8 associations propose to abolish private enterprises that are subject to the Law on Implementing Democracy at Grassroots


VCN – The draft Law on implementing democracy at the grassroots level is being consulted and is expected to be approved by the National Assembly in the October 2022 session. Eight Business Associations have sent a document to the National Assembly, the Government and many ministries and branches, proposing to abandon private enterprises that are the subject of this law.

Producing wood products at Duc Thanh Wood Company. Photo: D.L
Producing wood products at Duc Thanh Wood Company. Photo: D.L

According to the associations, the public consultation of the subjects is specified in the draft law, but businesses only know information via the media instead of formal surveys or requests as well as holding meetings and seminars to explain and collect official opinions on the draft law, while businesses are the object of the great impact of this Law.

Regarding the application of the Law on Grassroots Democracy to private enterprises, the associations said that this provision applied to private enterprises would cause many difficulties.

Because the operating structure of a private enterprise is completely different from that of a state-owned enterprise. A private enterprise invests itself to build an enterprise with its own capital, independent of the State budget. Therefore, private enterprises have the right to decide corporate governance without having to consult employees.

Currently, enterprises are implementing democratic regulations very well according to the provisions of the Law (Labor Law, Law on Trade Unions). Furthermore, there have not been any complaints about disobedient enterprises and there is no democracy in enterprises to protect the legitimate rights and interests of employees. Adding the Grassroots Democracy Law will cause overlaps and duplication.

Enterprises already have a trade union, an employee representative organization to represent the employees as prescribed in the Labor Code, the Trade Union Law and the relevant Decrees.

There is a trade union fund to perform the assigned tasks, so the trade union organization must effectively promote the implementation of democracy in the enterprise in protecting the legitimate rights and interests of employees. Therefore, a new organization like the people’s inspectorate with overlapping activities is a waste of costing and human resource consuming for trade unions and enterprises.

The provision and disclosure of all information of the enterprise, especially confidential information in corporate governance (production and business situation, operation situation, salary scale, payroll) to all employees, trade unions, and people’s inspection boards are inappropriate, unjustified, contrary to the autonomy of enterprises under the Law on Investment, the Law on Enterprises, the Law on Intellectual Property and common sense.

Because the enterprise has operated and complied with many legal regulations, and there have been inspection teams to check compliance with the law, the enterprise must be free to operate and control administration.

If too much power is given to workers and people’s inspection boards, which exceeds their legitimate interests, making it easy for employees to make claims, form factions, and cause interference for business owners.

Most businesses are following the law and take care of their employees very well, not only due to some isolated ones can generally apply this law to the whole business.

Therefore, the Association proposes to abolish private enterprises as the object of the Law on implementing democracy at the grassroots level. At the same time, meetings and seminars are of urgent need to the business community so that they have the opportunity to contribute directly.

8 business associations, including: Vietnam Leather, Footwear and Handbag Association (LEFASO), Transparent Food Association (AFT), Vietnam Wood and Forest Products Association (VFA), Vietnam Textile and Apparel Association (VFA), VITAS), Vietnam Association of Seafood Exporters and Producers (VASEP), Food and Food Association of Ho Chi Minh City (FFA), Vietnam Tea Association (VITAS), and Vietnam Motorcycle Manufacturers Association (VAMM).

By Lê Thu/ Thu Phuong


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