Money raised by Terry Fox Run presented to Tumour Hospital

Source: NhanDan

The Canadian Embassy on January 18 presented VND 305 million (US $19,000) collected from the Terry Fox Run held in Hanoi last September to the Tumour Hospital in support of the hospital's cancer research.

The Terry Fox Run 2006, the seventh of its kind in Hanoi, attracted more than 8,000 participants.

The organising board, including the Canadian Embassy, the Canadian Trade Chamber in Hanoi, the Vietnam Union of Friendship Organisations, the Vietnam-Canada Friendship Organisation, the Hanoi Health Department and the Tumour Hospital, organises the run to raise funds for cancer research on the first Sunday of November every year. The event annually takes place around Thien Quang Lake, Hanoi.

The run is held in commemoration of Terry Fox, a Canadian who lost one leg because of bone cancer. He ran across Canada in 143 days to raise money for cancer research.

To date, more than US $400 million have been raised for cancer research through the annual Terry Fox Run, held across Canada and around the world.

In Vietnam, the first Terry Fox Runs were held in Ho Chi Minh City in 1996 and in Hanoi in 2000. More than VND 3 billion (nearly US $200,000) have so far been collected.

1,000 new year gifts for disadvantaged children

Source: NhanDan

The Vietnam Children Support Fund, in co-ordination with the committees on population, family and children of Quang Binh, Quang Nam and Da Nang provinces and Samaritan's Purse, an international relief agency of Canada, visited and presented 1,000 new year gifts to disadvantaged children in the localities.

Accordingly, 500 gifts were presented to disadvantaged children in Quang Binh; 300 gifts for Quang Nam's disadvantaged children and 200 gifts for Da Nang's disadvantaged children. Each gift cost VND 150,000.

On the occasion of the Chrismas and year year, Samaritan's Purse sponsored the Vietnam Children Support Fund with 43,743 gifts worth US $441,060 for poor children in Quang Binh, Quang Nam, Da Nang, Nghe An and Ha Tinh.

DANIDA supports HIV entertainment-education radio programmes

(Nhan Dan Online) The minor project called “Support to the Voice of Vietnam in producing and broadcasting an entertainment-education radio programme for positive behaviour change on HIV/AIDS Prevention” is supported by the Danish International Development Agency with US $770,000. The Long-term objective is to contribute to improving the quality of life for the Vietnamese people through improved quality of and access to reproductive health services.

This new minor DANIDA-project in co-operation with the United Nations Population Fund (UNFPA) will support information for the Vietnamese people, especially young people. This will be done through strengthening the capacity of the Voice of Vietnam radio (VOV) in producing and broadcasting an entertainment programme for behaviour change on HIV/AIDS prevention.

This is the second project funded by DANIDA to support the VOV in broadcasting an education/counselling programme on reproductive health for young people. The former project with VOV was to broadcast a phone-in radio programme called “Window of Love”. This programme was well received by young listeners and the government officers.

The lack of awareness and inappropriate understanding of HIV/AIDS are the main factors that contribute to stigma and discrimination of people infected with HIV/AIDS in Vietnam. Vietnam’s mass media organisations (radio, television, print newspapers, online newspapers, films, etc) have made active contributions to the fight against HIV/AIDS through long-standing and systematic campaigns.

This project will use a serialised radio drama to improve the awareness and change behaviour towards healthy behaviours for HIV/AIDS prevention, especially focusing on stigma and discrimination reduction.

After the signing ceremony on 24 January 2007, the project will be officially implemented to December 2009, as a serialised radio drama of 104 episodes, following the entertainment-education methodology pioneered by Miguel Sabido of Mexico.

There is ample evidence from Sabido style serial dramas of their effectiveness in changing behaviour with regard to HIV prevention and stigma reductions in Africa, Asia and Latin America. The reasons for its effectiveness include the high entertainment value that attracts large audiences, the emotional content of the dramas that improves retention of the information learned, and the use of role modelling rather than the messages as a way to influence audience behaviour.

The radio soap opera in Vietnamese on VOV will cater to listeners in all 64 provinces and cities and will be transcript into Khmer, Mong and Thai language to serve ethnic listeners in various provinces including those living in border areas.

Special attention needed for mountainous areas

Dr Phan Van Hung, deputy headof the Institute of Nationalities
NhanDan

Positive impacts
It is of common knowledge that the economy in mountainous and ethnic minority areas has experienced the lowest growth rate as compared to other regions nationwide. One of the major reasons is the shortage of capital for improving infrastructure and developing industrial, agricultural, commercial and services establishments.

The implementation of open door policy and integration into the international economy led the mobilisation of foreign direct investment (FDI) resources and official development aid (ODA) to exploit and promote the country’s potentials and strength, thus speeding up the modernisation and industrialisation of mountainous and ethnic minority areas. Statistics in the 1998-2005 period showed that the areas attracted 459 FDI projects with a total registered capital of US $3,268 million (roughly VND 52,000 billion). These projects contributed to economic development and job creation for people of different ethnic minority groups in many localities.

The mobilisation of ODA capital has also played an important part in socio-economic development and poverty reduction in ethnic minority areas. In the 1998-2004 period alone, ODA capital granted by international organisations through 340 hunger elimination and poverty reduction projects reached US $1,153 million (about VND 18,000 billion).

In the past years, the above mentioned capital was geared mainly in implementing the projects on transport, electric power supply, agriculture and social infrastructure and served as an important source which helped reduce poverty and improve the living standards of ethnic minority people. Following the joining to the World Trade Organisation (WTO) and successful organisation of the APEC Meeting, Vietnam’s prestige was raised to a new height and was marked by a record of US $4.445 billion in ODA pledged by international donors to Vietnam for the year 2007 at the Consultative Group (CG) meeting held in Hanoi in December 2006.

By the end of 2006, the World Bank (WB), countries and international organisations also committed to assisting poverty reduction activities in remote areas with a total of over US $200 million, representing the highest sum so far.

In the coming period, FDI capital is expected to increase as the country integrates deeper in the international economy.

After many years of carrying out economic restructuring towards commodity production, mountainous and ethnic minority areas have created a large quantity of goods for export, including a number of high world ranking items namely coffee, rubber, pepper and tea, bringing about significant source for the country and at the same time improving the people’s living standards. However, this process has faced several difficulties such as unstable prices and obstacles in getting access to large markets including high tax and unequal competition.

In the 1990s, people in mountainous and ethnic minority areas used to plant low yield crops which led to low income and hence widespread poverty. Thanks to the renovation process, there appeared many new plants such as maize, rice, soybeans, fruit trees and sugar-cane trees and poultries and livestock namely cows, chickens, ducks and swans imported from other countries which helped create high economic value to support poverty reduction. Many households have become rich from the application of new seeds and modern techniques. In recent time, many international organisations have deployed the models and projects of sustainable economic development in combination with environmental protection for mountainous and ethnic minority areas.

Among the socio-economic achievements in mountainous and ethnic minority areas, the records in the field of culture are of great significance. During the process of international integration, Vietnam was able buy equipment to transmit radio and television programmes to remote areas in difficulties. This was only a dream in the past.

People living in remote and mountainous areas are now able to watch important political and sport events in the country and in the world which are live broadcast. Through the means of communications, people of different ethnic groups are improving their knowledge about politics, cultures in other countries.

Difficulties and challenges
Of course, international economic integration and development of market economy create negative impacts, increasing poverty and living gap.

Vietnam has made impressive results in poverty reduction, however the gap between the rich and the poor continued to rise. Once the country integrates itself deeper in the world economy, part of ethnic minority people in remote and mountainous areas, who have low knowledge, will find it more difficult to access the market and social services and their income and living standards could be further and further lower than urban areas.

In fact, the goods in mountainous and ethnic minority areas are yet to develop. The scale of production is still small and scattered together with low quality, failing to meet the international food safety and hygiene standards. This means that from now on, their products will find it more difficult to overcome the barriers in terms of high standards in technique and environment. A number of products of high value such as sugar cane, maize and fruits will face critical competition and difficulties.

During the process of exchange and integration, the alien lifestyles and cultures would influence the community of Vietnamese nationalities or change their traditional values and identities. The traditional cultural factors namely languages, houses, architectures, clothes, music, foods, customs and lifestyles would be strongly impacted. Due to economic integration, cheap and convenient industrial products from other countries could fade several traditional crafts such as weaving and casting.

The fact has proved that despite the State agencies and local administration’s efforts in preserving the forest land in recent years, the area of natural forests continued to be violated together with environmental pollution caused by industrial establishments. The balance of economic development and environmental protection is now a great challenge for mountainous and ethnic minority areas.

Suggestions
Based on the recent experience and the trend of deeper international economic integration, it is necessary to implement the following proposed solutions to ensure sustainable development for mountainous and ethnic minority area- provide sufficient knowledge and improve abilities in international economic integration among officials in these areas so as to help them make full use of the opportunities and overcome challenges and accelerate socio-economic development and reduce poverty for people of different nationalities.

- give priority to implementing socio-economic development and poverty reduction projects in ethnic minority areas. The State should continue to invest in building infrastructure and creating favourable conditions for socio-economic development there. Attention should be focused on implementing projects on reducing poverty, raising income and narrowing income gap between nationalities and regions. In addition, stronger measures are needed to fight against crimes, drug related evils, prostitution and HIV spreading.

- raise the efficiency of ODA projects launched for mountainous and ethnic minority areas, ensure that investment leads to practical results and meet the aspirations of ethnic minority people. Implement policies on attracting FID capital, speed up economic growth rate in the areas of favourable conditions and create jobs for children of different nationalities.

- work out overall solutions on social security to support poor people and areas as well as those of high vulnerability, thus limiting the negative impacts and influences during the process of international economic integration and globalisation.

- strengthening national defence, combing well economic integration with preservation of social stability and cultural identities of ethnic groups. Agencies in charge of ethnic minority affairs should understand and meet the legitimate aspirations of ethnic minority people to prevent the dark attempts in using the issue of ethnic minority and religion to divide the national great unity bloc.

International economic integration is creating both big opportunities and challenges for the development of mountainous and ethnic minority areas. In order to make this integration efficient, officials in charge of ethnic minority work need to learn how to make full use of opportunities and overcome challenges. Improving capabilities for them is a basic factor to ensure successful implementation of the Party's renovation and nationalities policies.

Samsung Vina offers $300,000 more to child heart patients

Source: Thanhnien News

Samsung Vina Electronics joint venture announced Friday it would offer assistance worth $300,000 to congenital heart patients in Vietnam in the second phase of the 2007-11 program, “Heart to Heart”.

Director-General of Samsung Vina, Sang Youl Eom expressed his elation with the continuation of the program, “We are glad that our program has saved the lives of many needy children.

“It has also, more importantly, trained Vietnamese doctors and transferred to the country the most up-to-date technology, allowing more patients to be treated,” Sang said.

On the occasion of the ceremony held for the first phase from 2003 to 2006 at Hanoi-based Daewoo hotel, Sang also provided the National Pediatrics Hospital (NPH) with a new ambulance worth $37,000.

The program, launched in 2003, is a result of cooperation between Samsung Vina, Korean-based Samsung Medical Center and the NPH; offering free diagnosis, treatment and operations for poor children who suffer congenital heart disease, as well as providing health staff with training and technology transfer.

Under the first phase, worth $250,000, of 41 patients receiving operations, nine of the most serious cases were brought to the Republic of Korea for further treatment.

In addition, thirty Vietnamese doctors have flown to the RoK to attend short training courses, and the NPH itself has received $43,000 in advanced health care equipment.

Addressing the ceremony, head of the NPH Heart Department, Doctor Pham Huu Hoa said, “With the new technology and know-how from our Korean counterparts, we have successfully saved more than 300 patients.”

Two Vietnamese named young global leaders

Source: ThanhnienNews

Vietnam’s Nguyen Thanh Hung and Pham Thi Hue are among 250 Young Global Leaders of 2007, the World Economic Forum (WEF) announced Tuesday in Switzerland.

Nguyen Thanh Hung, who has a doctorate in automation from the Russian Academy of Sciences and other academic accomplishments, is the founder and chairman of the Sovico Group, one of the largest companies in Vietnam.

Founded in 1992, Sovico is a dynamic international trading and investment company with offices in more than 10 countries.

Hung has also set up a charity fund of US$1 million to assist poor children.

Pham Thi Hue is the founder of Hai Phong Red Flamboyant in northern Vietnam, a support group for people living with HIV/AIDS, founded in 2005.

Hue was infected with HIV by her husband but refused to be shamed into silence unlike most Vietnamese with the disease.

She is now the public face of Mothers and Wives, an HIV/AIDS support group sponsored by a Norwegian NGO and her city administration.

She was named an ‘Asian hero’ by the US’s Time magazine in 2004 and became a UN volunteer in 2005.

Initiated in 2004 by WEF’s executive chairman, Klaus Schwab, the Young Global Leaders program acknowledges the outstanding contributions to the community by executives, public figures, and intellectuals around the world.

How do we apply for NGO status in Vietnam?

Source: AmCham Vietnam

Question

How do we apply for NGO status in Vietnam? What are the criteria, laws and regulations?

Answer

“NGO status” in Vietnam is roughly similar to “Public Charity” 501c(3) tax-exempt status in the U.S., while the American Chamber of Commerce in Vietnam is roughly similar to “Business League” 501c(6) tax-exempt status in the U.S.

The U.S. Case – “Public Charity” – 501c(3) Tax-Exempt Organization

Life Cycle of a Public Charity in the U.S.
During its existence, a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status under the law, to filing the required annual information returns, to making changes in its mission and purpose.

Exemption Requirements in the U.S.
A brief description of the requirements for exemption under IRC Section 501c(3).

Appllication for Recognition of Exemption in the U.S.
Procedures for applying for exemption under Internal Revenue Section 501c(3).

Filing Requirements in the U.S.
A brief description of annual filing requirements for tax-exempt organizations.

The Vietnam Case – “Foreign Non-Governmental Organizations”

We understand from reports that there are 514 NGOs in Vietnam, and that they will donate $100 million in community building activities 2003.

The Regulations on the Operation of Foreign Non-Governmental Organizations in Viet Nam (herein referred to as the Regulations) promulgated in accordance with Decision No.340/QD-TTg dated 24 May 1996 of the Prime Minister, provide the legal environment for foreign NGOs to work in Viet Nam.

The Committee for Foreign Non-Governmental Organization Affairs (herein referred to as the Committee) was established to address issues relating to foreign NGOs. The President of the Vietnam Union of Friendship Organizations (VUFO) has been assigned as Executive Member of the Committee. VUFO bears the principal responsibility for aid mobilization and for relations with foreign NGOs.

The People’s Aid Coordinating Committee (PACCOM), the specialized and functional body of VUFO, was established on 10 June 1989. The organizational structure of PACCOM includes Director, Deputy Directors and Programme Coordinators, working in four desks (Administration, Europe, North America, and Asia-Pacific).

Its functional activities include: “Processing the issuance, extension, amendment of Permits of different types for foreign NGOs working in Viet Nam, according to the Regulations.”

The People’s Aid Co-ordinating Committee (PACCOM)

Headquarters
105A Quan Thanh, Ha Noi, Viet Nam
Tel.: (84 4) 8436 936/7
Fax: (84 4) 8452 007
info@paccom.org.vn

Southern Representative Office
9 Le Duan Boulevard, District 1
Ho Chi Minh City
Tel: 84 8 8250 372
Fax: 84 8 8333 436

For additional information, click on these links:

VUFO-NGO Resource Centre – PACCOM

Guidelines for the Implementation of the Regulations on the Operation of Foreign Non-Governmental Organizations in Vietnam, 07 Aug 1996 (pdf file).

Asian Development Bank – Discussion Paper – A Study of NGOs in Vietnam, April 1999.

Next steps

You may, of course, do-it-yourself and submit an application to the PACCOM. You may also wish to consider asking one of AmCham’s member legal services firms to help you with the paperwork of the application and regular reports. Click here for a list and contact points of AmCham Legal Services firms.

Additional Background

According to a conference on NGO activities in Vietnam,

• NGOs have donated more than US$ 700 million to more than 16,000 projects in Viet Nam, according to preliminary statistics.

• Their aid has been increasing in the last few years, to $80 million annually, and is set to reach $100 million this year.

• Viet Nam has ties with 514 NGOs in 2003 compared to 183 in 1992.

• Key organizations include:
  • VN Union of Friendship Organisations
  • VN Committee for Foreign NGO Affairs chairman
  • VN Union of Friendship Organisations – NGO Resource Centre

Vietnam : History of Philanthropy

Source: Asian Philanthropy

Most people in Vietnam admire and follow Buddhist and Confucian traditions both of which encourage spending money, material, and time for others cause. In addition, the nature dependent agricultural activities (still the main source of income of most people in Vietnam), and the endless wars over the years have inculcated community feelings and the sense of mutual support among the people. These traditions are promoted and highlighted in folk literature, and reflected in many ancient proverbs, such as 'Red crepe cloth covers the glass', 'People in the same country should have pity on each other' or 'The healthy leaf covers the torn' (Vu Ngoc Phan, 1992).

Over centuries, Vietnamese people have survived wars and hungers through the tradition of united efforts and mutual support. These individual and community efforts were transformed in formal non-state and philanthropic organisations in the form of phuong- informal organisations of village people involved in the same handicraft or small manufacturing. Members of the phuongs committed to help each other in the production of goods, for example to provide technical assistance or to give loan to each other. They were also committed to protect the trade's secret, to keep common price of the products, etc.

Besides the phuongs, in traditional Vietnamese society there were hoi- associations of people with the same hobby, the same interest or the same age or strata. People grouped in hoi used to support each other beyond the specific purpose of the groups existence- in social supports in times of needs.

There were also several forms of mutual financial supporting organisations called ho. People in one ho used to contribute money or rice and receive, in their turn, the total amount contributed by all members of the ho. The primary purpose of a ho was to help its members accumulate a large quantity of rice or sum of money for special family events, for example, house building or repairing, children's wedding, birthday celebration of old parents or parents' death anniversary, etc. The members of a ho used to support each other in the utilisation of the specific fund received from the group fund. Thus one person's house building or repairing activity, or social events used to be supported by volunteer labours of the others in the ho and outside the hos.

Over the years, the kings and rulers of the area undertook measures to encourage philanthropy among Vietnamese people. It is widely believed that the King Le Thanh Tong (1460-1497) reduced the paddy tax on well-to-do families who contributed to the local fund. The taxpayers thus, being supported by the government, created compassion funds in the 15th century. During the Nguyen dynasty (from 17th to 20th centuries), compassion funds became an important tool for tackling crop failure and consequent famine (Thanh and Hoa, 1999). These compassion funds were preserved after the August 1945 Revolution.

During the colonial period (from 1858 to 1945), many anti-feudal-colonialist government associations were formed. Most members of the Reform Association were intellectuals or social activists and mainly from urban areas. The financial resources of the Association came mainly from member’s contributions and from wealthy families who disliked and did not want to accept colonial government.

After the August 1945 Revolution, these mass organisations continued to function and be supported by the organisers and sympathisers. The 1957 Association Law and the Decree 258/TTg regulated the formation and functioning of the third sector organisations in Vietnam, but people continued their giving and volunteering traditions in informal groups and community organisations any way.

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References:

Nguyen Van Thanh, Dinh Duy Hoa. 1999. ‘Vietnam’ in Thomas Silk (ed.) Philanthropy and Law in Asia- A Comparative Study of the Nonprofit Legal System in Ten Asia Pacific Societies. Jossey-Bass Publisher: San Francisco.

Thanh N V and D D Hoa. 1999. ‘Vietnam’. In Thomas Silk (ed.) Philanthropy and Law in Asia- A Comparative Study of the Nonprofit Legal System in Ten Asia Pacific Societies. Jossey-Bass Publisher: San Francisco.

Tran Ngoc Them.1997. Basis of Vietnamese Culture. Education Publishing House.

Vietnam : Philanthropy Overview

Source: Asian Philanthropy
Note: The information in this article has not been updated since published.

In a country where farming, the main source of living, depends on the caprice of nature, and where endless wars have been fought against foreign invaders, the Vietnamese people since time immemorial have been fully aware that only mutual support could help them survive hunger and disasters brought by the nature and wars. This tradition has been reflected in many ancient proverbs, such as 'Red crepe cloth covers the glass', 'People in the same country should have pity on each other' or 'The healthy leaf covers the torn' (Vu Ngoc Phan, 1992).

These proverbs are used as slogans for mobilizing giving. Another saying 'Better to give someone a piece of food when he is hungry than to give him a box of food when he is full', which emphasizes the importance of urgent support, is also used in case of collecting givings for people in disaster affected areas.

No reliable data is available about people’s giving practices, but the evidence from different sources suggests that the people’s involvement in giving and volunteering has increased in the last decade. This is due to programs aimed at promoting awareness of philanthropy. Another factor also may have influenced people's attitude towards the government and non-government sector. During the period of centrally-planned economy, government subsidy was almost the only channel of life resources, the role of the third sector and other agencies of civil society was not significant. In the recent past, this subsidy has been removed and households have become independent production units, thus non-government agencies and social organisations play an important role in the life of individuals and community. The people’s attitude towards giving and volunteering has changed due to the realization that their contribution strengthen this sector of society.

A major part of philanthropic activities in Vietnam nowadays is coordinated by the Vietnam Fatherland Front and social organisations under its umbrella like Vietnam Women Union, Vietnam Youth Union, Vietnam Red Cross or Vietnam General Labour Federation etc. Givings of kind or cash are mobilized and distributed through two major channels.

The first channel of mobilization and distribution of gifts are funds or foundations. The above-mentioned social organisations establish funds/foundations to collect donations and then distribute these to poor people or disaster affected people. As of July 2001, about 200 funds have been established in the country- mainly under different associations; few by individuals. The majority of them are for charitable purpose. The Compassion Fund of the Women’s Union has been set up in many provinces, districts and communes. The Vietnam Red Cross has funds for supporting victims of 'agent orange' in Vietnam, Fund for Humanity and Charity. The Fatherland Front has the Fund for Poor People. As of November 2001, after one year of its establishment, the Fund for Poor People under the Fatherland Front of Ho Chi Minh City collected almost 16 billion Vietnam Dongs, equivalent to US$1.6 million. This money has been used to build 671 houses for poor families, to make 1500 grants for poor students, to give 421 bicycles to students of poor families (Nhan Dan Newspaper, 23 November 2001)

The other channel is direct collection and distribution of donations organized by social organisations as regular or emergency activities. The Women Union or Labour Federation organize a day or launch a week of collection money, clothes or food in different workplaces or communities. For example responding to the call of the VFLF to support people affected by the typhoon in Central High Land in 1998, in two months, people in the country and Vietnamese living overseas have contributed a total of VND100 billion (US$800,000) and ten tons of clothes and blankets, books, medicines, etc. for the affected areas.

Volunteer activities to support affected people are mainly carried out by the Youth Union, Youth Association or Red Cross. Teams of young volunteer are sent to areas of flooding or draught to rescue victims or to provide them with primary assistance, etc.

Many other types of philanthropic activities have been organized under coordination of social organisations. In 1997, the Vietnam Fatherland Front launched the campaign 'Repaying gratitude' to war veterans who were seriously injured and the families of those who sacrificed their life for the country. In two years, 100,000 houses (VND100 billion) were built, 268,000 saving books valued from VND100,000 to VND500,000 were given to the families or individuals. The Repay Gratitude Fund has been set up with VND122 billion (VFLF, 1999.

Another type of philanthropic activity is to establish centres to support disadvantaged people including people with disabilities and the orphans etc. In the last decade, hundreds of such centres have been established under management of the social organisations and individuals or groups of individuals (GCOP, 2000).

Religious groups also undertake volunteer work for the disadvantaged people. Many centres have been set up by religious groups and supported by paid and volunteer work to provide care for people with leprosy, people living with AIDS, seriously handicapped children or elderly, etc.

---

References:

Government Committee for Organisation and Personnel. 2001. 'The issues emerging in the process of revising the Association Law'. Paper presented in the Workshop on subjects and scope of revision of Association Law, 26-27 July. Ha Noi.

Nhan Dan Newspaper, 23 November 2001. '15 billion Dongs for poor people'. (in Vietnamese)

Vietnam Fatherland Front. 1999. People united to build up a new life in community. National Political Publishing House: Ha Noi (Vietnamese)

Vu Ngoc Phan. 1992. Proverbs, Saying and Folklore of Vietnam. Association of Research and Teaching Literature: Ho Chi Minh City. (Vietnamese)

Vietnam needs $247 milion to assist poor ethnic minorities

Source: Vietnam Financial Times

Nearly VND4 trillion ($247 million) will be needed to help poor ethnic minorities in Vietnam in the coming time under the Government’s Hunger Elimination and Poverty Reduction Program 134, the Committee for Ethnic Minorities reported at a review meeting.

Of the total capital, over VND 1.65 trillion ($104 million) will be spent for building and upgrading houses, VND13.2 billion ($830,186) for providing housing land, and around VND 1.85 trillion ($115.62) for facilitating concentrated water supply works.

At present, Vietnam has some 476,000 ethnic minority households under the program with 333,000 among those requiring housing assistance, 237,000 asking help for production land and 84,000 in need of housing land. Meanwhile about 281,000 others are facing difficulties accessing clean water.

Two years after program implementation, some provinces have helped more than half of the minorities repair houses and granted 14,175ha of cultivation land for 33,600 households.

Vietnam plans $200 million for Central Highlands’ education development in 2007

Source: Vietnam News Agency

An amount of more than VND3.2 trillion (roughly $200 million) will be earmarked to further develop education in Central Highlands provinces in 2007, according to the Ministry of Education and Training (MoET).

The capital, which will gradually increase to nearly VND5.6 trillion ($350 million) by 2010, will focus on comprehensively improving the quality of general education and vocational training, and helping local schools gradually meet national education standards.

The ministry will continue developing the scale and network of schools at all levels and areas, focusing on consolidating and improving education quality of ethnic boarding-schools in an attempt to prompt all local children of schooling age to go to school, thus helping the region reach its target of making basic secondary education universal by 2010. The teaching of ethnic minority languages will also be gradually implemented at local schools.

The investment will also prioritize developing higher education in the region, focusing on education, healthcare, culture and art, agriculture and forestry, industry and construction, as well as expanding the network of vocational training schools and community-based colleges.

Additionally, the government will strive to encourage investment from all sources, both local and international, to implement a number of credit projects for infrastructure building and for training teaching staff.

During the 2001-05 period, the region recorded a relatively high annual growth rate of enrollment in secondary to higher education classes in comparison with the national average. The number of local pupils enrolling annually in junior and senior secondary schools, and colleges, rose 6.62%, 12% and 1.6%, respectively.

Notably, nearly 74,500 Central Highlanders have been provided with vocational training, helping to increase the number of trained workers in the region to 11.3% in 2005 from 8.9%, five years ago.

Nonprofit Web Portals

Source: GroundSpring

The Internet Nonprofit Center
http://www.nonprofits.org
An extensive collection of FAQs for nonprofit organizations, bulletins, and a library of publications, information and data about the nonprofit sector.

The Gilbert Center and Nonprofit Online News
http://www.gilbert.org
Lots of info, plus an excellent free e-newsletter (and a discussion list about Online Fundraising).

Guidestar
http://www.guidestar.org
Check and update your organization's information in this comprehensive listing of nonprofit organizations, a self-proclaimed "donors guide to the nonprofit universe." The Guidestar Nonprofit Center has links to articles, nonprofit resources, and online vendors servicing nonprofits.

Network for Good
http://www.networkforgood.org
A Web portal dedicated to helping people get more involved in their communities - from volunteering and donating money, to speaking out on issues you care about.

NPower
http://www.npower.org/resourcesandlinks/index.html
Tools, guides, and resources for nonprofit technology planning and implementation.

NTEN
http://www.nten.org
NTEN is a professional community that connects people involved in nonprofit technology and strives to help them effectively use technology in their work.

OneNorthwest
http://www.onenw.org
This group focuses on helping conservation groups in the Northwest use technology, but its online resources are general interest. Check out the "how-to" articles and sign up for ONEList, a monthly e-newsletter of technology tips.

TechSoup
http://www.techsoup.org
The technology place for nonprofits. Tools, training, analysis, message boards, technology tips, nonprofit jobs, software discounts, and more.

VolunteerMatch
http://www.volunteermatch.com
Lets you connect up with volunteers through their site or add a volunteer match component to your own site.

Government of Vietnam Expresses Commitment to a Stronger Relationship with Civil Society

The lack of an enabling environment, the weak capacity and self-identity of Vietnamese civil society are the major challenges still to be overcome in order to promote its effective contribution to the socio-economic development of Vietnam. Participants delivered this key message during the 'Capacity Building and Strengthening the Participation of Non-Governmental Organisations for the Socio-economic Development of Vietnam' workshop, held in Hanoi on 9th November 2006. The Vietnam Union of Science and Technology Association (VUSTA) organized the workshop with the support of UNDP, SNV Netherlands Development Organisation and the Royal Netherlands Embassy in Hanoi.

An unprecedented forum of 150 representatives from the Vietnamese Government, donor community, international NGOs and Vietnamese NGOs discussed their respective roles in building the capacity and strengthening the participation of Vietnamese NGOs. Inaugurated by the Vice Minister of Home Affairs Dr. Thang Van Phuc and welcomed by the UNDP Deputy Resident Representative Mr. Subinay Nandy and SNV Vietnam Country Director Mr. Pieter de Baan, the workshop was hailed as the point of departure for a more dynamic and open relationship between the Vietnamese government and Vietnamese NGOs.

The forum also gave Vietnamese NGOs, important members of Vietnamese civil society, an opportunity to express their growing confidence in fighting poverty and in sustaining a fruitful dialogue between the Government and the Civil Society.

Vice Minister Dr. Phuc shared his views that NGOs are voluntary and autonomous in functioning and can fill up the gaps that may exist in the government and market systems. Dr. Phuc acknowledged that Vietnamese NGOs have been instrumental in reducing poverty, protecting the environment, fighting against misuse of funds and improving people's participation in the socio economic development of Vietnam.

There is more to the relationship between government and civil society than partnering for the provision of basic services. As Pieter de Baan remarked "How indeed to respond to social change? That is a crucial issue to be addressed [by these two parties] for the sake of continued development and stability in Vietnam. The contributions of international partners, including international NGOs, can have a supportive value. The real drive to open up new avenues for the overall development of the country needs to come from Vietnamese civil society."

International experts from China, Denmark and New Zealand stressed the need for civil society to advocate transparency and accountability as well as to actively participate in service delivery functions. Dr. David Robinson, Director of Social and Civic Policy institute said "steps should be taken to update laws to conform to current international standards wherever possible."

The presentation of the 2005 CIVICUS Civil Society Index Study in Vietnam highlighted the key finding that the lack of an enabling environment is limiting the independence, and therefore the potential impact, of mass organizations and associations in Vietnam. The CIVICUS study was a landmark event in opening up discussions about the roles and possible contributions of the Vietnamese civil society.

According to workshop participants, the Government, international NGOs and donors should recognise Vietnamese NGOs as an important driver of national development. In addition, Vietnamese NGOs should have access to a platform for dialogue with the State, improve networking amongst themselves and be given greater flexibility and easier access to funding and learning opportunities. Participants also suggested the establishment of a separate, independent funding mechanism for civil society in Vietnam, which for example could address the issue of capacity development using innovative approaches proposed by international organizations such as SNV.

As Vietnam accelerates its international integration, witnessed by its accession to the World Trade Organisation on November 7, the Government's agenda should henceforth include strengthening its relationship with Vietnamese civil society. The presence at the workshop of senior delegates from the Government, as well as from the National Assembly and the Vietnam Communist Party, just at a moment when preparations for the upcoming APEC Summit were reaching frenzied heights, indicated the Government?s commitment to improving this relationship.

For more information, please contact: Nguyen Thi Kieu Vien - Senior Governance Advisor - SNV Netherlands Development Organization; Email: vienntk@snvworld.org

To download the 2005 CIVICUS Civil Society Index Study in Vietnam, please go to http://www.snv.org.vn/PubDetail.Asp?ID=103&Show=4&SubId=1

Local Non-Government Organizations in Vietnam

Source: United States International Grantmaking (http://www.usig.org)

I. Summary

Vietnam is a socialist civil law country with two legally recognized forms of not-for-profit, non-governmental organizations (“NPOs”). Although called by slightly more complex names, these two forms are equivalent to the typical civil law forms of association and foundation. [1]

It is difficult to estimate with precision the number of NPOs in Vietnam. According to governmental reports and research, there are over 300 associations at the national level, 2,150 associations at the provincial level, 1,500 foundations and funds, and tens of thousands of NPOs at the grassroots levels.

The first laws on NPOs in Vietnam date back to the post-independence period: Decree-Law 52/SL (1946) and Decree-Law 102/SL (1957). The Civil Code (2005) and two Government decrees: Decree 177 (1999) and Decree 88 (2003) now constitute the primary legislative basis for NPOs in Vietnam. The Civil Code contains a number of provisions which provide “juridical person” status for NPOs and establish a very basic NPO legal framework. Decree 177 (1999) spells out details concerning the establishment, structure, and governance of social funds and charitable funds. Decree 88 (2003) deals with associations.

A. Types of Organizations

Freedom of association is referenced in the Constitution of the Socialist Republic of Vietnam (Article 69). The revised Civil Code (2005) provides for a clearer and more substantial legal framework for NPOs. It describes and defines several types of “juridical persons” that generally comport with the understanding of the term "not-for-profit organization." The names vary according to the organization’s functions. Article 104 references political organizations, socio-political organizations and professional socio-political organizations. Article 104 references social organizations and socio-professional organizations - which are essentially associations. Article 105 references “social funds or charitable funds” (Article 105) - which are essentially foundations.

Decree 177 (1999) provides additional guidance regarding social funds and charitable funds (Quỹ). The decree refers to property assigned to accomplish some social or charitable purpose during a particular period of time (slightly different from a ‘foundation.’) To come into existence, these NPOs may form pursuant to Decree 35 (1992) which governs scientific and technological activities. Alternatively, many organizations find themselves a host organization. Many of these foundations refer to themselves as ‘Vietnamese NGOs’ (VNGOs), which complicates NPOs concepts in Vietnam.

In the past year in Vietnam, awareness of a larger, more comprehensive and more dynamic NPO sector (so called Civil Society) has increased significantly. There is more or less a common understanding of the following types of civil society organizations:

"Associations"

• Mass organizations [2] (there is a tendency to consider them NPOs);
• Associations (both national and local); and
• Community based organizations.

"Foundations"

• The so-called VNGOs;
• Funds (quy); and
• International NPOs.

Several Vietnamese NPOs are outside the scope of this Note, including political parties, mass organizations, religious organizations, and foreign NPOs, as well as economic interest associations, and institutions.

B. Tax Laws

The laws/decrees on NPOs do not provide specifically that NPOs or their donors/ donations are subject to special tax preferences. However, in many cases, NPOs are afforded tax incentives and preferences detailed in provisions scattered in different tax documents. Still, some procedures should be carried out in order to attain tax exemption, deduction or tax credit.

II. Applicable Laws

• Constitution of the Socialist Republic of Vietnam, promulgated by the National Assembly on April 15, 1992, as revised on December 25, 2001
• Civil Code of Vietnam, promulgated by the National Assembly on October 28, 1995, and effective July 1, 1996, as amended in May 2005, Part I, Chapter 4 on "Legal Persons" (particularly Arts. 100, 104, 105"
• Decree No. 88/2003/ND-CP (“Decree 88”), July 30, 2003, of the Government Promulgating the Regulations on Organization and Operation of Associations.
• Circular 01/2004/TT-BNV, January 28, 2004, of Ministry of Internal Affairs Providing Guidance for the Implementation of Decree 88/2003/ND-CP
• Decree No. 177/1999/ND-CP (“Decree 177”), December 12, 1999, of the Government Promulgating Regulations on Organization and Operation of Social Funds and Charitable Funds
• Decision 56/2000/QD-BTC, April 19, 2000, of the Ministry of Finance Issuing Regulation on Financial Management of Social Funds and Charitable Funds
• Decision No. 28/1999/QD-TTg, February 23, 1999, of the Prime Minister Issuing Regulations on the Use and Management of Aid Given by Foreign Nongovernmental Organizations
• Law of the Vietnam Fatherland Front, promulgated by the National Assembly on June 12, 1999
• Decision 340/TTg dated May 24, 1996 of the Prime Minister Issuing Regulations on Activities of Foreign Nongovernmental Organizations in Vietnam
• Law on Value Added Tax No 07/2003/QH11 dated June 17, 2003, (revised November 29, 2005)
• Circular No. 120/2003/TT-BTC dated December 12, 2003, of Ministry of Finance Providing Guidance for the Implementation of Law on Value Added Tax, Section D .I.7
• Decree No. 158/2003/NĐ-CP dated December 10, 2003 on VAT tax
• Decree No. 149/2005/ND-CP dated December 8, 2005 on the implementation of the import tax and export tax law
• Law on profit tax passed by the VIII National Congress on June 30, 1990, promulgated by Resolution No. 270B/-NQ/HDNN8 dated August 8, 1990
• Article 19, Corporation Income Law of 2003 (Vietnamese, English)

III. Relevant Legal Forms

A. General Legal Forms

The 2005 Civil Code contemplates several legal forms: socio-political organizations, professional socio-political organizations, social organizations, and socio-professional organizations which are essentially associations; as well as social funds and charitable funds, which are essentially a type of foundation. Both associations and foundations must have official permission to be established, and the application process can be complicated and time-consuming. The establishment and operation of associations and foundations are closely regulated and monitored by the government.

B. Public Benefit Status

Associations: The term "Public Benefit Status" is a rather new concept for NPOs and relevant stakeholders in Vietnam. Associations are not required to be established for public benefit, though it appears that they can be established for public benefit (e.g., an association of doctors providing medical services in an impoverished community). Although the Civil Code does not clearly address the issue, Decree 88 states that associations can be established for the purpose of contributing to the country’s socio-economic development. (Article 2) Associations that engage in activities pursuant to such purposes may be linked to the Government’s tasks and supported by the State Budget according to the Prime Minister’s instructions. (Article 4 (2))

Because of the interest in securing financial support from the state, donors and the public, and the elaborate process required to establish an association, it is likely that many NPOs will in fact carry out public benefit purposes that are tied to the State’s development objectives. [3]

In general, other associations described in the Civil Code and the regulations (e.g., clubs, professional associations) tend not to be established for public benefit and thus tend not to attract gifts from U.S. donors. Socio-professional organizations, further, are closely linked to the State and political structures.

Foundations: Foundations must, pursuant to Article 105 of the Civil Code, “operate for the purpose of promoting the development of culture, science, charity and other social and humanitarian purposes, which are not for profit-making.” Decree 177 employs a slightly different formulation of permissible purposes, stating that foundations must “be set up and operate[d] for humanitarian and charity purposes to promote cultural, sport, scientific and social development” (Article 2) As a practical matter, however, both associations and foundations are encouraged to engage more actively in public service delivery. (Resolution 53 dated 25 May 2006)

Decree 177 further permits foundations to “provide financial support for activities which conform to the fund’s principles and purposes.” (Articles 8 and 14) Thus, Vietnam appears to allow both operating and grant-making foundations. Accordingly, U.S. donors may need to be alert to issues regarding the out-of-corpus rule for some grants.

As mentioned above, Decree 177 permits different types of foundations, but its wording is not especially clear. As with most of Vietnam’s current and sparse legislation governing nonprofit or charitable activity there is a need to revise this decree to make it properly cover different types of foundations.

IV. Specific Questions Regarding Local Law

A. Inurement

Regulations on both associations and foundations prohibit sharing of profit to members or individuals.

Associations: Decree 88 on associations does not specifically address the issue of inurement. Given that associations are subject to extensive public oversight, it is unlikely that such direct or indirect benefits to private persons would be permitted. A U.S. grantmaker conducting an equivalency determination, though, would be prudent to ensure that the association's governing documents specifically prohibit inurement.

Foundations: Decree 177 on social funds and charitable funds states that “Organizations and individuals are strictly prohibited to take advantage of the establishment and operation of the funds to gain profit….”(Article 4(4))

B. Proprietary Interest

Associations: The Civil Code (Article 104) and Association regulations generally do not appear to permit an association's members to have a proprietary interest in its assets. For a U.S. grantmaker conducting an equivalency determination, though, it would be prudent to ensure that the association's governing documents specifically prohibit members or donors from having a proprietary interest in any of the organization's assets.

Foundations: Article 105 of the Civil Code states that social and charitable funds and their organizers “may not divide up the property of the fund in the course of the fund’s operation.” Moreover, “the property of the social fund or charitable fund shall be managed, used and dispensed with in accordance with the provisions of law and in accordance with the purpose of the operation of the fund as stipulated by its charter.” (Article 105)

C. Dissolution

Associations: Decree 88 provides that “with regard to [the] assets, funds, and other property provided by domestic and foreign organizations and by the Government… the utilization [upon dissolution] shall be decided by the relevant Government Authority.” However, certain “self-generated funds and other property” may be distributed in accordance with the association's governing documents. (Article 30)

Foundations: Article 105 of the revised 2005 Civil Code states that “the property of [a foundation] shall not be divided up among its founding members but must be settled in accordance with the provisions of law.” Article 21 of Decree 177 requires that “all remaining properties and money of the fund [after payment of creditors] shall be remitted to the State budget of the [administrative] level that has permitted the fund establishment.”

D. Activities

1. General Activities

Under Decree 88 on the organization, operation and management of associations (2003) associations are required to perform only those activities authorized in the organization’s Charter (Articles 3, 23). Similar provisions in Decree 177 apply to social and charitable funds.

2. Public Benefit Activities

Associations: Under Decree 88, it appears that an association, other than mutual benefit, can be set up to conduct public benefit activities, as discussed in III-B, above.

Foundations: Social and charitable funds must, pursuant to Article 105 of the 2005 Civil Code, “operate for the purpose of promoting the development of cultural and/or scientific development, charity and other social and humanitarian purposes, which do not aim to gain profit.” Decree 177 employs a slightly different formulation of permissible purposes, stating that funds must “be set up and operate[d] for humanitarian and charity purposes to promote cultural, sport, scientific and social development.” (Article 2)

3. Economic Activities

Associations: Decree 88 states specifically that associations may generate revenue from “business activities and services.” (Article 22 (9)) However, such activities will be taxed.

Foundations: Decree 177 does not authorize funds to conduct business activities. (Article 4)

E. Political Activities

Decree 88 allows associations to “provide comments on normative legal documents” related to their operations and to make "recommendations/proposals” to their oversight agency. Article 69 of the Constitution, further, appears to state that associations (as well as citizens) may “hold demonstrations in accordance with the law.”

The laws and regulations governing foundations do not specifically address political activities.

F. Discrimination

Article 52 of the Constitution states that “all citizens are equal before the law,” but nothing in any law or regulations affecting NPOs deals further with discrimination.

G. Control of Organization

As discussed above, the government of Vietnam exercises considerable control over the establishment, operation, and dissolution of NPOs. At present, it does not appear that an NPO may be controlled by an American grantor charity. In fact, Decree 88 does not authorize a foreign individual or a legal person to be official member of an association. The recent practice has demonstrated specific cases where a foreigner has been precluded from becoming a member of a professional or economic association. This is one of a number of issues in the debates on the drafting of a new Law on Associations (Luat ve Hoi), now underway in Vietnam.

V. Tax Laws

A. Income or Profits Tax

In fact, almost all NPOs and their economic entities enjoy special income tax incentives (Article 19, Corporation Income Law of 2003) and shall not have to pay tax for the income from the State budget’s source and local or foreign sources. To encourage contributions from donors, the grant amount will be accounting in reasonable expenses subject to income tax reduction.

B. Value Added Tax

Imported goods as humanitarian aid, non-refundable aid, gift, presents that NPOs receive from foreign donors are exempted from VAT and other indirect taxes at the import stage. The same situation applies to monetary aid from foreign donors to buy goods for use as humanitarian activities, or goods and/or services not subject to VAT. (Article 4 of Decree 158/2003)

C. Double Tax Treaty

The United States and Vietnam have not entered into a double-tax treaty.

VI. Knowledgeable Contacts

Nguyen Thi Bich Diep: diepnguyen@vnah-hev.org
Mark Sidel: mark-sidel@uiowa.edu
Stephan Klingelhofer: sklingel@icnl.org
Karla W. Simon: simon@law.edu
Leon E. Irish: irish@law.edu

---

Footnotes

[1] The Government of Vietnam seeks to promote the growth of a development-oriented NPO sector in Vietnam that is cooperative with Party and government policy. The Tenth National Assembly resolved to “expand and diversify forms of assembling people to join unions, social organizations, professional, cultural and friendship associations, as well as those working in the charity and humanitarian fields.” (Resolution No. 51/2001/QH10 dated 25 December 2001 of the 10th session of the 10th Legislature of the National Assembly.) In addition, the Socio-Economic Development Plan 2006-2010, for the first time, encourages “all non-governmental organisations, social associations and unions to develop social security networks and provide effective assistance to the vulnerable” and “to engage in managing and monitoring some pubic fields.” (Social Economic Development Plan of Vietnam 2006-2010, pp. 91, 140.)

Yet the current legal framework is not sufficiently comprehensive or facilitating. Since 1992 a draft Law on Associations has been underway in Vietnam, most recently centered in a drafting committee convened by the Ministry of Home Affairs. The draft Law has been the subject of intense debate and was submitted to the National Assembly for discussion in May 2006. Significant differences between government agencies and associations, and within the government community, could not be overcome and the Law has been put off for further discussion and drafting. A Decree on collaborative groups (a type of associations at grassroot level) is in drafting process. Revision ofn Decree 177 is under consideration.

Among the issues that have divided drafters of the Law on Associations, government and Party agencies, and key national associations are procedures for the establishment of associations; permitted and prohibited activities; management of associational activities (“single” vs. “dual” ministerial management); foreign membership; the economic activities of nonprofits and other issues. There is a pressing need to strengthen capacity building for the rapidly growing Vietnamese NPO sector, strengthen dialogue between state and Party agencies and the nonprofit sector, and facilitated fundraising and other forms of resource mobilization.

[2] Mass organizations (which are party organizations) are established pursuant to their own legislation. They are deemed “part of the political system of the Socialist Republic of Vietnam” (Law of the Vietnam Fatherland Front of 1999), and, as such, are not taxed. Examples include the Vietnam Women’s Union and the Vietnam Farmers Association. Religious organizations are governed by separate regulations. See http://www.state.gov/g/drl/rls/irf/2002/13916.htm for a discussion of the restrictions on freedom of religion in Vietnam. Foreign NPOs, finally, are subject to different regulations from those applying to local NPOs.

[3] The current Five Year Plan includes, among other goals, “ to bring about immense changes in education and training, science and technology and promote the human factor; to create more jobs; to basically eradicate hunger and reduce the number of poor households, to eliminate social vices; to strengthen socio-economic infrastructure."

An Update on SusWatch activities for 2006

By Prof.Dr.Nguyen Dac Hy, EEI-VNGO

Like other countries in the global network, SusWatch Vietnam is now in its second year of implementation. During 2005, the national activities were centered in evaluating the implementation of MDGs 1, 7 and 8; and also in involving the Vietnamese NGO network in poverty reduction and environment protection activities.

Based on the experience gained from the first year, in 2006 SusWatch Vietnam has a strategy to develop advocacy at the community level through local case studies. These case studies are focused on mobilizing civil society and increasing the participation of communities in biodiversity conservation, hunger elimination and poverty reduction at sensitive areas such as buffer zones of national parks and wetlands.

The main case study to be carried out will be the Tien Hai nature reserve ?a wetland, estuary coastal area in Tien Hai province, North of Vietnam. All activities are centered on promoting human resource and mobilizing social associations, such as women, youth and farmer organizations, to participate in all steps of environmental management ?from planning and implementing to monitoring.

This case study also encourages people to join pilot models to link poverty reduction and environment protection, such as ecological shrimp pond models, bee raising models in the mangrove areas and ecological cultivation in buffer zones. In addition, communities receive knowledge through training courses, technical assistance and experience exchange forums, which are combined with wide dissemination through the media.

These achievements in advocacy at the community level proved that the right approach is researching at the grassroots level and involving the community.

Despite a late start, EEI showed its dynamism by maintaining communications among VNGO members and by organizing meetings and experience exchange forums. EEI also developed a partnership with GCAP, an international NGO with large experience in poverty reduction projects.

In the next months, EEI will work closely with CBOs to complete sustainable development models for the conservation of the Tien Hai reserve.

EEI is setting up a similar case study for the Cat Ba national park, recognized by UNESCO in 2004 as a World Biosphere Reserve, in Hai Phong city. This initiative is expected to expand the results achieved by SusWatch as well as becoming essential for fundraising. EEI also hopes this is another opportunity to apply local monitoring tools more comprehensively than in Tien Hai.

To fulfill SusWatch goals more effectively, SusWatch network should share experiences at the national and local levels more actively, including country visits. By doing so, every country can re-evaluate achievements in the implementation of SusWatch as well as making contributions to implement the MDGs at the national and global levels.

Suswatch Reports

During recent years, when Vietnam gets more involved in international programs and conventions on economic development and environment protection, roles and activities of Non - Governmental Organizations (NGOs) become increasingly important. The Vietnamese government appreciates operations taken by NGOs and social communities. The government also undertakes to support and guarantee their involvement in developing programs: "All organizations and individuals are responsible for participating in environment protection activities"; "Environment protection is a task of all the people, the Army and the Communist Party. For this reason, it's necessary to entrust the right to obtain environment relevant information to NGOs and social communities, as well as to support and enhance the participation of the people and communities in environment protection".

The foundation of NGOs is to respond to the need on ownership right of the people, as well as to the need of individuals, political and professional organizations, social organizations and communities on contributing to consultancy, opponent and social inspection activities as well as on participating in various programs, plans and strategies such as programs on hunger eradication and poverty reduction, clean water and environmental hygiene in rural areas, 5 million hectare reforestation, community health care, socio- economic development, providing community services, etc. NGOs also receive financial support from both international and national organizations within frameworks of their development supporting activities in Vietnam.

NGOs are active in different sectors and areas, especially in supporting remote areas, ethnic groups, and disadvantaged people. They provide services in consulting central, sectorial and local state owned organizations on developing policies, strategies, planning, socio - economic development and environment protection plans; in disseminating knowledge, in raising the people's intellectual standards; in researching and applying scientific and technological achievements in order to reduce poverty, improve the people's living standards; in environment protection; in consulting and inspecting social issues; in charity activities; in supporting NGOs members; in protecting members' interests. NGOs' activities also enhance solidarity and friendship between international and national communities, strengthen multilateral and bilateral relations with friendly, solidarity and peaceful organizations, international and national NGOs, follow friendly neighborly foreign policies; avail of financial support such as from foreign countries and their NGOs

NGOs' activities take part in addressing difficulties of the Government in implementing the socio-economic and environment protection programs, plans and strategies; support communities and individuals in carrying out effectively activities relevant to sustainable development.

The NGOs and social communities are defined as follows:

1. Volunteer Organizations (VO) include organizations formed based on communities, funds, sponsoring organizations, volunteer
2. Social - professional organizations (NGOs): most of their activities are non- beneficial and aimed for achieving community objectives. They are vocational club centers and institutes operating under the Decree No. 35/HDBT and other relevant legal documents (Gardening Association, Association for Nature and Environment Protection, Architects' Association, Old People Association, etc,
   
3. People's organizations (PO) are social-political organizations such as women association, farmers' association, veterans' association, fatherland front, Ho Chi Minh Communist Youth Union.
4. Governmental NGOs: are established by Government and serve as instruments for executing government policies. They are centers and institutes belonging to the ministries, universities, the Vietnam Union of Literature and Art Associations (VUSTA), the Vietnam Union of Scientific and Technological Associations, the Red Cross, etc.
5. International NGOs in Vietnam: namely WWF, SNV, FFI, GCAP, etc.
6. Community organizations: people organizations, unions and clubs in hamlets and villages.
7. Clubs: clubs for poem lovers, old people club, etc.
8. Funds: Study Encouragement Fund, Fund for Dioxin Victims, etc.

Download the Full 2005 Vietnam Sustainability Watch Report

An Initial Assessment of Civil Society in Vietnam

The Civil Society Index (CSI) report for Vietnam highlights a number of features of civil society not previously investigated and a range of new insights. In brief, civil society can be characterised as being very broad-based through numerous civil society organisations (CSOs). However, not all organisations are deeply anchored in civil society, for example some members of the mass organisations are automatically members in the public sector.

Another characteristic is that civil society is segmented into various organisations with different functions. On the one hand, the “old” mass organisations and professional associations, which are broadly accepted as an integrated part of society, and on the other, a “new type” of organisation that developed in the 1990s, but is not fully recognised by society, such as NGOs, CBOs and other types of informal organisations. The report focuses on four main types of organisation: mass organisations (MOs), professional associations, Vietnamese NGOs (VNGOs) and community-based organisations (CBOs).

All organisations are seen together as part of the Vietnamese civil society, collectively called civil society organisations (CSOs). The core activities of most CSOs are directed towards poverty reduction, humanitarian relief, self-organisation and professional development, but little CSO effort is directed towards advocacy. On the whole, civil society is an important area of activity for citizens in Vietnam, but it lacks vitality in some respects and areas, among which advocacy is one of the weakest. The environment for civil society is one of the main factors for its relative lack of vitality as the conditions for forming organisations are not enabling.

Full text of the executive summary of this report can be downloaded form here.

Appeal raises $550,000 for the poor in Vietnam

ThanhnienNews - Some VND8.85 billion ($550,000) has poured into the Fund for the Poor in Vietnam by 6pm Tuesday, two days after a live New Year Eve TV program launched an appeal.

The fifth Joining Hands program is jointly organized by the Fatherland Front, Vietnam Television, and the Military Telecom Corporation (Viettel).

Individuals and organizations in Vietnam and abroad have contributed by sending instant messages, each worth VND15,000 ($0.93), from their cell phones to the switchboard.

After a kind foreigner in the central beach city of Nha Trang promised to donate $1 for every message sent in, 80,000 messages were sent within an hour.

On Sunday 300,000 messages were sent, jamming the Vinaphone mobile network from 9pm to 10pm.

In the past six years the Fatherland Front has used money from the Fund for the Poor to build 490,000 houses.

There are about 3.7 million poor families in Vietnam.

2007: Vietnam does not need a big event!

VietNamNet Bridge - At the turn of the new year, Professor David Dapice (from Tufts University and the Chief Economist of Vietnam Program at Harvard University) talks to VietNamNet about the important economic events of 2006.

Some people say 2006 is the most exciting ever for Vietnam economy,with WTO accession, the APEC, the PNTR, the records in FDI, the stock market, etc. You have been following Vietnam economy for decades since the Doi Moi. Do you agree that 2006 is the most exciting year among the last 20 years?

- In my view, the WTO accession was the biggest story of 2006. This is because it not only meant that the leadership agreed that it was important, but also that it signaled to investors that reform would continue and the operating rules in Vietnam would continue to move in the direction of what was normal in most countries.

Do you agree that 2006 is the most exciting year among the last 20 years?

- This year (2006) was certainly very exciting – reaching $10 billion in licensed FDI, joining the WTO and having the stock market go up 170% were all very noteworthy. They marked Vietnam as a serious player, with the Intel and Canon investments showing that even long-term “heavyweights” thought it worth investing here. Smaller things also helped – the APEC summit here, the handling of bird flu (very good in spite of the recent new outbreaks), and growing tourism all suggest that Vietnam will not be “exotic” but “mainstream.” This means a higher level of capital and human flows, but also higher expectations.

Do you think the economic reform in Vietnam was speed up or slow down in 2006? If speeding up, is it because of the WTO pressures, the Party Congress? If slowing down, is it because two much efforts was put in fighting corruption and WTO accession?

- Was reform faster or slower in 2006? I think that preparations for and promises of future reform were more than before, but actual reform was not. The tax changes were not exciting and the new investment law could have been better. Financial opening was begun, but very cautiously. The scandals like PMU 18 were contained but it is unclear if lessons were learned and acted upon. Land prices remain too high and practices of obtaining land remain problematic, though some abuses are now being dealt with rather than ignored. If the promises made are fufilled, it is likely that reform will speed up in the next year or two.

- In VietNamNet, we are surveying the readers’ opinions for the most important events of 2006. Most of the votes are for WTO and changes in the stock market. The VN-Index went up from 300 in January to 630 in June, then quickly down to 420 in July, and jumped to 810 in December. Do you think these up and down movements indicated something of the economy, or mostly the speculation and herding effects?

The stock market boom is exciting, but there is an investment saying that “trees don’t grow to the sky.” If investors are ignoring fundamentals and buying because of momentum (they think the stock price is rising and they can sell to someone at a higher price), there are rising chances for a downturn.

- For some stock, the P/E went up to almost 100.

If a stock earns $1 a share and is priced at 100, the earnings will have to grow VERY fast, because a company like GE earns $15 and sells for $100 [in effect] and has earnings growth of 10% a year, year after year. I can believe that some companies in Vietnam will grow at 20-30% a year for 5-10 years, but what then? After ten years of 25% annual growth, they would be earning $9 a share. What would they be worth then? Momentum may go on for a while, but it usually goes too far and then prices drop, sometimes sharply. In Japan, the stock average is less than half of its peak sixteen years ago.

- The ODA committed to Vietnam went up every year and made a new record of $4.45 billion in 2006. When it will (or should) start to go down? Thailand a couple of years ago said that they no longer need ODA. When will be the time for Vietnam to say that? The foreign debt of Vietnam is over 30% GDP. It is yet over the limit, but does it indicates something?

ODA comes in different flavors. The sweetest is very low interest rate loans (about ½ of 1%), but these are given only to low income nations. About 2010, Vietnam will become a middle-income nation and start getting ODA loans much closer to world market levels of interest rates. The specific efficiency of ODA loans depends on the project, but what is often lost is that even if all of the loans are for “good” projects, it frees up non-ODA funds for “bad” ones. For example, the ADB railway renovation from Hanoi to China will cost only $0.2 million per kilometer, even though many bridges are being rebuilt with new grading and tracks, signals, etc. provided. But the Hanoi to Vinh high speed railway will cost over $30 million per kilometer. Now, even if some of that is for trains, the larger issue is not ODA per se but the overall efficiency of public investment. That has been and (in my view) remains an area that needs much more attention. Even when all of the costs are justified, some investments are just not needed right now, like the Dong Nai airport. It should only be phased in after Tan Son Nhat is further expanded, maybe after 2020. If you build things you don’t use much or which cost too much, the debt burden will become a problem.

- Do you think the WTO accession of Vietnam was delayed because other members had experience in China: many promises are not delivered, so they were more specific in negotiation with Vietnam. Do you think there will be same complains with Vietnam? It may happen from what points of the agreement?

Vietnam faced tough WTO conditions, tougher than previous nations. This is part of a general trend, not confined to Vietnam. However, I think the similarities of China and Vietnam and the difficulty of getting China to follow strictly its WTO promises made it more likely that Vietnam would be treated more strictly. In addition, China has more bargaining power and could press its position more strongly. But I think that Vietnam is already more open and more competitive than it would appear from the tariff data, due in part to smuggling and in part due to the size and geography of the country. For that reason, the WTO agreements will not be burdensome, though some adjustments will be required. While Oxfam is right that the process may not be “fair,” I think they are wrong about the result of the process. I think Vietnam will benefit a lot from WTO accession, and you can already see it in FDI. With a $10 billion target for 2007, that would mean $20 billion in licensed investment in two years! If even half or two-thirds of that is implemented, it will mean at least one million jobs directly and several million more through multiplier effects. If training programs and easy movement (including more attention to reasonably priced decent housing in cities, with nearby schools for the kids) are provided, then even those hurt by WTO will have good options. That means Vietnam will soon need a land and property tax to finance urban services and control speculation.

- The amount of investment from US (including investment via third countries) has been behind others from Taiwan, Singapore, Korea, Japan. There were high expectation for US investment after the US-Vietnam normalization in 1995, then after US-Vietnam BTA in 2000, but there were not yeat a boom. Do you think the WTO and PNTR will help to pull a surge of US investment in 2007, if not, what US investors are waiting for?

FDI is coming from many nations, and that is an advantage. If you are at a dance, it is always better if lots of people want to dance with you. With the Intel and Canon investments, there will be more US and Japanese investments. I think a lot of US investment comes through multinationals that appear in official data as coming from other countries like Singapore or elsewhere. If you counted that as US-sourced, then US FDI is already much higher than the official number. Overall, I would worry less about marketing than about infrastructure, regulation and education. If you get those things right, there will be plenty of investors.

- What do you think will be the most important economic event in Vietnam 2007? Not to mention the “regular” as you say, there will be high GDP growth rate, high FDI and ODA…

The biggest story in 2007? It could be the opening up of banking or the new tax law or further breakthroughs in FDI. I hope it is not the bird flu going pandemic. But really, Vietnam is getting to the point where it doesn’t need one or two big stories, but a lot of advances. You need them in law, education, housing, finance, taxes and public management. If you “just” do sensible things well, you will have rapid AND quality growth that will reduce poverty and be sustainable. A modern country is one that works well for its people. For that, the level of income is less important (because it will rise quickly) than the quality of the process.