Representative offices of foreign traders in Vietnam operating against its license for establishment shall be fined VND 30 million

According to Article 67 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, administrative penalties for violations against regulations on establishment and operation of representative offices of foreign traders in Vietnam are specified as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:

- Providing false information in the application for issuance, re-issuance, modification or renewal of a license for establishment of representative office;

- Failing to openly post the shutdown of a representative office as prescribed.

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

- Failing to have premises for locating the representative office or sub-leasing the premises of the representative office or operating at a location other than the one specified in the license for establishment of representative office;

- Failing to submit periodical reports or submitting false reports on operation of the representative office to the competent licensing authority;

- Failing to submit reports or provide documents or explanations about issues concerning operation of the representative office at the request of competent authorities;

- Failing to carry out procedures for modification or re-issuance of the license for establishment of representative office in cases prescribed by law;

- Making interlineations, erasure or alteration of contents of the issued license for establishment of representative office.

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

- Forcing documents included in the application for issuance, re-issuance, modification or renewal of the license for establishment of representative office, if not liable to criminal prosecution;

- Operating against the license for establishment of representative office;

- The head of the representative office of a foreign trader is also the head of a branch of that trader or of another foreign trader in Vietnam;

- The head of the representative office of a foreign trader is also the legal representative of that trader;

- The head of the representative office is also the legal representative of an economic organization established under the law of Vietnam;

- Hiring, borrowing or leasing, lending the license for establishment of a representative office.

4. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:

- Continuing operation after the foreign trader has completed procedures for termination of operation;

- Continuing operation after the license for establishment of representative office has been revoked by competent authorities or the expired license is not granted renewal.

Moreover, there are also a number of additional penalties and remedial measures that may apply, including:

- The exhibits shall be confiscated.

- The license for establishment of representative office 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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