Operating logistics without a license at an FDI enterprise is rarely a single defect; it is usually a combination of failing the market access conditions committed on the investment registration certificate and lacking the sub-license of the line actually running, such as transport, postal services or multimodal transport. The fine therefore sits not in a single article but in two stacked layers: the investment-condition layer under Decree 122/2021/ND-CP and the sector layer of each line. This article separates the two layers, answers whether vehicles can be confiscated, and sets out the correctly ordered regularization path so the enterprise does not keep being sanctioned while fixing the problem.
Legal Basis: Two Sanction Layers
The first layer is sanctions for investment-condition violations under Decree 122/2021/ND-CP on administrative sanctions in planning and investment. Article 17 of this decree handles breaches of investment and business conditions by foreign-invested economic organizations, with fines in two main groups — VND 70 to 100 million and VND 100 to 200 million depending on the act’s nature, such as failing committed market access conditions or doing conditional business lines while conditions are unmet. The second layer is sector sanctions: running road transport by automobile without a transport business license or vehicles without badges is sanctioned under Decree 168/2024/ND-CP; supplying postal services without a license is handled under postal law; operating an unrecognized bonded warehouse is handled under customs law. The two layers can be applied simultaneously to the same operating period, together with remedial measures ordering the violation to cease.
Actual Fine Levels by Situation
For the core act of failing investment conditions — for example the foreign equity ratio exceeding the cap of the service being run, or a conditional line whose conditions are incomplete — the organizational fine sits within the frame of Article 17 of Decree 122/2021/ND-CP, commonly in the VND 70 to 100 million group and rising to VND 100 to 200 million for more serious acts such as not implementing the investment registration content correctly. For a transport line running without a license, on top of the investment layer the enterprise bears sector fines on both the business unit and each badgeless vehicle, so the actual total grows with fleet size and violation duration. The point to stress is that a fine does not purchase the right to continue: after paying, the enterprise must still stop the unlicensed line until conditions are met, and each later inspection finding it still operating treats the act as a new violation, potentially heavier for recidivism.
Can Vehicles Be Confiscated
In principle, no. Confiscation of vehicles in administrative sanctions applies only to acts whose sanctioning instrument specifically so provides — typically certain customs and forest-product violations or over-age vehicles in circulation. Breaches of logistics business conditions and licenses are not in the confiscation group: the main measures are fines, suspension of the unlicensed line’s operations, withdrawal of badges if wrongly issued, and an order to complete conditions before resuming. The enterprise should distinguish two situations that cause confusion: cargo on the vehicle may be temporarily held for verification where there are signs of customs or origin violations, and an overloaded vehicle may be ordered to unload on the spot; both are preventive measures tied to the shipment’s specific act, not confiscation of the vehicle for lacking a business license.
Repeat Violations: Recidivism and Suspension
The Law on Handling of Administrative Violations treats recidivism — committing the same act again while a prior sanction is not yet expunged — as an aggravating circumstance, raising the fine within the frame and opening the way to stronger measures: suspension of the violating line for a period under sector rules, and revocation of sub-licenses already issued, for example revocation of the transport business license under Decree 158/2024/ND-CP where the unit breaches conditions and fails to remedy them. For an FDI enterprise the indirect consequences outweigh the fine: a recorded investment-condition violation affects IRC adjustments, expansion into new projects and compliance assessments when the enterprise applies for other licenses. The first violation must therefore be handled as a serious compliance project, not as an acceptable cost of continuing to operate as before.
The Correctly Ordered Regularization Path
Step one is to stop the unlicensed line immediately and audit the whole structure: reconcile the business lines, equity ratios and conditions committed on the investment registration certificate with the actual operations of each logistics line. Step two is to resolve the past violation: work with the sanctioning authority, pay the fine and perform the remedial measures in the sanction decision. Step three is to complete conditions in the correct legal order — adjust the investment registration certificate if lines or ratios do not match, restructure capital if a service cap is exceeded, then obtain the line’s sub-license such as a transport business license and vehicle badges, a postal license or an international multimodal transport license. Step four is to resume operations only within the licensed scope, while building a periodic condition-review calendar to prevent recurrence. Regularization does not erase the violation that occurred, but it is a mitigating ground and the condition for the regulator not to escalate measures at later inspections.
Frequently Asked Questions
How much is an FDI logistics firm fined for operating without a license?
Fines stack in two layers. The investment-condition layer under Article 17 of Decree 122/2021/ND-CP for organizations: commonly VND 70 to 100 million for failing market access or committed business conditions, and VND 100 to 200 million for more serious acts. The sector layer adds by line: road transport without a transport business license or vehicles without badges is fined under Decree 168/2024/ND-CP; unlicensed postal services or bonded warehouses follow the respective sector laws. Paying the fine does not buy the right to keep operating while conditions remain unmet.
Can its vehicles be confiscated?
In principle, no. Vehicle confiscation applies only to acts whose sanctioning instrument specifically designates the vehicle as an exhibit or violating means, such as certain customs violations or over-age vehicles; logistics business license violations are not in that group. The applied measures are fines, suspension of the unlicensed line, badge withdrawal if wrongly issued, and an order to complete conditions. This is distinct from cargo being temporarily held for customs verification or an overloaded truck being made to unload on the spot — measures tied to the shipment’s own act, not confiscation for lacking a business license.
How are repeat violations handled?
Recidivism is an aggravating circumstance under the Law on Handling of Administrative Violations: fines rise within the frame, and the regulator may suspend the violating line for a period and revoke the sub-license, for example revoking the transport business license under Decree 158/2024/ND-CP where conditions are not remedied. For an FDI enterprise there is a further indirect consequence: a recorded investment-condition violation affects later IRC adjustments and new project and license applications.
What should the firm do to regularize?
The correct order has four steps: stop the unlicensed line immediately and audit business lines, equity ratios and conditions on the investment registration certificate against actual operations; deal with the issued sanction decision; complete conditions in legal order — adjust the investment registration or capital structure first, then obtain the line’s sub-license such as a transport business license, postal license or multimodal transport license; and only then resume operations within the licensed scope while maintaining periodic condition reviews. Regularization does not erase the past violation but is a mitigating ground going forward.
This article has been quality-reviewed by the FLAW AI Legal Council