More violated actions and attached penalties provided by the newly issued decree of the Government

On 1 June 1, 2016, the Government issued Decree No. 50/2016/ND-CP stipulating the administrative penalties for violations of planning and investment sector (“Decree 50”). Decree 50 supplements more violated actions and their attached penalties than the current one.

Generally:
– A fine between VND1 – 80 million imposed on the violations of the investment activities in Vietnam
– A fine between VND5 – 60 million imposed on the violations of the investment activities abroad
– A fine between VND10 – 20 million imposed on the violations of the incentive investment
– A fine between VND10 – 40 million imposed on the violations of the investment in form of public- private- partnership (PPP)

Below are some key penalties:
– A fine of between VND 2 – 3 million imposed on violation of the enterprise establishment.
– A fine of between VND 10 – 15 million imposed on violation of the declaration of enterprise registration file.
– A fine of between VND 1 – 15 million imposed on violation of the prescribed time limit for registration of changes in the content of the enterprise registration certificate, the operational registration certificate of the branch and the representative office, and the registration certificate of business location.
– A fine of between VND 1 – 2 million imposed on violation of the non-publishing the enterprise registration information.
– A fine of between VND 1 – 10 million imposed on violation of the report to and implementation of request from business registration authority.
– A fine of between VND 10 – 15 million imposed on the violation relating the legal representative of the enterprise (i.e. if the legal representative does not enter into a power of attorney authorizing another person to act on his or behalf when the legal representative exits Vietnam).
– A fine of between VND 30 – 40 million imposed on the violations of the not satisfying condition for investment in form of capital contribution, purchase of shares, foreign ownership restriction.
– A fine of between VND 10 – 15 million imposed on the violations of the not issuing capital contribution certificate for members; not having enterprise register; fails to put proper signage of the enterprise name at the head office, branch or representative office.

The Decree takes effect on 15 July 2016 and replaces Decree 155/2013/ND-CP dated 11 November 2013 on the same.