Summary of fines for violations against regulations of branches of foreign traders in Vietnam

According to Article 69 of the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, fines for violations against regulations on establishment and commercial activities of branches of foreign traders in Vietnam (hereinafter referred to as “branches”) are as follows:

1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for providing false information in the application for issuance, re-issuance, modification or renewal of the license for branch establishment.

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 have the branch’s premises or sub-leasing the branch’s premises or operating at a location other than the one specified in the license for branch establishment;

- Failing to submit periodical reports or submitting false reports on the branch’s operation to the competent licensing authority;

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

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

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

3. A fine ranging from VND 30.000.000 to VND 40.000.000 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 branch establishment, if not liable to criminal prosecution;

- Operating against the license for branch establishment;

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

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

dd) Hiring, borrowing or leasing, lending the license for branch establishment.

4. A fine ranging from VND 40.000.000 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- Continuing operation after the license for branch establishment has been revoked by competent authorities or the expired license is not granted renewal.

Moreover, the exhibits of the violation shall be confiscated; the license for branch establishment 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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