Legal News

[Laws and Regulations] Publication of Draft Decree on Penalties in the Planning and Investment Sector (Version 3)

2024/09/05

The Ministry of Planning and Investment has released the third version of a draft decree on behalf of Decree No. 122/2021/ND-CP, which stipulates penalties for administrative violations in the planning and investment sectors. This draft has three objectives: to solve practical problems, to ensure consistency in the legal system, and to strengthen the deterrence of enterprises against administrative violations in the field of planning and investment. Several amendments and supplements were made to Decree No. 122/2021/ND-CP to overcome practical issues.

The following three points are noteworthy in this draft decree

◆In the field of foreign investment: the level of fine for discrepancies between activities stated in the certificate of registration of foreign investment and actual business increased from VND70,000,000-1,000,000,000 to VND100,000,000-1,200,000,000.

◆In the field of investment in Vietnam (investment reporting): The following investment reporting-related acts are subject to reduced fines
・Failure to submit investment reports on time or incomplete reports:
Reduction from VND20,000,000,000 to VND30,000,000,000 to VND10,000,000,000 to VND20,000,000,000.
・Failure to submit investment reports, false or inaccurate reports on investment activities:
Reduction from VND30,000,000,000 to VND50,000,000 to VND20,000,000,000 to VND30,000,000.

◆Field of business registration: Penalties have been added for false or inaccurate declaration of information in the activity registration documents and activity registration change documents of branches, representative offices, or management bases. In addition, penalties for violations related to the publication of company registration details have been abolished.

The draft decree on penalties for administrative violations in the area of planning and investment is currently in the process of being circulated to all relevant parties to gather opinions, and is being finalized. We will update this newsletter as new information becomes available.