The Government recently passed Decree No. 119/2017/ND-CP (“Decree 119”). Decree 119 provides sanctions on administrative violations of standards, measures and quality of products. The key points are:
• violations of product labeling standards incur a fine of between VND500,000 to VND30,000,000, depending on the product value. This is an increase from the current range of VND100,000 to VND10,000,000.
• conducting gasoline blending without a valid license incurs a fine of between VND40,000,000 to VND to VND60,000,000; and
• manufacturing of helmets without a valid license incurs a fine of between VND30,000,000 to VND40,000,000.
Decree 119 replaces Decree No. 80/2013/ND-CP and will come into effect from 15 December 2017.
Oil & Gas
Decree 124/2017/ND-CP (“Decree 124”) was issued on 15 November 2017 to regulate offshore investment in petroleum activities and takes effect from 1 January 2018.
Under Decree 124 investors mus obtain an investment registration certificate (“IRC”) to invest in offshore petroleum projects. However, it also states that investors may transfer foreign currency, machinery, and equipment overseas before obtaining the IRC for market research and investment exploration purposes. The transfer limit in this case is USD500,000, beyond this limit approval from the State Bank of Vietnam must be obtained.
Decree 124 also provides conditions to obtain the IRC and requires the Vietnamese investor to comply with investment laws of the relevant foreign jurisdiction.
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