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Sanction of administrative violations in the field of planning and investment

Sanction of administrative violations in the field of planning and investment

Sanction of administrative violations in the field of planning and investment

On 4 June 2010, the Government issued the Decree No.62/2010/ND-CP amending and supplementing a number of provisions of Decree No.53/2007/ND-CP dated 04 April 2007 on sanction of administrative violations in the field of planning and investment.

Decree 62 mainly deals with violations in tender activities. It prohibits the transfer over 10% of the value of work after deducting the work volume under responsibility of the subcontractors as stipulated in the signed contracts. Decree 62 also requires the contractors to stipulate in the bidding invitation documents and the contracts about the use of foreign workers in accordance with Vietnamese laws. A fine from VND18m to VND20m shall be imposed on the parties using foreign workers who are not qualified to work in Vietnam, etc.

A simplified procedure of sanctioning administrative violations will be applied to violations subject to warning or a fine up to VND200,000, or various violations made by one person where the sanction for each of such violations is warning or a fine from VND10,000 to VND200,000.

Decree 62 revokes the administrative sanctions applied to: (i) violations on construction investment project management; (ii) violations on construction quality control; (iii) violations on acceptance, payment of completed works and investment capital finalization; (iv) failure to notify progress on capital contribution; and (v) failure to notify share capital contribution within 90 days from the receiving date of the business registration certificate.

Decree 62 shall take full effect from 02 August 2010.