Penal liability of commercial legal entities for criminal offence in Vietnam

Penal liability of commercial legal entities for criminal offence in Vietnam

The Penal Code 2015, effective on  01 July 2016, prescribes that commercial legal entity offences in Vietnam  would bear penal liability.
Penal liability of commercial legal entity for criminal offence in Vietnam includes:

1. The penalties:

1.1. Principal penalty

1.1.1. Fine:  at least VND 50,000,000.
1.1.2. Term suspension of operation: Term from 06 months to 03 years.
1.1.3. Permanently suspend operations: Apply on the entire operation.

1.2. Additional penalties

1.2.1. Business prohibition, banning the certain activities in certain areas from the time limit of 01-year to 03 years.
1.2.2. Prohibition of capital raise with a term from 1 year to 03 years, including the following forms:

- Prohibition of loans from banks, credit institutions or investment funds.
- Prohibition of issuing, offering securities.
- Prohibition of capital raise from clients.
- Prohibition of domestic and foreign joint ventures and cooperation.
- Prohibition of establishment of real estate trusts.

1.2.3. A fine, if not applied as a principal penalty.

1.3. Judicial measures

1.3.1. Confiscation of property, money directly related to the crime.
1.3.2. Return the property, repair or compensate for damage; forced to publicly apologize
1.3.3. Restore the original state
1.3.4. Force to dismantle the works, construction works part unlicensed or improperly built with licenses
1.3.5. Force to remedy the environmental pollution, the spread of epidemics.
1.3.6. Force to take out of the territory of the Socialist Republic of Vietnam or re-export of goods, articles and means into the territory of the Socialist Republic of Vietnam, imported contrary to the provisions of law or are temporarily imported for re-export, but not re-exported in accordance with law; imports and transit of infringing intellectual property rights, counterfeit goods and intellectual property rights, facilities, materials and imported materials are used mainly for the production and trading of counterfeit goods intellectual property after the removal of infringing elements.
1.3.7. Force to destroy the goods and products harmful to human health, animals, plants and the environment, cultural products with malicious content or other material evidence destroyed liable under law.
1.3.8. Force to remove the infringing elements on goods, goods packaging, business facilities, items.
1.3.9. Force to recall the infringing products,  goods being circulated on the market

2. The conditions for the criminal offence  of commercial legal entity in Vietnam:

 Commercial legal entities for criminal offence in Vietnam  would bear penal liability when it satisfies full 4 following conditions:
- Offence is done in the name of commercial entity.
- Offence is done in the interest of commercial entities.
- Offence is done with the guidance and approval of the executive or commercial entity.
- Within the statute of limitation for penal liability examination is
   stipulated as follows: 05 years for less serious crimes; 10 years for serious offenses; 15 years for serious crimes; 20 years for particularly serious crimes.

3. The crimes apply to specific commercial legal entity.

3.1. The crime of infringing upon the economic management order

3.1.1. Smuggling (Article 188)
3.1.2. Crime of illegal cross border transportation of goods or currency (Article 189)
3.1.3. Crime of production, trafficking in prohibited goods (Article 190).
3.1.4. Storing, transporting prohibited goods (Article 191)
3.1.5. Crime of production, trading in counterfeit goods (Article 192)
3.1.6. Crime of production, trading in counterfeit goods is food, food, food additives (Article 193)
3.1.7. Crime of production, trading in counterfeit goods is medicine, preventive medicine (Article 194)
3.1.8. Crime of production, trading  in counterfeit goods is used for livestock feed, fertilizers, veterinary drugs, plant protection drugs, plant varieties and animal breeds (Article 195).
3.1.9. Crime of speculation (Article 196)
3.1.10. Crime of tax evasion (Article 200)
3.1.11. Crime of printing, distribution and sale of illegal invoices, receipts the state budget (Article 203)
3.1.12. Intentionally published false information or hide information in securities activities (Article 209).
3.1.13. Crime of using inside information to buy or sell securities (Article 210)
3.1.14. Crime of stock market manipulation (Article 211).
3.1.15. Crime of fraud in the insurance business (Article 213).
3.1.16. Crime of evasion of social insurance premiums, health insurance, unemployment insurance for workers (Article 216)
31..17. Crime of breaching regulations on competition (Article 217)
3.1.18. Crime of infringing upon copyrights and related rights (Article 225)
3.1.19. Crime of infringing upon industrial property rights (Article 226).
3.1.20. Crime of breaching the regulations on research, exploration and exploitation of natural resources (Article 227).
3.1.21. Crime of breaching the regulations on mining, forest protection and forest product management (Article 232)
3.1.22. Crime of breaching regulations on the management and protection of wildlife (Article 234).

3.2. Crime of the Environment

3.2.1. Crime and causing environmental pollution (Article 235).
3.2.2. Crime of breaching prevent, respond to and troubleshoot the environment (Article 237).
3.2.3. Crime of breaching regulations on the safety of irrigation works, dikes and prevention of natural disasters; violates the regulations on protection of land, river banks (Article 238).
3.2.4. The crime of waste into the territory of Vietnam (Article 239).
3.2.5. The crime of destruction of aquatic resources (Article 242)
3.2.6. Crime of destruction of forest offenses (Article 243)
3.2.7. Crime of breaching regulations on the management and protection of endangered, rare animals (Article 244)
3.2.8. Crime of breaching the rules on the management of natural protected areas (Article 245)
3.2.9. Crime of Import, spread of invasive alien species (Article 246).

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