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RISKS & PENALTY LEVELS FOR ENTERPRISES IN THE INDUSTRY AND TRADE SECTOR

Updated on: 12/5/2025

VIETLINK LAW FIRM LIMITED

RISKS & PENALTY LEVELS FOR ENTERPRISES IN THE INDUSTRY AND TRADE SECTOR

Tiến sĩ Kinh tế Dương Thái Trung
2 days ago
6 min read

According to statistics from many localities, tens of thousands of enterprises are sanctioned every year for violations of regulations in the Industry and Trade sector. These violations occur in both large and small businesses and span numerous industries such as alcohol, tobacco, petroleum, gas, electricity, commercial infrastructure, promotions, e-commerce, and others.

In general, the most common violations stem from a lack of understanding of legal requirements, failure to maintain business conditions after licensing, or failure to update new regulations.

**RISKS & PENALTY LEVELS FOR ENTERPRISES IN THE INDUSTRY AND TRADE SECTOR**

1. Common types of violations

Operating beyond or contrary to the license scope:Operating outside the scope stated in the license; continuing operations after the license has expired; failing to obtain required sub-licenses for conditional business lines (such as retail alcohol, tobacco sales, LPG outlets, etc.).

Fire prevention and fighting (FPF) violations:Lack of an FPF certificate; failure to maintain FPF equipment; not providing periodic FPF training for personnel. This is the group of violations most frequently recorded by inspectors.

Failure to post prices or selling not in accordance with posted prices:Especially common in markets, mini-supermarkets, commercial centers, and fuel stations.

Trading goods of unclear origin – without invoices or supporting documents:Typically seen in goods sourced from wholesale markets, general consumer goods, cosmetics, functional foods, etc.High risk: confiscation of goods and suspension of business operations.

Failure to maintain licensing conditions after being granted a license:Many enterprises hold licenses but no longer meet the actual conditions (warehouse, vehicles, area requirements, FPF standards, etc.); fail to update production lines or fail to maintain staff holding required certificates.

Incomplete contracts and documentation:Lack of contracts with distribution traders (for alcohol, tobacco, petroleum, etc.); failure to retain invoices for the required period; non-compliant transportation documents.

2. Penalties are becoming increasingly strictDepending on the nature and seriousness of the violation, enterprises may face:

Fines ranging from several million to hundreds of millions of VNDApplied under: Decree No. 98/2020/NĐ-CP dated 26/8/2020 on administrative penalties in commercial activities, production, trading of counterfeit/prohibited goods, and consumer protection; Decree No. 124/2021/NĐ-CP dated 28/12/2021 amending Decree No. 115/2018/NĐ-CP on administrative penalties for food safety; Decree No. 106/2025/NĐ-CP dated 15/05/2025 on administrative penalties in fire prevention, fighting, and rescue; along with many other specialized Industry and Trade decrees.

Suspension of license use for 01–24 monthsFor serious or repeated violations.

Suspension of business operationsCommonly applied where enterprises fail to ensure FPF compliance; trade petroleum, LPG, alcohol, or tobacco without proper licenses; or trade large quantities of goods with unclear origin.

Confiscation of violating goods and meansApplied to counterfeit goods, substandard products, or goods without traceable origin.

3. Why are Industry and Trade enterprises frequently penalized?

Industry and Trade laws are broad, cover many sectors, and are frequently updated;
Enterprises lack an internal legal/compliance department or sufficient specialized personnel;
Business conditions are not reviewed periodically;
Confusion in dossiers, procedures, and documentation;
Lack of awareness of sector-specific regulations (alcohol, tobacco, gas, petroleum, e-commerce, promotions, etc.).

4. Recommendations for enterprises

Periodically check all business conditions (FPF, environment, sub-licenses);
Establish procedures for managing documents and contracts;
Review commercial infrastructure, warehouses, vehicles, and equipment against sector standards;
Use ongoing legal advisory services to avoid mistakes and prevent penalty risks.

Violations in the Industry and Trade sector arise not only from limited legal knowledge, but also from enterprises failing to maintain business conditions, failing to update new regulations, or neglecting technical, FPF, and documentation requirements during operations. In the context of increasingly strict regulatory systems, rising penalties, and frequent inspections, proactive legal risk prevention is essential for every enterprise.

To avoid sanctions, business suspension, license withdrawal, or reputational damage, enterprises should conduct periodic compliance reviews, build robust internal legal procedures, and ensure that all business conditions are continuously maintained in accordance with legal standards.

With a team of lawyers and Industry and Trade experts who possess deep expertise in alcohol, tobacco, gas, petroleum, commercial infrastructure, e-commerce, and promotions, Vietlink Law Firm is proud to be a trusted partner helping enterprises to:

Review and assess compliance levels;
Prevent penalty risks;
Standardize licensing systems and business conditions;
Represent enterprises in dealings with regulatory authorities;
Provide comprehensive ongoing legal advisory services.

Vietlink is committed to delivering accurate and timely legal solutions, enabling enterprises to operate safely, transparently, and in full compliance with the law.1. Common types of violations