Vietnam Vietnam’s new decree revises punishments rules in the fields of industry and trade

Including penalties for violating regulations on chemicals and energy conservation

Vietnam’s new decree revises punishments rules in the fields of industry and trade

On January 31, 2022, the Government of Vietnam established the Decree No. 17/2022/17 Amending and Supplementing a Number of Decrees Stipulating Administrative Penalties in the Fields of Chemicals, Industrial Explosives, Electricity, Hydropower Dam Safety, Effective Use of Energy, Production and Sale of Counterfeit and Banned Goods, Consumer Protection, and Gasoline and Gas Trade (hereinafter “the new Decree”). Articles 1 and 2 of the new Decree amend and supplement the Decree No. 71/2019/ND-CP Stipulating Administrative Penalties in the Field of Chemical Substances and Decree No. 134/2013/ND-CP Stipulating Administrative Penalties in the Fields of Electricity, Hydroelectric Dam Safety and Effective Energy Use, respectively. The new Decree entered into force on the same day as its establishment.

The new Decree can be downloaded at:
https://vanban.chinhphu.vn/?pageid=27160&docid=205269

 

Major amendments in the field of chemical substances

Article 1 of the new Decree amends Articles 2–5, 14–19, 23–24, 26–27, 29–32, 51, and 58–61 of the Decree No. 71/2019/ND-CP. The major amendments/supplements are summarized as follows:

Item

Violation Penalty

Note

Licensing for restricted chemicals  Operating business not pursuant to the obtained license (e.g., location, size, type of chemicals…) A fine of VND 30–40 mil. will be imposed. Amendment
Manufacturing or trading restricted chemicals without a license The regulatory definition of “illegal revenues” (*) has been clarified with respect to the provision “revenues from illegal activities shall be confiscated.” Supplementation
Chemical Accident Prevention and Response Measures

 

Failing to submit chemical accident prevention and response measures to the relevant authorities within 10 days of the preparation of the measures. A fine of VND 4–6 mil. will be imposed. Newly established
Failing to fully compliant chemical accident prevention and response measures A fine of VND 6–8 mil. will be imposed Newly established
Annual report on chemicals–related activities Failing to submit an annual report by the deadline (January 15). A fine of VND 2–6 mil. will be imposed. Newly established
Failing to submit a report via the National Chemicals Database (chemicaldata.gov.vn) A fine of VND 10–14 mil. will be imposed. Amendment

(*) “Illegal revenues” shall mean all profits obtained by an operator under any administrative violation, i.e., the amount generated in sales/consumption activities after deducting the direct costs of constituting the relevant goods. This figure is calculated based on documents provided by the relevant business, such as receipts and other documents.

 

Major amendments in the field of energy conservation

Article 2 of the new Decree amends Articles 26–32 of the Decree No. 134/2013/ND-CP that cover efficient use of energy. The major amendments/supplements are summarized as follows:

Item Violation Form of Penalty Note
Audit on mass energy facilities Failing to submit an energy usage report. A fine of VND 10–20 mil. will be imposed. Newly established
Effective use of energy in industrial production

 

Failing to comply with requirements on facilities: energy conservation technologies, energy management measures, and various technical standards for the design, construction, installation, and operation of facilities. A fine of VND 40–60 mil. will be imposed. Amendment
Energy Management Failing to submit the mandated annual (or five-year) energy efficiency plan and resulting reports A fine of VND 20–40 mil. will be imposed. In addition, energy manager’s certificates will be suspended for 6–12 months. Supplementation
Energy labeling

 

Failing to report energy efficiency prior to product labeling; or failing to submit report changes in energy efficiency. A fine of VND 30–40 mil. will be imposed. In addition, labeling of energy efficiency will be suspended for 4–6 months. Newly established
Information in documents that report energy efficiency mismatches with the information that appears on the relevant product labels or in advertising or promotion materials. A fine of VND 60–80 mil. will be imposed. Newly established
Failing to label products or equipment in accordance with the information contained in submitted energy efficiency reporting documentation. A fine of VND 100–120 mil. will be imposed. Newly established
Minimum energy efficiency

 

Failing to comply with the minimum energy performance standard (MEPS) in the manufacture, import, trade, or sale of products specified in the List of Products Subject to Energy Labeling (**).

(**) See Decision No. 04/2017/QD-TTg for the List.

A fine of VND 20–40 mil. will be imposed. Newly established
Manufacturing or importing products specified in the List of Products that Must be Disposed of (***).

(***) See Decision No. 24/2018/QD-TTg for the List.

A fine of VND 100–120 mil. will be imposed. Imported products must also be re–exported. If they cannot be re–exported, they must be disposed of. Amendment