Fines for Administrative violations against regulations on investment in Vietnam

Hi DMS Attorneys in Da Nang, Vietnam! My foreign company is investing to set up a subsidiary in Vietnam in the form of a 100% FDI company, doing business on manufacturing products for export. This is our first investment project in Vietnam, can you advise on penalties for violations against regulations on investment in Vietnam ?

Hi!

Violations against regulations on investment in Vietnam: 

A fine of VND 1,000,000 - VND 5,000,000 shall be imposed for failure to submit a report to the investment registration authority before commencing the execution of an investment project which is not granted an investment registration certificate.

A fine of VND 5,000,000 - VND 10,000,000 shall be imposed for any of the following violations:

Failure to submit reports on investment activities, investment project supervision and/or assessment;

Submitting an untruthful report on investment activities;

Making investment in conditional business lines without satisfying all conditions specified in the Law on Investment;

Establishing an executive office of a foreign investor in the business cooperation contract without registering with the investment registration authority of the area where the executive office is located;

Shutting down an executive office of a foreign investors in the business cooperation contract without notifying the investment registration authority of the area where the executive office is located.

A fine of VND 10,000,000 - VND 20,000,000 shall be imposed for submitting an untruthful document to obtain the certificate of investment or investment registration certificate or decision on investment policies.

A fine of VND 20,000,000 - VND 30,000,000 shall be imposed for any of the following violations:

Failure to follow procedures for registration of capital contribution, purchase of capital contributions/shares of a business organization;

Failure to follow procedures for investment project adjustment;

Extending the duration of project execution or investment without submitting a written proposal to the investment registration authority or such proposal is not approved in writing by the investment registration authority;

Suspend an investment project without sending a written notification to the investment registration authority or the suspension is not approved in writing by the investment registration authority;

Failure to follow procedures for shutting down or liquidating an investment project.

A fine of VND 30,000,000 - VND 40,000,000 shall be imposed for any of the following violations:

Failure to make investment in accordance with the content of the application for investment registration (where the investment registration certificate is not issued) or the certificate of investment or investment registration certificate or decision on investment policies;

Failure to satisfy conditions for investment by capital contribution or purchase of capital contributions/shares of foreign investors;

Failure to satisfy all conditions when transferring an investment project;

Making investment in business lines banned from investment specified in the Law on Investment.

A fine of VND 40,000,000 - VND 60,000,000 shall be imposed for any of the following violations:

Failure to follow investment sequences, procedures;

Carrying on the project execution after the investment registration authority issues a decision on suspension of the project;

Carrying on the project execution after its shutdown without approval by the investment registration authority;

Failure to commence the investment project after 12 months without by the investment registration authority.

A fine of VND 60,000,000 - VND 80,000,000 shall be imposed for commencing a project before a certificate of investment, investment registration certificate, or decision on investment policies is issued.

Penalties for Administrative violations against regulations on investment in Vietnam

Remedial measures:

Force to register the executive office of a foreign investors in the business cooperation contract (BCC) in case of the violation specified in Point d Clause 2 of this Article;

Force to send a written notification to the investment registration authority in case of the violation specified in Point dd Clause 2 of this Article (Article 13 Decree No. 50/2016/NĐ-CP dated Janurary 06, 2016).

Therefore, you may study and refer to provisions of law on penalties for Administrative violations against regulations on investment in Vietnam to better understand the issue./.

Consulting services:

Phone: 0914 165 703 or Email: dmslawfirm@gmail.com

Fines for Administrative violations against regulations on investment in Vietnam