STRENGTHENING FINANCIAL MANAGEMENT IN GRASSROOTS TRADE UNIONS: EMPIRICAL EVIDENCE FROM VIETNAM AND POLICY IMPLICATIONS

Abstract

Financial management plays a crucial role in ensuring the operational effectiveness and sustainability of grassroots trade unions, particularly in the context of organizational reform and the increasing demands for transparency and accountability in Vietnam. However, empirical studies on financial management within the grassroots trade union system remain limited. This study aims to assess the current state of financial management in grassroots trade unions in Vietnam, identify the key factors influencing financial management effectiveness, and propose relevant policy implications. Based on survey data collected from officials of grassroots trade unions in Vietnam, the study employs a mixed-methods approach combining quantitative and qualitative analyses to examine the roles of factors such as staff capacity, financial decentralization mechanisms, the level of information transparency, and financial supervision and control systems. The findings indicate that the effectiveness of financial management in grassroots trade unions is significantly influenced by the professional competence and managerial skills of union officials, as well as the clarity and consistency of the financial institutional framework. In addition, shortcomings in financial supervision and disclosure mechanisms remain major barriers to the efficient use of trade union financial resources. Drawing on empirical evidence, the paper proposes several policy implications to strengthen financial management in grassroots trade unions, including improving the financial institutional framework, enhancing the capacity of union officials, and promoting transparency and accountability. These measures are expected to contribute to improving the overall performance and sustainability of the trade union system in Vietnam.