ORGANIZING A GRAND OPENING EVENT IN A PUBLIC SPACE WITHOUT A PERMIT, CAUSING TRAFFIC CONGESTION

1. Case Summary

Fashion Store Z recently opened on a busy commercial street in District X. To create an exciting atmosphere for its grand opening, the store owner independently erected a temporary stage and installed high-powered loudspeakers on the sidewalk and part of the roadway without obtaining prior authorization.

The event attracted a large crowd, resulting in complete traffic congestion in the area for approximately two hours.

The local competent authorities subsequently prepared an administrative violation record and imposed administrative penalties for the unauthorized occupation of the roadway and sidewalk, as well as for organizing an event without the required permit.

The owner of Store Z considered the penalties excessive, arguing that the event was merely intended to promote the business and create a festive atmosphere for customers.

2. Legal Perspective – A Strong Shield for Compliance

Using a roadway or sidewalk for a grand opening event without prior approval from the competent authority constitutes a violation of Vietnamese law governing road traffic order, safety, and public order.

Pursuant to Clause 1, Article 77 of the Law on Road Traffic Order and Safety 2024, roadways are designated exclusively for vehicular traffic, while sidewalks are intended primarily for pedestrian use.

Where it is necessary to temporarily use a roadway or sidewalk for political events, cultural or sporting activities, or other lawful purposes, the requesting organization or individual must:

• prepare a temporary use plan;
• obtain approval from the competent authority before use;
• comply with all instructions issued by the Traffic Police; and
• ensure that public order and road traffic safety are not adversely affected.

Accordingly, neither roadways nor sidewalks may be used for commercial promotional activities without prior authorization from the competent authority.

Furthermore, under Decree No. 100/2019/NĐ-CP, as amended and supplemented by Decree No. 123/2021/NĐ-CP, occupying urban roadways or sidewalks to organize cultural events, performances, or similar activities without a permit constitutes an administrative violation.

The applicable administrative fines range from VND 2,000,000 to VND 4,000,000 for individuals. Where the violator is an organization, the fine is doubled, ranging from VND 4,000,000 to VND 8,000,000.

Depending on the extent of the traffic obstruction and the consequences caused, the competent authority may also impose remedial measures, including:

• dismantling unauthorized structures;
• removing equipment or objects obstructing traffic; and
• restoring the roadway or sidewalk to its original condition.

3. Psychological, Educational, and Corporate Governance Perspectives – The Human-Centered Approach

Psychological Perspective

This incident reflects a “growth-at-all-costs” mindset and a lack of respect for shared public spaces.

Consumers evaluate businesses not only by the quality of their products but also by how responsibly they interact with the surrounding community. A grand opening that causes traffic congestion and inconvenience to the public is more likely to generate frustration and negative perceptions than goodwill and customer interest.

Corporate Governance Perspective

This case serves as an important lesson in risk management and brand governance.

A successful grand opening should be carefully planned within a sound legal compliance framework. Attempting to save time or costs by bypassing regulatory procedures—or assuming that informal arrangements will be tolerated—can quickly transform a celebratory event into a public relations crisis.

For every business, professionalism begins with legal compliance.

4. Comprehensive Recommendations from Mr. Nguyễn Hữu Long

To transform a legal crisis into an opportunity for sustainable development, businesses should consider the following measures:

Step 1 – Fully Comply with Legal Requirements

Cooperate proactively with the competent authorities, promptly pay any administrative fines, and immediately implement all required remedial measures.

Demonstrating compliance is the first step toward rebuilding public trust.

Step 2 – Develop a Legally Compliant Event Plan

Businesses intending to organize promotional events in public spaces should apply for permission to temporarily use sidewalks or roadways from the competent district-level authority before the event takes place.

The application should include comprehensive plans addressing traffic management, parking arrangements, crowd control, and public safety for review and approval by the relevant authorities.

Step 3 – Foster a Culture of Responsible Business Conduct

Rather than relying on spontaneous crowd-gathering activities that may inconvenience the public, businesses should invest in professionally organized in-store events or meaningful online promotional campaigns.

A business that demonstrates professionalism, legal compliance, and social responsibility ultimately builds a stronger and more sustainable brand.

Expert Insight

This article has been prepared based on the professional consultation and expert opinions of Mr. Nguyễn Hữu Long, M.A., an expert in leadership, law, psychology, and education.

Through an interdisciplinary approach, we provide not only robust legal guidance but also integrated solutions in risk management, organizational governance, and psychological support, contributing to the sustainable development of businesses and the wider community.

If you or your organization are facing similar legal issues relating to land, education, or business compliance, please contact us through our hotline or submit your inquiries via our website for timely professional assistance.