Penalties for License Violations Imposed on International Electronics Companies

Numerous manufacturers of electronic components and telecommunications equipment are facing fines for violating construction and environmental regulations.

In the previous month, it came to light that Fushan Technology Vietnam Co., Ltd., a subsidiary of Foxconn, is required to pay a $22,000 fine for proceeding with construction activities without the necessary license.

Located in the northern province of Hai Duong, the company was found to be carrying out four construction projects without proper authorization: two mobile phone assembly facilities, a dining area, and a parking lot. The company neglected to obtain the required licenses for these activities or conduct a feasibility report.

Meanwhile, Synopex Vietnam in Hai Duong faced a $9,700 fine for discharging wastewater at a volume of 1,200-1,400 cubic meters. Synopex manufactures electronic circuit boards and glass for camera equipment, phones, and tablets. As a first-level vendor for the Samsung Group in Vietnam, it collaborates with major corporations such as Vingroup, Foxconn, and BKAV.

In mid-November, Electro M Vina Co., Ltd., a South Korean-invested electronic spare parts and component manufacturer, was fined $18,000 by the Phu Tho People’s Committee for environmental protection violations. The company failed to approve the results of an environmental impact assessment report in accordance with regulations.

These companies have a period of 30 to 90 days from the date of the sanctioning decision to address environmental concerns or complete the necessary documentation to obtain relevant construction permits and environmental impact assessment reports.

Notably, two out of the three manufacturers are either suppliers or subsidiaries of Foxconn. According to Foxconn’s global code of conduct policy, all activities are expected to be conducted with respect for the environment.

Nguyen Dinh Bo, deputy director of the Hai Duong Department of Science and Technology, informed VIR that the province has reported multiple violations by foreign-invested enterprises (FIEs). Bo stated, “The management and supervision of FIEs’ operations are complex. If local authorities wish to inspect any FIE, they must inform the company and prepare sufficient documents. Unannounced inspections by local authorities allow the company to involve the embassy immediately. This is why violations continue to occur.”