Decree No. 44/2020/NĐ-CP on enforcement proceedings against commercial legal entities

DECREE

Regulations on enforcement actions against commercial legal entities

commercial legal entity

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Criminal Enforcement Law dated June 14, 2019;

The Government promulgates this Decree on regulations regarding entry, exit, and residence policies for foreigners at the International Financial Center in Vietnam.

The Government issues this Decree on regulations concerning enforcement actions against commercial legal entities.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates principles, measures, procedures, and formalities for applying enforcement measures against commercial legal entities as provided for in Article 163 of the Criminal Execution Law.

2. Enforcement actions regarding monetary penalties prescribed in Article 77 and judicial measures prescribed in point a, Clause 1, Article 82 of the Criminal Code against commercial legal entities are not within the scope of regulation of this Decree.

Article 2. Applicability

1. Commercial legal entities that fail to comply with or comply inadequately with judgments and decisions of courts that have become legally binding.

2. Provincial criminal execution agencies, military zone criminal execution agencies (hereinafter referred to as competent criminal execution agencies), state management agencies for commercial legal entities, and other relevant agencies, organizations, and individuals involved in enforcement actions.

Article 3. Principles for applying enforcement actions against commercial legal entities

1. Enforcement actions can only be carried out based on a written enforcement decision issued by a competent criminal execution agency.

2. The decision to apply enforcement measures must be based on the penalties and judicial measures applied to commercial legal entities, the content, nature, extent, conditions for enforcing the enforcement decision, and the actual situation in the locality.

3. The duration of applying enforcement measures to ensure the execution of the judgment shall not exceed the term of serving the penalty according to the judgment and decision of the court that has become legally binding; the guarantee period for executing judicial measures is determined when such measures are fully executed.

4. A commercial legal entity may be subject to one or several enforcement measures simultaneously if applying one measure is insufficient to ensure the execution of the judgment.

5. Ensuring the rights and legitimate interests of commercial legal entities, organizations, and individuals related to enforcement actions.

Article 4. Enforcement measures against commercial legal entities

Enforcement measures applicable to commercial legal entities include:

1. Freezing bank accounts.

2. Seizing assets equivalent in value to the amount required to secure the enforcement of judicial measures (seizure of assets).

3. Temporarily detaining documents, vouchers, electronic data storage devices; temporarily detaining or confiscating the seal of the commercial legal entity.

Article 5. Recording the non-compliance or inadequate compliance of commercial legal entities with judgments and decisions of courts that have become legally binding

1. During the process of inspecting and supervising the compliance of commercial legal entities with judgments and decisions, if it is found that the commercial legal entity does not comply or complies inadequately with judgments and decisions of courts that have become legally binding, the competent criminal execution agency shall take the lead and coordinate with the state management agency for commercial legal entities to record the non-compliance or inadequate compliance of the commercial legal entity, with the presence and witnessing of the legal representative of the commercial legal entity and representatives of local authorities.

In cases where the legal representative of the commercial legal entity is absent or refuses to sign the record, this fact must be clearly noted in the record and the recording process shall continue.

2. The record must clearly indicate the date, month, year, and location of the record; the basis for the record; the names, positions of those making the record; the name, address, tax code of the commercial legal entity; the results of the compliance of the commercial legal entity; opinions of the legal representative of the commercial legal entity and relevant agencies, organizations, and individuals (if any).

3. The record mentioned in Clause 1 of this Article serves as one of the bases for the competent criminal execution agency to issue an enforcement decision.

Article 6. Serving the decision on compulsory enforcement against a commercial entity

Within three working days from the date of issuing the compulsory enforcement decision, the competent criminal enforcement agency must serve the decision to the court that issued the enforcement decision, the same-level prosecution office, the state management agency for the relevant commercial entity, the commercial entity, the legal representative of the commercial entity, the National Register of Enterprises website, and other related organizations or individuals; in cases where the compulsory measures prescribed in Clauses 2 and 3 of Article 4 of this Decree are implemented, the compulsory enforcement decision must also be served to the Chairman of the People's Committee at the commune level where the seized assets are located or where the electronic data-containing documents, equipment, or seals are temporarily detained or confiscated prior to enforcement, three working days in advance for coordination.

Article 7. Summoning and notifying the execution of the compulsory enforcement decision against a commercial entity

1. Within three working days from the date of issuing the compulsory enforcement decision, the competent criminal enforcement agency shall summon the legal representative of the commercial entity subject to enforcement to its office to notify the compulsory enforcement decision against the commercial entity. When summoned by the competent criminal enforcement agency, the legal representative of the commercial entity must appear, except in cases of force majeure or objective obstacles.

2. In cases where the legal representative of the commercial entity is properly summoned but does not appear according to the summons notice, the competent criminal enforcement agency shall record the absence, with witnesses and confirmation from local government representatives, and such recording shall be considered as notification of the execution of the compulsory enforcement decision.

Article 8. Compulsory enforcement in cases of transferring the obligation to enforce against a reorganized commercial entity

In cases where a commercial entity is currently executing a compulsory enforcement decision and undergoes division, separation, merger, consolidation, or conversion of business form as provided by law, the commercial entity that inherits the rights and obligations of the commercial entity subject to enforcement shall continue to implement the compulsory enforcement decision of the competent criminal enforcement agency.

Article 9. Responsibility for organizing the execution of the compulsory enforcement decision

1. The competent criminal enforcement agency shall organize the execution of the compulsory enforcement decision and immediately publish related decisions issued during the enforcement process on its electronic information page.

2. State management agencies for commercial entities and other agencies and organizations within their assigned functions and tasks shall cooperate with the competent criminal enforcement agency's requirements to organize the execution of the compulsory enforcement decision and immediately publish on their websites or portals the decisions issued by the competent criminal enforcement agency during the enforcement process upon receipt.

3. The agency managing the National Register of Enterprises shall be responsible for posting the decisions issued by the competent enforcement agency during the enforcement process on the National Enterprise Registration Portal upon receipt.

Chapter II

PROCEDURE AND PROCEDURAL REQUIREMENTS FOR ENFORCEMENT

Section 1

FREEZING ACCOUNTS

Article 10. Basis for Issuing the Decision to Freeze Bank Accounts

The basis for issuing the Decision to Freeze Bank Accounts includes:

1. Judgments and decisions of the Court that have become legally binding;

2. Records established in accordance with Article 5 of this Decree;

3. A commercial legal entity subject to enforcement proceedings has a bank account at credit institutions, state treasuries, securities companies, and the Vietnam Securities Depository (hereinafter referred to as the account).

4. Documents verifying information about the commercial legal entity's account.

Article 11. Circumstances for Applying the Measure of Freezing Bank Accounts

The measure of freezing bank accounts may be applied in the following circumstances:

1. Enforcement of coercive measures against the execution of suspended operation penalties for a limited period (in cases where all areas are suspended).

2. Enforcement of coercive measures against the execution of prohibitions on business operations or activities in certain fields (in cases where all fields are prohibited from business operations or activities); prohibition on raising capital.

3. Enforcement of coercive measures to execute judicial measures.

Article 12. Verification of Information About Commercial Legal Entity’s Account

1. Within three working days from the date of establishing the record in accordance with Article 5 of this Decree, the competent criminal enforcement agency issuing the Decision to Freeze Bank Accounts shall request credit institutions, state treasuries, securities companies, and the Vietnam Securities Depository to provide information about the commercial legal entity’s account in accordance with the law. The competent criminal enforcement agency receiving the information shall be responsible for keeping it confidential and using it only as prescribed by law.

2. A commercial legal entity subject to coercive measures shall be responsible for informing the competent criminal enforcement agency issuing the Decision to Freeze Bank Accounts of the name of the credit institution, state treasury, securities company, or Vietnam Securities Depository where the account was opened, the account number of the commercial legal entity at that organization, and other relevant account information upon request.

Article 13. Issuance and Delivery of the Decision to Freeze Bank Accounts

1. Within three working days from the completion of the verification of information about the commercial legal entity’s account, the head of the competent criminal enforcement agency shall issue the Decision to Freeze Bank Accounts.

For the circumstances specified in Clause 1 and 2 of Article 11 of this Decree, the decision shall freeze the entire account; for the circumstance specified in Clause 3 of Article 11 of this Decree, the decision shall freeze the amount of money or number of securities in the account corresponding to the amount required to enforce judicial measures and the costs for organizing coercive enforcement.

2. The Decision to Freeze Bank Accounts shall include the following basic contents: decision number; date of issuance; name, position, and unit of the person issuing the decision; name, address, business registration code, tax code of the commercial legal entity whose account is being frozen; frozen account number, purpose of freezing, name of the frozen account, scope of freezing, amount of money or number of securities frozen, start time of freezing, duration of freezing, responsibilities of credit institutions, state treasuries, securities companies, and the Vietnam Securities Depository, and other information (if any); signature of the person issuing the decision and stamp of the competent criminal enforcement agency.

3. The delivery and notification of the Decision to Freeze Bank Accounts shall be carried out in accordance with Articles 6 and 7 of this Decree.

Article 14. Responsibilities of credit institutions, state treasuries, securities companies, and the Vietnam Securities Depository where commercial entities have accounts

1. Within three working days from the date of receipt of the Decision to freeze the account issued by the competent criminal enforcement agency, the credit institution, state treasury, securities company, and the Vietnam Securities Depository where the commercial entity has an account shall be responsible for implementing the freezing of the account according to the Decision to freeze the account.

2. The credit institution, state treasury, securities company, and the Vietnam Securities Depository shall notify the commercial entity, which is the account holder, about the account freezing within three working days from the date of the account freezing and shall report in writing the results of the implementation to the competent criminal enforcement agency within three working days from the date of notification to the commercial entity.

Article 15. Deduction of money from the account, handling of securities in the securities account

1. The head of the criminal enforcement agency issues a decision to deduct money from the account of the commercial entity to ensure the execution of judicial measures prescribed in points b and c, Clause 1, Article 82 of the Criminal Code.

2. The amount deducted may not exceed the sum required to execute the judicial measure and the costs for organizing coercive enforcement.

3. Upon receiving the decision on the deduction of money from the account of the commercial entity to enforce the judicial measure, the credit institution, state treasury managing the account of the commercial entity, and the securities company where the commercial entity has opened a securities account must deduct the money from the account and transfer it to the competent criminal enforcement agency to organize the coercive enforcement of the judicial measure.

4. The guarantee of the execution of the judicial measure in cases where the commercial entity has securities in its securities account shall be carried out in accordance with current laws.

Article 16. Termination of account freezing

1. Within three working days from the date when the commercial entity has fully executed the judgment or decision of the court, or immediately after the agency or organization has completed the request of the competent criminal enforcement agency regarding the deduction of money and the handling of securities in the account of the commercial entity, the competent criminal enforcement agency must terminate the account freezing.

The termination of account freezing must be by a decision of the competent criminal enforcement agency.

2. After issuing the Decision to terminate the account freezing, the competent criminal enforcement agency must send the decision to the credit institution, state treasury, securities company, and the Vietnam Securities Depository managing the account of the commercial entity to implement the Decision to terminate the account freezing.

3. The credit institution, state treasury, securities company, and the Vietnam Securities Depository managing the account of the commercial entity shall terminate the account freezing upon receipt of the Decision to terminate the account freezing and shall notify in writing the termination of the account freezing to the competent criminal enforcement agency and the commercial entity executing the judgment within three working days from the date of terminating the account freezing.

4. The Decision to terminate the account freezing shall also be sent to the agencies, organizations, and individuals specified in Article 6 of this Decree.

Section 2

ASSET INVENTORY

Article 17. Basis for Issuing the Decision to Seize Assets

The Decision to Seize Assets shall be based on:

1. Judgments and decisions of the Court that have taken legal effect.

2. Records established in accordance with Article 5 of this Decree.

3. A commercial entity executing the judgment does not have an account or the amount in its account at credit institutions, state treasuries, securities companies, or the Vietnam Securities Depository is insufficient to ensure enforcement of judicial measures.

4. Documents verifying information about the assets of the commercial entity.

Article 18. Application of Asset Seizure Measures

Asset seizure measures shall be applied to ensure enforcement of judicial measures prescribed in points b and c, Clause 1, Article 82 of the Criminal Code.

Article 19. Verification of Information about Commercial Entity's Assets

1. The competent enforcement agency has the responsibility to verify information about the assets of the commercial entity subject to enforcement.

2. Agencies, units, organizations, and individuals related to the matter have the responsibility to provide information about the assets of the commercial entity subject to enforcement when requested by the competent enforcement agency.

Article 20. Assets Not Subject to Seizure

1. Assets prohibited from circulation under the law; assets serving national defense, security, public interest; assets provided by the state budget to agencies and organizations.

2. Medicines for preventing and treating diseases for workers; foodstuffs, utensils, and other items serving meals for workers.

3. Kindergartens, schools, healthcare facilities, and equipment, means of transportation, and other assets belonging to these facilities, if they are not assets for business purposes.

4. Equipment, means of transportation, tools ensuring labor safety, fire prevention, and environmental pollution prevention.

Article 21. Seizing Assets Under Pledge or Mortgage

1. In cases where the commercial entity has no other assets or has assets but they are insufficient for execution, the competent criminal enforcement agency has the right to seize and dispose of the commercial entity's pledged or mortgaged assets if their value exceeds the guaranteed obligation and the cost of enforcement.

2. At least two days before organizing the seizure of pledged or mortgaged assets, the competent criminal enforcement agency must notify the pledgee or mortgagee.

Article 22. Seizing Assets Held by Third Parties on Behalf of Commercial Entities

1. In cases where it is determined that a third party is holding assets of the commercial entity, including situations where the assets are identified through another judgment or decision, the competent criminal enforcement agency shall issue a decision to seize those assets; if the third party does not voluntarily surrender the assets, the competent criminal enforcement agency shall enforce them to hand over the assets for execution.

2. If the seized asset is rented out, the tenant may continue renting according to the concluded contract.

Article 23. Seizing Contributed Capital

The competent criminal enforcement agency requests individuals, agencies, or organizations where the commercial entity has contributed capital to provide information about the contributed capital portion to seize that portion. When necessary, the competent criminal enforcement agency requests the authority to determine the contributed capital portion of the commercial entity; solicits organizations or individuals with expertise to assess the value of the contributed capital portion to enforce execution.

Article 24. Seizure of Means of Transportation

1. In cases where means of transportation belonging to a commercial entity are seized, the competent criminal enforcement agency shall require the commercial entity or the person managing or using such means of transportation to hand over the registration papers thereof, if available.

2. The criminal enforcement agency has the right to request the competent authority to prohibit the transfer, pledge, mortgage, lease, or restrict traffic for the seized means of transportation.

3. The seizure of aircraft or ships for enforcement purposes shall be carried out in accordance with the provisions of the law on the arrest of aircraft and ships.

Article 25. Seizure, Use, and Exploitation of Intellectual Property Rights

1. The competent criminal enforcement agency shall issue a decision to seize intellectual property rights owned by a commercial entity.

If the commercial entity that owns the intellectual property rights transfers the right to use such intellectual property rights to another organization, institution, or individual, the intellectual property rights will still be subject to seizure.

2. When seizing intellectual property rights of a commercial entity, depending on the type of intellectual property rights, the competent criminal enforcement agency shall collect relevant documents related to the intellectual property rights of the commercial entity.

3. In cases where, to ensure national defense, security, public welfare, and the interests of the State and society as stipulated in the Law on Intellectual Property, the State decides that the owner of the intellectual property rights must transfer their rights to another organization, institution, or individual for use within a specified period, the competent criminal enforcement agency shall not seize the intellectual property rights of the commercial entity during the mandatory transfer period.

4. The competent criminal enforcement agency shall decide to assign an organization, institution, or individual to use and exploit the intellectual property rights. The organization, institution, or individual assigned to use and exploit the intellectual property rights must remit the proceeds after deducting necessary expenses to the criminal enforcement agency to ensure the implementation of judicial measures.

Where necessary, the competent criminal enforcement agency may request specialized organizations or professional associations on intellectual property to collect and manage income and profits from the use and exploitation of intellectual property rights of the commercial entity.

5. In cases where a commercial entity has transferred intellectual property rights to another organization, institution, or individual but has not been paid or only partially paid, the competent criminal enforcement agency shall issue a decision compelling the recipient organization, institution, or individual to pay the outstanding amount to ensure the implementation of judicial measures.

Article 26. Seizure of Assets as Land Use Rights and Assets Requiring Registration of Ownership or Security Interests

1. When seizing land use rights, the competent criminal enforcement agency shall require the commercial entity or the person managing the land use right documents to submit these documents to the competent criminal enforcement agency. The land use rights of the commercial entity to be seized must be in a situation where the transfer of land use rights is permitted under the law.

2. When seizing land use rights with assets attached to the land belonging to the commercial entity, both the land use rights and the attached assets shall be seized.

In cases where the land of a commercial entity has assets attached to it, and those assets belong to another person, the competent criminal enforcement agency shall only seize the land use rights and notify the owner of the attached assets.

3. Before seizing assets as land use rights, assets requiring registration of ownership, or security interests as prescribed by law, the competent criminal enforcement agency shall request the registration authority to provide information about the asset and registered transactions.

4. After the seizure, the criminal enforcement agency shall notify the registration authority in writing about the seizure of the asset.

The asset registration authority and security interest registration authority shall have the responsibility to temporarily suspend or stop the execution of requests related to transactions involving the assets of the commercial entity registered at the asset registration authority and security interest registration authority immediately upon receiving the request from the competent criminal enforcement agency.

Article 27. Seizure of Assets Attached to Land

When seizing assets that are construction works attached to land, both the right to use the land must be seized, except where the law does not allow the seizure of the right to use the land or where separating the seized asset from the land does not significantly reduce the value of the asset.

Article 28. Issuing and Sending the Seizure Decision

1. Within three working days from the date of completing the verification of information on the assets of commercial entities, the head of the competent criminal enforcement agency shall issue the Seizure Decision.

2. The Seizure Decision shall include the following basic contents: decision number; date of issuance; basis for issuance; name, position, and unit of the person issuing the decision; name, address, business registration code, tax identification number of the commercial entity whose assets are being seized; amount of money and assets to be seized; location of seizure; signature of the person issuing the decision and stamp of the competent criminal enforcement agency.

3. The sending and notification of the Seizure Decision shall be carried out in accordance with Articles 6 and 7 of this Decree.

Article 29. Organization of Asset Seizure

1. Asset seizure must be conducted during daylight hours, from 08:00 to 17:00, except on holidays and special cases as prescribed by the Government.

2. The competent criminal enforcement agency shall lead the execution of the seizure.

3. During the seizure, representatives of the commercial entity, organizations, or individuals whose assets are being seized, local government representatives, and witnesses must be present. If the legal representative of the commercial entity or the organization or individual whose assets are being seized is absent despite valid summons or notification, the seizure shall still proceed, and a record of absence shall be made, witnessed by local government representatives and representatives of the relevant state management agency.

4. Only assets of the commercial entity subject to compulsory execution corresponding to the amount required for judicial measures and costs of organizing compulsory execution may be seized.

5. Only assets jointly owned by others with the commercial entity subject to compulsory execution shall be seized if there are insufficient assets to execute the Seizure Decision. In case of disputes over the assets, the seizure shall still proceed, and those sharing ownership shall be informed about their right to initiate civil litigation procedures.

The competent criminal enforcement agency shall publicly announce the time and place of the seizure so that co-owners are aware. After ninety days from the date of seizure, if no lawsuit has been initiated, the seized assets shall be auctioned off according to the law on auctioning assets.

Article 30. Record of Asset Seizure

1. The seizure of assets must be recorded in a record. The record shall clearly state: time and place of asset seizure; the competent criminal enforcement agency leading the seizure; legal representatives of the commercial entity whose assets are being seized, organizations, or individuals whose assets are being seized or their authorized representatives; witnesses; local government representatives; description of the name, condition, and characteristics of each seized asset.

2. Representatives of the competent criminal enforcement agency, legal representatives of the commercial entity, organizations, or individuals whose assets are being seized or their authorized representatives, local government representatives, and witnesses shall sign the record. If someone is absent or refuses to sign the record while present, such fact shall be noted in the record along with the reason.

3. The record of seizure shall be made in two copies of equal validity, with the competent criminal enforcement agency retaining one copy and giving the other to the legal representative of the commercial entity.

Article 31. Custody of Seized Assets

1. The competent criminal enforcement agency shall choose one of the following methods to custody seized assets:

a) Entrust the commercial entity or the person currently managing or using such assets to custody;

b) Entrust an organization or individual with conditions for custody;

c) Entrust one of the co-owners to custody if the asset is jointly owned.

2. For assets such as gold, silver, precious metals, gemstones, foreign currencies, they shall be temporarily managed by the State Treasury; for other assets, they will be temporarily managed by the specialized state management agencies depending on specific circumstances.

3. When entrusting the custody of seized assets, the competent criminal enforcement agency must prepare a record. In the record, it must clearly state: the time of handover for custody; the legal representative of the commercial entity being enforced against, the person entrusted with the custody of the asset, the witness to the handover; quantity and condition (quality) of the asset; rights and obligations of the person entrusted with the custody of the asset, and must be signed to guarantee at the end of each page of the record.

The competent criminal enforcement agency, the person entrusted with the custody of the asset, the legal representative of the commercial entity being enforced against, and the witness must sign the record. If the record consists of multiple pages, each page must be signed. In case someone is absent or present but refuses to sign the record, this fact must be recorded in the record along with the reason.

The record must be given to the person entrusted with the custody of the asset, the legal representative of the commercial entity being enforced against, the witness, and the person in charge of executing the seizure, each holding one copy.

4. The person entrusted with the custody of the asset is entitled to reimbursement for actual and reasonable expenses incurred for the custody of the asset, except for those specified in point a of Clause 1 of this Article.

5. If the person entrusted with the custody of the asset causes damage, theft, loss, or destruction of the asset, they must bear responsibility for compensation and may be subject to legal sanctions according to the nature and degree of violation.

 

Article 32. Valuation of Seized Assets

1. The valuation of seized assets shall be conducted at the premises of the commercial entity being seized or at the location where the seized assets are stored, except when a Valuation Committee needs to be established or the valuation is carried out by a valuation organization.

2. The seized assets shall be valued through agreement between the competent criminal enforcement agency and the legal representative of the commercial entity being enforced against and the joint owner in the case of joint asset seizure. The deadline for agreeing on the price does not exceed five working days from the date of seizure.

If the parties cannot agree on the price, within ten working days from the date of seizure, the competent criminal enforcement agency shall issue a decision to establish a Valuation Committee or enter into a service contract with a valuation organization. The Valuation Committee includes the head of the competent criminal enforcement agency as the Chairman, representatives of the financial authority at the same level, and representatives of related specialized authorities.

Within seven working days from the date of establishment of the Valuation Committee or from the date of signing the service contract with the valuation organization, the Valuation Committee or the valuation organization must conduct the valuation. The valuation is based on the market price at the time of valuation. For assets whose prices are uniformly managed by the State, the valuation is based on the price set by the State.

3. The valuation of assets must be documented in a record, which must clearly state the time, place, method of conducting the valuation, the participants in the valuation, the name and value of the assets that have been valued, the signatures of the participants in the valuation and the legal representative of the commercial entity.

Article 33. Transfer of Seized Assets for Auction

1. For assets that have been seized for auction, the initial price shall be determined in accordance with the provisions of Article 32 of this Decree. Within twenty working days from the date of seizure, the person who issued the enforcement decision shall enter into a contract with a professional auction organization to sell the assets at auction; if it is not possible to enter into such a contract, an Auction Committee shall be established.

The sale of seized assets through auction shall be carried out in accordance with the laws on asset auctions.

2. After signing the auction contract, the competent criminal enforcement agency shall proceed to transfer the seized assets for auction. The transfer must be recorded in a protocol, which shall include: the time of transfer; the transferor and recipient; signatures of the transferor and recipient; quantity and condition of the assets. The file for transferring seized assets to the responsible agency for auction includes: the enforcement decision; relevant documents concerning ownership and lawful use rights (if any); valuation documents and the transfer protocol.

3. In cases where the seized assets are bulky goods or in large quantities and the responsible agency for auction does not have storage facilities, after completing the transfer procedures, a storage contract may be signed with the current holder of the assets. The costs of implementing the storage contract shall be paid from the proceeds of the auction after the auction.

4. For jointly owned assets, when auctioned, preference shall be given to co-owners.

5. If the proceeds from the auction of the assets exceed the amount required to ensure the execution of judicial measures and the costs of enforcement, within ten working days from the date of the auction, the competent criminal enforcement agency shall process the return of the excess amount to the commercial entity subject to enforcement and record this in a handover protocol.

Article 34. Transfer of Ownership Rights to Assets

1. The buyer of the seized asset recognized and protected by law shall enjoy ownership rights over the asset.

2. The competent state authority shall be responsible for processing the transfer of ownership rights to the buyer in accordance with the law.

3. The file for transferring ownership rights includes:

a) A copy of the Decision to enforce the measure of seizing assets for auction;

b) The auction protocol;

c) Other relevant documents concerning the asset (if any).

Section 3

TEMPORARY DETENTION OF DOCUMENTS, EVIDENCE, AND ELECTRONIC DATA STORAGE DEVICES; TEMPORARY DETENTION OR RECOVERY OF STAMPS OF COMMERCIAL ENTITIES

ELECTRONIC DATA; TEMPORARILY WITHHOLDING OR RECALLING THE SEAL

OF COMMERCIAL LEGAL ENTITIES

Article 35. Basis for Issuing the Decision to Temporarily Detain Documents, Evidence, Electronic Data Storage Devices; Temporarily Detain or Recover Stamps of Commercial Entities

The issuance of the decision to temporarily detain documents, evidence, electronic data storage devices; temporarily detain or recover stamps is based on:

1. Court judgments and decisions that have taken legal effect.

2. Records established in accordance with Article 5 of this Decree.

Article 36. Circumstances for Applying the Measure of Temporarily Detaining Documents, Evidence, Electronic Data Storage Devices; Temporarily Detaining or Recovering Stamps

1. The measure of temporarily detaining documents, evidence, electronic data storage devices, and stamps of commercial entities may be applied in cases of enforcing compulsory execution of suspended operations for a limited period; prohibition of business activities in certain fields; prohibition of capital raising according to court judgments and decisions that have taken legal effect.

Only documents, evidence, and electronic data storage devices related to the field of activity of the commercial entity subject to enforcement of the judgment shall be temporarily detained.

2. The measure of recovering stamps of commercial entities shall be applied in cases of enforcing compulsory execution of permanent suspension of all activities.

Article 37. Issuing and Sending the Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities

1. Within three working days from the date of establishing the record as prescribed in Article 5 of this Decree, the Head of the competent criminal enforcement agency shall issue the Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities.

2. The Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities shall include the following basic contents: decision number; date of issuance; basis for issuance; name, position, unit of the person issuing the decision; name, address, business registration code, tax code of the commercial legal entity; detained documents, certificates, electronic data storage devices, temporarily detained or seized seal of the commercial legal entity; detention or seizure location; signature of the person issuing the decision and stamp of the competent criminal enforcement agency.

3. The sending and notification of the Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities shall be carried out in accordance with the provisions of Articles 6 and 7 of this Decree.

Article 38. Organizing the Execution of the Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities

1. Preparing to Temporarily Detain Documents, Certificates, Electronic Data Storage Devices, Temporary Detention or Seizure of the Seal of Commercial Legal Entities

a) Before being temporarily detained or seized, documents, certificates, electronic data storage devices, and seals of commercial legal entities must be sealed.

b) The competent criminal enforcement agency shall organize the sealing of documents, certificates, electronic data storage devices, and seals of commercial legal entities, notify the legal representative of the commercial legal entity, representatives of agencies, organizations, individuals with rights, obligations, and responsibilities related to the documents, certificates, electronic data storage devices, and seals of the commercial legal entity, and invite representatives of the local government where the sealing takes place to witness.

c) The competent criminal enforcement agency organizing the sealing of documents, certificates, electronic data storage devices, and seals of commercial legal entities must direct the preparation of necessary tools and means to serve the sealing process.

2. Conducting the Sealing of Documents, Certificates, Electronic Data Storage Devices, and Seals of Commercial Legal Entities

a) Inspect and describe in detail, fully, and accurately the current state of documents, certificates, electronic data storage devices, and seals of commercial legal entities in the sealing record;

b) Package or securely close documents, certificates, electronic data storage devices, and seals of commercial legal entities that need to be sealed;

c) The competent criminal enforcement agency conducting the sealing must notify the legal representative of the commercial legal entity, representatives of agencies, organizations, individuals with rights, obligations, and responsibilities related to the documents, certificates, electronic data storage devices, and seals of the commercial legal entity, and representatives of the local government where the sealing takes place. These persons must sign, write their full name or affix their fingerprint (with a note of the name of the person who affixed the fingerprint) on the sealing paper (written or affixed with indelible ink);

d) Affix the sealing paper

For documents and certificates, the sealing paper must be affixed over parts that can be opened to retrieve documents and certificates or can be manipulated to alter the integrity of the documents and certificates.

For electronic data storage devices and seals of commercial legal entities, the sealing paper must be affixed over important parts that determine origin and authenticity.

Depending on specific circumstances, appropriate measures must be taken to protect the sealing paper during transportation and storage.

e) Completing the Sealing of Documents, Certificates, Electronic Data Storage Devices, and Seals of Commercial Legal Entities

The competent criminal enforcement agency shall establish a sealing record. The record must accurately describe the quantity, characteristics, and condition of the documents, certificates, electronic data storage devices, and seals of commercial legal entities before and after sealing, and must contain signatures, full names, or fingerprints (with a note of the name of the person who affixed the fingerprint) of those organizing and participating in the sealing, temporary detention, or seizure. The record shall be established in two copies of equal value, one copy to be included in the enforcement file and one copy to be handed over to the legal representative of the commercial legal entity.

In case the legal representative of the commercial legal entity refuses to sign the sealing record or sealing paper, the competent criminal enforcement agency must record this in the record.

In case the legal representative of the commercial legal entity, representatives of agencies, organizations, individuals with rights, obligations, and responsibilities related to the documents, certificates, electronic data storage devices, and seals of the commercial legal entity to be sealed, temporarily detained, or seized have been notified but are not present, the competent criminal enforcement agency shall still organize the sealing, temporary detention of documents, certificates, electronic data storage devices, and temporary detention or seizure of the seal, but must clearly record this in the record.

3. Documents, certificates, electronic data storage devices, and seals of commercial legal entities that are sealed, temporarily detained, or seized shall be kept at the competent criminal enforcement agency and must ensure their integrity throughout the period of temporary detention.

If documents, certificates, and electronic data storage devices of commercial legal entities are sealed, the competent criminal enforcement agency and those involved in the sealing process bear the responsibility for confidentiality.

Article 39. Termination of Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, and Seals of Commercial Legal Entities

1. Within three working days from the date on which the commercial legal entity has fully executed the judgment or decision of the court, the competent enforcement agency that issued the Decision on Temporary Detention of Documents, Certificates, Electronic Data Storage Devices, and Seals of the commercial legal entity must terminate the temporary detention of such items. The termination of temporary detention must be carried out through a Decision of the competent enforcement agency.

2. The Decision to terminate the temporary detention of documents, certificates, electronic data storage devices, and seals must be sent to the legal representative of the commercial legal entity and the commercial legal entity whose documents, certificates, electronic data storage devices, and seals were temporarily detained. The procedure for opening seals shall be implemented in accordance with Article 40 of this Decree.

3. After issuing the Decision to terminate the temporary detention of documents, certificates, electronic data storage devices, and seals, the competent enforcement agency must hand over the detained documents, certificates, electronic data storage devices, and seals of the commercial legal entity.

4. The Decision to terminate the temporary detention of documents, certificates, electronic data storage devices, and seals must also be sent to the agencies, organizations, and individuals specified in Article 6 of this Decree.

Article 40. Procedure and Formalities for Opening Seals to Hand Over Documents, Certificates, Electronic Data Storage Devices, and Seals of Temporarily Detained Commercial Legal Entities

1. Preparation for Opening Seals

The competent enforcement agency responsible for organizing the opening of seals must notify the legal representative of the commercial legal entity and representatives of agencies, organizations, and individuals with rights, obligations, and responsibilities related to the documents, certificates, electronic data storage devices, and seals of the commercial legal entity, as well as representatives of the local authorities where the seals will be opened.

2. Execution of Opening Seals

a) Inspect the seals of the documents, certificates, electronic data storage devices, and seals of the commercial legal entity before opening them;

b) Remove the sealing paper and open the packaged or sealed documents, certificates, electronic data storage devices, and seals of the commercial legal entity.

Remove the sealing paper from the documents, certificates, electronic data storage devices, and seals of the commercial legal entity that are not packaged or sealed.

c) Inspect the documents, certificates, electronic data storage devices, and seals of the commercial legal entity after opening the seals.

3. Completion of Opening Seals

Upon completion of opening the seals, a record must be made; the record of opening seals must accurately describe the condition of the seals before opening, the actual state of the documents, certificates, electronic data storage devices, and seals of the commercial legal entity after opening the seals, and include full signatures, names, or fingerprints (with annotations of the names of those who have fingerprinted) of the persons directly in charge and those participating in the opening of the seals. The record shall be prepared by the competent enforcement agency conducting the opening of seals in two identical copies, one copy handed over to the legal representative of the commercial legal entity, and one copy included in the enforcement file.

In cases where the seals are found to be not intact upon inspection, a record must be made regarding the condition of the seals of the documents, certificates, electronic data storage devices of the commercial legal entity, and the actual state of the documents, certificates, electronic data storage devices, and seals of the commercial legal entity to verify and handle according to the provisions of the law.

4. After completing the opening of seals, the competent enforcement agency must hand over the documents, certificates, electronic data storage devices, and seals of the commercial legal entity. The handover must be recorded with full signatures, names, or fingerprints (with annotations of the names of those who have fingerprinted) of the persons directly in charge and those participating in the opening of the seals in accordance with the law and this Decree.

Chapter III

ENSURING THE IMPLEMENTATION OF DECISIONS

ENFORCEMENT AND ENFORCEMENT COSTS

Article 41. Measures to ensure the enforcement of compulsory execution decisions

1. When there is a Decision to apply compulsory measures, if there are signs indicating that the commercial entity subject to compulsory measures has acts of disposing of or damaging assets, the person who issued the compulsory execution decision has the right to request relevant agencies, organizations, and local authorities where the commercial entity subject to compulsory measures operates or holds assets to implement sealing measures to prevent disposal or damage to assets.

2. In cases where the commercial entity subject to compulsory measures resists and does not comply with the compulsory execution decision, the competent criminal enforcement agency has the right to mobilize forces and means to ensure the enforcement of compulsory measures.

3. To ensure judicial enforcement measures for compulsory execution, after deducting money from accounts, handling securities, and auctioning seized assets, the competent criminal enforcement agency will hire specialized agencies, organizations, or individuals to carry out judicial enforcement measures according to court judgments and decisions that have taken legal effect. The hiring process shall be carried out in accordance with relevant laws.

Article 42. Transfer of compulsory execution decision enforcement to ensure enforcement

1. In cases where the commercial entity subject to compulsory measures is located in this province but operates its headquarters in another province and cannot execute the compulsory execution decision at the place of violation, the compulsory execution decision shall be transferred to the competent authority for compulsory execution at the same level where the commercial entity subject to compulsory measures operates its headquarters or holds assets to organize enforcement.

2. The transferring agency is responsible for transferring all case files to the competent agency at the same level in the locality where the commercial entity subject to compulsory measures operates its headquarters or holds assets to organize enforcement.

Within ten working days from the date of receipt of the transfer notice and case files, the competent agency at the same level in the locality where the commercial entity subject to compulsory measures operates its headquarters or holds assets is responsible for organizing the enforcement of the compulsory execution decision and reporting the results to the transferring agency.

Article 43. Determination of Compulsory Execution Costs

1. Compulsory execution costs are determined based on actual expenses incurred during the enforcement of the compulsory execution decision, consistent with prices in each locality.

2. Compulsory execution costs include:

a) Costs for mobilizing personnel to implement the compulsory execution decision;

b) Fees for valuation experts to organize auctions, costs for organizing the sale of auctioned assets;

c) Costs for renting equipment to dismantle, transport items, and assets;

d) Costs for storing or preserving seized assets;

e) Costs for transferring the enforcement of the compulsory execution decision;

f) Costs for implementing judicial measures;

g) Other actual costs (if any).

 

Article 44. Advance Payment, Refund, and Payment of Compulsory Execution Costs

1. Compulsory execution costs are advanced from the state budget and refunded immediately upon collection of funds from the commercial entity subject to compulsory measures.

2. The commercial entity subject to compulsory measures must bear all costs for compulsory execution activities.

3. The Ministry of Finance is responsible for guiding the management, allocation, advance payment, and refund of compulsory execution costs in accordance with the State Budget Law.

Chapter IV

IMPLEMENTING PROVISIONS

Article 45. Effective Date

This Decree takes effect from June 1, 2020.

Article 46. Responsibility for Implementation

1. The Minister of Public Security is responsible for guiding the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.