LEGAL UPDATE - DECREE NO. 12/2021

On April 10, 2003, the Government initially issued the Decree No. 37/2003/ND-CP stipulating administrative penalties on business registration (hereinafter referred to as “Decree 37”). On April 4, 2007, the Decree No. 53/2007/ND-CP was issued regarding administrative penalties on planning and investment (hereinafter referred to as “Decree 53”), officially replacing the Decree 37. Accordingly, not only limited to business registration, but the Decree 53 also expanded the scope of penalties to both bidding and investment. Then, on November 11, 2013, the Government issued the Decree No. 155/2013/ND-CP (hereinafter referred to as “Decree 155”) replacing the Decree 53 with higher penalties.

Next, in order to ensure compliance with the new Laws, on June 1, 2016, the Government issued Decree No. 50/2016/ND-CP on administrative penalties in the field of planning and investment (hereinafter referred to as “Decree 50”) replacing the Decree 155. The Decree 50 was drafted based on the basic principles and contents of the Law on Handling of Administrative Violations 2012 and related laws such as: Law on Cooperatives 2012, Law on Bidding 2013, Law on Public Investment 2014, Law on Investment 2014, Law on Enterprise 2014, etc.

However, in the field of planning and investment, up to now, a number of new legal documents have passed and come into force, including the aforementioned Laws, but, the Decree 50 has not yet been covered the entire content of these new legal documents. Therefore, the Government assigned the Ministry of Planning and Investment to draft a Decree to replace the Decree 50. Thereby, on December 28, 2020, the Government issued the Decree No. 122/2021/ND-CP regulating on penalties for administrative violations in the field of planning and investment (hereinafter referred to as “Decree 122”). The Decree 122 is expected to complete the legal basis and improve the efficiency of state management in the field of planning and investment.

In this legal update, we concentrate on pointing out certain regulations on administrative violations penalties in the field of planning and investment as follows: 

SUMMARY OF DECREE 122

OUTSTANDING POINTS OF THE DECREE 122

  • In the field of public investment

  • In the field of business investment in Vietnam

  • In the field of public-private partnership investment (PPP)

  • In the field of bidding

  • In the field of business registration

CERTAIN REMARKS FOR ENTERPRISES

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