Recently, the Government of Vietnam has issued the Decree No. 98/2020/NĐ-CP prescribing penalties for administrative violations against regulations on commerce, production and trade in counterfeit and prohibited goods, and protection of consumer rights.
According to the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, penalties for violations against regulations on business operations requiring business licenses are as follows:
- A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for committing one of the following violations:
+ Making interlineations, erasure or alteration of the business license;
+ Leasing, lending, pledging, mortgaging, selling or transferring the business license;
+ Hiring, borrowing, buying or receiving pledge, mortgage or transfer of the business license.
- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for failing to comply with the scope, subjects, scale, duration, location, place or products specified in the business license.
- A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
+ Failing to obtain the business license when trading in goods or services classified as conditional business lines;
+ Using an expired business license when trading in goods or services classified as conditional business lines;
+ Failing to meet business conditions during the trading in goods or services classified as conditional business lines;
+ Using the business license of another trader.
- A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for failing to stop doing business during the period of suspension of business operations, suspension or revocation of the business license decided by a competent authority.
- A fine that is twice as much as the fine specified above shall be imposed upon the entity that engages in production of industrial alcohol, processing or trading in tobacco raw materials, manufacturing of tobacco products, distribution or wholesaling of alcohol or tobacco products, and commits an administrative violation.
Moreover, violating entities shall also be subject to:
- Additional penalties: The exhibits of the violation shall be confiscated; The business license shall be suspended for a fixed period of 01 - 03 months if the violation is repeated or re-committed.
- Remedial measure: The violating entity is compelled to return any benefits illegally obtained from the commission of the violation.
Note: Whether or not to apply additional penalties and remedial measures is based on each violation act of the subjects as prescribed in this Decree.
View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, effective from October 15, 2020.
Thuy Tram
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Phone: | (028) 7302 2286 |
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