Should an enterprise use a grassroots trade union establishment service in Vietnam?
It is not compulsory, but an enterprise may use a legal service if it has no experience in preparing the dossier and organizing the congress, or if it needs advice on trade union funds. Using such a service helps the enterprise reduce processing time and limit errors during the trade union establishment procedure, the registration and the recognition of the grassroots trade union.
Grassroots trade union establishment service in Vietnam by Viet An Law Firm
Viet An provides labor law consultancy and supports enterprises in carrying out the procedures for establishing a grassroots trade union in accordance with current regulations.
- Advising on the conditions to set up a grassroots trade union;
- Advising on the rights and obligations of the enterprise and of employees;
- Preparing the establishment dossier;
- Drafting the applications to join the Vietnam Trade Union;
- Supporting the formation of the Campaign Committee;
- Preparing the contents of the congress;
- Supporting the personnel dossier of the Executive Committee;
- Supporting the registration with the superior trade union;
- Monitoring the recognition process;
- Advising on trade union funds and trade union membership dues;
- Advising on legal issues arising during the operation of the grassroots trade union.
Clients wishing to receive labor law consultancy, please contact Viet An for the best support!
