The draft Decree regulation on administrative penalties in the investment sector is currently soliciting comments from domestic and foreign organizations and individuals. There are several notable contents regarding forms of penalties, fine levels, and remedial measures for violations of investment and business conditions in Vietnam, as detailed below:
A fine ranging from VND 80 to 100 million shall be imposed for one of the following acts: Contributing capital, purchasing shares, or purchasing capital contributions of economic organizations that do not meet the stipulated conditions. Engaging in conditional business lines, market access sectors for foreign investors without meeting the prescribed conditions.
A fine ranging from VND 100 to 150 million shall be imposed for one of the following acts: An investor transferring part or all of an investment project without meeting the prescribed conditions; Foreign investors or economic organizations specified in Points a, b, and c, Clause 1, Article 23 of the Investment Law 2020 receives the transfer of all or part of an investment project without meeting the prescribed conditions.
A fine ranging from VND 150 to 200 million shall be imposed for investing in conditional business lines without meeting the investment and business conditions during operation.
A fine ranging from VND 200 to 300 million shall be imposed for conducting investment and business activities in sectors prohibited from investment and business according to the provisions of law.
Remedial measures include: Forcing the termination of contributing capital, purchasing shares, or purchasing capital contributions of economic organizations for acts in violation of the regulations; Forcing the suspension of project transfers for violations of the regulations; Forcing the termination of business investment activities and the return of illegal profits gained from investing in prohibited business lines for violations of the regulations.
