Decree No. 53/2007/ND-CP on administrative sanctions for violations in the planning and investment sector

DECREE

Regulations on Administrative Sanctions for Violations

in the Planning and Investment Sector

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

BASED ON THE Law on Cooperatives dated December 10, 2003;

Pursuant to the Enterprise Law dated November 29, 2005;

Based on the Investment Law dated November 29, 2005;

Pursuant to the Law Amending and Supplementing Certain Provisions of Laws Related to Investment in Construction Projects dated June 19, 2009;

BASED ON THE Ordinance on Handling Administrative Violations dated July 2, 2002;

CONSIDERING the proposal of the Minister of Planning and Investment.

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

1. THIS DECREE stipulates administrative violations, forms of administrative sanctions, levels of fines, authority to impose administrative sanctions, and procedures for handling administrative violations in the field of planning and investment.

2. Administrative violations in the field of planning and investment are acts that violate state regulations on planning and investment carried out intentionally or negligently by organizations or individuals which are not criminal offenses and must be subject to administrative sanctions according to the Ordinance on Handling Administrative Violations and this Decree.

3. Administrative violations in the field of planning and investment specified in this Decree include:

a) Violations of regulations on plans and socio-economic development master plans;

b) Violations of regulations on state capital investment;

c) Violations of investment regulations by investors; business registration regulations for enterprises, cooperatives, cooperative unions, and individual households;

d) Violations of inspection and supervision regulations on planning and investment.

4. Administrative violations in other specialized fields shall be sanctioned according to the relevant specialized laws.

Article 2. Applicability

1. Vietnamese organizations and individuals committing administrative violations in the field of planning and investment shall be subject to administrative sanctions as prescribed in this Decree.

Individuals who are civil servants, public officials, or employees committing acts prescribed in Chapter II of this Decree while performing their assigned duties shall not be subject to administrative sanctions but shall be subject to disciplinary measures under the law on civil servants and public officials.

Workers employed under labor contracts in state agencies and organizations committing acts prescribed in Chapter II of this Decree while performing their assigned duties shall have their responsibilities determined according to the provisions of their labor contracts.

2. Foreign organizations and individuals committing administrative violations in the field of planning and investment shall be subject to sanctions as prescribed in this Decree. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions on the same issue, the provisions of the international treaty shall apply.

Article 3. PRINCIPLES OF ADMINISTRATIVE SANCTIONS IN THE FIELD OF PLANNING AND INVESTMENT

1. Administrative violations must be detected promptly and stopped immediately. Administrative sanctions shall be implemented swiftly, fairly, and thoroughly according to the Ordinance on Handling Administrative Violations and this Decree. The consequences caused by the violation must be remedied according to the law.

2. Organizations and individuals shall only be subject to administrative sanctions when they commit administrative violations as prescribed in this Decree.

3. In cases of administrative sanctions, the organization being sanctioned must clearly identify the legal responsibility and financial obligations of the individual responsible for the administrative violation immediately after complying with the sanction decision as prescribed by law.

4. Administrative sanctions shall be imposed by authorized persons and conducted strictly in accordance with the law.

5. An administrative violation shall only be sanctioned once. Organizations and individuals committing multiple administrative violations shall be sanctioned for each violation separately. Multiple organizations and individuals jointly committing an administrative violation shall be sanctioned individually.

If the form of sanction is a fine, it shall be combined into a total fine and issued in one sanction decision, specifying the form and level of sanction for each violation.

6. Administrative sanctions shall be based on the nature and degree of the violation, the violator's background, mitigating circumstances, and aggravating circumstances to determine appropriate forms and measures of sanction. Mitigating and aggravating circumstances shall be applied according to Article 8 and Article 9 of the Ordinance on Handling Administrative Violations.

7. Administrative sanctions shall not be imposed in cases of emergency situations, justifiable self-defense, unexpected events, or administrative violations committed while suffering from mental illness or other diseases that impair cognitive or behavioral control.

Article 4. TIME LIMIT FOR ADMINISTRATIVE SANCTIONS IN THE FIELD OF PLANNING AND INVESTMENT

1. The time limit for administrative sanctions is one year, counted from the date the administrative violation was committed. For administrative violations in the field of planning and investment related to construction, the time limit for administrative sanctions is two years, counted from the date the administrative violation was committed.

If the time limit has passed, administrative sanctions will not be imposed, but measures to remedy the consequences as provided for in Clause 3, Article 5 of this Decree shall still be applied.

2. For individuals who have been indicted, prosecuted, or had a case brought to trial under criminal procedure but were later decided to have the investigation discontinued or the case dismissed, if the act has signs of administrative violations, they shall be subject to administrative sanctions; the time limit for administrative sanctions is three months, counted from the date the authority imposing sanctions receives the decision to discontinue the investigation or dismiss the case and the file of the violation.

3. Within the time limits prescribed in Clauses 1 and 2 of this Article, if organizations or individuals again commit new administrative violations in the same field previously violated or deliberately evade or obstruct the imposition of sanctions, the time limits prescribed in Clauses 1 and 2 of this Article shall not be applied; the time limit for administrative sanctions shall be recalculated from the date of the new administrative violation or the date of termination of evasion or obstruction of the imposition of sanctions.

Article 5. FORMS OF ADMINISTRATIVE SANCTIONS AND MEASURES TO REMEDY CONSEQUENCES IN THE FIELD OF PLANNING AND INVESTMENT

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

a) Warning;

b) Fine.

The maximum fine is up to seventy million dong.

2. Depending on the nature and degree of the violation, the violating organization or individual may also be subject to supplementary sanctions in the form of revocation of professional practice certificates.

3. Depending on the nature and extent of the violation, the violating organization or individual may also be required to apply one or more remedial measures provided for in the Articles of Chapter II of this Decree.

Chapter II

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES FOR VIOLATIONS IN THE FIELD OF PLANNING AND INVESTMENT

VIOLATIONS OF ADMINISTRATIVE LAW IN THE FIELD OF PLANNING AND INVESTMENT

Section 1

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES FOR VIOLATIONS IN THE FIELD OF PLANNING AND INVESTMENT

VIOLATIONS OF ADMINISTRATIVE LAW REGARDING PLANNING AND ZONING

ECONOMIC AND SOCIAL DEVELOPMENT

Article 6. Violations concerning planning work

1. A fine of from three million dong to five million dong shall be imposed on organizations and individuals who submit or approve investment plans using state capital in contravention of regulations.

2. A fine of from ten million dong to twenty million dong shall be imposed on organizations and individuals who use allocated state capital in contravention of regulations.

3. A fine of from thirty million dong to fifty million dong shall be imposed on organizations and individuals who provide advance funding of state capital in contravention of regulations.

4. In addition to the forms of administrative penalties prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating organization or individual may also be subject to one or more of the following measures:

a) Compel the use of allocated state capital in accordance with regulations for violations under Clause 2 of this Article;

b) Recover the portion of advance funding provided in contravention of regulations for violations under Clause 3 of this Article.

Article 7. Violations concerning economic and social development planning

1. Warning or a fine of from one hundred thousand dong to two hundred thousand dong shall be imposed on organizations and individuals who establish economic and social development plans in contravention of procedures and formalities prescribed.

2. A fine of from five million dong to ten million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Establishing an economic and social development plan without sufficient grounds and contents as prescribed;

b) Preparing a budget for costs of establishing an economic and social development plan not based on the results of review;

c) Settling and finalizing costs of establishing an economic and social development plan not in accordance with regulations.

3. A fine of from ten million dong to twenty million dong shall be imposed on organizations and individuals who fail to comply with approved economic and social development plans.

4. In addition to the forms of administrative penalties prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating organization or individual shall also be compelled to comply with the provisions of the law.

Section 2

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES FOR VIOLATIONS IN THE FIELD OF PLANNING AND INVESTMENT

VIOLATIONS OF ADMINISTRATIVE LAW REGARDING STATE CAPITAL INVESTMENT

Article 8. Violations concerning the provisions on Preliminary Feasibility Study Reports (investment construction project reports), Feasibility Study Reports (investment construction project proposals), Investment Reports (economic technical construction project reports)

1. A fine of from five million dong to seven million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Settling and finalizing products of surveys, Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports not in accordance with regulations;

b) Accepting Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports not fully in accordance with prescribed contents.

2. A fine of from seven million dong to ten million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Preparing, reviewing, and approving outlines (tasks) for surveys to prepare Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports not in compliance with technical standards and not ensuring prescribed contents;

b) Implementing the preparation, review of Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports before obtaining permission from competent authorities.

3. A fine of from ten million dong to twenty million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Reviewing Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports beyond the prescribed time limit;

b) Conducting surveys, preparing, and reviewing Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports not in accordance with prescribed procedures and formalities;

c) Implementing the preparation, review of Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports not in accordance with approved planning or when there is no planning without approval from competent authorities.

4. In addition to the forms of administrative penalties prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating organization or individual may also be subject to one or more of the following measures:

a) Compel compliance with regulations on acceptance, settlement, and finalization for violations under Clause 1 of this Article;

b) Compel the preparation, review, and approval of outlines (tasks) for surveys to prepare Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports in compliance with technical standards and ensuring prescribed contents for violations under point a of Clause 2 of this Article;

c) Compel the conduct of surveys, preparation, and review of Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports in accordance with prescribed procedures and formalities for violations under point b of Clause 3 of this Article;

d) Compel the preparation and review of Preliminary Feasibility Study Reports, Feasibility Study Reports, Investment Reports in accordance with approved planning for violations under point c of Clause 3 of this Article.

Article 9. Violations concerning surveying, design, estimation, and total estimation

1. A fine of from three million dong to five million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Implementing surveys without an approved outline (task) for surveys;

b) Approving outlines (tasks) for surveys, designs not fully in accordance with prescribed contents and not in compliance with technical standards;

c) Implementing survey steps, design preparation, estimation, and total estimation not in accordance with regulations;

d) Preparing technical designs, construction drawings not in compliance with approved basic designs;

đ) Preparing technical designs, construction drawings, estimates, and total estimates not in compliance with survey results and technical standards.

2. A fine of from five million dong to seven million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Preparing outlines (tasks) for surveys not fully in accordance with prescribed contents and not in compliance with technical standards;

b) Not submitting for review and approval of total estimates within the prescribed time limit;

c) Not implementing author supervision in accordance with regulations.

3. A fine of from VND 7,000,000 to VND 10,000,000 shall be imposed on organizations and individuals who conduct technical design appraisal, approval of construction drawings, estimates, and total estimates that are not consistent with the basic design and approved total investment amount.

4. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Changing, adjusting, or supplementing designs, estimates, and total estimates without authority or in violation of project management regulations;

b) Applying state regulations on unit prices, economic and technical norms, and costs in preparing estimates incorrectly.

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, organizations and individuals violating the provisions shall also be subject to one or more of the following measures:

a) Compelling the implementation of steps for preparing and appraising technical designs, estimates, and total estimates in accordance with regulations for violations stipulated in point c of Clause 1 of this Article;

b) Compelling the preparation of survey, design, estimate, and total estimate outlines (tasks) in accordance with regulations for violations stipulated in points b, d, đ of Clause 1 and point a of Clause 2 of this Article;

c) Compelling the recovery of author supervision costs for violations stipulated in point c of Clause 2 of this Article;

d) Compelling the adjustment of technical designs, estimates, and total estimates to be consistent with the approved basic design and total investment amount for violations stipulated in Clause 3 of this Article;

đ) Compelling the correct application of unit prices, economic and technical norms, and costs in preparing estimates according to regulations for violations stipulated in point b of Clause 4 of this Article.

Article 10. Violations of regulations on monitoring and evaluating investment reports

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who submit monitoring and evaluation reports late.

2. A fine of from VND 1,000,000 to VND 3,000,000 shall be imposed on organizations and individuals who prepare monitoring and evaluation reports that are incomplete in content as required by regulations.

3. A fine of from VND 3,000,000 to VND 5,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Not implementing monitoring and evaluation reports;

b) Implementing monitoring and evaluation reports inaccurately or untruthfully.

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, organizations and individuals violating the provisions shall be compelled to implement monitoring and evaluation reports in accordance with regulations.

Article 11. Violations of regulations on tender plans

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who prepare, submit, or review tender plans that are incomplete in content as required by laws on bidding.

2. A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed on organizations and individuals who use contract forms inconsistent with the provisions of laws on bidding.

3. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Preparing, submitting, or reviewing the division of projects into tenders contrary to the provisions of laws on bidding to facilitate direct award or create opportunities for a limited number of contractors to participate;

b) Preparing, submitting, or reviewing the use of non-public tender selection methods when conditions are not met as required by laws on bidding;

c) Approving tender plans to allow contractor selection when the funds for implementing the tender have not been determined.

4. In addition to the forms of administrative penalties prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating organization or individual may also be subject to one or more of the following measures:

a) Compelling the preparation, submission, review, and approval of tender plans in accordance with regulations for violations stipulated in Clause 1 and point c of Clause 3 of this Article;

b) Compelling the use of tender selection methods and contract forms in accordance with regulations for violations stipulated in Clause 2 and point b of Clause 3 of this Article;

c) Prohibiting participation in bidding activities for six months to one year for violations stipulated in Clause 3 of this Article;

d) Being published in the bidding newspaper and on the bidding information website.

Article 12. Violations of regulations on tender invitation documents

1. A fine of from five million dong to seven million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Preparing or hiring consultants to prepare tender invitation documents for construction works before having a technical design accompanied by an approved estimate or total estimate;

b) Not preparing a tender invitation document review report.

2. A fine of from seven million dong to ten million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Not stating important requirements (preliminary conditions) for rejecting tender proposals in the tender invitation document;

b) Not stating evaluation criteria in the tender invitation document;

c) Including provisions in the tender invitation document that exceed the scope and nature of the tender, aiming to limit or exclude the number of contractors participating in the bidding process.

3. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who specify brand or origin requirements in tender invitation documents for procurement of goods, construction works, or general contracting construction tenders.

4. In addition to the forms of administrative penalties prescribed in Clause 1, Clause 2, and Clause 3 of this Article, the violating organization or individual may also be subject to one or more of the following measures:

a) Compelling compliance with laws on bidding;

b) Prohibiting participation in bidding activities for six months to one year for violations stipulated in Clause 3 of this Article;

c) Being published in the bidding newspaper and on the bidding information website.

Article 13. Violations of regulations on organizing bidding, selecting contractors, and managing contractors

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Announcing tender invitations insufficiently or at incorrect times as required by laws on bidding;

b) Not signing confirmation on each page of the original tender proposal as required;

c) Tender opening minutes lacking required contents as required.

2. A fine of from five million dong to seven million dong shall be imposed on organizations and individuals who commit any of the following acts:

a) Issuing tender invitation documents before they are approved;

b) Not opening tenders immediately after the closing time as required;

c) Not issuing a decision to establish a bidding expert team as required by laws on bidding.

3. A fine of from VND 7,000,000 to VND 10,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Not publicly announcing tender invitations as required by laws on bidding;

b) Not having tender opening minutes;

c) Inviting fewer than the required number of contractors or inviting contractors without the required capacity or experience for restricted bidding;

d) Establishing a bidding expert team that does not meet the requirements of laws on bidding.

d) Conducting a bidding process when the funding source for the tender package has not been determined, except where the funding source for the tender package is stated in the tender invitation documents as being arranged by the bidder;

e) Initiating the selection of contractors (starting from the announcement of prequalification notices or tender invitations) without having a bidding plan approved in writing by the investment decision-maker;

g) Designating a contractor without complying with the provisions of the Law on Bidding;

4. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Implementing the bidding plan incorrectly for the selected contractor's form or contract form that has been approved;

b) Approving the results of the contractor selection without a credit commitment when the funding source for the tender package, as allowed in the bidding plan, is to be arranged by the bidder;

c) Accepting additional tender documents or price reduction letters from bidders after the tender closing time;

5. A fine of between 15,000,000 VND and 18,000,000 VND shall be imposed on organizations and individuals who commit any of the following acts:

a) Participating in a bidding process as a bidder for a tender package for which they are the tender inviter;

b) Deciding to award a contract to a bidder whose bid submission signatory participated in the bidding process for a project of the organization or entity where such person was recently relieved of duties within the last year;

c) An individual directly involved in organizing the bidding process, evaluating tender documents belonging to the project owner, tender inviter, member of the bidding expert team, bidding consultant, or individual directly involved in reviewing the results of the contractor selection belonging to the reviewing agency or organization, and the person signing the decision on the results of the contractor selection does not withdraw from their assigned work when the bid submission signatory is a relative (biological parents, parents-in-law, spouse, biological children, adopted children, daughters-in-law, sons-in-law, full siblings);

d) Accepting and recommending the award of a contract to a bidder participating in the bidding process to supply goods or construction works for a tender package in a project where the bidder previously provided consultancy services, except in cases involving: EPC packages, design and construction general contracting packages, turnkey general contracting packages;

6. A fine of between 18,000,000 VND and 20,000,000 VND shall be imposed on organizations and individuals who commit any of the following acts:

a) Using their power or influence to compel the project owner, tender inviter, bidding expert team, bidding consultant, reviewing agency or organization to propose an unsuitable winning bidder that does not meet the requirements of the tender invitation documents and evaluation criteria specified therein;

b) Agreeing to allow a bidder to transfer work without the investment decision-maker's approval, except for parts of the work assigned to subcontractors declared in the contract;

7. A fine of between 20,000,000 VND and 30,000,000 VND shall be imposed on organizations and individuals who commit any of the following acts:

a) Colluding or conspiring between the tender inviter and the bidder, or between state management agencies and the tender inviter and the bidder to alter tender documents, colluding with the reviewing agency or inspection body to affect collective interests or national interests;

b) Arranging or conspiring between two or more bidders so that one bidder wins the contract in the same tender package, or between the bidder implementing the tender package and the supervising consultancy firm, or between the bidder implementing the tender package and the agency or organization responsible for inspecting the completion results;

8. A fine of between 30,000,000 VND and 50,000,000 VND shall be imposed on bidders implementing construction or supply contracts who collude with supervising consultancy firms or inspecting agencies to certify incorrect information about the quality or quantity of the works or goods;

9. In addition to the penalties prescribed in Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 of this Article, violators may also be subject to one or more of the following measures:

a) Compelling compliance with laws on bidding;

b) Prohibiting participation in bidding activities:

For six months to one year for violations stipulated in Clause 5 of this Article;

For one to three years for violations stipulated in Clause 6 of this Article;

For three to five years for violations stipulated in Clause 7 of this Article;

c) Being published in the bidding newspaper and on the bidding information website.

Article 14. Violations of the regulations on evaluating tender documents

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Not having a working record or report on the bidding results;

b) Not conducting the evaluation of tender documents according to the procedures prescribed by the Law on Bidding;

c) Not clarifying tender documents according to the procedures prescribed by the Law on Bidding;

2. A fine of between 5,000,000 VND and 10,000,000 VND shall be imposed on organizations and individuals who evaluate tender documents inaccurately based on the evaluation criteria and other requirements in the approved tender invitation documents and request documents but do not distort the selection results;

3. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Evaluating tender documents, request documents, reviewing, and approving the selection results of contractors without basing them on the requirements of the tender invitation documents, request documents, and accompanying evaluation criteria, thereby distorting the selection results or leading to the cancellation of the bidding process;

b) Participating in both the evaluation of tender documents and the review of the selection results for the same tender package;

4. A fine of between 15,000,000 VND and 20,000,000 VND shall be imposed on organizations and individuals who intentionally report false or untruthful information that distorts the selection results, contract signing, or implementation;

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, organizations and individuals violating the provisions shall also be subject to one or more of the following measures:

a) Compelling compliance with laws on bidding;

b) Prohibiting participation in bidding activities:

For six months to one year for violations stipulated at point b, Clause 3 of this Article;

For one to three years for violations stipulated in Clause 4 of this Article;

c) Being published in the bidding newspaper and on the bidding information website.

Article 15. Violations of the regulations on contract signing and management

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who commit one of the following acts:

a) Collecting performance guarantee not in accordance with the prescribed time;

b) Accepting a performance guarantee that does not meet the conditions stipulated;

2. A fine of between 3,000,000 VND and 5,000,000 VND shall be imposed on organizations and individuals who commit any of the following acts:

a) Not collecting performance guarantee;

b) Signing a contract that does not include all required contents as stipulated;

3. A fine of between 5,000,000 VND and 7,000,000 VND shall be imposed on organizations and individuals who commit any of the following acts:

a) Applying contract forms incorrectly based on the selection results;

b) Signing a contract that does not comply with the tender invitation documents, request documents, tender documents, proposal documents, and selection results;

c) Modifying a contract not in accordance with the provisions of the Law on Bidding;

d) Not penalizing the party violating the contract according to the terms agreed upon in the contract.

4. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on organizations and individuals who cause difficulties in procedures for issuance, settlement, and finalization according to contracts signed between the project owner and the contractor.

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, organizations and individuals violating the provisions shall also be subject to one or more of the following measures:

a) Order to provide performance guarantee in accordance with the relevant regulations for violations stipulated in point a, Clause 1 and point a, Clause 2 of this Article;

b) Order to conclude and manage contracts in accordance with the relevant regulations;

c) Prohibit participation in bidding activities for a period of from six months to one year for violations stipulated in Clause 4 of this Article;

d) Being published in the bidding newspaper and on the bidding information website.

Article 16. Violations of time-related provisions in bidding

1. Warning or a fine of from VND 100,000 to VND 200,000 shall be imposed on organizations and individuals who fail to comply with the time-related provisions in bidding: prequalification period for contractors; announcement period for tender invitations; tender document issuance period; preparation period for bid submission; bid evaluation period; review period for the contents of the bidding plan, tender documents, and selection results of contractors.

2. In addition to the penalties prescribed in Clause 1 of this Article, organizations and individuals violating the provisions shall be ordered to comply with the relevant laws on bidding.

Article 17. Violations of bidding-related provisions by contractors

1. A fine of from VND 3,000,000 to VND 5,000,000 shall be imposed on contractors who declare their capacity in bid documents inaccurately to participate in bidding.

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

a) Participating in bidding to supply goods or construction works for a package tender where they have provided consultancy services, except in cases involving: EPC packages, packages for selecting general contractors for design and construction, or turnkey packages;

b) Submitting bid forms for tenders belonging to projects managed by agencies or organizations where they previously worked within one year from the date they received decisions terminating their employment at those agencies or organizations.

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

a) Using tender complaints to obstruct the bidding process and contract signing or obstruct other contractors from participating in bidding;

b) Intentionally providing false information in bid documents that mislead the selection of contractors, contract signing, and implementation;

c) Using their name, signature, or seal to legitimize their bid documents for a bidding formality to serve another contractor's winning bid;

d) Allowing another contractor to use their name, signature, or seal; using another contractor’s name, signature, or seal to form a consortium to participate in bidding, and failing to implement the consortium agreement after winning the bid, unless otherwise specified in the contract;

đ) Transferring more than 10% of the value of work they must perform themselves (after deducting subcontractor responsibilities) as stated in the signed contract to another contractor, except in cases with legitimate reasons approved by the investment decision-maker.

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, contractors violating these provisions shall also be subject to one or more of the following measures:

a) Order to comply with commitments made in bid documents and relevant laws on bidding;

b) Recovery of all improperly transferred bid proceeds for violations stipulated in point đ, Clause 3 of this Article;

c) Prohibit participation in bidding activities:

From six months to one year for violations stipulated in Clause 2 of this Article;

From one to three years for violations stipulated in Clause 3 of this Article.

d) Being published in the bidding newspaper and on the bidding information website.

Article 18. Violations of provisions on information disclosure in bidding

1. A fine of from VND 3,000,000 to VND 5,000,000 shall be imposed on project owners who fail to publish bidding information as required by relevant laws on bidding.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on organizations and individuals who commit any of the following acts:

a) Disclosing tender documents and information about the content of tender documents before their issuance as required;

b) Disclosing tender documents and information related to bidding that are marked as confidential under relevant laws on confidentiality;

c) Disclosing reports from the tenderer, expert group reports, consultant contractor reports, and related professional agency reports during the bidding, evaluation, and review processes before announcing the selection results of contractors;

d) Disclosing tender documents and information about bid books, meeting minutes, expert group comments, or consultant contractor evaluations on each bid document before announcing the selection results of contractors;

đ) Disclosing requests for clarification of tender documents from the tenderer and responses from contractors during the bid evaluation process before announcing the selection results of contractors;

e) Disclosing information about the selection results of contractors before they are permitted to be announced as required.

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, organizations and individuals violating these provisions shall also be subject to one or more of the following measures:

a) Compelling compliance with laws on bidding;

b) Prohibit participation in bidding activities from six months to one year for violations stipulated in Clause 2 of this Article;

c) Being published in the bidding newspaper and on the bidding information website.

Article 19. Violations of provisions on project management for construction works

Project owners who violate provisions on project management for construction works shall be subject to administrative penalties as prescribed in Article 9 of Decree No. 126/2004/NĐ-CP dated May 26, 2004, of the Government on administrative penalties in construction activities, infrastructure urban management, and house management.

Article 20. Violations of provisions on construction quality management

1. Project owners who violate provisions on construction quality management shall be subject to administrative penalties as prescribed in Article 11 of Decree No. 126/2004/NĐ-CP dated May 26, 2004, of the Government on administrative penalties in construction activities, infrastructure urban management, and house management.

2. For contractors and suppliers who violate regulations on construction project quality management, they shall be subject to administrative penalties as prescribed in Article 17 of Decree No. 126/2004/ND-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management in urban areas, and housing management.

Article 21. Violations of regulations on acceptance, payment of completed work volume, and final settlement of investment capital

1. For investors who violate regulations on acceptance, payment of completed work volume, and final settlement of investment capital, they shall be subject to administrative penalties as prescribed in Article 12 of Decree No. 126/2004/ND-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management in urban areas, and housing management.

2. For contractors and suppliers who violate regulations on acceptance and payment of completed work volume, they shall be subject to administrative penalties as prescribed in Article 18 of Decree No. 126/2004/ND-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management in urban areas, and housing management.

Section 3

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES FOR VIOLATIONS

IN INVESTMENT BY INVESTORS; REGISTRATION OF BUSINESS

OF JOINT STOCK COMPANIES, COOPERATIVES, ASSOCIATIONS OF COOPERATIVES,

INDIVIDUAL HOUSEHOLD ENTERPRISES

Article 22. Violations of investment regulations in Vietnam

1. Warning or a fine from 100,000 VND to 200,000 VND for investors committing one of the following acts:

a) Not implementing reports on investment activities as prescribed;

b) Submitting reports on investment activities not in accordance with regulations.

2. A fine from 1,000,000 VND to 3,000,000 VND for investors committing one of the following acts:

a) Registering investment inaccurately or dishonestly;

b) Implementing projects later than the prescribed time.

3. A fine from 5,000,000 VND to 7,000,000 VND for investors committing one of the following acts:

a) Not registering adjustments to investment for projects that require registration of adjustment;

b) Not implementing the contents of the Investment Certificate correctly;

c) After suspending the project, resuming implementation without notifying the competent state agency in writing.

4. A fine from 10,000,000 VND to 15,000,000 VND for investors committing one of the following acts:

a) Purchasing shares, mergers, acquisitions of enterprises in foreign direct investment not in accordance with regulations;

b) Changing the form of foreign-invested project not in accordance with regulations;

c) Transferring foreign investor's capital not in accordance with regulations;

d) Transferring projects not in accordance with regulations;

đ) Not registering investment for projects that require registration;

e) Suspending or delaying project implementation without notifying the competent state agency in writing;

g) Continuing project implementation after the Investment Certificate has been revoked or expired;

h) Terminating the project without notification or completion of liquidation procedures as prescribed by law.

5. In addition to the penalties prescribed in Clause 1, Clause 2, Clause 3, and Clause 4 of this Article, violators will also be subject to one or more of the following measures:

a) Compelling the submission of investment reports as prescribed for violations under Clause 1 of this Article;

b) Compelling the registration of investment adjustments for violations under point a of Clause 3 of this Article;

c) Compelling compliance with the contents of the Investment Certificate for violations under point b of Clause 3 of this Article;

d) Compelling cessation of operations for violations under points đ and g of Clause 4 of this Article;

đ) Compelling the completion of liquidation procedures as prescribed for violations under point h of Clause 4 of this Article;

e) Compelling compliance with laws for other violations.

Article 23. Violations of regulations on using state capital for investment and business

1. A fine from 5,000,000 VND to 10,000,000 VND for investors conducting business investments with state capital without prior approval from the competent authority.

2. In addition to the penalties prescribed in Clause 1 of this Article, violators must comply with legal provisions.

Article 24. Violations of regulations on overseas investment

1. Warning or a fine from 100,000 VND to 200,000 VND for investors committing one of the following acts:

a) Not implementing reports on investment activities as prescribed;

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

2. A fine from 3,000,000 VND to 5,000,000 VND for inaccurate or dishonest registration to obtain an Overseas Investment Certificate.

3. A fine from 7,000,000 VND to 10,000,000 VND for investors committing one of the following acts:

a) Not complying with the contents of the Overseas Investment Certificate;

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

c) Not transferring all legitimate capital and assets back to the country upon project completion as prescribed;

d) Reinvesting profits earned from overseas projects into the same project without adjusting the Overseas Investment Certificate as prescribed;

đ) Reinvesting profits earned from overseas projects into another overseas project without obtaining an Overseas Investment Certificate as prescribed.

4. A fine from 10,000,000 VND to 15,000,000 VND for investors committing one of the following acts:

a) Investing abroad without obtaining an Overseas Investment Certificate from the competent state agency;

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

c) Liquidating overseas investment projects not in accordance with legal provisions.

5. In addition to the penalties prescribed in Clause 1, Clause 2, Clause 3, and Clause 4 of this Article, violators will also be subject to one or more of the following measures:

a) Compelling the submission of investment reports as prescribed for violations under Clause 1 of this Article;

b) Compelling compliance with the contents of the Overseas Investment Certificate for violations under point a of Clause 3 of this Article;

c) Compelling cessation of operations for violations under points a and b of Clause 4 of this Article;

d) Compelling compliance with laws for other violations.

Article 25. Violations of investment incentives regulations

1. A fine from 3,000,000 VND to 5,000,000 VND for investors failing to meet registered commitments to enjoy investment incentives without notifying the competent state agency.

2. A fine from 5,000,000 VND to 7,000,000 VND for investors making inaccurate or dishonest declarations to enjoy investment incentives.

3. In addition to the penalties prescribed in Clause 1 and Clause 2 of this Article, violators may also be subject to one or more of the following measures:

a) Order to comply with registered commitments or revoke investment incentives for violations as stipulated in Clause 1 of this Article;

b) Order to complete the file to resubmit to the competent authority for reconsideration for violations as stipulated in Clause 2 of this Article;

c) Order to return improperly received investment incentives;

Article 26. Violations of regulations on establishment and management of enterprises

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

a) Registering false or inaccurate information about organizations or individuals in the business registration dossier;

b) Registering to establish two or more private enterprises with the same owner;

2. Fine from VND 5,000,000 to VND 7,000,000 for enterprises without a resident legal representative in Vietnam or without a written authorization for the legal representative who is absent from Vietnam for over 30 days;

3. Fine from VND 7,000,000 to VND 10,000,000 for enterprises committing any of the following acts:

a) Registering an organization that does not have the right to participate in establishing an enterprise;

b) Registering an individual who does not have the right to establish and manage an enterprise;

c) Not registering the hiring of a director for a private enterprise as required;

d) Not registering within seven working days from the date when a shareholder of the company reaches a shareholding ratio of five percent or more of the total number of shares;

đ) Not convening an annual general meeting of shareholders within four months from the end of the fiscal year without an extension granted by the business registration agency as prescribed;

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, enterprises violating these provisions shall also be subject to one or more of the following measures:

a) Order to re-register the Business Registration Certificate for violations as stipulated in Clause 1, Point a and Point b of Clause 3 of this Article, except where the violation falls under the category requiring revocation of the Business Registration Certificate as provided in Point a and Point b of Clause 2 of Article 165 of the Enterprise Law;

b) Order to register in accordance with the regulations for violations as stipulated in Point c and Point d of Clause 3 of this Article;

c) Order to comply with the law for other violations;

Article 27. Violations of regulations on establishment and management of cooperatives and cooperative federations

1. Warning or fine from VND 100,000 to VND 200,000 for cooperatives or cooperative federations committing any of the following acts:

a) Registering false or inaccurate information about organizations or individuals in the business registration dossier;

b) Registering a household but the members of the household do not have common assets for economic activities;

c) Registering initiators of a cooperative federation who are not legal representatives of initiating cooperatives;

d) Registering persons who do not have the right to be members of the Management Board or Supervisory Board;

đ) Registering falsely or inaccurately regarding the identity of members of the Management Board or Supervisory Board;

e) Registering individuals who are civil servants in the list of the Management Board or Supervisory Board;

2. Fine from VND 1,000,000 to VND 3,000,000 for cooperatives or cooperative federations registering civil servants as members without a written permission from the head of the directly managing agency;

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, cooperatives or cooperative federations violating these provisions shall also be subject to one or more of the following measures:

a) Order to re-register the Business Registration Certificate for violations as stipulated in Point a, Point d, Point e of Clause 1 and Clause 2 of this Article;

b) Order to register in accordance with the regulations for violations as stipulated in Point b, Point c, and Point đ of Clause 1 of this Article;

Article 28. Violations of regulations on establishment and management of households engaged in business

1. Warning or fine from VND 100,000 to VND 200,000 for households registering falsely or inaccurately regarding their identity in the business registration dossier;

2. Fine from VND 1,000,000 to VND 3,000,000 for households committing any of the following acts:

a) Registering persons who do not have the right to register for business;

b) Registering under the name of another person fraudulently;

3. Fine from VND 5,000,000 to VND 10,000,000 for households conducting business under the form of a household but using ten or more workers regularly;

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, households violating these provisions shall also be subject to one or more of the following measures:

a) Order to re-register the Business Registration Certificate for violations as stipulated in Clause 1 of this Article;

b) Order to cease operations for violations as stipulated in Clause 2 of this Article;

c) Order to register for business under the form of an enterprise for violations as stipulated in Clause 3 of this Article;

Article 29. Violations of regulations on registration of the principal place of business of enterprises

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

a) Registering a principal place of business address that does not exist on administrative maps;

b) Registering a principal place of business address that is not owned or legally used by the entity;

2. In addition to the penalties prescribed in Clause 1 of this Article, enterprises violating these provisions shall also be ordered to re-register the Business Registration Certificate;

Article 30. Violations of regulations on registration of the principal place of business of cooperatives and cooperative federations

1. Fine from VND 500,000 to VND 1,000,000 for cooperatives or cooperative federations committing any of the following acts:

a) Registering a principal place of business address that does not exist on administrative maps;

b) Registering a principal place of business address that is not owned or legally used by the entity;

2. In addition to the penalties prescribed in Clause 1 of this Article, cooperatives or cooperative federations violating these provisions shall also be ordered to re-register the Business Registration Certificate;

Article 31. Violations of regulations on registration of the principal place of business of households engaged in business

1. Fine from VND 500,000 to VND 1,000,000 for households committing any of the following acts:

a) Registering a business location that does not exist on administrative maps;

b) Registering a business location that is not owned or legally used by the entity;

2. Fine from VND 3,000,000 to VND 5,000,000 for households registering business at two or more locations;

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, households violating these provisions shall also be ordered to re-register the Business Registration Certificate;

Article 32. Violations of regulations on registration of capital contributions by enterprises

1. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on a business entity that fails to report or reports untimely, incompletely, or inaccurately on the progress of capital contribution to the competent authority.

2. A fine of VND 5,000,000 to VND 7,000,000 shall be imposed on a business entity committing any of the following acts:

a) Failing to issue a certificate of capital contribution to the contributing members;

b) Failing to establish or establishing a member registration book or shareholder registration book not in accordance with the provisions of the Enterprise Law.

3. Fine from VND 7,000,000 to VND 10,000,000 for enterprises committing any of the following acts:

a) Failing to raise and timely the registered capital amount;

b) Failing to maintain the minimum capital requirement for businesses operating in industries or professions requiring such capital.

4. A fine of VND 10,000,000 to VND 15,000,000 shall be imposed on a business entity registering a larger capital amount than the actual capital available.

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, a business entity violating these provisions shall also be subject to one or more of the following measures:

a) Compelling the entity to report in accordance with the regulations for violations under Clause 1 of this Article;

b) Compelling the issuance of a certificate of capital contribution to the contributing members for violations under Point a of Clause 2 of this Article;

c) Compelling the establishment of a member registration book or shareholder registration book for violations under Point b of Clause 2 of this Article;

d) Compelling the supplementation of the registered capital amount for violations under Clauses 3 and 4 of this Article.

Article 33. Violations of the provisions on registration of capital contributions by cooperatives and cooperative unions

1. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on a cooperative or cooperative union committing any of the following acts:

a) Failing to raise and timely the registered capital amount;

b) Failing to maintain the minimum capital requirement for cooperatives or cooperative unions operating in industries or professions requiring such capital.

2. A fine of VND 5,000,000 to VND 7,000,000 shall be imposed on a cooperative or cooperative union committing any of the following acts:

a) Registering a larger capital amount than the actual capital available;

b) Allowing a member's capital contribution to exceed 30% of the total capital contributions of the cooperative.

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, cooperatives or cooperative federations violating these provisions shall also be subject to one or more of the following measures:

a) Compelling the supplementation of the registered capital amount for violations under Clause 1 and Point a of Clause 2 of this Article;

b) Compelling the adjustment of the member's capital contribution so that it does not exceed 30% of the total capital contributions of the cooperative for violations under Point b of Clause 2 of this Article;

c) Compelling compliance with other legal provisions for other violations.

Article 34. Violations of the provisions on registration of changes in business registration documents by enterprises

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

a) Failing to register or registering untimely changes in business registration contents;

b) Failing to register a name change when changing the business industry or investment form used in the enterprise's name;

c) Failing to amend or supplement the Enterprise Charter as required.

2. A fine of VND 7,000,000 to VND 10,000,000 shall be imposed on an enterprise committing any of the following acts:

a) Registering inaccurately or falsely changes in business registration contents;

b) Continuing operations beyond the duration specified in the Company Charter without an extension decision.

3. A fine of VND 10,000,000 to VND 15,000,000 shall be imposed on an enterprise continuing operations after announcing a temporary cessation of activities.

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, enterprises violating these provisions shall also be subject to one or more of the following measures:

a) Compelling the re-registration of the Business Registration Certificate for violations under Points a, b of Clause 1 and Point a of Clause 2 of this Article;

b) Compelling the amendment or supplementation of the Company Charter for violations under Point c of Clause 1 of this Article;

c) Compelling the cessation of business operations for violations under Point b of Clause 2 of this Article;

d) Compelling the cessation of business operations until the end date of the temporary cessation announced by the enterprise for violations under Clause 3 of this Article.

Article 35. Violations of the provisions on registration of changes in business registration documents by cooperatives and cooperative unions

1. Warning or fine from VND 100,000 to VND 200,000 for cooperatives or cooperative federations committing any of the following acts:

a) Failing to register or registering untimely changes in business registration contents;

b) Failing to register a name change when changing the business industry used in the cooperative or cooperative union's name;

c) Failing to submit the amended Charter along with the minutes of the Member Assembly to the business registration authority.

2. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on a cooperative or cooperative union registering inaccurately or falsely changes in business registration contents.

3. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on a cooperative or cooperative union continuing operations after announcing a temporary cessation of activities.

4. In addition to the penalties prescribed in Clauses 1, 2, and 3 of this Article, a cooperative or cooperative union violating these provisions shall also be subject to one or more of the following measures:

a) Compelling the re-registration of the Business Registration Certificate for violations under Points a, b of Clause 1 and Clause 2 of this Article;

b) Compelling the submission of the amended Charter along with the minutes of the Member Assembly to the business registration authority for violations under Point c of Clause 1 of this Article;

c) Compelling the cessation of business operations until the end date of the temporary cessation announced by the cooperative or cooperative union for violations under Clause 3 of this Article.

Article 36. Violations of the provisions on registration of changes in business registration documents by individual households

1. A warning or a fine of VND 100,000 to VND 200,000 shall be imposed on an individual household committing any of the following acts:

a) Failing to register changes when changing the place of business, name of the individual household, business industry, registered capital, or representative;

b) Registering inaccurately or falsely the content of changes.

2. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on an individual household continuing operations after announcing a temporary cessation of activities.

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, an individual household violating these provisions shall also be subject to one or more of the following measures:

a) Order to re-register the Business Registration Certificate for violations as stipulated in Clause 1 of this Article;

b) Compelling the cessation of business operations until the end date of the temporary cessation announced by the individual household for violations under Clause 2 of this Article.

Article 37. Violations of the provisions on hanging signs by enterprises

1. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on a business entity that does not hang a signboard at its main office and branch offices or representative offices.

2. In addition to the penalty form prescribed in Clause 1 of this Article, the violating business entity shall also be ordered to hang a signboard at its main office and branch offices or representative offices.

Article 38. Violations of provisions on publicizing information of business entities

1. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on a business entity committing one of the following acts:

a) Not publishing or publishing incorrect registration for business information;

b) Not implementing reports on leasing private enterprises as prescribed;

c) Not submitting reports on business activities as prescribed;

d) Not publishing decisions on dissolving the business entity as prescribed;

đ) Not notifying or notifying outside the prescribed time limit when temporarily suspending business operations;

e) Not declaring the loss of the Business Registration Certificate;

g) Not notifying the opening hours at the main office within fifteen days from the date of issuance of the Business Registration Certificate;

h) Not notifying the appointment of a proxy representative within seven working days from the date of appointment;

i) Not sending notification about the proxy representative of the business entity within five working days from the date of receipt of the notification;

k) Not notifying or notifying incorrectly according to the law on branches, representative offices, and business locations of the business entity;

l) Not notifying the sale of a private enterprise as prescribed;

m) Not notifying changes in pledged capital contributions of members as prescribed;

n) Not notifying the progress of registered capital contributions as prescribed;

o) Not notifying the contribution of share capital within ninety days from the date of issuance of the Business Registration Certificate.

2. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on a business entity committing one of the following acts:

a) Reporting incorrectly as prescribed;

b) Not submitting financial reports as prescribed.

3. In addition to the penalty forms prescribed in Clauses 1 and 2 of this Article, the violating business entity shall also be ordered to comply with the legal provisions on publicizing information.

Article 39. Violations of provisions on publicizing information of cooperatives and cooperative unions

1. Warning or a fine of VND 100,000 to VND 200,000 shall be imposed on a cooperative or cooperative union that does not publish information as prescribed.

2. In addition to the penalty form prescribed in Clause 1 of this Article, the violating cooperative or cooperative union shall also be ordered to comply with the legal provisions on publicizing information.

Article 40. Violations of provisions on business sectors and professions requiring a practice certificate of business entities

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

a) Using a practice certificate that has expired;

b) Using a practice certificate of an individual to register for business at two or more business entities.

2. A fine of VND 7,000,000 to VND 10,000,000 shall be imposed on an enterprise committing any of the following acts:

a) Arranging personnel without a practice certificate to perform tasks that require a practice certificate;

b) Not registering replacement personnel after the competent authority decides to revoke the practice certificate.

3. In addition to the penalty forms prescribed in Clauses 1 and 2 of this Article, the violating business entity shall also have one or more of the following measures applied:

a) Ordered to register changes in business sectors or to use a practice certificate in accordance with the regulations for violations under point a of Clause 1 of this Article;

b) Suspension of the right to use a practice certificate for up to six months for violations under point b of Clause 1 of this Article;

c) Ordered to arrange personnel with a practice certificate for violations under point a of Clause 2 of this Article;

d) Ordered to register changes in business sectors or to supplement personnel with a practice certificate for violations under point b of Clause 2 of this Article.

Article 41. Violations of provisions on business sectors and professions requiring a practice certificate of cooperatives and cooperative unions

1. A fine of VND 500,000 to VND 1,000,000 shall be imposed on a cooperative or cooperative union conducting business in sectors and professions requiring a practice certificate where members of the Management Board do not have a practice certificate.

2. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on a cooperative or cooperative union using an expired practice certificate.

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, cooperatives or cooperative federations violating these provisions shall also be subject to one or more of the following measures:

a) Ordered to register changes in business sectors or to supplement members with a practice certificate in the Management Board for violations under Clause 1 of this Article;

b) Ordered to register changes in business sectors or to use a practice certificate in accordance with the regulations for violations under Clause 2 of this Article.

Article 42. Violations of provisions on restructuring business entities

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on a business entity committing one of the following acts:

a) Implementing division, separation, merger, or consolidation of business entities contrary to regulations;

b) Implementing conversion of business entities contrary to regulations.

2. In addition to the penalty form prescribed in Clause 1 of this Article, the violating business entity shall also be ordered to restructure in accordance with the regulations.

Article 43. Violations of provisions on restructuring cooperatives and cooperative unions

1. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on a cooperative or cooperative union committing acts of division, separation, merger, or consolidation contrary to regulations.

2. In addition to the penalty form prescribed in Clause 1 of this Article, the violating cooperative or cooperative union shall also be ordered to restructure in accordance with the regulations.

Article 44. Acts violating regulations on registration of branch and representative office activities

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

a) Registering a branch or representative office address that does not exist on administrative maps;

b) Registering a branch or representative office address that is not owned or legally used by the enterprise.

2. A fine of from 7,000,000 VND to 10,000,000 VND for enterprises that register inaccurately or untruthfully changes in the registered content of branches or representative offices.

3. In addition to the penalties prescribed in Clause 1 and Clause 2 of this Article, enterprises violating these provisions shall also be required to re-register for issuance of the Certificate of Registration for Branch and Representative Office Activities.

Article 45. Acts violating regulations on registration of branch and representative office activities of cooperatives and cooperative federations

1. Fine from VND 500,000 to VND 1,000,000 for cooperatives or cooperative federations committing any of the following acts:

a) Registering a branch or representative office address that does not exist on administrative maps;

b) Registering a branch or representative office address that is not owned or legally used by the enterprise.

2. A fine of from 1,000,000 VND to 3,000,000 VND for cooperatives and cooperative federations that register inaccurately or untruthfully changes in the registered content of branches or representative offices.

3. In addition to the penalties prescribed in Clause 1 and Clause 2 of this Article, cooperatives and cooperative federations violating these provisions shall also be required to re-register for issuance of the Certificate of Registration for Branch and Representative Office Activities.

Article 46. Acts violating regulations on the use of Investment Certificate, Business Registration Certificate, and Certificate of Registration for Branch and Representative Office Activities

1. A fine of from 2,000,000 VND to 5,000,000 VND for enterprises committing one of the following acts:

a) Leasing or lending out the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities;

b) Adding, erasing, or altering the content of the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities.

2. Warning or a fine of from 50,000 VND to 200,000 VND for cooperatives, cooperative federations, and individual businesses committing one of the following acts:

a) Leasing or lending out the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities;

b) Adding, erasing, or altering the content of the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities.

3. In addition to the penalties prescribed in Clause 1 and Clause 2 of this Article, enterprises, cooperatives, cooperative federations, and individual businesses violating these provisions shall also have one or more of the following measures applied:

a) Cease leasing or lending out the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities for violations stipulated in point a of Clause 1 and point a of Clause 2 of this Article;

b) Be compelled to reapply for issuance of the Investment Certificate, Business Registration Certificate, or Certificate of Registration for Branch and Representative Office Activities for violations stipulated in point b of Clause 1 and point b of Clause 2 of this Article.

Section 4

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES FOR VIOLATIONS

REGARDING INSPECTION AND AUDIT OF PLANS AND INVESTMENTS

Article 47. Acts violating regulations on inspection and audit of plans and investments

1. A fine of from 1,000,000 VND to 2,000,000 VND for organizations or individuals committing one of the following acts:

a) Not implementing or delaying state agency inspections and audits;

b) Not providing documents or data as requested by the inspection agency, Inspection Team, or authorized state agency;

c) Dealing with inspectors or state agency staff in a confrontational manner while they are performing their duties;

d) Interfering improperly in the handling of cases by inspection agencies or authorized state agencies;

đ) Concealing, altering, disposing of, destroying, or changing evidence during an inspection or audit.

2. In addition to the penalties prescribed in Clause 1 of this Article, organizations or individuals violating these provisions shall also be required to comply with legal regulations on inspection and audit.

Chapter III

AUTHORITY AND PROCEDURES FOR ADMINISTRATIVE PENALTIES

Section 1

AUTHORITY TO ISSUE ADMINISTRATIVE VIOLATION DECISIONS AND VIOLATION RECORDS

Article 48. Administrative Violation Sanctioning Authority of People's Committees at All Levels

1. The Chairman of the People's Committee of communes, wards, and towns has the authority to:

a) Warning;

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

2. The Chairman of the People's Committee of districts, cities under provinces, and provincial cities has the authority to:

a) Warning;

b) To impose fines up to VND 20,000,000;

c) Apply supplementary sanctions and other measures as prescribed in this Decree.

3. The Chairman of the People's Committee of provinces and centrally-administered cities has the authority to:

a) Warning;

b) Impose fines up to the maximum amount specified in point b, Clause 1, Article 5 of this Decree;

c) Apply supplementary sanctions and other measures as prescribed in this Decree.

Article 49. Administrative Violation Sanctioning Authority of the Inspectorate for Planning and Investment

1. A planning and investment inspector performing official duties has the authority to:

a) Warning;

b) Impose fines up to VND 200,000;

c) Apply supplementary sanctions and other measures as prescribed in this Decree.

2. The Director of the Planning and Investment Inspectorate of the Department has the authority to:

a) Warning;

b) To impose fines up to VND 20,000,000;

c) Apply supplementary sanctions and other measures as prescribed in this Decree.

3. The Director of the Planning and Investment Inspectorate of the Ministry has the authority to:

a) Warning;

b) Impose fines up to the maximum amount specified in point b, Clause 1, Article 5 of this Decree;

c) Apply supplementary sanctions and other measures as prescribed in this Decree.

Article 50. Administrative Violation Sanctioning Authority of Sectoral Inspectors

Other sectoral inspectors have the authority to sanction administrative violations in the field of planning and investment as prescribed in this Decree within the scope of their management authority over planning and investment of ministries, sectors, and localities as stipulated by the Government.

Article 51. Administrative Violation Sanctioning Authority of Other Agencies

In addition to those with administrative violation sanctioning authority as prescribed in Articles 48, 49, and 50 of this Decree, individuals with administrative violation sanctioning authority as prescribed in the Administrative Violation Handling Ordinance, within the scope of their functions and tasks assigned, who discover administrative violations as prescribed in this Decree within their areas of management shall have the authority to sanction such administrative violations according to this Decree and the Administrative Violation Handling Ordinance.

Article 52. Delegation of Administrative Violation Sanctioning Authority on Planning and Investment

In cases where those with administrative violation sanctioning authority as prescribed in Articles 48, 49, 50, and 51 of this Decree are absent, the deputy authorized to exercise administrative violation sanctioning authority and bear responsibility for their decisions shall have such authority.

Article 53. Principles for Determining Sanctioning Authority

1. The Chairmen of People's Committees at all levels have the authority to sanction administrative violations as prescribed in this Decree within the scope of state management in their localities.

2. The sanctioning authority of sectoral inspectors and other agencies is determined in Articles 48, 49, and 50 of this Decree.

In cases where an administrative violation falls under the sanctioning authority of multiple individuals, the sanctioning shall be carried out by the first person to handle the case.

3. The sanctioning authority of those prescribed in Articles 48, 49, 50, and 51 of this Decree applies to each individual administrative violation. In cases of imposing fines, the sanctioning authority is determined based on the maximum amount of the fine prescribed for each specific violation.

4. In cases where an organization or individual commits multiple administrative violations, the sanctioning authority is determined according to the following principles:

a) If the form and level of sanction prescribed for each violation fall within the sanctioning authority of the person handling the case, the sanctioning authority remains with that person;

b) If the form and level of sanction prescribed for one of the violations exceed the sanctioning authority of the person handling the case, that person must transfer the violation case to the competent authority with sanctioning power.

Section 2

PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS

Article 54. Suspension of Violation Acts

When discovering administrative violation acts, the authority with the power to impose penalties must immediately issue a written decision to suspend such administrative violation acts.

Article 55. Simplified Penalty Procedure

The simplified penalty procedure shall be applied to administrative violations where the prescribed penalty is a warning or a fine up to 100,000 dong. In this case, the authority with the power to impose penalties does not prepare a record but decides on the penalty at the scene.

Article 56. Time Limit for Issuing a Penalty Decision

1. For simple cases where the violation is clear and no further verification is needed, a penalty decision must be issued within ten days from the date of recording the administrative violation act. The administrative violation penalty decision must follow the prescribed format.

2. For cases with many complex circumstances such as items or means requiring examination, or the need to clearly identify the violator or other complex circumstances, the time limit for issuing a penalty decision is thirty days from the date of recording.

3. If it is deemed necessary to have more time to verify and collect evidence, the authority with the power to impose penalties must report in writing to their direct superior leader no later than ten days before the deadline specified in Clause 2 of this Article to request an extension; the extension must be in writing and shall not exceed thirty days.

Article 57. Recording Administrative Violations

The recording of administrative violation acts is carried out according to the provisions of Article 55 of the Administrative Violation Handling Ordinance and Article 20 of Decree No. 134/2003/NĐ-CP dated November 14, 2003 of the Government detailing certain provisions of the Administrative Violation Handling Ordinance.

Article 58. Execution of Penalty Decisions and Compulsory Enforcement of Penalty Decisions

Within ten working days from the date of receiving the penalty decision, organizations and individuals subject to administrative violation penalties must execute the penalty decision, pay the fine at the location specified in the penalty decision, and receive a receipt for the fine payment.

The management and use of administrative violation fines are implemented according to Decree No. 124/2005/NĐ-CP dated October 6, 2005 of the Government regarding receipts for fine payments and the management and use of paid administrative violation fines.

If organizations or individuals subject to administrative violation penalties do not voluntarily comply with the penalty decision, they will be subject to compulsory enforcement according to the provisions of Article 66 of the Administrative Violation Handling Ordinance and Decree No. 37/2005/NĐ-CP dated March 18, 2005 of the Government detailing procedures for applying compulsory measures to enforce administrative violation penalty decisions.

Chapter IV

REWARD AND DISCIPLINARY ACTION FOR VIOLATIONS

AND COMPLAINTS AND REPORTS

Article 59. Rewards and Handling of Violations

1. Organizations and individuals who have achievements in combating administrative violations in the planning and investment sector are rewarded according to the law.

2. The authority with the power to impose administrative violation penalties in the planning and investment sector, if abusing power, harassing, tolerating, or covering up for violators; failing to impose penalties or imposing them untimely, incorrectly, or beyond their authority, will be handled according to the law depending on the nature and severity of the violation; if causing damage, they must compensate according to the law.

3. Organizations and individuals subject to administrative violation penalties in the planning and investment sector, if not voluntarily complying with the penalty decision, will be subject to compulsory enforcement; if committing administrative violation acts and obstructing, resisting public officials or using fraudulent, bribery, or other methods to delay or evade compliance with the penalty decision of the authority, they will be handled administratively or criminally pursued depending on the nature and severity of the violation; if causing damage, they must compensate according to the law.

Article 60. Complaints and Reports and Resolution of Complaints and Reports

1. Organizations and individuals subject to administrative violation penalties in the planning and investment sector or their legitimate representatives have the right to appeal against the administrative violation penalty decision.

2. Citizens have the right to report to competent state agencies organizations and individuals committing administrative violations stipulated in this Decree; reporting authorities with the power to impose administrative violation penalties for violating the provisions of this Decree.

3. Competence, deadlines, procedures for complaints and reports, and the resolution of citizens' complaints and reports are carried out according to the law on complaints and reports.

Chapter V

IMPLEMENTING PROVISIONS

Article 61. Effectiveness

1. This Decree takes effect fifteen days after its publication in the Official Gazette.

2. Abolish Decree No. 37/2003/NĐ-CP dated April 10, 2003 of the Government on administrative violation penalties for business registration.

Article 62. Responsibility for Implementation

1. The Minister of Planning and Investment shall be responsible for guiding the implementation of this Decree.

2. Authorities with the power to impose penalties stipulated in this Decree must submit reports on the results of administrative violation penalties in the planning and investment sector to the Ministry of Planning and Investment before December 15 each year for consolidation and reporting to the Government.

3. Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairmen of provincial People's Committees under central jurisdiction, and related agencies, organizations, and individuals are responsible for implementing this Decree./.