I. LEGAL DOCUMENTS

Decree 122/2021/ NĐ-CP

II. CONTENTS

1. Penalties and remedial measures:

Main penalties include:

a)Warnings

b)Fines

Depending on the nature, severity of the violation, the violiator (organization or individual) may be liable to one or more remedial measures under the law regulations.

The maximum fine for an administrative violation against regulations on investment: VND 300,000,000

2. Some administrative violations against regulations on business investment

2.1 Violations against regulations on reporting and providing information about investment activities in Vietnam (Article 15 of Decree)

1) A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following violations:

a) Making a report on investment supervision/assessment behind schedule or in an insufficient manner as prescribed;

b) Failure to comply with regulations on reporting investment supervision/assessment on a periodic basis as prescribed.

2) A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for any of the following violations:

a) Failure to comply with regulations on reporting investment activities or reporting investment activities behind prescribed schedule;

b) Submitting an untruthful or inaccurate report on investment activities;

c) Failure to send a folder to the investment registration authority of the area where the operating office is located within 07 working days from the date on which the decision to shut down the operating office of the foreign investor to BCC is issued;

d) Failure to send a notification to the investment registration authority within 05 working days from the date on which the decision on investment project termination is issued;

đ) Failure to send a notification of or decision on investment project termination to the investment registration authority within 15 working days from the date of investment project termination in the cases specified in Clause 1 Article 48 of the Law on Investment.

3) Remedial measures:

The violator is compelled to:

a) complete the investment supervision/assessment report if the violation specified in Point a Clause 1 of this Article is committed;

b) comply with regulations on reporting investment supervision/assessment on a periodic basis if the violation specified in Point a Clause 1 of this Article is committed.

c) comply with regulations on reporting investment activities in case of failure to comply with reporting regulations if the violation specified in Point a Clause 2 of this Article is committed;

d) send a notification of or decision on investment project termination to the investment registration authority if any of the violations specified in Points c, d and dd Clause 2 of this Article is committed.

2.2 Violations against regulations on conditions for business investment in Vietnam (Article 16 of Decree)

1) A fine ranging from VND 80,000,000 to VND 100.000.000 shall be imposed for contributing capital to, purchasing stakes or purchasing shares of a business organization without satisfying the prescribed conditions.

2) A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed upon:

a) any investor that transfers part or whole of their investment project without satisfying the prescribed conditions; or

b) any foreign investor or business organization specified in Point a, Point b or c Clause 1 Article 23 of the Law on Investment 2020 that receives part or whole of an investment project without satisfying the prescribed conditions.

3) A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for making business investment in banned business lines prescribed by law.

4) Remedial measures: The violator is compelled to terminate their business investment activities and return the illegal benefits obtained from the business investment in the banned business lines if the violation specified in Clause 3 of this Article is committed.

2.3 Violations against regulations on execution of investment projects in Vietnam (Article 19 of Decree)

1) A fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed for any of the following violations:

a) Failure to pay a deposit or obtain a bank guarantee for deposit payment obligation for execution of an investment project that requests the State to allocate or lease out land or grant permission for land repurposing unless otherwise prescribed by law;

b) Failure to follow procedures for guaranteeing of execution of an investment project on prescribed schedule;

c) Increasing the investment capital of a project without paying an additional amount of deposit or credit institution’s deposit payment guarantee when requested in writing by the investment authority;

d) Making an unlawful, untruthful, inaccurate application for reduction in the costs of guarantee for project execution.

2) A fine ranging from VND 70,000,000 to VND 100,000,000 shall be imposed for any of the following violations:

a) Failure to correctly comply with the written approval for investment guidelines, written approval for both investment guideline adjustment and investor change, written approval for investor or investment registration certificate;

b) Failure to follow the procedures for liquidating the investment or project and discharge financial obligations to the State as prescribed by law;

c) Suspending an investment project for a total period of more than 12 months.

3) A fine ranging from VND100,000,000 to VND 200,000,000 shall be imposed for any of the following violations:

a) Executing the project before being granted the investment registration certificate or approval for investment guidelines, approval for both investment guideline adjustment and investor change or investor approval;

b) Failure to suspend the investment project after the competent authority decides to suspend the investment project or suspend it in part or in full.

4) Remedial measures:

The violator is compelled to:

a) pay an additional amount according to regulations of law if the violation specified in Point c Clause 1 of this Article is committed;

b) Return the illegal benefits obtained from making the unlawful, untruthful, inaccurate application if the violation specified in Point d Clause 1 of this Article is committed;

c) follow procedures for liquidating the investment project and discharging financial obligations if the violation specified in Point b Clause 2 of this Article is committed;

d) continue to execute the investment project according to the schedule on the investment registration certificate, written approval for investment guidelines and written approval for both investment guideline adjustment and investor change or terminate the investment project if the violation specified in Point c Clause 2 of this Article is committed written;

đ) apply for the investment registration certificate, approval for both investment guideline adjustment and investor change or investor approval if the violation specified in Point a Clause 3 of this Article is committed.

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