A List of Typical Compliance Violations and the Laws That Apply to Them
Table of Contents
This article systematically explains typical compliance violations in Vietnam and the principal laws that apply to them (the Penal Code, the Law on Handling Administrative Violations, anti-corruption legislation, etc.). It also introduces the categories of conduct that Japanese companies should be particularly careful about, along with key points for building internal rules and training to prevent recurrence. NEXORA LAWFIRM has extensive experience supporting Japanese companies in building internal controls and compliance frameworks, and provides end-to-end support covering the legal response to violations, review of internal regulations, and the design of employee training programs.
Violations of the Penal Code
■ Fraudulent advertising (Article 197), fraud (Article 198), tax evasion (Article 200), illegal purchase of invoices (Article 203), deficiencies in the management and retention of invoices and state treasury remittance receipts (Article 204), fraudulent use of social insurance/unemployment insurance (Article 214), failure to enroll in social insurance, health insurance, or unemployment insurance (Article 216), violation of the Competition Law (Article 217), infringement of copyright and industrial property rights (Articles 225 and 226), environmental pollution (Article 235), violations concerning the management of hazardous waste (Article 236), violations of occupational safety and health regulations (Article 295), employment of workers aged 16 or under (Article 296)
Note: There is a tendency in practice to treat what are essentially civil violations as violations of the Penal Code.
Violations of the Enterprise Law and the Investment Law
■ Violation of reporting obligations relating to investment activities
■ Providing false or inaccurate information in an application for an investment license
■ Exceeding the deadline for capital contribution
■ Failure to complete the required update procedure when there are changes to an investment project
■ Violation of regulations governing the relationship between a parent company and its subsidiaries
Violations of Laws of General Application to Enterprises
■ The Competition Law
■ The Intellectual Property Law
■ Tax law
■ The Accounting Law
Violations relating to the use of figures, script, monetary units, the fiscal year, and the accounting regime in bookkeeping
Violations concerning source documents, ledgers, accounts, and financial statements
Violations concerning the engagement of accounting staff, chief accountants, and accounting service providers
Violations concerning the audit of financial statements
Violations of regulations concerning "red invoices" (official VAT invoices)
Customs
■ Delay in customs/tax declarations
■ Deficiencies in declarations
■ Unlawful alteration of customs/tax documents
Labor Law
■ Charging workers a recruitment fee (Decree No. 95/2013/ND-CP)
■ Violations relating to the execution of employment contracts
■ Violations relating to probationary periods
■ Violations relating to employee job transfers
■ Violations relating to the amendment, supplementation, or termination of employment contracts
■ Violations relating to employee training and skills development
■ Violations relating to dialogue between employer and employees
■ Violations relating to collective labor agreements
■ Violations relating to the payment of wages
■ Violations relating to working hours and rest periods
■ Violations relating to labor discipline and liability for property damage
■ Violations of occupational safety and health regulations
■ Violations relating to female employees, minor employees, and foreign employees
■ Violations relating to trade unions
■ Violations relating to insurance
Contracts with Business Partners
■ Violations relating to environmental protection plans, environmental impact assessment reports, and environmental protection proposals
■ Violations of environmental protection regulations
■ Violations relating to the import of waste
■ Violations relating to waste treatment