Trade unions promote the effectiveness of the National Fund, creating more than 1,500 jobs for union members

On September 25, in Can Tho City, the Vietnam General Confederation of Labor (VGCL) held a training conference to deploy Instruction No. 50/HD-TLD on the organization and operation of charity funds of trade union organizations; summarize the lending activities of trade unions at all levels from the National Employment Fund for the period 2020-2025.

The conference was chaired by Vice President of the Vietnam General Confederation of Labor Phan Van Anh; with the participation of 28 provincial and municipal labor federations, industry unions and Labor Newspapers.

In his opening speech, Mr. Phan Van Anh - Vice President of the Vietnam General Confederation of Labor - said that from 1994 to present, the Vietnam General Confederation of Labor has been assigned to manage capital from the National Employment Fund, to support union members and workers to borrow capital to create jobs through the Trade Union system at all levels, in coordination with the Social Policy Bank - the unit directly disbursing and recovering capital.

In the period of 2020 - 2025, all levels of trade unions will provide loans from recovered capital. As of June 30, 2025, the total capital managed by the Vietnam General Confederation of Labor reached nearly 71 billion VND, allocated to 62 provincial and municipal labor federations (currently arranged to 34 provinces and cities).

According to Mr. Phan Van Anh, the conference summarized 5 years of activities to assess advantages and difficulties on the basis of practice. Mr. Phan Van Anh suggested that delegates discuss key contents such as supplementing capital sources, lending limits, management and disbursement, and loan terms to better coordinate fund management and improve the effectiveness of supporting union members and employees.

According to the Vietnam General Confederation of Labor, in the period of 2020 - 2025, more than 57.4 billion VND has been disbursed; the outstanding capital that has not been disbursed is nearly 15.4 billion VND. Trade unions at all levels have supported 1,443 union members and employees, with a contract value of 20 - 90 million VND, a common interest rate of 7.92%/year, and a loan term of 12 - 60 months (depending on the locality). Lending activities have been implemented synchronously in 34/34 provinces and cities, many localities have achieved a disbursement rate of over 85%.

Lending activities have created 1,559 new jobs, with additional income of 1 - 4 million VND/contract. The work of recovering capital is basically guaranteed and flexible according to the conditions of union members and employees, while strictly inspecting and supervising to ensure that capital is used for the right purpose.

Lending activities from the National Employment Fund have brought about clear results: creating new jobs, increasing income, stabilizing the lives of union members and relatives; contributing to the implementation of the goal of poverty reduction, local socio-economic development; increasing confidence and motivation to strive for union members and workers, affirming the role of trade unions in improving the welfare of union members and workers.

At the conference, representatives of the Labor Relations Department and the Vietnam General Confederation of Labor also informed Instruction No. 50/HD-TLD on the organization and operation of charity funds of trade union organizations.

Delegates also discussed and clarified the difficulties and advantages in implementing loans, supporting job creation from the National Fund and the direction and tasks in the coming time.

Concluding the conference, Vice President of the Vietnam General Confederation of Labor Phan Van Anh suggested that the Confederations of Labor of provinces, cities and industry unions continue to effectively promote the Fund resources in caring for the lives of union members and workers.

Mr. Phan Van Anh emphasized that in the coming time, Trade Unions at all levels need to step up propaganda about the loan process, introduce typical examples of effective use of loan capital, help union members trust and proactively approach policies. In addition, training for staff directly coordinating with policy banks needs to be strengthened to ensure disbursement and lending activities are quick, effective and to the right beneficiaries.

The Vice President of the Vietnam General Confederation of Labor also noted that units must regularly report on the implementation process to promptly grasp difficulties and obstacles, thereby finding solutions to improve management efficiency and maximize resources from the Funds.

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