Foreign Investment

Labour Safety and Fire Prevention in FDI Factories: Duties and Sanctions

Scenario: a 100% Japanese electronics plant with 2,000 workers faces a surprise inspection: 300 workers without safety training, fire alarms dead in 2 of 5 workshops, no approved fire plan for a newly expanded chemical warehouse. Result: partial suspension, fines in the hundreds of millions of VND, export orders delayed 3 weeks. Labour safety and fire prevention are two areas where violations cost more than fines — they can stop the whole plant.

Occupational safety duties

  • Risk assessment: assess workplace safety risks; build safety plans;
  • Training: certified safety training (especially heavy, hazardous, toxic work);
  • Protective equipment: issue appropriate PPE;
  • Health checks: periodic check-ups, occupational-disease screening;
  • Reporting: report and investigate workplace accidents and safety incidents.

Fire prevention duties

  • Design appraisal: fire-prevention design approval before construction (for covered works);
  • Acceptance: fire-prevention acceptance before commissioning;
  • Fire plans: build, approve and drill firefighting and rescue plans;
  • Periodic checks: maintain alarm/suppression systems; police fire inspections;
  • Expansions/changes: new warehouses, changed functions, new chemicals — re-check fire conditions and complete supplementary procedures.

Sanctions: heavy, including suspension

  • Fines: high administrative fines (hundreds of millions of VND for organisations);
  • Suspension: non-compliant premises face temporary or full suspension — production-stop losses usually dwarf fines;
  • Criminal liability: safety/fire violations causing grave consequences (deaths, major fires) — managers may face prosecution;
  • Compensation: liability to workers for accidents and occupational diseases.

Recommendations for plant management

  • Put safety/fire into periodic internal audits (don’t wait for inspectors);
  • Every layout, function or chemical change — fire-review first;
  • Keep training, inspection and maintenance records complete — inspectors ask for these first.

FAQs

Expanding a chemical warehouse — fire procedures needed?

Yes — layout, function or hazard changes require fire-condition re-checks; re-appraisal procedures where covered, before use.

Do seasonal workers need safety training?

Yes — training duties apply by job hazard, not contract type.

Can fire violations suspend a plant?

Yes — serious violations can bring temporary or full suspension until remediated.

Criminal liability for fatal fires?

Directly responsible managers and heads of premises may face prosecution for fire-prevention violations (depending on fault and consequences).

Note: This article is for reference only. Contact FLAT Law Firm.

This article has been quality-reviewed by the FLAW AI Legal Council