Decree No. 53/2007/ND-CP of April 04, 2007, stipulating the sanctioning of administrative violations in the domain of planning and investment.

DECREE

STIPULATING THE SANCTIONING OF ADMINISTRATIVE VIOLATIONS IN THE DOMAIN OF PLANNING AND INVESTMENT

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 10, 2003 Law on Cooperatives;
Pursuant to the November 29, 2005 Law on Enterprises;
Pursuant to the November 29, 2005 Law on Investment;
Pursuant to the November 29, 2005 Law on Bidding;
Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations;
At the proposal of the Minister of Planning and Investment,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation
1. This Decree provides acts of administrative violation, forms and levels of sanction, competence to sanction and procedures for sanctioning administrative violations in the domain of planning and investment.
2. Administrative violations in the domain of planning and investment are acts of violation of State regulations on planning and investment intentionally or unintentionally committed by organizations or individuals which do not constitute criminal offenses but, according to the provisions of the Ordinance on Handling of Administrative Violations and this Decree, are subject to administrative sanction.
3. Acts of administrative violation in the domain of planning and investment provided in this Decree include:
a/ Violations of regulations on socio-economic development plans and plannings;
b/ Violations of regulations on investment with state capital;
c/ Violations of regulations on investment by investors, business registration by enterprises, cooperatives, cooperatives’ unions and business households;
d/ Violations of regulations on planning and investment inspection and supervision.
4. Acts of administrative violation in another specialized domain are subject to the provisions of law applicable to such domain.
Article 2.- Subjects of application
1. Vietnamese organizations and individuals committing acts of administrative violation in the domain of planning and investment shall be administratively sanctioned under the provisions of this Decree.
Cadres, public employees and servants committing acts specified in Chapter II of this Decree while performing their assigned official duties shall not be administratively sanctioned but be handled and disciplined under the law on cadres and public employees.
Laborers who work under contract in State agencies or organizations committing acts specified in Chapter II of this Decree while performing their official duties shall be handled according to the terms of their labor contracts.
2. Foreign organizations and individuals committing acts of administrative violation in the domain of planning and investment shall be sanctioned under the provisions of this Decree. When a treaty to which the Socialist Republic of Vietnam is a contracting party contains different provisions on the same issue, the provisions of that treaty shall be applied.
Article 3.- Principles of sanctioning of administrative violations in the domain of planning and investment
1. Acts of administrative violation shall be promptly detected and immediately stopped. Administrative sanctions shall be imposed in a rapid, just and thorough manner under the provisions of the Ordinance on Handling of Administrative Violations and this Decree. Consequences caused by acts of violation must be redressed in accordance with law.
2. Organizations and individuals shall be administratively sanctioned only when they commit administrative violations specified in this Decree.
3. An organization that is administratively sanctioned shall clearly determine the legal liability and financial obligation of individuals who are at fault in the administrative violation right after it completely serves the sanctioning decision in accordance with law.
4. Administrative violations shall be sanctioned by competent persons according to procedures prescribed by law.
5. An act of administrative violation shall be sanctioned only once. Organizations or individuals committing more than one administrative violation shall be sanctioned for each. Many organizations and individuals committing one act of administrative violation shall each be sanctioned.
If the form of sanction is fine, an aggregate fine shall be imposed under a single sanctioning decision which determines the form and level of sanction for each act of violation.
6. An administrative violation shall be sanctioned in an appropriate form and with appropriate sanctioning measure based on the nature and severity of violation, the personal record of the violator and extenuating and aggravating circumstances. Extenuating and aggravating circumstances are applied under the provisions of Article 8 and Article 9 of the Ordinance on Handling of Administrative Violations.
7. No sanction shall be imposed on administrative violations committed in urgent circumstances, legitimate self defense or sudden events or committed by persons who suffer from mental diseases or other diseases that deprive them of the ability to perceive or control their acts.
Article 4.- Statute of limitations for sanctioning administrative violations in the domain of planning and investment
1. The statute of limitations for sanctioning administrative violations is one year, counting from the date of commission of administrative violations. Particularly for acts of administrative violation in the domain of planning and investment which are related to construction, the statute of limitations for sanctioning is two years, counting from the date of commission of administrative violations.
Past the above statute of limitations, a violator shall not be sanctioned but shall still be forced to take remedies specified in Clause 3, Article 5 of this Decree.
2. For individuals against whom a criminal case was instituted, who were prosecuted or against whom a decision to bring a criminal case for trial was issued according to criminal procedures but then a decision on investigation termination or criminal case termination was issued, if their acts show signs of administrative violation, they shall be administratively sanctioned; in this case, the statute of limitations for sanctioning is three months, counting from the date the person with sanctioning competence receives the termination decision and the dossier of the violation.
3. Within the period of time specified in Clause 1 or Clause 2 of this Article, if an organization or individual commits a new act of administrative violation in the same domain of the previous violation or intentionally shirks or obstructs the sanctioning, the statute of limitations specified in Clause 1 or 2 of this Article shall not be applied; in this case, the statute of limitations for sanctioning administrative violations shall start from the time of commission of the new act of administrative violation or the time of termination of the act of shirking or obstructing the sanctioning.
Article 5.- Forms of sanction against administrative violations and remedies to consequences in the domain of planning and investment
1. For every act of administrative violation, the violating organization or individual is subject to either of the following principal sanctions:
a/ Caution;
b/ Fine.
The maximum fine is VND 70,000,000.
2. Depending on the nature and severity of violation, a violating organization or individual may also be subject to an additional sanction of deprivation of the right to use practice certificate.
3. Depending on the nature and severity of violation, a violating organization or individual may also be forced to take one or several remedies specified in the articles of Chapter II of this Decree.
Chapter II

FORMS AND LEVELS OF SANCTION AGAINST ACTS OF ADMINISTRATIVE VIOLATION IN THE DOMAIN OF PLANNING AND INVESTMENT

Section 1. FORMS AND LEVELS OF SANCTION AGAINST ACTS OF ADMINISTRATIVE VIOLATION RELATED TO SOCIO-ECONOMIC DEVELOPMENT PLAN AND PLANNING
Article 6.- Acts of violation of regulations on planning work
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on organizations or individuals submitting or approving plans on investment with state capital in contravention of regulations.
2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed on organizations or individuals using allocated state capital in contravention of regulations.
3. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on organizations or individuals allocating in advance state capital in contravention of regulations.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may be subject to one or both of the following measures:
a/ Forced use of allocated state capital according to regulations, for violations specified in Clause 2 of this Article;
b/ Recovery of capital amounts advanced in contravention of regulations, for violations specified in Clause 3 of this Article.
Article 7.- Acts of violation of regulations on socio-economic development planning
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals formulating a socio-economic development planning in contravention of the prescribed order and procedures.
2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Formulating a socio-economic development planning based on insufficient grounds or with insufficient contents as prescribed;
b/ Preparing a cost estimate for making a socio-economic development planning not based on evaluation results;
c/ Paying or finalizing expenses for making a socio-economic development planning in contravention of regulations.
3. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed on organizations or individuals failing to comply with an approved socio-economic development planning.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual shall also be forced to comply with the provisions of law.
Section 2. FORMS AND LEVELS OF SANCTION AGAINST ACTS OF ADMINISTRATIVE VIOLATION RELATED TO INVESTMENT WITH STATE CAPITAL
Article 8.- Acts of violation of regulations on pre-feasibility study reports (work construction investment reports), feasibility study reports (work construction investment projects) or investment reports (econo-technical reports on work construction)
1. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Paying or finalizing expenses for survey products, pre-feasibility study reports, feasibility study reports or investment reports in contravention of regulations;
b/ Taking over pre-feasibility study reports, feasibility study reports or investment reports with insufficient contents as prescribed.
2. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Preparing, evaluating or approving survey outlines (tasks) which fail to conform with prescribed technical standards and contain prescribed contents for making pre-feasibility study reports, feasibility study reports or investment reports;
b/ Making or evaluating pre-feasibility study reports, feasibility study reports or investment reports when investment has not yet been permitted by competent authorities.
3. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to evaluate pre-feasibility study reports, feasibility study reports or investment reports within the prescribed time limit;
b/ Failing to conduct surveys, make or evaluate pre-feasibility study reports, feasibility study reports or investment reports according to the prescribed order and procedures;
c/ Making or evaluating pre-feasibility study reports, feasibility study reports or investment reports against the approved planning or without approval of competent authorities when no planning is available yet.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced compliance with regulations on take-over, payment and finalization, for violations specified in Clause 1 of this Article;
b/ Forced making, evaluation or approval of survey outlines (tasks) for making pre-feasibility study reports, feasibility study reports or investment reports conformable to technical standards and with proper contents as prescribed, for violations specified at Point a, Clause 2 of this Article;
c/ Forced survey, making or evaluation of pre-feasibility study reports, feasibility study reports or investment reports according to the prescribed order and procedures, for violations specified at Point b, Clause 3 of this Article;
d/ Forced making or evaluation of pre-feasibility study reports, feasibility study reports or investment reports in line with the approved planning, for violations specified at Point c, Clause 3 of this Article.
Article 9.- Acts of violation of regulations on survey, designing, and making of cost estimates and total cost estimates
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Conducting survey without an approved survey outline (tasks);
b/ Approving a survey outline (tasks) or a design with insufficient contents or unconformable with technical standards as prescribed;
c/ Performing steps of survey, making a design, a cost estimate or total cost estimate in contravention of regulations;
d/ Making a technical design or construction drawing design inconsistent with the approved basic design;
e/ Making a technical design, construction drawing design, cost estimate or total cost estimate inconsistent with survey results and technical standards as prescribed.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Making a survey outline (tasks) or a design with insufficient contents or unconformable with technical standards according to regulations;
b/ Failing to submit for evaluation or approval a total cost estimate within the prescribed time limit;
c/ Failing to conduct author supervision according to regulations.
3. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on organizations or individuals evaluating or approving technical designs, construction drawing designs, cost estimates or total cost estimates inconsistent with approved basic designs or total cost estimates.
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Modifying, adjusting or supplementing a design, cost estimate or total cost estimate ultra vires or in contravention of regulations on management of investment projects;
b/ Improperly applying state regulations on unit prices, econo-technical norms and expenses when making cost estimates;
5. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced performance of steps of making or evaluating a technical design, cost estimate or total cost estimate according to regulations, for violations specified at Point c, Clause 1 of this Article;
b/ Forced re-making of a survey outline (tasks), design, cost estimate or total cost estimate according to regulations, for violations specified at Point b, Point d, Point e, Clause 1, and Point a, Clause 2 of this Article;
c/ Forced recovery of author supervision expenses, for violations specified at Point c, Clause 2 of this Article;
d/ Forced adjustment of a technical design, cost estimate or total cost estimate according to the approved basic design or total investment amount, for violations specified in Clause 3 of this Article;
e/ Forced proper application of unit prices, econo-technical norms and expenses in cost estimation according to regulations, for violations specified at Point b, Clause 4 of this Article.
Article 10.- Acts of violation of regulations on reporting on investment supervision and evaluation
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals failing to report on investment supervision or evaluation on time.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on organizations or individuals making investment supervision or evaluation reports with insufficient contents according to regulations.
3. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to make an investment supervision or evaluation report;
b/ Making an untruthful or inaccurate investment supervision or evaluation report.
4. Apart from the sanction defined in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual shall also be forced to make an investment supervision or evaluation report according to regulations.
Article 11.- Acts of violation of regulations on bidding plans
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals making, submitting or evaluating bidding plans with insufficient contents as prescribed in the bidding law.
2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on organizations or individuals using a form of contract in contravention of the bidding law.
3. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Making, submitting or evaluating the division of a project into different bidding packages in contravention of the bidding law for the purpose of designating contractors or creating opportunities for few contractors to bid;
b/ Preparing, submitting or evaluating the use of forms of contractor selection other than public bidding when failing to ensure conditions prescribed by the bidding law;
c/ Approving a bidding plan so as to allow the selection of contractors when the funding source for the performance of a bidding package is not available.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced making, submission, evaluation or approval of a bidding plan according to regulations, for violations specified in Clause 1 and at Point c, Clause 3 of this Article;
b/ Forced use of a form of contractor selection or a form of contract according to regulations, for violations specified in Clause 2, and at Point b, Clause 3 of this Article;
c/ Ban from participating in bidding activities for between six months and one year, for violations specified in Clause 3 this Article;
d/ Having the violation published in the bidding newspaper and bidding website.
Article 12.- Acts of violation of regulations on bid invitation dossiers
1. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Compiling or hiring consultants to make a bidding dossier for a construction bidding package without a technical design enclosed with an approved cost estimate or total cost estimate;
b/ Failing to make a bidding dossier evaluation report.
2. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to state in bidding dossiers important requirements (prerequisite conditions) which bids must meet unless they will be rejected;
b/ Failing to state appraisal criteria in bidding dossiers;
c/ Setting forth in bidding dossiers requirements exceeding the size and nature of bidding packages in order to limit and prevent the number of bidding contractors.
3. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals making demands related to specific goods trademarks and origins in bidding dossiers for bidding packages of goods procurement, construction and installation or selection of general construction contractors.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may be subject to one or more of the following measures:
a/ Forced compliance with the provisions of law on bidding;
b/ Ban from participating in bidding activities for between six months and one year, for violations specified in Clause 3 of this Article;
c/ Having the violation published in the bidding newspaper and bidding website.
Article 13.- Acts of violation of regulations on organization of biddings, selection of contractors and management of contractors
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Publicizing bid invitations in an insufficient number of times or not according to schedule as prescribed by the bidding law;
b/ Failing to put signatures for certification on every original page of a bid as prescribed;
c/ The bid-opening minutes fails to contain sufficient contents according to regulations.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Distributing bidding dossiers which have not yet been approved;
b/ Failing to open bids as soon as closing a bidding according to regulations;
c/ Failing to make a decision to set up a team of bidding experts according to the bidding law.
3. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to publicize bid invitations according to the bidding law;
b/ Failing to make a bid opening minutes;
c/ Failing to invite a sufficient number of contractors or qualified and experienced contractors as prescribed for restricted bidding;
d/ Setting up a team of bidding experts failing to meet requirements set by the bidding law;
e/ Holding a bidding when the capital source for the bidding package has not yet been identified, unless the capital source of the bidding package is to be arranged by the winning contractor as stated in the bidding dossier;
f/ Conducting selection of contractors (from notification of pre-qualification selection to notification of bid invitations) when the bidding plan has not yet been approved in writing by the investment decider;
g/ Designating contractors in contravention of the bidding law.
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Improperly implementing the approved bidding plan regarding the form of contractor selection or contract form;
b/ Approving the contractor selection result when no credit commitment has been made yet, for the case where the capital source for the bidding package must be arranged by the winning contractor according to the bidding plan;
c/ Allowing contractors to supplement bids or accepting their bid reduction letters after closure of a bidding;
5. A fine of between VND 15,000,000 and VND 18,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Participating in a bidding in the capacity as a contractor for the bidding package in which such organization or individual is the bid solicitor;
b/ Deciding on the winning bid offered by a contractor of which the application for participation in a bidding for a bidding package under a project of an agency or organization is signed by a person who has received a job discontinuation decision from such agency or organization for less than one year;
c/ Individuals personally participating in organizing a bidding or evaluating bids who are employed by the investor or bid solicitor, members of the team of bidding experts, bidding consultants, individuals personally participating in evaluating the contractor selection results who are employed by the evaluation agency or organization and the person signing the decision on the contractor selection results failing to withdraw from their assigned jobs when the person signing the bidding participation application is their relative (natural parent, parent-in-law, spouse, natural child, adopted child, daughter-in-law, son-in-law or natural sibling);
d/ Accepting or proposing the winning of a bid by a contractor participating in a bidding for goods procurement or construction and installation for a bidding package of a project in which this contractor previously provided consultancy services, except for EPC bidding packages, bidding packages for selection of general designing and construction contractors or general contractors for turnkey projects.
6. A fine of between VND 18,000,000 and VND 20,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Abusing one’s power and influence to compel the investor, bid solicitor, the team of bidding experts, bidding consultants, organizations or agencies evaluating contractor selection results to nominate winning contractors that fail to meet the requirements and evaluation criteria set in the bidding dossier;
b/ Allowing the contractor to transfer contractual work without permission of the investment decider, except for the work under the responsibility of sub-contractors already declared in the contract.
7. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ The bid solicitor and the contractor or the state management agency and the bid solicitor and the contractor conniving together in modifying the bids or conniving with the evaluation or inspection agency, thereby affecting collective or national interests;
b/ Two or more contractors making arrangements or entering into collusion to enable one of them to win in the same bidding package, the bidding package-performing contractor and the supervision consultancy contractor, the bidding package-performing contractor and the agency or organization assigned to test and take over the performance results entering into collusion.
8. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on contractors performing construction, installation or procurement contracts that enter into collusion with the supervision consultancy contractor or the take-over agency or organization to give wrong certification of the quality and volume of the work or goods in question.
9. Apart from the sanction specified in Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7 or Clause 8 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced compliance with the provisions of law on bidding;
b/ Ban from participating in bidding activities:
For between six months and one year, for violations specified in Clause 5 of this Article;
For between one year and three years, for violations specified in Clause 6 of this Article;
For between three years and five years, for violations specified in Clause 7 of this Article;
c/ Having the violation published in the bidding newspaper and bidding website.
Article 14.- Acts of violation of regulations on evaluation of bids
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to make working minutes or reports on bidding results;
b/ Failing to properly follow the process of evaluating bids in accordance with the bidding law;
c/ Failing to make clear bids in accordance with the bidding law.
2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on organizations or individuals failing to evaluate bids according to evaluation criteria and other requirements set forth in the approved bidding dossier or requirement dossier without distorting the contractor selection results.
3. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Evaluating bids or requirement dossiers, evaluating or approving contractor selection results not based on requirements set forth in the bidding dossier or requirement dossier enclosed with evaluation criteria, thereby distorting contractor selection results or leading to cancellation of the bidding;
b/ Participating in evaluating bids at the same time with evaluating contractor selection results with respect to the same bidding package.
4. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed on organizations or individuals intentionally making false or untruthful reports, thereby distorting the results of selection of contractors, signing or performance of contracts.
5. Apart from the sanction specified in Clause 1, Clause 2, Clause 3 or Clause 4 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced compliance with the provisions of law on bidding;
b/ Ban from participating in bidding activities:
For between six months and one year, for violations specified at Point b, Clause 5 of this Article;
For between one year and three years, for violations specified in Clause 6 of this Article;
c/ Having the violation published in the bidding newspaper and bidding website.
Article 15.- Acts of violation of regulations on signing and management of contracts
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Collecting contract performance securities not according to prescribed time limit;
b/ Accepting contract performance securities failing to meet prescribed conditions.
2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to collect contract performance securities;
b/ Signing contracts with insufficient prescribed contents.
3. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Applying contract forms inappropriate to contractor selection results;
b/ Signing contracts inconsistent with bidding dossiers, requirement dossiers, bids, proposal dossiers and contractor selection results;
c/ Adjusting contracts in contravention of the bidding law;
d/ Failing to fine the party that commits breaches of contract according to the terms of the signed contract.
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals causing troubles in carrying out procedures for fund allocation, payment and finalization according to contracts signed between investor and contractor.
5. Apart from the sanction specified in Clause 1, Clause 2, Clause 3 or Clause 4 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced collection of contract performance securities according to regulations, for violations specified at Point a, Clause 1, and Point a, Clause 2 of this Article;
b/ Forced signing and management of contracts according to regulations;
c/ Ban from participating in bidding activities for between six months and one year, for violations specified in Clause 4 of this Article;
d/ Having the violation published in the bidding newspaper and bidding website.
Article 16.- Acts of violation of regulations on time limits in bidding
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on organizations or individuals failing to comply with regulations on time limits in bidding: time limit for pre-qualification selection of contractors; time limit for notification of bid invitations; time limit for issuance of bidding dossiers; time limit for contractors to prepare bids; time limit for evaluation of bids; time limit for evaluation of contents of bidding plans, bidding dossiers and contractor selection results.
2. Apart from the sanction specified in Clause 1 of this Article, a violating organization or individual shall also be forced to comply with the provisions of law on bidding.
Article 17.- Acts of violation of bidding regulations committed by contractors
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on contractors that make false declarations on their capabilities in their bids for participation in a bidding.
2. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on contractors committing one of the following acts:
a/ Participating in a bidding for goods procurement or construction and installation in a bidding package for which they provide consultancy services, except for EPC bidding packages, bidding packages for selection of general designing and construction contractors or general turnkey contractors;
b/ Signing bidding participation applications with respect to bidding packages of projects owned by their former employing agencies or organizations within one year since the time of receiving decisions allowing them to discontinue working at these agencies or organizations.
3. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed on contractors committing one of the following acts:
a/ Abusing the right to file petitions in bidding to obstruct the bidding process and the signing of contractors or to prevent other contractors from participating in a bidding;
b/ Intentionally supplying untruthful information in their bids, thus distorting the results of contractor selection, contract signing and performance;
c/ Using their names, signatures and seals to legalize their bids for participation in a bidding in order to help another contractor win in the bidding;
d/ Letting other contractors use their names, signatures and seals; using other contractors’ names, signatures and seals to form a partnership participating in a bidding but failing to implement the partnership agreement document after winning the contract, unless otherwise provided for in the contract;
e/ Transferring to other contractors 10% or more of the value of work (after deducting the work volume falling under the responsibility of subcontractors) they are required to perform by themselves according to the signed contract, except for plausible reasons approved by the investment decider.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced fulfillment of commitments stated in their bids and compliance with the provisions of law on bidding;
b/ Recovery of the proceeds from the illegal transfer of the contractual work, for violations specified at Point e, Clause 3 of this Article;
c/ Ban from participating in bidding activities:
For between six months and one year, for violations specified in Clause 2 of this Article;
For between one year and three years, for violations specified in Clause 3 of this Article.
d/ Having the violation published in the bidding newspaper and bidding website.
Article 18.- Acts of violation of regulations on assurance of information in bidding
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on investors failing to publish information in accordance with the bidding law.
2. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Disclosing documents and information pertaining to the contents of bidding dossiers before the prescribed time of issuance;
b/ Disclosing other related bidding documents and information affixed with confidentiality marks according to the law on confidentiality;
c/ Disclosing documents and information about reports of the bid solicitor, reports of the team of experts, reports of consultancy contractors, reports of related professional agencies in the process of bidding, consideration of bids and evaluation before the announcement of contractor selection results;
d/ Disclosing documents and information pertaining to the contents of bids, notebooks and minutes of bid consideration meetings, comments of the team of experts or consultants on each bid before the announcement of contractor selection results;
e/ Disclosing documents and information on the bid solicitor’s requests for clarification of bids and contractors’ replies in the process of evaluating bids before the announcement of contractor selection results;
f/ Disclosing documents and information on contractor selection results not yet permitted for announcement according to regulations.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating organization or individual may also be subject to one or more of the following measures:
a/ Forced compliance with the provisions of law on bidding;
b/ Ban from participating in bidding activities for between six months and one year, for violations specified in Clause 2 of this Article;
c/ Having the violation published in the bidding newspaper and bidding website.
Article 19.- Acts of violation of regulations on management of investment projects on construction of works
Investors committing acts of violation of regulations on management of investment projects on construction of works shall be administratively sanctioned under the provisions of Article 9 of the Government’s Decree No. 126/2004/ND-CP of May 26, 2004, on sanctions against administrative violations in urban infrastructure construction and management and house use management.
Article 20.- Acts of violation of regulations on quality management of construction works
1. Investors committing acts of violation of regulations on quality management of construction works shall be administratively sanctioned under the provisions of Article 11 of the Government’s Decree No. 126/2004/ND-CP of May 26, 2004, on sanctions against administrative violations in construction and management of urban infrastructure and management of house use.
2. Construction and installation or goods procurement contractors committing acts of violation of regulations on quality management of construction works shall be administratively sanctioned under the provisions of Article 17 of the Government’s Decree No. 126/2004/ND-CP of May 26, 2004, on sanctions against administrative violations in urban infrastructure construction and management and house use management.
Article 21.- Acts of violation of regulations on test and take-over of and payment for completed work volumes, and finalization of investment capital
1. Investors committing acts of violation of regulations on test and take-over of and payment for completed work volumes, and finalization of investment capital shall be administratively sanctioned under the provisions of Article 12 of the Government’s Decree No. 126/2004/ND-CP of May 26, 2004, on sanctions against administrative violations in urban infrastructure construction and management and house use management.
2. Construction and installation or goods procurement contractors committing acts of violation of regulations on test and take-over of and payment for completed work volumes, and finalization of investment capital shall be administratively sanctioned under the provisions of Article 18 of the Government’s Decree No. 126/2004/ND-CP of May 26, 2004, on sanctions against administrative violations in urban infrastructure construction and management and house use management.
Section 3. FORMS AND LEVELS OF SANCTION AGAINST INVESTMENT-RELATED ADMINISTRATIVE VIOLATIONS OF INVESTORS; AND BUSINESS REGISTRATION-RELATED ADMINISTRATIVE VIOLATIONS OF ENTERPRISES, COOPERATIVES, COOPERATIVE UNIONS AND BUSINESS HOUSEHOLDS
Article 22.- Acts of violation of regulations on investment in Vietnam
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on investors committing one of the following acts:
a/ Failing to make investment reports according to regulations;
b/ Making improper investment reports.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on investors committing one of the following acts:
a/ Making inaccurate and untruthful registration of investment;
b/ Implementing projects behind the prescribed schedule.
3. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on investors committing one of the following acts:
a/ Failing to register investment adjustments for projects subject to adjustment registration;
b/ Failing to properly comply with the contents of investment certificates;
c/ After a period of suspension, resuming execution of a project without notifying in writing the state management agency in charge of investment.
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on investors committing one of the following acts:
a/ Purchasing shares, merging, acquiring enterprises with respect to direct investment by foreign investors in contravention of regulations;
b/ Converting the form of investment of foreign-invested projects in contravention of regulations;
c/ Transferring capital of foreign investors in contravention of regulations;
d/ Transferring projects in contravention of regulations;
e/ Failing to register investment for projects subject to investment registration;
f/ Suspending or rescheduling the execution of investment projects without notifying in writing the state management agency in charge of investment thereof;
g/ Continuing executing a project after having the investment certificate revoked or after the validity duration stated in the investment certificate expires;
h/ Terminating a project without announcement or carrying out project liquidation procedures as prescribed by law.
5. Apart from the sanction specified in Clause 1, Clause 2, Clause 3 or Clause 4 of this Article, a violating investor may also be subject to one or more of the following measures:
a/ Forced making of investment reports according to regulations, for violations specified in Clause 1 of this Article;
b/ Forced registration of investment adjustment, for violations specified at Point a, Clause 3 of this Article;
c/ Forced compliance with the contents of the investment certificate, for violations specified at Point b, Clause 3 of this Article;
d/ Forced termination of operations, for violations specified at Point e and Point g, Clause 4 of this Article;
e/ Forced performance of liquidation procedures according to regulations, for violations specified at Point h, Clause 4 of this Article;
f/ Forced compliance with the provisions of law, for other violations.
Article 23.- Acts of violation of regulations on use of state capital for investment or business
1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on investors investing state capital for business purposes without approval of a competent state agency.
2. Apart from the form of sanction specified in Clause 1 of this Article, the violating investor shall be also forced to comply with the provisions of law.
Article 24.- Acts of violation of regulations on offshore investment
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on investors committing one of the following acts:
a/ Failing to make investment reports according to regulations;
b/ Failing to notify or notifying inadequately the execution of an investment project according to regulations.
2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on investors making inaccurate or untruthful registration in order to be granted an offshore investment certificate.
3. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on investors committing one of the following acts:
a/ Failing to comply with the contents of the investment certificate;
b/ Transferring profits and incomes from offshore investment back home in contravention of regulations;
c/ Failing to transfer all lawful capital and assets back home upon termination of projects according to regulations;
d/ Using profits earned from an offshore investment project for reinvestment in the project itself when the investment certificate has not yet been adjusted according to regulations;
e/ Using profits earned from an offshore investment project for reinvestment in another project when an investment certificate has not yet been granted according to regulations;
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on investors committing one of the following acts:
a/ Making offshore investment without an investment certificate granted by a competent state agency;
b/ Transferring abroad investment capital without an investment certificate or approval of a competent state agency of the host country;
c/ Liquidating an offshore investment project in contravention of law.
5. Apart from the sanction specified in Clause 1, Clause 2, Clause 3 or Clause 4 of this Article, a violating investor may be subject to one or more of the following measures:
a/ Forced making of investment reports according to regulations, for violations specified in Clause 1 of this Article;
b/ Forced compliance with the contents of the investment certificate, for violations specified at Point a, Clause 3 of this Article;
c/ Forced termination of operations, for violations specified at Point a and Point b, Clause 4 of this Article;
d/ Forced compliance with the provisions of law, for other violations.
Article 25.- Acts of violation of regulations on investment incentives
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on investors failing to notify a competent state agency of their failure to fulfill the registered commitments for enjoying investment incentives.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on investors making inaccurate or untruthful declaration in order to enjoy investment incentives.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating investor may also be subject to one or more of the following measures:
a/ Forced fulfillment of the registered commitments or cancellation of investment incentives, for violations specified in Clause 1 of this Article;
b/ Forced completion of the dossier for submission to a competent agency for reconsideration, for violations specified in Clause 2 of this Article;
c/ Forced refund of investment incentives which have been enjoyed in contravention of regulations.
Article 26.- Acts of violation of regulations on establishment and management of enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Registering untruthful or inaccurate information on organizations and individuals in the business registration dossier;
b/ Registering two or more private enterprises under the name of the same owner.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on enterprises having no representative at law permanently residing in Vietnam or showing no written authorization when the representative at law is away from Vietnam for over 30 days.
3. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Registering an organization that is not entitled to participate in establishing an enterprise;
b/ Registering an individual that is not entitled to establish and manage an enterprise;
c/ Failing to register the hiring of the director of a private enterprise according to regulations;
d/ Failing to register within 7 working days after a company shareholder obtains 5% of total shares;
e/ Failing to convene an annual general shareholders meeting within 4 months after the end of the fiscal year without permitted extension of the business registration agency according to regulations.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating enterprise may also be subject to one or more of the following measures:
a/ Forced registration for the renewal of a business registration certificate, for violations specified in Clause 1, and at Point a and Point b, Clause 3 of this Article, except for violations subject to withdrawal of business registration certificate specified at Point a or Point b, Clause 2, Article 165 of the Enterprise Law;
b/ Forced proper registration, for violations specified at Point c or Point d, Clause 3 of this Article;
c/ Forced compliance with the provisions of law, for other violations.
Article 27.- Acts of violation of regulations on establishment and management of cooperatives and cooperative unions
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Registering untruthful or inaccurate information on organizations and individuals in business registration dossiers;
b/ Registering households whose members have no common property for economic activities;
c/ Registering founding members of a cooperative union other than at-law representatives of cooperatives who take the initiative in establishing the cooperative union;
d/ Registering ineligible persons as members of the Management Board or Control Board;
e/ Untruthfully or inaccurately registering personal details of members of the Management Board or Control Board;
f/ Registering state cadres or employees as members of the Management Board or Control Board.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on cooperatives or cooperative unions registering as their members state cadres or employees without written permission of the heads of the agencies directly managing these cadres or employees.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating cooperative or cooperative union may also be subject to one or more of the following measures:
a/ Forced registration for the re-grant of a business registration certificate, for violations specified at Point a, Point d or Point f, Clause 1 or in Clause 2 of this Article;
b/ Forced registration according to regulations, for violations specified at Point b, Point c or Point e, Clause 1 of this Article.
Article 28.- Acts of violation of regulations on establishment and management of business households
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on business households making untruthful or inaccurate information on personal details in business registration dossiers.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on business households committing one of the following acts:
a/ Registering a person who has no right to make business registration;
b/ Registering in the name of another person.
3. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on business households failing to make business registration as enterprises when employing regularly more than 10 laborers.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating business household may be subject to one or more of the following measures:
a/ Forced registration for the re-grant of a business registration certificate, for violations specified in Clause 1 of this Article;
b/ Forced termination of operation, for violations specified in Clause 2 of this Article;
c/ Forced business registration as enterprises, for violations specified in Clause 3 of this Article.
Article 29.- Acts of violation of regulations on registration of head offices of enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Registering head office addresses non-existent on administrative map;
b/ Registering addresses of head offices not under their lawful ownership or use rights.
2. Apart from the sanction specified in Clause 1 of this Article, a violating enterprise is also subject to forced registration for the re-grant of a business registration certificate.
Article 30.- Acts of violation of regulations on registration of head offices of cooperatives or cooperative unions
1. A fine of between VND 500,000 and VND 1,000,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Registering head office addresses non-existent on administrative map;
b/ Registering addresses of head offices not under their lawful ownership or use rights.
2. Apart from the sanction specified in Clause 1 of this Article, a violating cooperative or cooperative union is also subject to forced registration for the re-grant of a business registration certificate.
Article 31.- Acts of violation of regulations on registration of head offices of business households
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on business households committing one of the following acts:
a/ Registering head office addresses non-existent on administrative map;
b/ Registering addresses of head offices not under their lawful ownership or use rights.
2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on business households making business registration at two or more places.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating business household is also subject to forced registration for the re-grant of a business registration certificate.
Article 32.- Acts of violation of regulations on capital contribution registration of enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises failing to notify or notifying late, insufficiently or untruthfully their capital contribution progress to a competent agency.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Failing to grant certificates of contributed capital amounts to capital-contributing members;
b/ Failing to make a members or shareholders registration book or making an improper one as prescribed by the Enterprise Law.
3. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Failing to mobilize a sufficient capital amount in time as registered;
b/ Failing to maintain the prescribed legal capital level, for enterprises conducting business lines requiring legal capital.
4. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on enterprises registering a capital amount bigger than their actual one.
5. Apart from the sanction specified in Clause 1, Clause 2, Clause 3 or Clause 4 of this Article, a violating enterprise may be subject to one or more of the following measures:
a/ Forced notification according to regulations, for violations specified in Clause 1 of this Article;
b/ Forced grant of certificates of contributed capital amounts to capital-contributing members, for violations specified at Point a, Clause 2 of this Article;
c/ Forced making of a members or shareholders registration book, for violations specified at Point b, Clause 2 of this Article;
d/ Forced increase of the capital amount to the registered level, for violations specified in Clause 3 or 4 of this Article.
Article 33.- Acts of violation of regulations on capital contribution registration of cooperatives or cooperative unions
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Failing to mobilize a sufficient capital amount in time as registered;
b/ Failing to maintain the prescribed legal capital level, for cooperatives or cooperative unions conducting business lines requiring legal capital.
2. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Registering a capital amount bigger than their actual one.
b/ A cooperative allowing a member to contribute a capital amount bigger than 30% of its total contributed capital.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating cooperative or cooperative union may also be subject to one or more of the following measures:
a/ Forced increase of the capital amount to the registered level, for violations specified in Clause 1 or at Point a, Clause 2 of this Article;
b/ Forced reduction of the cooperative member’s contributed capital amount to no more than 30% of total contributed capital, for violations specified at Point b, Clause 2 of this Article;
c/ Forced compliance with the provisions of law, for other violations.
Article 34.- Acts of violation of regulations on registration of changes in business registration dossiers of enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Failing to register or registering late changes in business registration contents;
b/ Failing to register change of the enterprise name after changing business lines or form of investment constituting such name;
c/ Failing to amend and supplement the enterprise charter according to regulations.
2. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Untruthfully or inaccurately registering changes in business registration contents;
b/ Continuing operation after the expiration of the operation term stated in the company charter and without an extension decision.
3. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on enterprises continuing business activities after they have notified suspension of operation.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating enterprise may also be subject to one or more of the following measures:
a/ Forced registration for the re-grant of a business registration certificate, for violations specified at Point a and Point b, Clause 1, and Point a, Clause 2 of this Article;
b/ Forced amendment and supplementation of the company charter, for violations specified at Point b, Clause 2 of this Article;
c/ Forced cessation of business activities, for violations specified at Point b, Clause 2 of this Article;
d/ Forced cessation of business activities till the end of the operation suspension duration stated in the enterprise’s announcement, for violations specified in Clause 3 of this Article.
Article 35.- Acts of violation of regulations on registration of changes in business registration dossiers of cooperatives and cooperative unions
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Failing to register or registering late changes in business registration contents;
b/ Failing to register change of the cooperative or cooperative union name after changing business lines constituting such name;
c/ Failing to send the amended charter together with the minutes of the cooperative members meeting to the business registration agency.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on cooperatives or cooperative unions untruthfully or inaccurately registering changes in business registration contents;
3. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on cooperatives or cooperative unions continuing business activities after they have announced their suspension of operation.
4. Apart from the sanction specified in Clause 1, Clause 2 or Clause 3 of this Article, a violating cooperative or cooperative union may also be subject to one or more of the following measures:
a/ Forced registration for the re-grant of a business registration certificate, for violations specified at Point a and Point b, Clause 1, and in Clause 2 of this Article;
b/ Forced sending of the amended charter together with the minutes of the cooperative members meeting to the business registration agency, for violations specified at Point c, Clause 1 of this Article;
c/ Forced cessation of business activities till the end of the operation suspension duration stated in the cooperative’s or cooperative union’s announcement, for violations specified in Clause 3 of this Article.
Article 36.- Acts of violation of regulations on registration of changes in business registration dossiers of business households
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on business households committing one of the following acts:
a/ Failing to register changes in business places, names, business lines, registered capital and representatives;
b/ Untruthfully or inaccurately registering changes;
2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on business households continuing business activities after they have announced their suspension of operation.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating business household may also be subject to one or more of the following measures:
a/ Forced registration for the re-grant of a business registration certificate, for violations specified in Clause 1 of this Article;
b/ Forced cessation of business activities till the end of the operation suspension duration stated in the business household’s notice, for violations specified in Clause 2 of this Article.
Article 37.- Acts of violation of regulations on display of signboards of enterprises
1. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on enterprises failing to display signboards at their head offices and their branches’ offices and representatives offices.
2. Apart from the sanction specified in Clause 1 of this Article, a violating enterprise is also forced to display signboards at its head office and offices of its branch(es) and representative office(s).
Article 38.- Acts of violation of regulations on disclosure of information of enterprises
1. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Failing to disclose information, or disclosing information on business registration in contravention of regulations;
b/ Failing to report on the lease of the private enterprise according to regulations;
c/ Failing to send reports on business activities according to regulations;
d/ Failing to announce the enterprise dissolution decision according to regulations;
e/ Failing to report or reporting late on suspension of business activities;
f/ Failing to declare the loss of the business registration certificate;
g/ Failing to announce the time of opening at the head office within 15 days after obtaining the business registration certificate;
h/ Failing to announce the designation of an authorized representative within 7 working days from the date of designation;
i/ Failing to send a notice on the enterprise’s authorized representative within 5 working days from the date of receipt of the notice;
j/ Failing to announce or announcing in contravention of law their branch(es), representative office(s) and place(s) of business;
k/ Failing to announce the sale of the private enterprise according to regulations;
l/ Failing to announce the change of the types of asset contributed as capital by a member compared to his/her/its commitment according to regulations;
m/ Failing to notify on the registered progress of capital contribution according to regulations;
n/ Failing to announce the contribution of equities within 90 days from the date of grant of the business registration certificate.
2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Making improper reports;
b/ Failing to send financial statements according to regulations.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating enterprise is also forced to comply with the provisions of law on information disclosure.
Article 39.- Acts of violation of regulations on disclosure of information of cooperatives and cooperative unions
1. A caution or a fine of between VND 100,000 and VND 200,000 shall be imposed on cooperatives or cooperative unions failing to disclose information according to regulations.
2. Apart from the sanction specified in Clause 1 of this Article, a violating cooperative or cooperative union is also forced to comply with the provisions of law on information disclosure.
Article 40.- Acts of violation of regulations on business lines requiring practice certificates committed by enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Using an expired practice certificate;
b/ Using the practice certificate of an individual for registering two or more enterprises.
2. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Employing a person who has no practice certificate to perform a job requiring a practice certificate according to regulations;
b/ Failing to register a person replacing another whose practice certificate has been withdrawn by a competent state agency.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating enterprise may also be subject to one or more of the following measures:
a/ Forced registration of change of business lines or use of a practice certificate according to regulations, for violations specified at Point a, Clause 1 of this Article;
b/ Deprivation of the right to use the practice certificate for up to 6 months, for violations specified at Point b, Clause 1 of this Article;
c/ Forced employment of a person with a relevant practice certificate, for violations specified at Point a, Clause 2 of this Article;
d/ Forced registration of change of business lines or additional registration of a person with a relevant practice certificate, for violations specified at Point b, Clause 2 of this Article.
Article 41.- Acts of violation of regulations on business lines requiring practice certificates committed by cooperatives and cooperative unions
1. A fine of between VND 500,000 and VND 1,000,000 shall be imposed on cooperatives or cooperative unions conducting business lines requiring practice certificates but having no Management Board members who have such practice certificate.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on cooperatives or cooperative unions using an expired practice certificate.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating cooperative or cooperative union may also be subject to either or both of the following measures:
a/ Forced registration of change of business lines or addition to the Management Board of a member who has a practice certificate, for violations specified in Clause 1 of this Article;
b/ Forced registration of change of business lines or use of a practice certificate according to regulations, for violations specified in Clause 2 of this Article.
Article 42.- Acts of violation of regulations on reorganization of enterprises
1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on enterprises committing one of the following acts:
a/ Dividing, splitting, consolidating or merging enterprises in contravention of regulations;
b/ Transforming enterprises in contravention of regulations.
2. Apart from the sanction specified in Clause 1 of this Article, a violating enterprise is also forced to reorganize itself according to regulations.
Article 43.- Acts of violation of regulations on reorganization of cooperatives and cooperative unions
1. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on cooperatives or cooperative unions committing dividing, splitting, consolidating or merging acts in contravention of regulations;
2. Apart from the sanction specified in Clause 1 of this Article, a cooperative or cooperative union is also forced to reorganize itself according to regulations.
Article 44.- Acts of violation of regulations on registration of operation of branches and representative offices of enterprises
1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed on enterprises committing either of the following acts:
a/ Registering their branch or representative office addresses non-existent on the administrative map;
b/ Registering addresses of their branches or representative offices which are not under their lawful ownership or use rights.
2. A fine of between VND 7,000,000 and VND 10,000,000 shall be imposed on enterprises untruthfully or inaccurately registering changes of registered information of their branches or representative offices.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating enterprise is also forced to register for the re-grant of a business registration certificate.
Article 45.- Acts of violation of regulations on registration of operation of branches and representative offices of cooperatives and cooperative unions
1. A fine of between VND 500,000 and VND 1,000,000 shall be imposed on cooperatives or cooperative unions committing one of the following acts:
a/ Registering their branch or representative office addresses non-existent on the administrative map;
b/ Registering addresses of their branches or representative offices which are not under their lawful ownership or use rights.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on cooperatives or cooperative unions untruthfully or inaccurately registering changes of registered information of their branches or representative offices.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating cooperative or cooperative union is also forced to register for the re-grant of a business registration certificate.
Article 46.- Acts of violation of regulations on use of investment certificates, business registration certificates or operation registration certificates
1. A fine of between VND 2,000,000 and VND 5,000,000 shall be imposed on enterprises committing either of the following acts:
a/ Leasing or lending investment certificates, business registration certificates or operation registration certificates;
b/ Adding contents to, erasing or modifying investment certificates, business registration certificates or operation registration certificates.
2. A caution or a fine of between VND 50,000 and VND 200,000 shall be imposed on cooperatives, cooperative unions or business households committing one of the following acts:
a/ Leasing or lending investment certificates, business registration certificates or operation registration certificates;
b/ Adding contents to, erasing or modifying investment certificates, business registration certificates or operation registration certificates.
3. Apart from the sanction specified in Clause 1 or Clause 2 of this Article, a violating enterprise, cooperative, cooperative union or business household may also be subject to either or both of the following measures:
a/ Termination of the lease or lending of investment certificates, business registration certificates or operation registration certificates, for violations specified at Point a, Clause 1 or Point a, Clause 2 of this Article;
b/ Forced performance of procedures for change of investment certificates, business registration certificates or operation registration certificates, for violations specified at Point b, Clause 1 or Point b, Clause 2 of this Article.
Section 4. FORMS AND LEVELS OF SANCTION AGAINST ADMINISTRATIVE VIOLATIONS RELATED TO PLANNING AND INVESTMENT INSPECTION AND SUPERVISION
Article 47.- Acts of violation of regulations on planning and investment inspection and supervision
1. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed on organizations or individuals committing one of the following acts:
a/ Failing to comply with or postpone the inspection or supervision by a state agency;
b/ Refusing to supply documents and data at the request of the inspection agency or inspection team or a competent state agency;
c/ Coping with inspectors or officials of competent state agencies who are on duty;
d/ Illegally interfering with the handling by an inspection agency or a competent state agency;
e/ Concealing, modifying, dispersing and destroying documents and records or substituting evidences when being under inspection or supervision.
2. Apart from the sanction specified in Clause 1 of this Article, a violating organization or individual is also forced to comply with the provisions of law on inspection and supervision.
Chapter III

COMPETENCE TO SANCTION AND PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS

Section 1. COMPETENCE TO SANCTION ADMINISTRATIVE VIOLATIONS
Article 48.- Competence of People’s Committees at all levels to sanction administrative violations
1. Presidents of commune, ward or township People’s Committees have the power:
a/ To impose cautions;
b/ To impose fines of up to VND 500,000.
2. Presidents of People’s Committees of rural districts, urban districts, towns or provincial cities have the power:
a/ To impose cautions;
b/ To impose fines of up to VND 20,000,000.
c/ To apply additional sanctions and other measures stipulated in this Decree.
3. Presidents of People’s Committees of provinces or centrally run cities have the power:
a/ To impose cautions;
b/ To impose fines of up to the level specified at Point b, Clause 1, Article 5 of this Decree.
c/ To apply additional sanctions and other measures stipulated in this Decree.
Article 49.- Competence of planning and investment inspectors to sanction administrative violations
1. Planning and investment inspectors on duty have the power:
a/ To impose cautions;
b/ To impose fines of up to VND 200,000.
c/ To apply additional sanctions and other measures stipulated in this Decree.
2. Chief inspectors of provincial-level Planning and Investment Services have the power:
a/ To impose cautions;
b/ To impose fines of up to VND 20,000,000.
c/ To apply additional sanctions and other measures stipulated in this Decree.
3. The chief inspector of the Ministry of Planning and Investment has the power:
a/ To impose cautions;
b/ To impose fines of up to the level specified at Point b, Clause 1, Article 5 of this Decree.
c/ To apply additional sanctions and other measures stipulated in this Decree.
Article 50.- Sanctioning competence of specialized inspectorates
Other specialized inspectorates are competent to sanction administrative violations in the planning and investment domain like the planning and investment inspectorate under the provisions of this Decree within the scope of planning and investment management competence of ministries, branches and localities stipulated by the Government.
Article 51.- Sanctioning competence of other agencies
Apart from persons competent to sanction administrative violations specified in Article 48, Article 49 and Article 50 of this Decree, persons competent to sanction administrative violations prescribed in the Ordinance on Handling of Administrative Violations who, within their assigned functions and tasks, detect acts of administrative violation specified in this Decree falling into the domain or committed in the geographical areas under their management may impose sanctions for those acts under the provisions of this Decree and the Ordinance on Handling of Administrative Violations.
Article 52.- Authorization of competence to sanction administrative violations related to planning and investment
When a competent person specified in Article 48, Article 49, Article 50 or Article 51 of this Decree is absent, his/her deputy shall be authorized to sanction administrative violations and take responsibility for his/her decisions.
Article 53.- Principles of determination of competence
1. Presidents of People’s Committees at all levels are competent to sanction acts of violation under the provisions of this Decree within the scope of their state management in localities.
2. The competence of specialized inspectorates and other agencies is determined in Article 48, Article 49 and Article 50 of this Decree.
An act of administrative violation that falls under the sanctioning competence of more than one person shall be sanctioned by the person who first deals with it.
3. The sanctioning competence of persons specified in Article 48, Article 49, Article 50 and Article 51 of this Decree is applied to one act of administrative violation. In case of fine, the sanctioning competence is determined based on the maximum level of the fine bracket applicable to each specific act of violation.
4. In case of sanctioning an organization or individual committing more than one act of administrative violation, the sanctioning competence is determined on the following principles:
a/ If all the form and level of sanction applicable to each act fall under the competence of the sanctioning person, this person is competent to sanction all of these acts;
b/ If the form and level of sanction applicable to one of these acts fall beyond the competence of the sanctioning person, this person shall transfer the violation case to authorities with sanctioning competence.
Section 2. PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS
Article 54.- Stoppage of acts of violation
Upon detecting an act of administrative violation, the person with sanctioning competence shall issue a written decision to immediately stop this act.
Article 55.- Sanctioning according to simplified procedures
Sanctioning according to simplified procedures is applicable to acts of administrative violation subject to caution or a fine of up to VND 100,000. In this case, the person with sanctioning competence shall issue an on-site sanctioning decision without having to make a written record.
Article 56.- Time limit for issuance of sanctioning decisions
1. For simple cases involving apparent acts of violation, which need no further verification, sanctioning decisions shall be issued within 10 days from the date of making of written records of administrative violations. Sanctioning decisions must be made according to a prescribed form.
2. For cases involving complicated circumstances, such as exhibits and means to be surveyed, violators to be identified or other complicated circumstances, the time limit for issuing sanctioning decisions is 30 days from the date of making of written records.
3. When needing more time for verification and collection of evidence, at least 10 days before the end of the time limit specified in Clause 2 of this Article, the person with sanctioning competence shall report in writing to his/her immediate superior officer, asking for permission for extension; extension must be expressed in writing and not exceed 30 days.
Article 57.- Making of records of administrative violations
Records of acts of administrative violations shall be made under the provisions of Article 55 of the Ordinance on Handling of Administrative Violations and Article 20 of the Government’s Decree No. 134/2003/ND-CP of November 14, 2003, detailing the implementation of a number of articles of the Ordinance on Handling of Administrative Violations.
Article 58.- Compliance with sanctioning decisions and enforcement of sanctioning decisions
Within 10 working days from the date of receiving a sanctioning decision, the sanctioned organization or individual shall comply with the sanctioning decision, pay the fine at the place indicated in the sanctioning decision and be given a receipt thereof.
Fines collected for administrative violations shall be managed and used under the Government’s Decree No. 124/2005/ND-CP of October 6, 2005, on receipts of fines and management and use of fines paid for administrative violations.
A sanctioned organization or individual who fails to voluntarily comply with the sanctioning decision shall be forced to comply with the decision under the provisions of Article 66 of the Ordinance on Handling of Administrative Violations and the Government’s Decree No.37/2005/ND-CP of March 18, 2005, stipulating procedures for application of measures to enforce decisions on sanctioning administrative violations.
Chapter IV

COMMENDATION, HANDLING OF VIOLATIONS, AND COMPLAINTS AND DENUNCIATIONS

Article 59.- Commendation and handling of violations
1. Organizations and individuals that record achievements in the prevention and combat of administrative violations in the planning and investment domain shall be commended and rewarded in accordance with law.
2. Persons competent to sanction administrative violations related to planning and investment who abuse their powers, commit hassling acts, tolerate or cover up violators, impose no sanction or fail to impose sanctions in time or proper sanctions; or impose sanction ultra vires shall, depending on the nature and severity of their violations, be handled in accordance with law; if causing damage, they shall pay compensation therefor in accordance with law.
3. If organizations or individuals that are sanctioned for administrative violations related to planning and investment fail to voluntarily comply with sanctioning decisions, they shall be forced to do so. When committing acts of administrative violations, if they obstruct or resist persons on duty or employ cheating tricks, offer bribes or other tricks to delay or shirk compliance with the sanctioning decisions issued by competent persons, they shall, depending on the nature and severity of their violations, be handled for administrative violations or examined for penal liability; if causing damage, they shall pay compensation therefor in accordance with law.
Article 60.- Complaints, denunciations and settlement of complaints and denunciations
1. Organizations and individuals that are sanctioned for administrative violations related to planning and investment or their lawful representatives are entitled to lodge complaints about decisions on sanctioning administrative violations.
2. Citizens are entitled to denounce to competent state agencies organizations and individuals committing acts of administrative violation specified in this Decree; or denounce persons competent to sanction administrative violations who act in contravention of this Decree.
3. Competence, time limits and procedures for lodging complaints and denunciations and the settlement of complaints and denunciations of citizens comply with the law on complaints and denunciations.
Chapter V

IMPLEMENTATION PROVISIONS

Article 61.- Implementation effect
1. This Decree takes effect 15 days after its publication in “CONG BAO.”
2. To annul the Government’s Decree No. 37/2003/ND-CP of April 10, 2003, stipulating the sanctioning of administrative violations related to business registration.
Article 62.- Implementation responsibilities
1. The Minister of Planning and Investment shall guide the implementation of this Decree.
2. Agencies and units with sanctioning competence defined in this Decree shall send reports on results of sanctioning of administrative violations in the planning and investment domain to the Ministry of Planning and Investment before December 15 every year for summing up and report to the Government.
3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People’s Committees and concerned agencies, organizations and individuals shall implement this Decree.