The Law requires commercial organizations to adopt a code of conduct and implement internal control mechanisms to prevent conflicts of interest and corrupt activities, as well as to foster a culture of integrity within the organization.
For certain categories of private sector organizations, namely public companies, credit institutions, public organizations established by decision of the Prime Minister, the Minister of Foreign Affairs, or the heads of provincial people's committees, as well as public organizations whose statutes allow them to collect donations from the public, the Law extends the provisions applicable to state organizations:
- on disclosure of information and transparency of activities,
- on the regulation of conflicts of interest,
- on the responsibility of managers and their deputies for corrupt activities in their organizations.
For these categories of organizations, it is also established that any act of corruption committed by an official that is not serious enough to warrant criminal prosecution may result in administrative sanctions. In particular, corruption is punishable by a fine of up to 100 million dong (approximately 275,000 rubles). The heads of such organizations may also be held personally liable or jointly liable with their deputies for corruption within the organization. A manager and deputy who bear joint liability may be fined up to 40 million dong each (approximately 110,000 rubles), and if the manager bears direct liability, in addition to the fine, he or she may face publication of information about the prosecution on the website of the competent authorities.
The law also defines the concept of "conflict of interest" for the first time: it refers to a situation in which the interests of an official and his or her relatives influence or may influence the performance of his or her official duties. If an official is aware or should be aware of a conflict of interest, they are required to notify the competent employee. If another person becomes aware of a conflict of interest involving one of their colleagues, they are also required to notify their immediate supervisor or employer.
In addition to the Law, Decree No. 59/2019/ND-CP was adopted, establishing rules for the implementation of the new Law. Among other things, the rules stipulate that public and credit institutions may be periodically inspected by state inspectors for compliance with the provisions of the Law. If violations are found, the company will have to take measures to correct them, and if criminal acts are identified, the relevant materials will be forwarded to the competent authorities.
The Rules also clarify the practical application of the restrictions established by the Law for former civil servants applying for positions in certain non-governmental organizations. For example, the Law prohibits former officials from performing managerial or executive functions in non-governmental organizations operating in the field that was under their control during their tenure in public office, and the Rules define specific parameters for the implementation of this restriction, including the time limits that apply to different categories of officials in specific areas. For example, a former employee of the Ministry of Industry and Trade will be prohibited from holding a management position in a private trading company for 12 to 24 months after retirement or leaving office. Such restrictions are intended to prevent the practice of "doanh nghiệp sân sau," which literally translates as "backyard business," i.e., the use of connections in the public sector to obtain advantages for a commercial organization, such as privileges in the conclusion of government contracts.
The decree also introduces updated rules for giving and receiving gifts by public officials. Under the new rules, officials are prohibited from receiving gifts, directly or indirectly, from legal entities or individuals related to the recipient's activities or matters within their sphere of management when such gifts are presented in connection with the performance of official duties or when the purpose of receiving them is unclear. Information about gifts received in connection with certain events (e.g., holidays, weddings, etc.) must be disclosed by officials regardless of their value (previously, such rules applied only to gifts worth more than 500,000 dong, or about 1,400 rubles).
In situations where officials are unable to refuse a gift due to certain circumstances, they are required to transfer it to the balance sheet of the agency/organization, informing their immediate supervisor of the gift within five working days of receiving it, as well as disclosing the nature of their relationship with the giver. If the agency/organization is unable to return such a gift to the donor for any reason, it is transferred to the relevant department for subsequent sale.