Foreign-invested enterprises in Vietnam continuing operations after the business license has been revoked shall be fined up to VND 50 million

According to Article 70 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, penalties for violations against regulations on purchase and sale of goods and activities directly related to the purchase and sale of goods of foreign-invested enterprises in Vietnam are as follows:

1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:

- Providing false information in the application for issuance, re-issuance, modification or renewal of the business license or license for establishment of retail outlet;

- Failing to report the loss of business license or license for establishment of retail outlet to competent authorities;

- Failing to submit reports or provide documents or explanations about issues concerning the enterprise’s operation at the request of competent authorities.

2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

- Failing to carry out procedures for modification of the business license or license for establishment of retail outlet upon occurrence of any changes in its contents;

- Failing to carry out procedures for re-issuance of the business license or license for establishment of retail outlet in case it is lost, torn, damaged, burned or otherwise destroyed.

3. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:

- Organizing a system for purchase of goods in Vietnam for export inconsistently with the Law of Vietnam or an international treaty to which the Socialist Republic of Vietnam is a signatory;

- Organizing or participating in a distribution system in Vietnam inconsistently with the Law of Vietnam or an international treaty to which the Socialist Republic of Vietnam is a signatory;

- Trading in goods or services against Vietnam’s market opening commitments or the Law of Vietnam;

- Operating beyond the scope specified in the business license or license for establishment of retail outlet;

- Illegally establishing a retail outlet in Vietnam.

4. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for continuing operations after the business license or license for establishment of retail outlet has been revoked by a competent authority or has been expired without renewal granted.

Concurrently, the business license or license for establishment of retail outlet shall be suspended for a fixed period of 01 - 03 months or business operations shall be suspended for a fixed period of 01 - 03 months. The violating entity is compelled to return any benefits illegally obtained from the commission of the violation.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, issued on August 24, 2020.

Le Vy

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