Decree No. 61/1998/NĐ-CP on inspection and supervision work for enterprises

DECREE OF THE GOVERNMENT
VREGARDING THE INSPECTION AND SUPERVISION OF ENTERPRISES

THE GOVERNMENT

Pursuant to the Law on the Organization of the Government dated September 30, 1992;

Pursuant to the Inspection Ordinance dated April 1, 1990;

TO REGULATE THE INSPECTION AND SUPERVISION OF ENTERPRISES;

At the proposal of the State Audit Office,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. THE INSPECTION AND SUPERVISION OF LEGAL COMPLIANCE BY PRODUCTION AND BUSINESS UNITS AIMS TO ASSIST SUCH UNITS IN OPERATING IN ACCORDANCE WITH THE LAW, EFFECTIVELY; TO STRENGTHEN LEGAL CONTROL IN PRODUCTION AND BUSINESS ACTIVITIES, CONTRIBUTING TO IMPROVING MANAGEMENT MECHANISMS; AND TO PROTECT THE INTERESTS OF THE STATE, RIGHTS AND LEGAL BENEFITS OF PRODUCTION AND BUSINESS UNITS.

THE PRODUCTION AND BUSINESS UNITS REFERRED TO IN THIS DECREE INCLUDE STATE ENTERPRISES, JOINT-STOCK COMPANIES, LIMITED LIABILITY COMPANIES, PRIVATE ENTERPRISES, INCLUDING INDIVIDUALS AND GROUPS OF BUSINESSES AS PROVIDED FOR IN DECREE NO. 66/HĐBT OF MARCH 2, 1992 OF THE COUNCIL OF MINISTERS (NOW THE GOVERNMENT), HEREINAFTER REFERRED TO AS ENTERPRISES.

Article 2. NATIONAL AUTHORITIES MUST CONDUCT INSPECTIONS AND SUPERVISIONS OF ENTERPRISES TO PERFORM THEIR FUNCTIONS OF STATE MANAGEMENT IN ACCORDANCE WITH THE FUNCTIONALITY, AUTHORITY, PROCEDURES PRESCRIBED BY LAW, AND MUST ENSURE ACCURACY, OBJECTIVITY, TRANSPARENCY, AND DEMOCRACY.

ANY ABUSE OF THE RIGHT TO INSPECT AND SUPERVISE TO INTIMIDATE, CAUSE DIFFICULTIES, OR INCONVENIENCE TO ENTERPRISES IS STRICTLY PROHIBITED.

Article 3. INSPECTION AND SUPERVISION OF ENTERPRISES SHALL BE CONDUCTED ONLY UPON DECISION OF THE HEAD OF THE AUTHORIZED NATIONAL AUTHORITY; DUPLICATE INSPECTIONS ON THE SAME CONTENT SHALL NOT BE PERMITTED MORE THAN ONCE IN A YEAR FOR THE SAME ENTERPRISE (EXCEPT IN CASES OF EMERGENCY).

Article 4. AT THE END OF THE INSPECTION AND SUPERVISION PROCESS AT AN ENTERPRISE, A WRITTEN CONCLUSION MUST BE ISSUED ON THE CONTENT INSPECTED AND SUPERVISED; THE PERSON RESPONSIBLE FOR THE INSPECTION AND SUPERVISION MUST BE LIABLE UNDER THE LAW FOR THE CONCLUSIONS THEY ISSUE.

Article 5. ENTERPRISES ARE RESPONSIBLE FOR REGULAR SELF-AUDITS OF POLICY AND LEGAL COMPLIANCE IN THEIR PRODUCTION AND BUSINESS OPERATIONS, VOLUNTARILY PERFORMING LEGAL OBLIGATIONS, AND STRICTLY ADHERING TO THE CONCLUSIONS AND DECISIONS ISSUED BY STATE AUTHORITIES IN ACCORDANCE WITH THE LAW ON INSPECTION AND SUPERVISION.

ANY OBSTRUCTION OF INSPECTION AND SUPERVISION ACTIVITIES OR BRIBING OF INSPECTORS IS STRICTLY PROHIBITED.

Article 6. ENTERPRISES HAVE THE RIGHT TO REFUSE ILLEGAL INSPECTION AND SUPERVISION; THEY ALSO HAVE THE RIGHT TO APPEAL DECISIONS AND CONCLUSIONS ON INSPECTION AND SUPERVISION.

EVERY MEMBER OF AN ENTERPRISE HAS THE RIGHT TO REPORT VIOLATIONS OF THE LAW BY INSPECTORS AND IS LIABLE UNDER THE LAW FOR THE CONTENT OF SUCH REPORTS.

APPEALS AND REPORTS ON INSPECTION AND SUPERVISION ACTIVITIES AT ENTERPRISES MUST BE TIMELY RESOLVED BY THE AUTHORIZED NATIONAL AUTHORITIES IN ACCORDANCE WITH THE LAW.

PART II
ESTABLISHING PROGRAMS AND PLANS FOR INSPECTION AND SUPERVISION

Article 7. AUTHORIZED NATIONAL AUTHORITIES FOR INSPECTION AND SUPERVISION MUST DETERMINE ANNUAL INSPECTION AND SUPERVISION PLANS AND PROACTIVELY COOPERATE WITH RELEVANT AUTHORITIES IN DEVELOPING SUCH PROGRAMS AND PLANS.

INSPECTION AND SUPERVISION PROGRAMS AND PLANS MUST CLEARLY DEFINE REQUIREMENTS, CONTENT, SCOPE, TARGETS, TIME FRAMES, AND MUST BE APPROVED BY THE AUTHORIZED BODIES.

Article 8. THE STATE AUDITOR GENERAL IS RESPONSIBLE FOR GUIDING THE DEVELOPMENT AND APPROVAL OF THE INSPECTION PROGRAM OF THE STATE AUDIT AUTHORITY; GUIDING MINISTRIES, MINISTRY-LIKE AUTHORITIES, AUTHORITIES UNDER THE GOVERNMENT, PROVINCE AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT IN DEVELOPING INDUSTRY AND LOCAL INSPECTION PROGRAMS; AND COORDINATING WITH THE PROSECUTOR GENERAL TO DETERMINE EACH INDUSTRY’S PROGRAMS AND PLANS TO AVOID OVERLAPPING INSPECTION AND PROSECUTION ACTIVITIES.

Article 9. THE MINISTER, HEAD OF MINISTRY-LIKE AUTHORITIES, HEAD OF AUTHORITIES UNDER THE GOVERNMENT, CHAIRMAN OF PROVINCE AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT ARE RESPONSIBLE FOR GUIDING THE DEVELOPMENT AND APPROVAL OF INDUSTRY AND LOCAL INSPECTION AND SUPERVISION PROGRAMS AND PLANS.

IN CASES WHERE INSPECTION AND SUPERVISION PROGRAMS AND PLANS OVERLAP IN CONTENT AND TIME, THE MINISTER, HEAD OF MINISTRY-LIKE AUTHORITIES, HEAD OF AUTHORITIES UNDER THE GOVERNMENT, CHAIRMAN OF PROVINCE AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT MUST COORDINATE TO RESOLVE THE ISSUE; IF THERE ARE DISAGREEMENTS, THE STATE AUDITOR GENERAL WILL SUMMARIZE THE SITUATION AND REPORT TO THE PRIME MINISTER FOR DECISION. AT THE LOCAL LEVEL, IF THERE ARE DISAGREEMENTS BETWEEN DEPARTMENTS AND DISTRICTS, THE CHIEF AUDITOR OF THE PROVINCE OR CITY UNDER THE CENTRAL GOVERNMENT WILL SUMMARIZE THE SITUATION AND REPORT TO THE CHAIRMAN OF THE PROVINCE OR CITY PEOPLE'S COMMITTEE FOR DECISION.

Article 10. THE CHIEF AUDITOR OF THE MINISTRY, MINISTRY-LIKE AUTHORITIES, AUTHORITIES UNDER THE GOVERNMENT, BASED ON GUIDELINES FROM THE STATE AUDITOR GENERAL AND THE NEEDS OF THE MINISTRY OR INDUSTRY, IS RESPONSIBLE FOR DEVELOPING THE INSPECTION PROGRAM AND SUBMITTING IT TO THE MINISTER, HEAD OF MINISTRY-LIKE AUTHORITIES, HEAD OF AUTHORITIES UNDER THE GOVERNMENT FOR APPROVAL.

THE HEADS OF AUTHORITIES WITH THE FUNCTION OF SUPERVISION OF ENTERPRISES ARE RESPONSIBLE FOR DEVELOPING THE SUPERVISION PROGRAM AND PLAN, CONSULTING WITH THE CHIEF AUDITOR OF THE MINISTRY BEFORE SUBMITTING TO THE MINISTER, HEAD OF MINISTRY-LIKE AUTHORITIES, HEAD OF AUTHORITIES UNDER THE GOVERNMENT FOR APPROVAL.

Article 11. THE CHIEF AUDITOR OF THE PROVINCE OR CITY UNDER THE CENTRAL GOVERNMENT, BASED ON GUIDELINES FROM THE STATE AUDITOR GENERAL AND THE NEEDS OF LOCAL MANAGEMENT, IS RESPONSIBLE FOR DEVELOPING THE INSPECTION PROGRAM AND COMBINING THE SUPERVISION PROGRAM TO SUBMIT TO THE CHAIRMAN OF THE PROVINCE OR CITY PEOPLE'S COMMITTEE FOR APPROVAL; COORDINATING WITH THE PROSECUTOR OF THE SAME LEVEL IN DETERMINING THE INSPECTION AND SUPERVISION PROGRAMS TO AVOID OVERLAPPING.

Article 12. THE STATE AUDITOR GENERAL IS RESPONSIBLE FOR DEVELOPING ANNUAL AUDIT PROGRAMS, CONSULTING WITH THE STATE AUDITOR GENERAL AND THE MINISTER OF FINANCE BEFORE SUBMITTING TO THE PRIME MINISTER FOR APPROVAL.

CHAPTER III
PROCEDURES FOR INSPECTION AND SUPERVISION 

PART 1: INSPECTION PROCEDURES

Article 13. The issuance of inspection decisions must be based on approved programs and plans; such decisions shall be issued by the heads of inspection agencies within the state inspection system or the heads of state management agencies and must notify enterprises at least seven days before announcing the inspection decision, except in cases of extraordinary inspections or re-inspections as stipulated in Articles 16 and 17 of this Decree.

Article 14. Inspection decisions must clearly specify:

1- Legal basis for the inspection;

2- Content, requirements, and scope of the inspection;

3- Duration of the inspection;

4- Members of the inspection team and their rights and responsibilities;

5- Rights and obligations of the inspected enterprise.

Article 15.

1- The maximum duration of an inspection at one enterprise shall not exceed thirty days.

2- When necessary, the person issuing the inspection decision may extend the duration. The extension period shall not exceed thirty days.

3- The inspection duration is calculated from the date of announcing the inspection decision at the enterprise to the date of announcing the draft inspection conclusion.

Article 16.

1- Extraordinary inspections can only be conducted when there is evidence that the enterprise has violated the law.

2- Extraordinary inspection decisions shall be issued by the heads of inspection agencies within the state inspection system or the heads of state management agencies.

Article 17.

1- Re-inspections can only be conducted if there is evidence that the inspection conclusion at the enterprise is inaccurate, unfair, or new circumstances have been discovered.

2- Re-inspection decisions shall be issued by the State Inspector General, Ministers, Heads of Ministries equivalent to ministries, agencies under the Government, Chairmen of Provincial People's Committees, or the Prime Minister.

3- Re-inspection decisions must clearly specify the requirements, content, and duration of the re-inspection.

4- The duration of the re-inspection shall be applied according to the inspection duration specified in Article 15 of this Decree.

Article 18. The inspection team must strictly adhere to the requirements, content, and duration specified in the inspection decision. If the team discovers signs of legal violations by the enterprise outside the content specified in the decision, they must promptly report to the person who issued the decision for handling.

Article 19. During the inspection process, the application of measures such as asset seizure and document sealing must follow the procedures prescribed by law.

The inspection team or inspectors may only work with responsible persons of the enterprise at the office or headquarters of the enterprise and must have a schedule for working hours. When responsible persons of the enterprise directly explain to the inspection team, there must be at least two members of the team present.

Article 20. Within the time limit specified in Article 15 of this Decree, the inspection team must announce the draft inspection conclusion to the inspected enterprise. The announcement of the draft inspection conclusion must be recorded in a protocol.

In cases where the enterprise does not agree with the content of the draft inspection conclusion, it has the right to explain to the inspection team. The enterprise's explanations must be recorded in the protocol and considered in the conclusion.

Article 21. At the latest twenty days from the date of announcing the draft inspection conclusion, the inspection team must issue a formal conclusion on the inspected content. The inspection conclusion must be sent to the person who issued the inspection decision, the inspected enterprise, and the higher-level state inspection organization.

In cases where the inspection conclusion involves party members, the person who issued the inspection decision is responsible for providing relevant materials and conclusions to the Party Committee and the Party Inspection Committee with authority upon request.

Article 22. The inspection conclusion is a document determining the content of the inspection at the enterprise and serves as a legal basis for competent state agencies to issue decisions to handle the case. Subsequent inspection teams must study and utilize the content concluded by previous inspection teams. The inspected enterprise is responsible for providing previous inspection conclusions as required by the inspection team.

PART 2: INSPECTION PROCEDURES

Article 23. The issuance of inspection decisions must be based on approved programs and plans or the discovery of violations of laws.

Inspection decisions shall be issued by the head of the competent agency responsible for inspections.

Inspection decisions must notify the enterprise to be inspected at least three days before the inspection takes place, except in cases of extraordinary inspections when violations of laws occur.

Article 24. Inspection decisions must clearly state:

1- Legal basis for the inspection;

2- Content, requirements, scope of the inspection;

3- Duration of the inspection;

4- Members of the inspection team; rights and responsibilities of those performing inspection tasks;

5- Rights and obligations of the enterprise being inspected.

Article 25. The direct inspection period for each inspection shall not exceed five days from the date of announcing the inspection decision at the enterprise. In special cases, the person issuing the inspection decision may extend the time. The extension period shall not exceed the duration specified for each inspection.

Article 26. Persons assigned to perform inspections may only inspect documents, materials, books, vouchers of the enterprise related to the contents recorded in the inspection decision.

Article 27. At the latest within three days from the expiration of the deadline stipulated in Article 25 of this Decree, persons assigned to perform inspections must issue a conclusion document regarding the inspected contents. The conclusion document must be sent to the person issuing the inspection decision and the enterprise being inspected.

Article 28. Inspection procedures of State Audit agencies shall be carried out in accordance with the provisions of the law on state audit.

Article 29. According to inspection programs and plans or when there are violations of laws in the field of state management of national security, public order, social safety, or when there are reports of criminal offenses related to enterprises, economic police forces, economic security forces, cultural security forces, administrative police forces for public order and social safety, fire prevention and firefighting police forces, drug crime prevention and suppression police forces, according to their functions, may conduct inspections of books, papers, materials, warehouses, meet with responsible persons who know about the matter, and carry out other activities as prescribed by law.

Inspections must have a written decision by the Director, Deputy Director of the Provincial Police Department under the central government; Chief or Deputy Chief of the County, District, City, Town Police Departments; Heads of Economic Police, Economic Security, Cultural Security, Administrative Police for Public Order and Social Safety, Fire Prevention and Firefighting, Drug Crime Prevention and Suppression Police Departments. The decision must clearly state the basis, content, duration of the inspection, and the person performing the task.

Activities of initiating and investigating criminal cases must comply strictly with the provisions of the Criminal Procedure Code regarding the procedures, formalities, authority, and deadlines for such activities.

PART IV
RIGHTS AND OBLIGATIONS OF ENTERPRISES AND RESPONSIBILITIES OF STATE AGENCIES IN INSPECTION ACTIVITIES

OF STATE AGENCIES IN INSPECTION ACTIVITIES

Article 30.

1- Enterprises subject to inspection have the right:

a) To refuse inspection without a decision from the authorized state agency as provided for in this Decree; to make recommendations to the competent authority to resolve overlapping inspections of their enterprise as provided for in Article 31 of this Decree;

b) To request explanations on the contents of the inspection;

c) To receive inspection conclusions;

d) To lodge complaints and denunciations according to the law on actions contrary to the law during the inspection process against the enterprise;

đ) To demand compensation for losses caused by unlawful measures taken by inspection officers.

2- Enterprises subject to inspection have the obligation:

a) To appoint authorized personnel to work with the inspection team or inspection officers;

b) To provide timely information, materials, and reports as required by the person assigned to perform the inspection task and bear legal responsibility for the information, materials, and reports provided;

c) To strictly comply with requests, recommendations, decisions, and conclusions on inspections.

Article 31.

1- The Minister, Head of a Ministry-level agency, agency under the Government, Chairman of the People's Committee of a province or centrally governed city shall resolve overlapping inspections within their respective areas of state management upon the proposal of the Inspector General at the same level.

2- The State Inspector General shall resolve overlapping inspections decided by the Minister, Head of a Ministry-level agency, agency under the Government, Chairman of the People's Committee of a province or centrally governed city.

Article 32.

1-During the inspection process, if it is found necessary to conduct an inspection, the person assigned to perform the inspection must report to the competent authority to proceed with the inspection according to the legal procedures.

2-During the inspection process, if signs of criminal offenses are discovered, the person assigned to perform the inspection must recommend the competent authority to transfer the file or notify the investigation agency according to the provisions of the criminal procedure law.

Article 33. Persons assigned to perform inspections have the responsibility to manage and use properly the vouchers and materials provided by the enterprise; to strictly comply with confidentiality regulations and not to provide information and materials related to the inspection to unauthorized persons.

Article 34. Strictly prohibited are inspections of enterprises without a decision from an authorized state agency; arbitrarily expanding the scope of inspections; using false documents or violating other inspection procedures.

Strictly prohibited are inspection officers causing harassment, creating undue difficulties, intentionally making inaccurate conclusions, shielding violators, making unlawful demands on inspected enterprises, coercing inspected enterprises in providing explanations and answering inquiries.

Strictly prohibited are enterprises bribing inspection officers in any form.

Article 35. The Minister, Head of an agency at the ministerial level, member of the Government, Chairman of the People's Committee of a province or centrally governed city within their scope of state management shall be responsible for handling complaints and denunciations regarding inspections and examinations of enterprises in accordance with the provisions of the law, or directing the Inspector General at the same level to handle such complaints and denunciations.

Article 36. Any person who violates the provisions of this Decree shall, depending on the nature and extent of the violation, be subject to disciplinary action or criminal responsibility pursued; if damage is caused, compensation must be provided in accordance with the law.

CHAPTER V
IMPLEMENTING PROVISIONS

Article 37. The State Inspector General assists the Prime Minister in guiding, inspecting, and urging the implementation of this Decree; every six months, they will jointly organize with relevant ministries and sectors to review experiences and propose measures to address newly emerging issues in inspection and examination work to the Prime Minister.

Article 38. The State Inspector General collaborates with the Procurator General of the Supreme People's Procuracy to define the scope of inspection activities and prosecution, and to resolve overlapping and repetitive issues in inspection and prosecution activities.

The Inspector General of a province or centrally governed city coordinates with the Procurator General of the People's Procuracy at the same level to resolve overlapping and repetitive issues in inspection and examination activities within their local jurisdiction.

Article 39. The Minister, Head of an agency at the ministerial level, member of the Government, Chairman of the People's Committee of a province or centrally governed city shall be responsible for organizing and directing the implementation of this Decree.

Article 40. This Decree takes effect fifteen days from the date of signature, all previous regulations that conflict with this Decree are hereby abolished./.