Decree No. 155/2013/ND-CP dated November 11, 2013 of the Government stipulating the sanctioning of administrative violations in the field of planning and investment

THE GOVERNMENT

Decree No.155/2013/ND-CPdated November 11, 2013 of the Government stipulating the sanctioning of administrative violations in the field of planning and investment

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 20, 2012 Ordinance on Handling of Administrative Violations;

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 November 26, 2003 Law on Construction;

Pursuant to the Law on amending and supplementing a number of articles of the Laws concerning capital construction investment dated June 29, 2009;

Pursuant to the November 20, 2012 Law on Cooperatives;

At the proposal of the Minister of Planning and Investment,

The Government promulgated the Decree stipulating the sanctioning of administrative violations in the field of planning and investment,

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree provides acts of administrative violation, forms and levels of sanction, remedial measures, competence to make records of administrative violations and sanction and procedures for sanctioning administrative violations in the field of planning and investment.

2. Acts of administrative violation in the field of planning and investment as stipulated under this Decree include the following acts:

a) Violations of regulations on investment with state capital;

b) Violations of regulations on domestic investment, foreign investment andoffshore investment;

c) Violations of regulations on bidding management;

d) Violations of regulations on business registration by enterprises, business households, cooperatives, cooperatives unions;

3) Other violations of regulations in the field of planning and investment are not stipulated under this Decree shall be applied according to other Decrees of the Government on sanctioning administrative violations in the related field of state management.

Article 2.Subjects of application

Subjects under this Decree include Vietnamese organizations and individualscommitting acts of administrative violation in the field of planning and investment.

Article 3. Forms of sanction and remedies

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;

2) 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.

Article 4. Fine level in the field of planning and investment

The fine level as specified under Chapter II of this Decree is the level applied for organization. With the same act of violation, the fine level for individual, household shall be a half of the fine level applied for organization.

Chapter 2

ACTS OF ADMINISTRATIVE VIOLATION, FORMS OF SANCTION AND REMEDIES TO CONSEQUENCES

SECTION I: ACTS OF ADMINISTRATIVE VIOLATION ON INVESTMENT WITH STATE CAPITAL, FORMS OF SANCTION AND REMEDIES TO CONSEQUENCES

Article 5. Acts of violation of regulations on feasibility study reports (investment projects, eco-technical reports on work construction investment projects)

1. 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) Failing to comply with orders, procedures of preparing, evaluating the feasibility study reports;

b)Failing to comply with orders, procedures and conditions to adjust the investment project;

2) A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for one of the following acts:

a) Preparing the estimates, paying and finalizing the expenses to make the feasibility study reports in contravention with the specified price and level;

b) Preparing the feasibility study reports in contravention with the size of project group as stipulated;

c)Preparing the feasibility study reports which fail to conform with prescribed national standards, national technical standards;

d) Preparing the feasibility study reports which fail to conform with prescribed contents;

3. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for one of the following acts:

a)Making the feasibility study reports not included in the approved planning or without approval of competent authorities;

b) Making the feasibility study reports against the approved planning;

4. Remedial measures:

a) Forced refund the arising expenses due to the preparation of cost estimates, take-over of, paying and finalizing the cost of making thefeasibility study reports in contravention with the regulations for acts of violations of regulations at Point a Clause 2 of this Article;

b)Forced adjustment of the feasibility study reports to match with the national standards, national technical standards for acts of violations of regulations at Point c Clause 2 of this Article.

c) Forced amendments of contents that are in shortage for acts of violations regulated under Point d Clause 2 of this Article;

d) Forced adjustment of the feasibility study reports to be in accordance with the approved plan for acts of violations as stipulated under Point b Clause 3 of this Article.

Article 6. Administrative violation in the field of work construction investment

Acts of violations of regulations in the field of work construction investment on survey, design, supervision, construction of work, quality management, take-over of the work, paying, finalizing the investment project shall be sanctioned according to the regulations of the Government on sanctioning the administrative violations in construction activities.

Article 7. Violation of regulations on reporting on investment supervision and evaluation

1)A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for one of the following acts:

a) Failing to report on investment supervision or evaluation on time;

b) Making investment supervision or evaluation reports with insufficient contents according to regulations;

2. A fine of between VND 2,000,000 and VND 5,000,000 shall be imposed for one of the following acts:

a)Failing to make an investment supervision or evaluation report to send to the competent agencies as stipulated.

b) Making an untruthful investment supervision or evaluation report;

3. Remedial measures:

a) Forced to supplement contents that are in shortage intoinvestment supervision or evaluation report for acts of violation as stipulated under Point b Clause 1 of this Article;

b) Forced to send the investment supervision or evaluation report to the state competent agencies for acts of violation as stipulated under Point a Clause 2 of this Article;

Article 8. Violations on the management of program, projects using ODA capital

1. A fine of between VND 5,000,000 and 10,000,000 VND shall be imposed for the following acts:

a) Failing to supervise, evaluate the implementation of ODA program, projects as stipulated;

b) Failing to implement the project on time as stipulated if it is not due to objective factors or irresistible events;

2. A fine of between VND 20,000,000 and 30,000,000 VND shall be imposed for the acts of implementing the projects in contravention with the contents stated in the investment decision, approval decision of program, technical assistance projects;

3. Remedial measures: forced to supervise, evaluate the projects for acts of violations as stipulated under Point a Clause 1 of this Article.

Article 9. Violations on the reporting regime and provision of information for ODA program, project

1.A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for the acts of failing to comply with the reporting regime on the implementation of ODA program, projects to send to the competent agencies as stipulated.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the acts of providing information, documents that are wrong for parties in the contract, consultants making and implementing the ODA program and projects.

3. Remedial measures:

a) Forced to make the report to send to the competent agencies as stipulated for acts of violation under Point 1 of this Article;

b) Forced to provide parties in the contract, consultants making and implementing the ODA program and projects with the accurate information for acts of violations under Point 2 of this Article;

SECTION 2. ACTS OF ADMINISTRATIVE VIOLATION ON DOMESTIC INVESTMENT,

Article 10. Acts of violation of regulations on investment in Vietnam

1.A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of failing to make investment reports, supervision report, and investment project evaluation according to regulations.

2.A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for acts of making untruthful reports on investment;

3. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for the following acts:

a) Making the investment project dossiers untruthfully and inaccurately to be granted the investment certificate.

b) Failing to conduct the project on time as stipulated in the investment certificate without the approval of the competent agency.

4. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for one of the following acts:

a) Failing to register investment adjustments for projects subject to adjustment registration;

b) Suspending or rescheduling the execution of investment projects without notifying in writing the state management agency in charge of investment thereof;

c) Terminating a project without announcement or carrying out project liquidation procedures as prescribed by law;

5. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for one of the following acts:

a) Failing to comply with the contents of investment certificates properly;

b) Investing in the form of contributing capital, purchasing shares, merging, acquiring enterprises in contravention of regulations;

c) Converting the form of investment or transferring investment capital in contravention of regulations;

d) Transferring projects in contravention of regulations;

6. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed for one of the following acts:

a) Failing to comply with the investment procedures as stipulated;

b) Continuing executing a project after having the investment certificate revoked;

c) Continuing executing a project after the validity duration stated in the investment certificate expires;

d) Not executing the project after 12 months without the approval of the state competent agency;

7. A fine of between VND 70,000,000 and VND 80,000,000 shall be imposed for acts of executing the projects when the investment certificated has not been granted yet;

8. Remedial measures:

a) Forced to make investment reports, supervision report, and judgment about the investment project for violations of regulation at Clause 1 of this Article;

b) Forced registration of investment adjustment, for violations specified at Point a, Clause 4 of this Article;

c) Forced notification to the state competent agency for violation of regulations at Point b Clause 4 of this Article;

d) Forced termination of operations, performance of liquidation procedures according to regulations, for violations specified at Point c Clause 4 of this Article;

dd) Forced performance of extension procedures of the investment certificate for violations specified at Point c Clause 6 of this Article;

Article 11.Acts of violation of regulations on use of state capital for investment or business

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for one of the following acts:

a) Investing state capital to invest, contribute capital, and buy shares without the approval of a competent state agency.

b) Changing the project using the state budget without approval of a competent state agency;

2. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed for acts of investment, or business using state budget improperly.

Article 12. Acts of violation of regulations on offshore investment

1.A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the following acts:

a) Failing tomake 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 20,000,000 and VND 30,000,000 shall be imposed for 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;

3. A fine of between VND 30,000,000 and VND 40,000,000 shall be imposed for the following acts:

a)Making inaccurate or untruthful registration in order to have an offshore investment certificate granted;

b) Using profits earned from an offshore investment project for reinvestment in the project itself when the investment certificate has not been adjusted yet according to regulations;

c) Using profits earned from an offshore investment project for reinvestment in another project when an investment certificate has not been granted yet according to regulations;

4. A fine of between VND 50,000,000 and VND 60,000,000 shall be imposed for 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) Using the state capital to make offshore investment in contravention of law;

5. Remedial measures:

a) Forced to make investment reports according to regulations, for violations specified in Point a Clause 1 of this Article;

b) Forced compliance with the contents of the investment certificate, for violations specified at Point a, Clause 2 of this Article;

c) Forced registration to adjust the investment certificate for acts of violations specified at Point b Clause 3 of this Article;

d/ Forced implementation of investment procedures for acts of violations specified under Point c Clause 3 of this Article;

Article 13. Acts of violation of regulations on investment incentives

1.A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for acts of failing to notify a competent state agency of their failure to fulfill the registered commitments for enjoying investment incentives. If making declaration to enjoy investment incentives that violate the law on tax shall apply sanctions against administrative violations in the field of tax.

2.A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for acts of making inaccurate or untruthful declaration in order to enjoy investment incentives.

3. Remedial measures: Forced refund of investment incentives which have been enjoyed in contravention of regulations specified under Clause 1 and Clause 2 of this Article.

Article 14. Violations of regulations on investment in the form of build-operate-transfer (BOT), build-transfer-operate (BTO), build-transfer (BT) and Public Private Partnerships (PPP) contracts

1. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for one of the following acts:

a) Failing to implement the guarantee measures to execute the project contract as stipulated.

b) Failing to comply the specified time when making the settlement record of work;

2. A fine of between VND 30,000,000 and VND 40,000,000 shall be imposed for acts of transfer in contravention with the regulation.

3. A fine of between VND 40,000,000 and VND 50,000,000 shall be imposed for acts of making, evaluating the contents of feasible study report in contravention with the law.

4. Remedial measures: Forced implementation of measures to ensure the implementation of project contract for acts of violation as stipulated at Point a Clause 1 of this Article.

Article 15. Violations of regulation on investment of infrastructure at industrial zones, export processing zone, hi-tech parks, economic zones

Organizations, individuals that violate regulations on investmentof infrastructure at industrial zones, export processing zone, hi-tech parks, and economic zones shall be sanctioned as specified at Article 5, Article 6, Article 10, Article 11 and Article 13 of this Decree.

SECTION 3. ACTS OF ADMINISTRATIVE VIOLATION IN THE FIELD OF BIDDING, FORM OF SANCTIONS AND REMEDIAL MEASURES

Article 16. Acts of violation of regulations on bidding plans

1. A fine of betweenVND 10,000,000 and VND 15,000,000 shall be applied for the following acts:

a) Making, submitting or evaluating bidding plans with insufficient contents as prescribed

b)Approving bidding plans with insufficient contents as prescribed.

2. A fine of betweenVND 15,000,000 and VND 20,000,000 for the following acts:

a) Approving forms ofcontract, mode of bidding, contract time in contravention with the size, nature of the bidding package;

b) Approving forms ofcontractor selection in contravention with the law;

3. A fine of between VND 20,000,000 and VND 30,000,000 for acts of dividing the size of bidding package unreasonably, failing to meet the technological requirements, orders of the project that lead to the fair competitiveness in bidding.

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 having the violation published in the bidding newspaper and bidding website.

Article 17. Acts of violation of regulations on bid invitation dossiers, requirement dossiers

1. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for one of the following acts:

a) Not evaluating the bid invitation dossiers, requirement dossiers before improving;

b) Approving the bid invitation dossiers, requirement dossier in contravention to the competence as stipulated.

2. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for acts of failing to regulate the use of domestic labors the bidding invitation dossier for the international bidding packages.

3. A fine of between VND 20,000,000 and VND 30,000,000 for one of the following acts:

a) Stating prerequisite conditions in order to limit and prevent the number of bidding contractors;

b) Stating criteria to appraise the bidding invitation dossier, requirement dossiers that fail to comply with the law or exceeding the size and nature of bidding packages;

4. A fine of between VND 30,000,000 and VND 40,000,000 for acts of approving the bidding invitation dossiers, requirement dossiers in contravention with the approved bidding plans about the selection of contractors, modes of bidding, forms of contract, contract time.

5. Apart from forms of sanction as specified at Clause 1, Clause 2, Clause 3 and Clause 4 of this Article, violating organizations, individuals shall be published in the bidding newspaper and bidding website.

Article 18. Acts of violation of regulations on organization of biddings

1. A fine of between VND 5,000,000 and VND 10,000,000 for acts of not issuing bidding invitation dossiers, requirement dossiers, the dossier of invitation for prequalification, the request for expression of interest to the bidders in accordance with the time, place specified in the bidding notice, notice of invitation for prequalification, bidding invitation letter, shopping invitation notification.

2. A fine of between VND 10,000,000 and VND 15,000,000 for one of the following acts:

a) Receiving and managing the bidding dossiers, recommended dossier in contravention with the law.

b) Closing and opening the bids failing to comply with the time specified in the bidding invitation dossier.

c) Failing to send the bid-opening minutes as specified.

d) Failing to notify the bidding results as specified.

3. A fine of between VND 15,000,000 and VND 20,000,000 for acts of evaluating, appraising and approving the bidding dossiers exceeding the time specified.

4. A fine of between VND 20,000,000 and VND 30,000,000 for one of the following acts:

a) Failing to evaluate the bidding results before approving;

b) Approving the bidding results with insufficient content and not within the competence as stipulated;

c) Approving the bidding results that fail to be in accordance with the approved bidding contents and plans;

5. A fine or between VND 30,000,000 and VND 40,000,000 for one of the following acts:

a) Evaluating the bidding dossier, proposal dossier that fails to comply with the approved evaluation criteria, thereby distorting bidder selection results;

b) Permitting the contractor making clear the bidding dossier, thereby changing the basic information of submitted bidding dossier or changing the price of bidding;

c) Negotiating and signing the contract that is not in accordance with the bidding invitation dossier, requirement dossier and results of bidding approved.

d) Failing to require the bidder that wins the bid to submit the security to execute the contract or allow the contractor to submit the security to execute the contract in contravention with the regulation;

6. Apart from the sanctioning forms as specified under Clause 1, Clause 2, Clause 3 and Clause 5 of this Article, violating organizations, and individuals shall be published in the bidding newspaper and bidding website.

Article 19. Other administrative violations on bidding

1. A fine of between VND 1,000,000 and VND 5,000,000 shall be imposed for one of the following acts:

a) Not publishing bidding information;

b) Information about the bid fails to contain sufficient contents and insufficient number of times;

c) Publishing bidding information is not in accordance with the competence as prescribed;

d) The implementation organization on publishing bidding information is in contravention with the regulation;

2. A fine of VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a) Setting up a team of bidding experts failing to meet requirements set by the law;

b) Not refunding or releasing the bid security for the bidder as stipulated;

c) Collecting bidding expenses in convention with the law;

3. A fine of between VND 10,000,000 and VND 15,000,000 for acts of failing to comply with regulations on cancellation, suspension and not recognizing the results of contractor selection;

4. A fine of VND 15,000,000 and VND 20,000,000 shall be imposed for act of failing to handle or handling in contravention with the law.

5. Remedial measures:

a) Forced refund or release the bid security for the bidder as stipulated for acts of violations of regulation at Point b Clause 2 of this Article;

b) Forced refund of expenses that are in contravention with the law for acts of violation specified at Point c Clause 2 of this Article.

SECTION 4. ACTS OF ADMINISTRATIVE VIOLATION IN BUSINESS REGISTRATION OF ENTERPRISES, BUSINESS HOUSEHOLDS, COOPERATIVES, COOPERATIVE UNIONS, SANCTIONING FORMS AND REMEDIAL MEASURES

Article 20.  Violations of regulation on declaring the business registration dossier

1. A fine ofVND 10,000,000 and VND 15,000,000 shall be imposed on the following acts:

a) Business establishment registration;

b) Registration of changes in contents of enterprise business registration;

c)Registration of operation of branches and representative offices, business spot;

d) Registration of changes in contents of registration of operation of branches and representative offices, business spot

dd) Registration of  winding up a business;

e) Notifying the termination of operation of branches and representative offices, business spot

f) Notifying on suspension of business;

2. Remedial measures: forced registration of changes and notify information about enterprises that are declared untruthfully and inaccurately;

Article 21. Violations of regulations on registration of changes in business registration dossiers of enterprises

1. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for acts of registering late changes in business registration contents.

2. A fine of between VND 2,000,000 and VND 5,000,000 for acts of failing to register change in business registration contents after 10 days since the day receiving the decision on changes;

3. Remedial measures: forced registration of changes in business registration contents as stipulated for acts of violation specified under Clause 2 of this Article.

Article 22. Acts of violation of regulations on disclosure of business registration contents

1. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for acts of failing to disclose or disclosing business registration contents in contravention the time limit on the national business registration portal as stipulated.

2. Remedial measures: forced disclosure of business registration contents on the national business registration portal as stipulated.

Article 23. Violations of regulation on business establishment

1. A fine of VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a) Continuing to operate when the operation time stated in the regulation is due and still not extended;

b) Failing to contribute registered capital on time;

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for the acts of failing to contribute enough registered capital;

3. A fine of between VND 25,000,000 and VND 30,000,000 shall be imposed for one of the following acts:

a) Intentionally evaluating value of the contributed assets higher the actual value;

b) Doing business as enterprise when having the business registration certificate revoked or dissolute;

c) Doing business as enterprises but not registering the enterprise establishment.

4. Remedial measures:

a) Forced to extend the operation for acts of violation specified at Point a Clause 1 of this Article;

b) Forced to reduce the charter capital according to the regulations for the limited liability company two members or more or forced to contribute fully the registered capital for other forms of enterprises that have acts of violations of regulations at Clause 2 of this Article.

c) Forced to re-evaluate the contributed assets for acts of violation of regulation at Point a Clause 3 of this Article;

d) Forced registration of business establishment for acts of violation of regulations at Point c Clause 3 of this Article;

Article 24. Violations on registration of enterprise founder

1.A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of registering the owner of the one member limited liability company, owner of private enterprises, member of limited liability company, capital-contributing members, partnership member, founder shareholders being individuals, organizations as stipulated but don’t have the right to establish enterprise;

2. Remedial measures: Forced registration of changes for members, capital-contributing members, partnership member, founder shareholders being individuals, organizations as stipulated

Article 25. Acts of violation of regulations on doing business lines not specified in the business registration certificate

A fine of between VND 15,000,000 and VND 20,000,000 for acts of doing business lines not specified in the business registration certificate.

Article 26. Violations of regulation on hiring the director of a private enterprise

1. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on acts of hiring another person to be the director of a private enterprise but fail to register;

2. Remedial measures: Forced additional registration of the director.

Article 27. Violations of regulation on change of members

1. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for acts of failing to register changes on members within the time limit since the day committing to contribute capital for the last time as stipulated.

2. Remedial measures: forced registration of changes on members according to the actual capital contribution result of enterprise member.

Article 28. Violations of regulation on complying with requirements of business registration agencies

1. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed for the following acts:

a) Continuing to do conditional business lines when receiving the suspension decision of the provincial business registration department;

b) Failing to register changes on enterprise name at the request of provincial business registration department if enterprise has the name violating the protection of industrial property rights as stipulated;

2. Remedial measures: Forced registration of changes in order to be in accordance with the law for acts of violation of regulations at Point b Clause 1 of this Article.

Article 29. Violations of regulation on reporting regime

1. A fine of between VND 1,000,000 and VND 5,000,000 shall be imposed for one of the following acts:

a) Leasing the private enterprise but failing to report in writing together with the leasing contract notarized to the provincial business registration department and tax agency.

b) Failing to submit the financial statements on time as stipulated.

2. Remedial measures: forced to send the report to the state management agency as stipulated.

Article 30. Violations of regulation on notifying to the provincial business registration

1. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for the following acts:

a) Failing to notify in writing about the time limit of business suspension within the specified time or continuing to do business as stipulated

b) Failing to notify in writing on changes of kinds of contributed assets of members in the limited liability company

c) Failing to notify about the capital contribution within the time limit since the day having the business registration certificate granted;

d) Failing to announce or announce the sale of the private enterprise in contravention with the time limit;

dd) Failing to send or send the designation or replacement notification of an authorized representative for the limit liability company in contravention with the specified time;

e) Failing to notify on the progress of capital contribution in writing within the specified time after each capital contribution period as committed;

2. Remedial measures: forced notification on contents as stipulated to the provincial business registration department.

Article 31. Violations of regulations on representatives according to the enterprise law

1. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for one of the following acts:

a) The legal representative of enterprise not residing in Vietnam;

b) The legal representative of enterprise not being in Vietnam for more than 30 days but not authorize in writing for another person to implement rights and obligations.

2. Remedial measures:

a) Forced registration for person residing in Vietnam being the legal representative of enterprise for acts of violations at Point a Clause 1 of this Article;

b) Forced authorization in writing for another person or registration for another person residing in Vietnam being the legal representative for acts of violation of regulation at Point b Clause 1 of this Article;

Article 32. Other violations related to organization, management of enterprise

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the following acts:

a) Failing to convene an annual general shareholders meeting within the specified time after the end of the fiscal year without permitted extension of the provincial business registration agency;

b) Assigning persons that do not have the management power to hold the management titles;

c) Assigning the director (general director) of the shareholder company that fails to meet criteria and conditions according to the law.

2. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for one of the following acts:

a) Failing to grant certificates of contributed capital amounts to members in enterprise as stipulated.

b) Failing to make a members or shareholders registration book as stipulated;

c) Failing to display the name of enterprises the name of enterprise at the head office, branch, and representative office of the enterprise;

d) Failing to store the documents and stamps at the head office as stipulated.

3. Remedial measures:

a) Forced convention of the annual general shareholders meeting as stipulated for acts of violation of regulation at Point a Clause 1 of this Article.

b) Forced to dismiss the management title of the individual that is not entitled to manage enterprise for acts of violations at Point b Clause 1 of this Article;

c) Forced to dismiss the director title (general director) of the shareholder company for persons fail to meet criteria and conditions, at the same time, assign other person that meets criteria and conditions as stipulated for acts of violation of regulations at Point c Clause 1 of this Article.

d) Forced grant the certificates of contributed capital amounts to members in enterprise as stipulated for act of violations of regulation at Point a Clause 2 of this Article;

dd) Forced to make members or shareholders registration book as stipulated for acts of violation of regulations at Point b Clause 2 of this Article.

ee) Forced display of signboards of enterprises at the head office, branch, representative office of the enterprise for acts of violation of regulation at Point c Clause 2 of this Article;

g) Forced to store documents and stamps as stipulated for acts of violation of regulation at Point d Clause 2 of this Article.

Article 33. Violations of regulation on controlling board

1. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for acts of failing to organize the controlling board as stipulated by the law.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a) The limited liability company that has more than 11 members but not establishing the controlling board;

b) The shareholding company that has more than 11 shareholders being individuals or there is an organization that owns over 50% of shares but not establishing the controlling board.

3. Remedial measures:

a) Forced reorganization of controlling board in accordance with the law for acts of violation of regulation at Clause 1 of this Article;

b) Forced establishment of controlling board in accordance with the law for acts of violation of regulation as stipulated at Clause 2 of this Article.

Article 34. Violations of regulation on dissolution of enterprise

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of not processing the dissolution procedures for enterprises that are subject to the cases being dissolute as stipulated by the law.

2. Remedial measures: forced process the dissolution procedures as stipulated.

Article 35. Violations of regulation on establishment, termination of operation of branches and representative offices, business spot of enterprises

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a) Doing business at spots without notifying to the provincial business registration department where the enterprise is doing business.

b) Terminating the operation of branches and representative offices, business spot of enterprises without notifying to the provincial business registration department;

2. Remedial measures:

a) Forced notification about business spot to the provincial business registration department or termination of operation at that spot for acts of violation of regulations at Point a Clause 1 of this Article;

b) Forced notification about termination of operation of branches and representative offices, business spot of enterprises as stipulated for acts of violation of regulation at Point b Clause 1 of this Article.

Article 36. Violations of regulation on business registration of business household

1. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed for the following acts:

a) Doing business registration with more than one spot;

b) Doing business registration with more than one business household;

c) Failing to report the business situation at the request of the district’s business registration agency;

2. A fine of between VND 5,000,000 and VND 7,000,000 shall be applied for acts of declaring the household business registration dossiers or registration of changes in business registration dossiers of business household.

3. Remedial measures:

a) Forced report on the business situation at the request of the district-level business registration agency for acts of violation of regulation at Pont c Clause 1 of this Article;

b) Forced re-declaration the untruthful and inaccurate contents for acts of violation of regulation at Clause 2 of this Article.

Article 37. Violations of regulation on business suspension of business household

1. Imposing cautions or a fine of between VND 500,000 and VND 1,000,000 for acts of suspending business operation for more than 30 days without notifying to the district business registration agency where making business registration and tax agency.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for acts of not suspending the business operation of conditional business lines at the request of the district business registration agency where making business registration.

3. Remedial measures: Forced notification on the business suspension to the district business registration agency where making business registration and tax agency for acts of violation of regulation at Clause 1 of this Article.

Article 38. Violations of regulation on registration of changes in registration content of household

1. Imposing cautions or a fine of between VND 500,000 and VND 1,000,000 for acts of changing the business registration contents without notifying to the district ‘s business registration agency as stipulated.

2. Remedial measures: forced notification on changes in business registration of business households to the district’s business registration agency.

Article 39. Violations of regulation on termination of operation of business household

1. Imposing cautions or a fine of between VND 500,000 and VND 1,000,000 for acts of terminating the business operation as business household without notifying or submitting the original household registration certificate to the district’s business registration agency;

2. Remedial measures: forced notification or submit the original household registration certificate to the district’s business registration agency;

Article 40. Violations of regulations on business registration of cooperatives and cooperative unions

1. Imposing caution or a fine of between VND 500,000 and VND 1,000,000 for one of the following acts:

a) Failing to convene the annual member meeting of cooperatives and cooperative unions;

b) Failing to make members registration book after having the cooperatives and cooperative union registration certificate granted;

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for one of the following acts:

a) Failing to declare the establishment registration dossier truthfully and accurately;

b) Operating as cooperatives and cooperative unions but having no establishment registration certificate;

3. Remedial measures:

a) Forced organization of the annual member meeting for acts of violation of regulation at Point a Clause 1 of this Article;

b) Forced to make members registration book for acts of violation of regulation at Pont b Clause 1 of this Article;

c) Forced registration of cooperatives and cooperative unions for acts of violation of regulation at Point b Clause 2 of this Article;

Article 41. Acts of violation of regulations on capital contribution registration of cooperatives or cooperative unions

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for 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;

c) Failing to grant the capital contributioncertificate for members of cooperatives or cooperative unions;

2. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed for acts of allowing a member to contribute a capital amount bigger than 20% of cooperative’s total contributed capital; A cooperative contributes a capital amount bigger than 30% of cooperative union’s total contributed capital.

3. Remedial measures:

a) Forced increase of the capital amount to the registered level, for violations specified at Point a, Clause 1 of this Article;

b) Forced grant the capital contribution certificate to the cooperative member or cooperative for violations specified at Point c Clause 1 of this Article.

c) Forced adjustment of the contributed capital amount for violations as specified under Clause 3 of this Article.

Article 42. Acts of violation of regulations on registration of changes in business registration contents of cooperatives and cooperative unions

1. A caution or 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) Failing to register or registering late changes in business registration contents;

b) Failing to register change of the cooperative name after changing business lines constituting such name;

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for the following acts:

a) Untruthfully or inaccurately registering changes in business registration contents;

b) Continuing business activities after they have announced their suspension of operation;

3. Remedial measures: Forced registration for the re-grant of a business registration certificate of cooperatives or cooperative unions for acts of violation of regulation as specified at Clause 1 and Point a Clause 2 of this Article.

Article 43. Acts of violation of regulations on disclosure of information of cooperatives and cooperative unions

1. A caution or a fine of between VND 500,000 and VND 1,000,000 shall be imposed on cooperatives or cooperative unions failing to disclose information according to regulations.

2. Remedial measures: forced to comply with the provisions of law on information disclosure.

Article 44. Acts of violation of regulations on reorganization of cooperatives and cooperative unions

1. A caution or a fine of between VND 500,000 and VND 1,000,000 shall be imposed for acts of committing dividing, splitting, consolidating or merging acts in contravention of regulations;

2. Remedial measures: forced to reorganize according to regulations.

Article 45. Acts of violation of regulations on registration of operation of branches and representative offices of cooperatives and cooperative unions

1. Caution or a fine of between VND 500,000 and VND 1,000,000 shall be imposed for acts of committing one of the following acts:

a) Registering addresses of their branch, representative office, business spot 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 5,000,000 and VND 10,000,000 shall be imposed on cooperatives or cooperative unions untruthfully or inaccurately registering changes of registered information of their branches or representative offices.

3. Remedial measures: forced to register for the re-grant of a business registration certificate for violation specified at Clause 1 and Clause 2 of this Article.

Chapter 3

COMPETENCE TO SANCTION ADMINISTRATIVE VIOLATIONS

Article 46. Competence of planning and investment inspectors to sanction administrative violations

1.Inspectors who are assigned the specialized inspection on duty have the power:

a) Cautions;

b) Fines of up to VND 500,000;

2. Chief inspectors of provincial-level Planning and Investment Services; the leader of provincial-level specialized inspectorate team have the power:

a) To impose cautions;

b) To impose fines of up to VND 25,000,000 for violations of business registration; fine up to VND 75,000,000 for violations on investment, bidding.

c) To apply additional sanctions and other measures stipulated under chapter II of this Decree.

3. The leader of specialized inspectorate team of the Ministry of Planning and Investment has the power:

a) To impose cautions;

b) To impose fines of up to VND 30,000,000 for acts of violation on business registration; fine up to VND 80,000,000 for acts of violation on investment, bidding.

c) To apply additional sanctions and other measures stipulated under chapter II of this Decree.

4. The chief inspector of the Ministry of Planning and Investment has the power:

a) To impose cautions;

b) To impose fines of up to VND 30,000,000 for acts of violation on business registration; fine up to VND 80,000,000 for acts of violation on investment, bidding.

c) To apply additional sanctions and other measures stipulated under chapter II of this Decree.

Article 47. Competence of People s Committees at all levels to sanction administrative violations

1. Presidents of commune People s Committees have the power:

a) To impose cautions;

b) To impose fines of up to VND 5,000,000;

2. Presidents of People s Committees of districts have the power:

a) To impose cautions;

b) To impose fines of up to VND 25,000,000 for violations on business registration; fine up to VND 75,000,000 for violation on investment, bidding.

c) To apply additional sanctions and other measures stipulated under chapter II of this Decree.

3. Presidents of People s Committees of provinces have the power:

a) To impose cautions;

b) To impose fines of up to VND 30,000,000 for violations on business registration; fine up to VND 80,000,000 for violation on investment, bidding.

c) To apply additional sanctions and other measures stipulated in this Decree.

Article 48. Sanctioning competence of other agencies

Police, tax, specialized inspectorate agencies within their assigned functions and tasks, if detecting acts of administrative violation falling into the field of investment and planning may impose sanctions for those acts under the provisions of Article 39, Article 42, Article 44 and Article 46 of the Ordinance on Handling of Administrative Violations and regulations under this Decree.

Article 49. Determination of competence

The sanctioning competence of persons specified in Article 46, Article 47 and Article 48 of this Decree is applied to one act of administrative violation of organization. In case of fine, sanctioning competence for individuals is equal to ½ time of sanctioning competence for organization.

Article 50. Competence to make records for acts of administrative violation

1.Persons competent specified in Article 46, Article 47 and Article 48 of this Article and competent persons are on duty when detecting acts of administrative violation in the field of investment and planning have the power to make records to sanction administrative violations as stipulated.

2. The leader of specialized inspectorate team detecting acts of administrative violation in the field of investment and planning have the power to make records to sanction administrative violations, if it is not within the scope of sanctioning competence, the sanctioning record must be sent to competent persons to process the sanction as stipulated.

Chapter 4

IMPLEMENTATION PROVISIONS

Article 51. Effect

This Decree takes effect on January 01, 2014 and replaces the Decree No.53/2007/ND-CPdated April 04, 2007 of the Government on stipulating the sanctioning of administrative violations in the field of planning and investment and the Decree No.62/2010/ND-CPdated June 04, 2010 of the Government emending and supplementing a number of articles of the Decree No.53/2007/ND-CPdated April 04, 2007 of the Government on stipulating the sanctioning of administrative violations in the field of planning and investment.

Article 52. Implementation responsibilities

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.

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

Nguyen Tan Dung