In addition to reporting obligations for investment projects, foreign-owned companies (FOCs) must also comply with periodic reporting requirements related to their ongoing operations. Based on our advisory experience and interactions with regulatory authorities, two areas frequently overlooked in compliance processes are:
- Reports on goods trading and related activities under the Business License
- Reports on drawdown and repayment of foreign loans not guaranteed by the Government
These obligations apply broadly and, if unmanaged, pose compliance risks.
Following the previous week of our Weekly Debrief series on FOC’s reporting obligations, this second issue highlights these two categories. To assist enterprises in maintaining compliance, we provide a summary table outlining key requirements, including submission format, reporting cycle, main contents, and potential penalties for non-compliance.
| Report’s name | Form of submission | Reporting cycle | Main contents of the report | Potential consequences for non-compliance | |
| Report on goods trading activities and activities directly related to goods trading
(In Vietnamese: Báo cáo tình hình hoạt động mua bán hàng hóa và các hoạt động liên quan trực tiếp đến mua bán hàng hóa) |
Online Reports: input data into the form published on the website of the Department of Industry and Trade (DOIT) | Annual Report | Contents:[1]
✓ Quantity, revenue, profit of import and distribution activities ✓ Revenue, profit, key partners of related business activities ✓ Retail outlet operations ✓ Tax and financial obligations
Submission place: Website of provincial DOIT
Deadline: Before 31 January of the year following the reporting year
Legal Basis: Article 40 of Decree No. 09/2018/ND-CP
|
Failure to submit report: fines of VND 10-20 million[2].
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| Report on implementation of foreign borrowing and repayment not guaranteed by the Government
(In Vietnamese: Báo cáo tình hình thực hiện vay, trả nợ nước ngoài không được chính phủ bảo lãnh) |
Report on short-term loans | Online Reports: Enter data into the electronic system for management of foreign loan drawdown and repayment not guaranteed by the Government
|
Monthly reports | Contents:[3]
✓ Loan Details: Amounts disbursed and repaid (principal and interest), each drawdown and repayment period ✓ Supporting documents for disbursement and repayment up to the reporting date
Submission place: Electronic system for management of foreign loan drawdown and repayment not guaranteed by the Government (Link)
Deadline: No later than the 5th day of the month following the reporting month
Legal Basis: Article 41 of Circular No. 12/2022/TT-NHNN |
Late submission or inaccurate data twice or more in a financial year: fines of VND 10-20 million[4], and mandatory resubmission of accurate reports[5].
Failure to submit or incomplete reports: fines of VND 20-30 million[6], and mandatory resubmission of accurate reports[7].
Submission of untruthful reports: fines of VND 60-80 million[8].
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| Report on medium- and long-term loans | |||||
In the coming weeks, our Weekly Debrief series will continue with other key reporting obligations, including:
- Labor-related reporting obligations;
- Reporting obligations on statistics, and finance.
For a comprehensive and systematic overview of periodic reporting obligations applicable to FOCs, readers may refer back to the previous Weekly Debrief post, which discusses reports related to investment projects, available at the following link: Weekly Debrief | Reports related to Investment Project.
These articles aim to help enterprises stay compliant, reduce risks, and handle their periodic legal obligations more effectively. Stay tuned for the upcoming articles as we continue to break down key reporting requirements in a practical.
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[1] The detailed contents of the report are prescribed in Form No. 13 of Decree No. 09/2018/ND-CP.
[2] Article 70 of Decree 98/2020/ND-CP.
[3] The detailed contents of the report are prescribed in Appendix 05 of Circular No. 12/2022/TT-NHNN.
[4] Article 47.1(b), (d) of Decree 88/2019/ND-CP.
[5] Article 47.7(a) of Decree 88/2019/ND-CP.
[6] Article 47.2 of Decree 88/2019/ND-CP.
[7] Article 47.7(a) of Decree 88/2019/ND-CP.
[8] Article 47.4(a) of Decree 88/2019/ND-CP.
