Accordingly, this Decree increased the minimum fine level between VND 60,000,000 to VND 80,000,000 imposed on any enterprise that has the acts: Requesting a prospective participant to deposit or pay a certain amount of money in any way to be eligible to enter into a multi-level marketing contract; paying money or other economic benefits to a participant in compensation for his/her recruitment of new distributors without consideration of his/her sale of products to recruited distributors, etc.
If an individual operating the multi-level marketing network commits the aforesaid acts, a fine is between VND 15,000,000 to VND 20,000,000 shall be imposed. The fine under the earlier regulations was between VND 3,000,000 to VND 5,000,000.
The organization of conferences, introduction of multi-level marketing network without obtaining the multi-level marketing network registration certificate, on which the fine shall be also increased to between VND 30,000,000 to VND 40,000,000.
Especially, this Decree also adds regulations on imposing a fine from VND 40,000,000 to VND 50,000,000 on the act of maintaining more than a multi-level marketing contract, position for a participant and implementing sales promotion program using multi-level network in which a participant has more than a position.
This Decree takes effect from November 25th, 2018.
Accordingly, card-holding market surveillance officers are not allowed to erase, delete or correct information inscribed on the cards because of any reasons (Clause 2 Article 3).
In addition, market surveillance officers shall be also strictly prohibited from illegally making, concealing, buying, selling, forging, borrowing, lending, hypothecating, mortgaging, etc market inspection cards similar to all other organizations or individuals (Clause 3 Article 3).
A market inspection card shall be re-issued according to the new form promulgated at Annex No. 4 of this Circular.
This Circular takes effect from November 23rd, 2018 and replaces Circular No. 18/2016/TT-BCT dated August 31st, 2016.
In case imported goods or domestically manufactured goods are certified the technical-regulation conformity according to each batch of products, goods (according to method 7), validity of the certificate of technical-regulation conformity is not limited, however, it is only valid with regard to goods, products of the same batch rather than applying to goods, products of other batches.
With regard to domestically manufactured goods of which the certificate of technical-regulation conformity is only valid for a certain point of time, the batches of goods already manufactured, stamped with the technical-regulation conformity seal shall be further circulated after the certificate of technical-regulation conformity expired and the re-certification is not required.
Accordingly, in comparison with the regulations in the earlier Law, this Law enlarges regulated entities. In particular, apart from enterprises, industry associations, this Law also applies to public sector entities (Article 2).
In addition, this new Law also supplements some agreements which are considered to be anti-competitive agreements such as: agreements on distributing customers; agreements on not trading with enterprises other than the parties to the agreements; agreements on restricting consumption market, sources of supply of goods and services from enterprises other than the parties to the agreements (Article 11).
Relating to criteria for determining an enterprise or a group of enterprises holding a dominant position on the market, apart from market share, this new Law also supplements the criterion “substantial market power”. In particular, it shall base on these factors; financial strength and size of the enterprise; advantages in technology and technical infrastructure; right to own, obtain and assess infrastructure, etc. (Article 26).
This Law takes effect from July 1st, 2019 and replaces the Law on competition No. 27/2004/QH11 dated December 14th, 2004.
However, with regard to commodities subject to conditional business and limited to business, the commodity exchange shall register with a competent authority so that such commodities can be listed on the commodity exchange. With regard to other commodities, it is required to inform the Ministry of Industry and Trade at least 30 days before such commodities are officially listed on the commodity exchange.
In addition, according to the newly-added regulations, foreign investors are also entitled to trade commodities through commodities exchanges in Vietnam and entitled to contribute capital to establish a Vietnamese foreign commodity exchange or purchase shares and stakes of the Vietnamese foreign commodity exchange. However, their holding shall not exceed 49% of the charter capital.
With regard to Vietnamese traders, under the new regulations, they are entitled to trade commodities through foreign commodity exchanges through domestic commodity exchanges interconnected with foreign commodity exchanges.
However, the scope of goods which cannot be sold through the multi-level marketing business model is amended. In particular, it is banned from selling digital content products through the multi-level marketing business model while insecticidal and germicidal preparations which are not included in the list of goods restricted or banned from use are allowed to be sold through the multi-level marketing business model.
In addition, this Decree also supplements some prohibited acts with regard to multi-level marketing companies and multi-level marketing participants, such as implementing sales promotion program using multi-level network in which a participant has more than one position, identity number; providing commercial intermediary services as regulated by the Law on commerce with the aims of maintaining, expanding and developing its own multi-level marketing network, etc.
In order to be eligible to carry out multi-level marketing business, each enterprise has to deposit at a bank an amount not lower than VND 10 billion. Under the earlier regulation, it was required to deposit an amount of VND 5 billion.
This Decree takes effect from May 2nd, 2018 and replaces Decree No. 42/2014/ND-CP dated May 14th, 2014.
Accordingly, certain points of the requirements of the issuance of the License for tobacco trading are amended as follows:
- The applicant must be an enterprise that is duly established under the laws of Vietnam but it is not required to register for tobacco wholesaling;
- Its tobacco distribution system covers at least 02 provinces with at least 01 tobacco wholesaler in each province. Under the earlier regulations, it is required to have at least 02 tobacco wholesalers in each province;
This Decree takes effect from November 1st, 2017.
Point a Clause 3 Article 9, Point e Clause 1 Article 26, Point e Clause 2 Article 26, Point c Clause 3 Article 26, Point g Clause 1 Article 27, Point g Clause 2 Article 27 and Clause 3 Article 46 of Decree No. 67/2013/ND-CP shall be abolished.
The application of remedial measures by coercively recalling the goods shall be complied with the regulations in point h Clause 1 Article 28 and Article 36 of the Law on handling administrative violations.
1. Goods, services and geographical areas serving national defense and security;
2. Industrial explosive materials;
3. Gold bar;
4. Gold materials;
6. Cigarettes and cigars;
7. National reserve activities;
9. Postage stamps of Vietnam;
10. Fireworks and other activities related to fireworks;
11. National power system; hydropower; nuclear power;
12. Maritime safety services;
13. Coastal communication services;
14. Air navigation;
15. State-invested national and municipal railroad infrastructure;
16. Irrigation system, inter-provincial and inter-district agricultural hydraulic engineering; stone revetment;
17. Forestry services in special use forest;
18. Publishing products;
19. Public postal network;
20. Public services in press publishing;
However, it does not mean that all of the above goods and services of which all of the stages of production, trading, import and export belong to the state’s monopoly; some goods on which the monopoly is held by the State at the production stage (such as gold bar, publishing products) or at the import stage (such as cigarettes and cigars).
Accordingly, acts of smuggling and commercial frauds in customs sector are determined according to administrative violations prescribed in Decree No. 127/2013/ND-CP and Decree No. 45/2016/ND-CP, including the violations mentioned in the Appendix I of this Circular.
Acts of commercial frauds in accounting sector are determined according to administrative violations prescribed in Decree No. 105/2013/ND-CP, including the violations mentioned in the Appendix IV of this Circular.
Acts of commercial frauds in insurance business sector are determined according to administrative violations prescribed in Decree No. 98/2013/ND-CP, including the violations mentioned in the Appendix V of this Circular.
Acts of commercial frauds in course of printing, release, management and use of invoices are determined according to administrative violations prescribed in Decree No. 109/2013/ND-CP and Decree No. 49/2016/ND-CP, including the violations mentioned in the Appendix VI of this Circular.