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Proposal to Increase Maximum Administrative Fines to 1.5 Billion VND

Proposal to Increase Maximum Administrative Fines to 1.5 Billion VND

The Ministry of Public Security in Vietnam is proposing several amendments to the Law on Handling Administrative Violations, set to be revised in 2026. A key element of this proposal is an increase in the maximum administrative fine for individuals from one billion VND to 1.5 billion VND, and for organizations, from three billion VND to the same amount. This change is aimed at addressing the inadequacy of current fines, which have remained unchanged since 2012.

According to the Ministry, the base salary in Vietnam has increased from 1,050,000 VND per month in 2012 to 2,340,000 VND in 2025, reflecting a 2.2-fold rise. Additionally, the average income per capita has surged from approximately two million VND per month in 2012 to 7.7 million VND in 2024, a 3.85-fold increase. This disparity indicates that the profits gained from many violations often far exceed the current maximum fines, rendering them ineffective as deterrents.

The proposal also includes a provision that would allow the government to set maximum fines for specific sectors without needing to amend the law each time. This flexibility is intended to enable timely adjustments in response to inflation or new types of violations, aligning with current legislative principles and the long-term stability of legal texts.

Furthermore, the draft law suggests increasing the threshold for on-the-spot fines without requiring a formal record from 500,000 VND to one million VND for individuals, and from one million VND to two million VND for organizations. This change aims to expedite the handling of common administrative violations, particularly in traffic safety, through immediate penalty decisions.

In addition, the draft proposes eliminating the requirement for a formal record when violations are detected using technical devices. This is expected to streamline the process, reduce unnecessary paperwork, and facilitate quicker resolutions for straightforward cases.

The Ministry anticipates that these proposed changes will save time and costs for both violators and enforcement agencies, allowing authorities to focus their resources on more complex and serious cases. The draft will be open for public consultation until July 9, with plans to present it to the National Assembly for approval during the second session of the 16th National Assembly in October 2026.

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