What is speculation? How is speculation punished under the Penal Code?

Reply:Speculation is the act of buying a large quantity of some products or goods when the market is unstable in order to wait for the opportunity to profit from the instability of the market in the price of that goods when selling. This buying and selling usually takes place in the short term.

Pursuant to Article 196 of the 2015 Penal Code, the crime of speculation is stipulated as follows:

Penalty framework for speculation crimes for individuals

- Frame 1:

A fine of from VND 30,000,000 to VND 300,000,000 or imprisonment from 06 months to 03 years shall be imposed on: A person who takes advantage of a scarcity situation or creates an artificial scarcity in a natural disaster, epidemic, war or economic difficulty situation to buy up goods in the list of price-stabilized goods or in the list of goods priced by the State in order to resell them for illegal profits in one of the following cases:

+ Goods worth from 500,000,000 VND to under 1,500,000,000 VND;

+ Illegal profits from 100,000,000 VND to under 500,000,000 VND.

- Frame 2:

A fine of from VND 300,000,000 to VND 1,500,000,000 or imprisonment from 03 years to 07 years shall be imposed on offenders who:

+ Organized;

+ Abuse of position and power;

+ Taking advantage of the name of an agency or organization;

+ Goods worth from 1,500,000,000 VND to under 3,000,000,000 VND;

+ Illegal profits from 500,000,000 VND to under 1,000,000,000 VND;

+ Adversely affect security, order and social safety.

- Frame 3:

A fine of from VND 1,500,000,000 to VND 5,000,000,000 or imprisonment from 07 years to 15 years shall be imposed on offenders:

+ Goods worth 3,000,000,000 VND or more;

+ Illegal profits of VND 1,000,000,000 or more;

+ Dangerous recidivism.

- Additional penalties:

Offenders may also be fined from VND 20,000,000 to VND 200,000,000, banned from holding positions, practicing a profession or doing certain jobs from 01 to 05 years.

A commercial legal entity committing a crime specified in this Article shall be punished as follows:

- Committing a crime under Frame 1 shall be subject to a fine from VND 300,000,000 to VND 1,000,000,000;

- Committing a crime in one of the cases specified in Points a, d, dd and e, Clause 2 of this Article shall be subject to a fine of from VND 1,000,000,000 to VND 4,000,000,000;

- Committing a crime under the circumstances in frame 3 shall be subject to a fine from VND 4,000,000,000 to VND 9,000,000,000;

- Commercial legal entities may also be fined from VND 100,000,000 to VND 300,000,000, banned from doing business or operating in certain fields or banned from raising capital from 01 to 03 years.

It can be seen that if an individual commits a speculative crime, he or she may be sentenced to imprisonment with a maximum penalty of up to 15 years in prison. In addition, the offender may also be subject to an additional penalty of up to VND 200,000,000, a ban on holding a position, a ban on practicing a profession or doing certain jobs from 01 year to 05 years. For a commercial legal entity that commits a crime, it may also be subject to a fine of up to VND 300,000,000, a ban on doing business, a ban on operating in certain fields or a ban on raising capital from 01 year to 03 years.