Decree No. 155/2013/ND-CP on administrative sanctions for violations in the planning and investment sector

DECREE

Article 24Regulations on administrative penalties in the field of planning and investment

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Pursuant to the Law TGovernment issued on December 25, 2001;

Pursuant to the Law XProcessing ofi Handling Law dated June 20, 2012"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."The Government promulgates this Decree stipulating the National Database on Administrative Offense Handling.

Pursuant to the Law Domestic air passenger transport service on regular basic economy classLaw on Enterprises dated November 29, 2005;

Pursuant to the Law 3. Amend Clause 3 Article 2 as follows:land issued on November 26, 2003;June 2024;of the Minister of Planning and Investment

Pursuant to the Law 3. Amend Clause 3 Article 2 as follows:bidding on November 29, 2005;

Pursuant to the Law Xconstruction on November 26, 2003;

BASED ON THE LAW AMENDING and supplement oneand supplementing some provisions of Circular No. 41/2011/TT-BYT dated November 14,No. provisions of the Laws joint relating to investmentconcerning the classification and determination of state management authority in the field of crop production construction on November 19thJune 2024;Article 6 of the Law on the National Office of Vietnam Abroad dated November 21, 2017;

Pursuant to the Law HPlanning and InvestmentJune 2024;on November 2012;

1. Regarding social housing: The People's Committee of Hanoi City shall base on the urban planning, urban development area on both sides of Vo Nguyen Giap Road, urban development plan, and actual needs to allocate social housing projects within the urban development area on both sides of the road, ensuring the prescribed ratio according to the law.policies This Decree stipulates the organization, tasks, powers, and activities of agencies performing the function of inspecting the industry of Planning and Investment; inspectors, persons assigned to perform specialized inspection tasks, and inspection collaborators of the industry of Planning and Investment; the responsibilities of agencies, organizations, and individuals in the inspection activities of the industry of Planning and Investment.;

h"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."Government issued the Decree stipulating administrative penalties"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."in the field of planning and investment,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree specifies acts of administrative violations, forms of punishment, fines, measures to remedy consequences, authority to issue administrative violation reports, and authority to impose administrative penalties in the field of planning and investment.

2. Acts of administrative violation in the planning and investment sector as stipulated in this Decree include the following acts:

a) Violations of regulations in the field of investment using state capital;

b) Violations of regulations in the field of domestic investment, foreign investment, and Vietnamese investment abroad;

c) Violating regulations in tender management;

d) Violating regulations in business registration for enterprises, individual households, cooperatives, and cooperative unions.

3. Other acts of administrative violations in the field of planning and investment not specified in this Decree shall be governed by other Decrees of the Government on administrative penalties in the fields of state management related thereto.

Article 2. Persons subject to penalty

The subjects to which this Decree applies include organizations and individuals, both domestic and foreign, who commit acts of administrative violation in the planning and investment sector.

Article 3. Forms of Administrative Sanction and Measures to Remedy Consequences

1. For each act of administrative violation, the violating organization or individual must bear one of the following main forms of administrative sanction:

a) To issue warnings;

b) Fine.

2. Depending on the nature and degree of the violation, the violating organization or individual may also be subject to one or more specific measures to remedy consequences as provided for in the Articles of Chapter II of this Decree.

Article 4. Fine Amounts in the Planning and Investment Sector

The fine amounts prescribed in Chapter II of this Decree apply to organizations. For the same act of violation, the fine amount for individuals and households is half (one-half) of the fine amount for organizations.

Chapter II

VIOLATIONS OF ADMINISTRATIVE REGULATIONS, FORMS OF PUNISHMENT AND MEASURES TO REMEDY CONSEQUENCES

Section 1

VIOLATIONS OF ADMINISTRATIVE REGULATIONS IN THE FIELD OF INVESTMENT USING STATE CAPITAL, FORMS OF PUNISHMENT AND MEASURES TO REMEDY CONSEQUENCES

Article 5. Violation of regulations on Feasibility Study Reports (Investment Projects, Economic and Technical Reports for projects involving construction works)

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Failure to comply with procedures, formalities for preparing and reviewing Feasibility Study Reports;

b) Failure to comply with procedures, formalities, and conditions for adjusting investment projects.

2. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) Preparing budgets, settling accounts, finalizing costs for preparing Feasibility Study Reports not in accordance with prescribed unit prices and norms;

b) Preparing Feasibility Study Reports not in accordance with the scale of project groups as prescribed;

c) Preparing Feasibility Study Reports not in accordance with national standards and national technical regulations;

d) Preparing Feasibility Study Reports not in accordance with prescribed contents.

3. A fine of from VND 15,000,000 to VND 20,000,000 shall be imposed for any of the following acts:

a) Preparing Feasibility Study Reports that are not included in the master plan or have not been approved by competent authorities to supplement the master plan;

b) Preparing Feasibility Study Reports not in accordance with the approved master plan.

4. Measures to remedy consequences:

a) Compel repayment of additional expenses incurred due to improper preparation, acceptance, settlement, and finalization of costs for preparing Feasibility Study Reports as provided in Point a Clause 2 of this Article;

b) Compel adjustment of Feasibility Study Reports to comply with national standards and national technical regulations as provided in Point c Clause 2 of this Article;

c) Compel supplementation of missing contents as provided in Point d Clause 2 of this Article;

d) Compel adjustment of Feasibility Study Reports to comply with the approved master plan as provided in Point b Clause 3 of this Article.

Article 6. Administrative violations in the field of investment involving construction works

Acts of administrative violations in the field of investment involving construction works concerning surveying, design, construction supervision, construction works, quality management, acceptance, settlement, and finalization of investment projects shall be punished according to the Government's regulations on administrative penalties in construction activities.

Article 7. Violations concerning reporting on supervision and evaluation of investment

1. A fine of VND 1,000,000 to VND 2,000,000 shall be imposed on any of the following acts:

a) Preparing reports on supervision and evaluation of investment not in accordance with the prescribed deadlines;

b) Preparing reports on supervision and evaluation of investment not fully in accordance with the prescribed contents.

2. A fine of VND 2,000,000 to VND 5,000,000 shall be imposed on any of the following acts:

a) Not preparing reports on supervision and evaluation of investment to be submitted to competent state agencies as prescribed;

b) Establishing untruthful supervisory and evaluation reports on investment.

3. Measures to remedy consequences:

a) Compel the supplementation of missing contents in the supervisory and evaluation reports on investment for violations stipulated in Point b Clause 1 of this Article;

b) Compel the submission of supervisory and evaluation reports on investment to the competent state agency for violations stipulated in Point a Clause 2 of this Article.

Article 8. Violations concerning management and implementation of programs and projects using Official Development Assistance (ODA) funds

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Not organizing supervision and evaluation of the implementation process of ODA programs and projects as prescribed;

b) Implementing a project later than the prescribed schedule if not due to objective reasons or force majeure events.

2. A fine of from VND 20,000,000 to VND 30,000,000 for the act of implementing a project not in accordance with the contents stipulated in the investment decision or the approval decision on the program and project technical assistance documentation.

3. Measures to remedy consequences: Compel the organization of supervision and evaluation of the project in accordance with the regulations for violations specified in Point a Clause 1 of this Article.

Article 9. Violations concerning reporting systems and provision of information for ODA programs and projects

1. A fine of from VND 1,000,000 to VND 2,000,000 for the act of not complying with the reporting system on the results of ODA program and project implementation to the competent authority as prescribed.

2. A fine of from five million to ten million Vietnamese dong shall be imposed for the act of providing inaccurate information and documents to contractual parties, consultants, and implementers of ODA programs and projects.

3. Measures to remedy consequences:

a) Compel the submission of a report to the competent state management agency in accordance with the provisions of the law for violations stipulated in Clause 1 of this Article;

b) Compel the provision of accurate information and documents to contractual parties, consultants, and implementers of the program or project for violations stipulated in Clause 2 of this Article.

Section 2

ADMINISTRATIVE VIOLATIONS IN THE DOMESTIC INVESTMENT, FOREIGN INVESTMENT AND VIETNAMESE INVESTMENT ABROAD SECTORS, FORMS OF PENALTIES AND MEASURES TO REMEDY CONSEQUENCES

Article 10. Violations of investment regulations in Vietnam

1. A fine of from VND 5,000,000 to VND 10,000,000 for the act of not submitting reports on investment activities, reports on supervision and evaluation of investment projects as prescribed.

2. A fine of from VND 10,000,000 to VND 15,000,000 for the act of submitting false reports on investment activities.

3. A fine of from VND 15,000,000 to VND 20,000,000 shall be imposed for any of the following acts:

a) Preparing false and inaccurate project investment files to obtain an Investment Certificate;

b) Implementing a project later than the schedule stipulated in the Investment Certificate without the approval of the competent state agency.

4. A fine of from twenty million to thirty million Vietnamese dong shall be imposed for any of the following acts:

a) Not performing procedures to adjust investment projects in accordance with the law;

b) Temporarily suspending or delaying the progress of investment project implementation without notifying the competent state investment management agency in writing;

c) Not performing procedures to terminate investment project operations or liquidate the investment project.

5. A fine of VND 30,000,000 to VND 50,000,000 shall be imposed on any of the following acts:

a) Not conducting investment activities in accordance with the contents stipulated in the Investment Certificate;

b) Investing through capital contribution, share purchase, merger, acquisition of enterprises not in accordance with regulations;

c) Changing the form of investment or transferring investment capital not in accordance with regulations;

d) Transferring the project not in accordance with regulations.

6. A fine of from VND 50,000,000 to VND 70,000,000 for any of the following acts:

a) Not performing investment procedures in accordance with the law;

b) Continuing to implement the project after the Investment Certificate has been revoked;

c) Continuing to implement the project after the operation period recorded on the Investment Certificate has expired;

d) Not implementing the investment project within 12 (twelve) months without the approval of the competent state agency.

7. A fine of from VND 70,000,000 to VND 80,000,000 for the act of implementing a project before obtaining an Investment Certificate.

8. Measures to remedy consequences:

a) Compel submission of reports on investment activities; reports on supervision and evaluation of investment projects as prescribed for violations specified in Clause 1 of this Article;

b) Compel performance of procedures to adjust investment projects for violations specified in Point a Clause 4 of this Article;

c) Compel submission of notifications to the competent state investment management agency for violations specified in Point b Clause 4 of this Article;

d) Compel performance of procedures to terminate investment project operations and liquidation as prescribed for violations specified in Point c Clause 4 of this Article;

đ) Compel performance of procedures to extend the validity of the Investment Certificate for violations specified in Point c Clause 6 of this Article.

Article 11. Violations of regulations on using state capital for investment and business activities

1. A fine of VND 30,000,000 to VND 50,000,000 shall be imposed on any of the following acts:

a) Using state capital for investment, contribution, or purchase of shares without approval from the competent authority;

b) Changing an investment project using state capital without approval from the competent state authority.

2. A fine of VND 50,000,000 to VND 70,000,000 shall be imposed on the act of investing or conducting business using state capital for purposes other than those intended.

Article 12. Violations of regulations on foreign direct investment

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Failure to implement the reporting system on foreign investment activities as prescribed;

b) Failure to notify or provide incomplete information about the implementation of foreign investment projects as prescribed.

2. A fine of from 20,000,000 VND to 30,000,000 VND shall be imposed for any of the following acts:

a) Failure to comply with the contents stipulated in the Investment Certificate;

b) Repatriating profits and other income from foreign investments not in accordance with regulations;

c) Failure to repatriate capital and lawful assets when the project ends as prescribed.

3. A fine of VND 30,000,000 to VND 40,000,000 shall be imposed on any of the following acts:

a) Submitting inaccurate and dishonest documents to obtain an Overseas Investment Certificate;

b) Reinvesting profits obtained from overseas projects back into the same project before the Investment Certificate has been adjusted as prescribed;

c) Investing profits obtained from overseas projects into other projects abroad without obtaining an Overseas Investment Certificate as prescribed.

4. A fine of VND 50,000,000 to VND 60,000,000 shall be imposed on any of the following acts:

Investing abroad without approval from competent state agencies for issuance of an Investment Certificate;

Transferring investment capital abroad without an Investment Certificate or without approval from the competent authority of the receiving country;

c) Using state capital for overseas investment contrary to regulations.

5. Measures to remedy consequences:

a) Order to submit investment reports as required for violations under Point a Clause 1 of this Article;

Compel compliance with the contents of the Investment Certificate for violations stipulated in Point a Clause 2 Article 2 of this Law;

Compel registration to adjust the Investment Certificate for violations stipulated in Point b Clause 3 Article 3 of this Law;

Compel compliance with investment procedures for violations stipulated in Point c Clause 3 Article 3 of this Law.

Article 13. Violations of investment incentives regulations

1. A fine of from 10,000,000 VND to 15,000,000 VND shall be imposed for failure to report to competent state agencies when conditions for enjoying investment incentives are not met. In cases where tax laws are violated in the declaration for investment incentives, administrative penalties in the field of taxation shall be applied.

2. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed on the act of making inaccurate or dishonest declarations of necessary information to enjoy investment incentives.

3. Measures to remedy consequences: Order to return improperly enjoyed investment incentives for violations under Clause 1 and Clause 2 of this Article.

Article 14. Violations of regulations on investment under Build-Operate-Transfer (BOT), Build-Transfer-Operate (BTO), Build-Transfer (BT) contracts, and Public-Private Partnership (PPP) agreements

1. A fine of from 20,000,000 VND to 30,000,000 VND shall be imposed for any of the following acts:

a) Failure to implement security measures for project contracts as prescribed;

b) Preparing final accounts for completed works not in accordance with regulations.

2. A fine of from 30,000,000 VND to 40,000,000 VND shall be imposed for transferring works not in accordance with regulations.

3. A fine of from 40,000,000 VND to 50,000,000 VND shall be imposed for preparing, reviewing feasibility study reports not in accordance with regulations.

4. Measures to remedy consequences: Compel implementation of security measures for project contracts for violations stipulated in Point a Clause 1 of this Article.

Article 15. Violations of regulations on investment in industrial zone infrastructure, export processing zone infrastructure, high-tech zone infrastructure, and economic zone infrastructure

Organizations and individuals violating regulations on investment in technical infrastructure systems in industrial zones, export processing zones, high-tech zones, and economic zones shall be subject to penalties as provided for in Articles 5, 6, 10, 11, and 13 of this Decree.

Section 3

ADMINISTRATIVE VIOLATIONS IN THE BIDDING FIELD, FORMS OF PENALTIES AND MEASURES TO REMEDY CONSEQUENCES

Article 16. Violations of tendering plan regulations

1. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) Establishing, reviewing, and approving tendering plans not in accordance with prescribed procedures, formalities, and authority;

b) Approving tendering plans that do not contain all required contents as stipulated.

2. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed for one of the following acts:

a) Approving contract forms, tendering methods, and contract implementation periods that are not appropriate to the scale and nature of the tender package;

b) Approving contractor selection methods that do not comply with regulations.

3. A fine of VND 20,000,000 to VND 30,000,000 for the act of dividing tender package scales in an unreasonable manner, failing to meet requirements regarding technical characteristics, implementation procedures, and project integration, leading to reduced competition in tendering.

4. In addition to the penalty forms prescribed in Clause 1, Clause 2, and Clause 3 of this Article, violators shall also be published on the tender newspaper and the tender information website.

Article 17. Violations of tender invitation document and request document regulations

1. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) Not organizing the review of tender invitation documents and request documents before approval;

b) Approving tender invitation documents and request documents beyond the prescribed authority.

2. A fine of VND 15,000,000 to VND 20,000,000 for the act of not specifying in the tender invitation document the requirement to use domestic labor for international tender packages.

3. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following acts:

a) Stating preconditions to eliminate tender submission documents and proposal documents that do not comply with regulations, thereby limiting the participation of contractors;

b) Stating evaluation criteria for tender invitation documents and request documents that do not comply with regulations or are not suitable to the scale and technical nature of the tender package.

4. A fine of VND 30,000,000 to VND 40,000,000 for the act of approving tender invitation documents and request documents that are inconsistent with the approved tendering plan regarding contractor selection methods, tendering methods, contract forms, and contract implementation periods.

5. In addition to the penalty forms prescribed in Clause 1, Clause 2, Clause 3, and Clause 4 of this Article, violators shall also be published on the tender newspaper and the tender information website.

Article 18. Violations of tender organization regulations

1. A fine of VND 5,000,000 to VND 10,000,000 for the act of not issuing tender invitation documents, request documents, shortlist invitation documents, and interest invitation documents to contractors at the time and place specified in the tender invitation notice, shortlist invitation notice, tender invitation letter, and bidding invitation notice.

2. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) Receiving and managing tender submission documents and proposal documents not in accordance with regulations;

b) Opening tenders not at the time specified in the tender invitation document;

c) Not sending the tender opening minutes to contractors as prescribed;

d) Not announcing the tender results as prescribed.

3. A fine of VND 15,000,000 to VND 20,000,000 for the act of evaluating tender submission documents, reviewing, and approving tender results beyond the prescribed time limit.

4. A fine of from twenty million to thirty million Vietnamese dong shall be imposed for any of the following acts:

a) Not organizing the review of tender results before approval;

b) Approving tender results that do not contain all required contents and do not comply with prescribed authority;

c) Approving tender results that are inconsistent with the content of the approved tendering plan.

5. A fine of from thirty million to forty million Vietnamese dong shall be imposed for any of the following acts:

a) Evaluating tender submission documents and proposal documents not in accordance with the approved evaluation criteria, resulting in distorted contractor selection results;

b) Allowing contractors to clarify tender submission documents, leading to fundamental changes in the submitted tender submission documents or bid prices;

c) Negotiating and signing contracts that are not consistent with tender invitation documents, request documents, and approved tender results;

d) Not requiring winning contractors to submit performance guarantees or accepting performance guarantees from contractors that do not comply with regulations.

6. In addition to the penalty forms prescribed in Clause 1, Clause 2, Clause 3, Clause 4, and Clause 5 of this Article, violators shall also be published on the tender newspaper and the tender information website.

Article 19. Other administrative violations related to bidding

1. A fine of from VND 1,000,000 to VND 5,000,000 for one of the following acts:

a) Failure to publish bidding information.

b) Publishing bidding information that does not contain all required content or does not meet the required number of publications.

c) Publishing bidding information beyond the authorized jurisdiction as prescribed.

d) Implementing the publication of bidding information in violation of regulations.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on any of the following acts:

a) Establishing a bidding expert team that does not have the required capacity as prescribed.

b) Failing to refund or release bid security for contractors as prescribed.

c) Collecting bidding fees in violation of regulations.

3. A fine of from 10,000,000 VND to 15,000,000 VND for the act of failing to implement or implementing incorrectly the regulations on canceling, suspending, or not recognizing the selection results of contractors.

4. A fine of from 15,000,000 VND to 20,000,000 VND for the act of failing to handle or handling objections in bidding in violation of regulations.

5. Measures to remedy consequences:

a) Order to refund or release bid security for contractors as prescribed for the violation stipulated at Point b Clause 2 of this Article.

b) Order to refund improperly collected fees for the violation stipulated at Point c Clause 2 of this Article.

Section 4

ADMINISTRATIVE VIOLATIONS IN THE FIELD OF BUSINESS REGISTRATION FOR COMPANIES, INDIVIDUAL HOUSEHOLDS, COOPERATIVES, ASSOCIATIONS OF COOPERATIVES, AND PENALTIES AND REMEDIAL MEASURES

Article 20. Violations of regulations on declaration of business registration files

1. A fine of from 10,000,000 VND to 15,000,000 VND for the act of declaring untruthfully or inaccurately in the following cases:

a) Registration of establishment of a company.

b) Registration of changes to the contents of company registration.

c) Registration of branch, representative office, or business location activities.

d) Registration of changes to the contents of branch, representative office, or business location activities.

đ) Registration of dissolution of a company.

e) Notification of cessation of branch, representative office, or business location activities.

g) Notification of temporary suspension of business operations.

2. Remedial measures: Order to re-register changes and re-notify the inaccurate and untruthful declarations made by the company.

Article 21. Violations of regulations on deadlines for registering changes to company registration contents

1. A fine of from 1,000,000 VND to 2,000,000 VND for the act of registering changes to company registration contents outside the prescribed deadline.

2. A fine of from 2,000,000 VND to 5,000,000 VND for the act of failing to register changes to company registration contents within ten days from the date of decision to change.

3. Remedial measures: Order to register changes to company registration contents as prescribed for the violation stipulated at Clause 2 of this Article.

Article 22. Violations of regulations on publicizing company registration contents

1. A fine of from 1,000,000 VND to 2,000,000 VND for the act of failing to publicize or publicizing outside the prescribed deadline the company registration contents on the National Business Registration Information Portal as prescribed.

2. Remedial measures: Order to publicize company registration contents on the National Business Registration Information Portal as prescribed.

Article 23. Violations of regulations on establishing companies

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Continuing operations after the expiration of the activity period specified in the Charter without extension.

b) Failing to contribute the registered capital amount within the due time.

2. A fine of from 10,000,000 VND to 20,000,000 VND for the act of failing to contribute the registered capital amount.

3. A fine of from 25,000,000 VND to 30,000,000 VND for any of the following acts:

a) Intentionally valuing contributed assets at a price that does not reflect their actual value;

b) Operating under the guise of a company after having had the Enterprise Registration Certificate revoked or after dissolution.

c) Operating under the form of a company without registering establishment of a company.

4. Measures to remedy consequences:

a) Order to register extension of operation for the violation stipulated at Point a Clause 1 of this Article.

b) Order to reduce the charter capital according to regulations for joint-stock companies with two or more shareholders or to contribute the registered capital amount for other types of companies that violate the regulations stipulated at Clause 2 of this Article.

c) Order to reassess contributed capital assets for the violation stipulated at Point a Clause 3 of this Article.

d) Order to register establishment of a company for the violation stipulated at Point c Clause 3 of this Article.

Article 24. Violation of provisions on registration of founders of enterprises

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for registering the owner of a limited liability company with one member, the owner of a private enterprise, members of a limited liability company, capital contributors, general partners, founding shareholders who are individuals or organizations not entitled to establish enterprises under the law.

2. Measures to remedy consequences: Compel to register changes for members, capital contributors, general partners, founding shareholders who are individuals or organizations as prescribed.

Article 25. Violation of provisions on conducting business in industries or trades not listed in the Enterprise Registration Certificate

A fine of VND 15,000,000 to VND 20,000,000 shall be imposed for conducting business in industries or trades not listed in the Enterprise Registration Certificate.

Article 26. Violation of provisions on hiring the Director of a private enterprise

1. A fine of VND 10,000,000 to VND 15,000,000 shall be imposed for hiring another person as the Director of a private enterprise without registration.

2. Measures to remedy consequences: Compel to register the Director supplementarily.

Article 27. Violation of provisions on registration of changes in membership

1. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed for failing to register changes in membership within the time limit prescribed from the last commitment date for capital contribution according to the law.

2. Measures to remedy consequences: Compel to register changes in membership based on the actual results of capital contributions by company members.

Article 28. Violation of provisions on compliance with requirements of the Business Registration Authority

1. Fine from VND 15,000,000 to VND 20,000,000 for one of the following acts:

a) Continuing to conduct business in conditional industries when requested to temporarily suspend such activities by the Provincial Business Registration Office;

b) Failing to register a change in the name of the enterprise as required by the Provincial Business Registration Office in cases where the enterprise's name infringes upon protected intellectual property rights according to the law.

2. Measures to remedy consequences: Compel to register a change in the name in accordance with the law for violations stipulated in Point b Clause 1 of this Article.

Article 29. Violation of reporting regulations

1. A fine of from VND 1,000,000 to VND 5,000,000 for one of the following acts:

a) Leasing a private enterprise but failing to report in writing along with the lease contract certified by a notary to the Provincial Business Registration Office and tax authority;

b) Failing to submit financial reports within the prescribed time limit.

2. Measures to remedy consequences: Compel to submit reports to the competent state management agency as prescribed.

Article 30. Violation of provisions on notification to the Provincial Business Registration Office

1. A fine of VND 1,000,000 to VND 2,000,000 shall be imposed on any of the following acts:

a) Failing to notify in writing within the prescribed time limit regarding the point and period of temporary suspension or resumption of business operations as prescribed by law;

b) Failing to notify in writing within the prescribed time limit regarding changes in the type of assets contributed by members of a limited liability company;

c) Failing to notify the share capital contribution within the prescribed time limit from the date of issuance of the Enterprise Registration Certificate;

d) Failing to notify or notifying out of the prescribed time limit regarding the sale of a private enterprise;

đ) Failing to send or sending out of the prescribed time limit notifications of designation or replacement of the authorized representative for a limited liability company;

e) Failing to notify in writing the progress of capital contributions within the prescribed time limit after each round of contributions according to commitments.

2. Measures to remedy consequences: Compel to notify the Provincial Business Registration Office of the contents as prescribed.

Article 31. Violations concerning the legal representative of a business

1. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) The legal representative of the business does not have permanent residence in Vietnam;

b) The legal representative of the business is absent from Vietnam for more than 30 days without authorizing another person in writing to exercise their rights and obligations.

2. Measures to remedy consequences:

a) Order the registration of a person with permanent residence in Vietnam as the legal representative of the business for the violation stipulated in Point a Clause 1 of this Article;

b) Order the issuance of a written authorization to another person or the registration of another person residing in Vietnam as the legal representative of the business for the violation stipulated in Point b Clause 1 of this Article.

Article 32. Other violations related to organization and management of businesses

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Failure to convene the annual general meeting of shareholders within the prescribed time limit from the end of the fiscal year without extension granted by the provincial business department;

b) Appointing persons who are not authorized to manage the business to managerial positions;

c) Appointing the General Director (Managing Director) of a joint-stock company without meeting the required qualifications and conditions as prescribed by law.

2. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following acts:

a) Failure to issue certificates of capital contribution to members of the company as prescribed;

b) Failure to establish a register of members and a shareholder register as prescribed;

c) Failure to display the name of the business at its main office, branch, and representative office;

d) Failure to keep documents and seals at the main office as required by law.

3. Measures to remedy consequences:

a) Compel the convening of the annual General Meeting of Shareholders in accordance with the provisions set forth in Point a, Clause 1 of this Article for the violation of the provisions set forth in Point a, Clause 1 of this Article;

b) Compel the removal from management positions of persons who are not entitled to manage the enterprise for the violation of the provisions set forth in Point b, Clause 1 of this Article;

c) Order the removal of the position of General Director (Managing Director) of a joint-stock company for those who do not meet the required qualifications and conditions, and appoint another person who meets the required qualifications and conditions as prescribed for the violation stipulated in Point c Clause 1 of this Article;

d) Order the issuance of certificates of capital contribution to members as prescribed for the violation stipulated in Point a Clause 2 of this Article;

đ) Compel the establishment of member registration books and shareholder registration books in accordance with the provisions set forth in Point b, Clause 2 of this Article for the violation of the provisions set forth in Point b, Clause 2 of this Article;

e) Order the display of the name of the business at its main office, branch, and representative office for the violation stipulated in Point c Clause 2 of this Article;

g) Order the retention of documents and seals as prescribed for the violation stipulated in Point d Clause 2 of this Article.

Article 33. Violations concerning the Supervisory Board

1. Fine from VND 1,000,000 to VND 2,000,000 for organizing the Supervisory Board incorrectly or incompletely as prescribed by law.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on any of the following acts:

a) A limited liability company with 11 or more members but does not establish a Supervisory Board;

b) A joint-stock company with more than 11 individual shareholders or one organizational shareholder holding over 50% of the shares of the company but does not establish a Supervisory Board.

3. Measures to remedy consequences:

a) Order the reorganization of the Supervisory Board in accordance with the provisions of the law for the violation stipulated in Clause 1 of this Article;

b) Order the establishment of the Supervisory Board in accordance with the provisions of the law for the violation stipulated in Clause 2 of this Article.

Article 34. Violations concerning the dissolution of businesses

1. Fine from VND 5,000,000 to VND 10,000,000 for failing to carry out the dissolution procedures for businesses subject to dissolution as prescribed by law.

2. Measures to remedy consequences: Order the carrying out of the dissolution procedures for the business as prescribed by law.

Article 35. Violation of provisions on establishment, termination of branch, representative office, business location activities of enterprises

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Conducting business at a location without notifying the Provincial Business Registration Office where the enterprise carries out its business activities;

b) Terminating the operation of a branch office, representative office, or business location without notifying the Provincial Business Registration Office.

2. Measures to remedy consequences:

a) Order to report the location of the business location to the Provincial Business Registration Department or terminate business operations at that location for violations as stipulated in Point a Clause 1 of this Article;

b) Order to report the termination of branch, representative office, business location activities in accordance with regulations for violations as stipulated in Point b Clause 1 of this Article.

Article 36. Violations of business registration provisions for individual households

1. Fine from VND 3,000,000 to VND 5,000,000 for one of the following acts:

a) Registering more than one business location;

b) Registering more than one individual household;

c) Failing to report business conditions as required by the district-level business registration authority.

2. Fine from VND 5,000,000 to VND 7,000,000 for acts of making false or inaccurate declarations in the business registration dossier of individual households or in the change registration dossier of individual households.

3. Measures to remedy consequences:

a) Order to report business conditions as required by the district-level business registration authority for violations as stipulated in Point c Clause 1 of this Article;

b) Order to re-declare the contents previously declared falsely or inaccurately for violations as stipulated in Clause 2 of this Article.

Article 37. Violations concerning temporary cessation of business operations by individual households

1. Warning or fine from VND 500,000 to VND 1,000,000 for temporarily ceasing business operations for more than 30 days without notifying the district-level business registration authority where business registration was made and the directly managing tax authority.

2. Fine from VND 5,000,000 to VND 10,000,000 for failing to temporarily cease business operations in conditional business sectors as required by the district-level business registration authority where the individual household registered.

3. Measures to remedy consequences: Order to notify the temporary cessation of business operations to the district-level business registration authority and the directly managing tax authority for violations as stipulated in Clause 1 of this Article.

Article 38. Violations of provisions on changing business registration content of individual households

1. Warning or fine from VND 500,000 to VND 1,000,000 for changing business registration content without reporting to the district-level business registration authority as prescribed.

2. Measures to remedy consequences: Order to report the changed content of individual household business registration to the district-level business registration authority.

Article 39. Violations of provisions on termination of business operations of individual households

1. Warning or fine from VND 500,000 to VND 1,000,000 for terminating business operations under the form of an individual household without notification or return of the original Certificate of Individual Household Business Registration to the district-level business registration authority.

2. Measures to remedy consequences: Order to notify or return the original Certificate of Individual Household Business Registration to the district-level business registration authority.

Article 40. Violations of business registration provisions for cooperatives, cooperative unions

1. Warning or a fine of VND 500,000 to VND 1,000,000 for any of the following acts:

a) Not organizing the annual member assembly of cooperatives or cooperative federations;

b) Not establishing a membership register after receiving the Cooperative Registration Certificate or Cooperative Federation Registration Certificate.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on any of the following acts:

a) Falsely or inaccurately declaring the establishment registration dossier of cooperatives or cooperative federations;

b) Operating under the name of a cooperative or cooperative federation without a Cooperative Registration Certificate or Cooperative Federation Registration Certificate.

3. Measures to remedy consequences:

a) Compel the organization of the annual member assembly for violations stipulated in Point a Clause 1 of this Article;

b) Compel the establishment of a membership register for violations stipulated in Point b Clause 1 of this Article;

c) Order to register cooperatives, cooperative unions for violations as stipulated in Point b Clause 2 of this Article.

Article 41. Violations of provisions on registration of capital contributions for cooperatives and cooperative federations

1. A fine of from five million to ten million Vietnamese dong shall be imposed for any of the following acts:

a) Failure to raise and timely complete the registered amount of capital.

b) Failure to maintain the statutory capital level for cooperatives operating in industries or professions requiring statutory capital.

c) Failing to issue a certificate of capital contribution to members of a cooperative or member cooperatives.

2. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed for the act of allowing a member to contribute more than 20% of the total capital contributions of a cooperative; or a member cooperative to contribute more than 30% of the total capital contributions of a cooperative federation.

3. Measures to remedy consequences:

a) Order to make up the registered capital contribution as required for the violation stipulated in Point a Clause 1 of this Article.

b) Compel issuance of a certificate of capital contribution to members of a cooperative or member cooperatives for violations stipulated in Point c Clause 1 of this Article;

c) Compel adjustment of the proportion of capital contributions for violations stipulated in Clause 2 of this Article.

Article 42. Violations of provisions on changes to registered content of cooperatives and cooperative federations

1. Warning or a fine of VND 500,000 to VND 1,000,000 for any of the following acts:

a) Failure to register or register not within the prescribed time limit, or failure to notify changes to the registration content of cooperatives or cooperative unions.

b) Failure to register a name change for the cooperative when changing its business industry or profession to form the cooperative or cooperative union name.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on any of the following acts:

a) Registering inaccurately or falsely the changes to the registration content of cooperatives or cooperative unions.

b) Continuing operations during the period the cooperative or cooperative union has announced a temporary suspension of activities.

3. Measures to remedy consequences: Order to re-register and issue a new Registration Certificate for cooperatives or cooperative unions for violations stipulated in Clause 1 and Point a Clause 2 of this Article.

Article 43. Violations of provisions on public disclosure of information of cooperatives and cooperative federations

1. Warning or a fine of from VND 500,000 to VND 1,000,000 shall be imposed for the act of failing to publish information as prescribed.

2. Measures to remedy consequences: Compel compliance with legal provisions on public disclosure of information.

Article 44. Violations of provisions on reorganization of cooperatives and cooperative federations

1. Warning or a fine of from VND 500,000 to VND 1,000,000 shall be imposed for the act of dividing, splitting, merging, or consolidating in violation of regulations.

2. Measures to remedy consequences: Compel reorganization of cooperatives and cooperative federations in accordance with regulations.

Article 45. Violations of provisions on registration of branch operations, representative offices, and business locations of cooperatives and cooperative federations

1. Warning or a fine of VND 500,000 to VND 1,000,000 for any of the following acts:

a) Registering addresses of branches, representative offices, and business locations that do not appear on administrative maps;

b) Registering addresses of branches, representative offices, and business locations that are not owned or legally used by the entity.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for the act of registering changes in the content of registration of branches, representative offices, and business locations inaccurately or dishonestly.

3. Measures to remedy consequences: Compel reissuance of the Certificate of Registration of Cooperatives for violations stipulated in Clause 1 and Clause 2 of this Article.

Chapter III

AUTHORITY TO ISSUE ADMINISTRATIVE VIOLATION DECISIONS AND VIOLATION RECORDS

Article 46. Competence to impose administrative penalties of the Inspectorate of Planning and Investment

1. The Inspector, and the person assigned to perform specialized inspection tasks while on duty have the authority to:

a) To issue warnings;

b) Impose a fine up to 500,000 VND.

2. The Chief Inspector of the Department of Planning and Investment, the Head of the specialized inspection team at the provincial level have the right:

a) To issue warnings;

b) To impose a fine up to VND 25,000,000 for violations related to business registration; impose a fine up to VND 75,000,000 for violations related to investment and bidding;

c) To apply measures to remedy consequences as prescribed in Chapter II of this Decree.

3. The Head of the specialized inspection team of the Ministry of Planning and Investment has the right:

a) To issue warnings;

b) To impose a fine up to VND 30,000,000 for violations related to business registration; impose a fine up to VND 80,000,000 for violations related to investment and bidding;

c) To apply measures to remedy consequences as prescribed in Chapter II of this Decree.

4. The Chief Inspector of the Ministry of Planning and Investment has the right:

a) To issue warnings;

b) To impose a fine up to VND 30,000,000 for violations related to business registration; impose a fine up to VND 80,000,000 for violations related to investment and bidding;

c) To apply measures to remedy consequences as prescribed in Chapter II of this Decree.

Article 47. Competence to impose administrative penalties of People's Committees at all levels

1. The Chairperson of the People's Committee at the commune level has the right to:

a) To issue warnings;

b) Impose a fine up to 5,000,000 VND.

2. The Chairperson of the People's Committee at the district level has the right to:

a) To issue warnings;

b) To impose a fine up to VND 25,000,000 for violations related to business registration; impose a fine up to VND 75,000,000 for violations related to investment and bidding;

c) To apply measures to remedy consequences as prescribed in Chapter II of this Decree.

3. The Chairman of the Provincial People's Committee has the authority to:

a) To issue warnings;

b) To impose a fine up to VND 30,000,000 for violations related to business registration; impose a fine up to VND 80,000,000 for violations related to investment and bidding;

c) To apply measures to remedy consequences as prescribed in Chapter II of this Decree.

Article 48. Competence to impose administrative penalties of other agencies

Agencies such as Public Security, Customs, Taxation, specialized inspection agencies, and other agencies within their functions, tasks, and assigned powers, if they discover administrative violations in the planning and investment sector, shall have the right to impose administrative penalties according to Articles 39, 42, 44, and 46 of the Law on Handling Administrative Violations and the provisions of this Decree.

Article 49. Determining Competence to Impose Penalties

The competence to impose fines stipulated in Articles 46, 47, and 48 of this Decree applies to one administrative violation committed by an organization; in cases of fines, the competence to impose penalties on individuals is half the competence to impose penalties on organizations.

Article 50. Competence to Draft Administrative Violation Records

1. Officials stipulated in Articles 46, 47, and 48 of this Decree and persons authorized to perform official duties who discover administrative violations in the planning and investment sector shall have the right to draft records of administrative penalties according to the prescribed regulations.

2. The head of a specialized inspection team for planning and investment who discovers a violation has the right to draft an administrative violation record; if the authority to impose penalties is exceeded, the record must be transferred to the person with the authority to proceed with the penalty according to the law.

Chapter IV

IMPLEMENTING PROVISIONS

Article 51. Effective Date

This Decree takes effect from January 1, 2014, and replaces Decree No. 53/2007/NĐ-CP dated April 4, 2007, of the Government on administrative penalties in the planning and investment sector, and Decree No. 62/2010/NĐ-CP dated June 4, 2010, of the Government amending and supplementing certain articles of Decree No. 53/2007/NĐ-CP dated April 4, 2007, of the Government on administrative penalties in the planning and investment sector.

Article 52. Responsibility for Implementation

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees, and related agencies, organizations, and individuals are responsible for implementing this Decree./.