Decree 296/2025, which governs the enforcement of administrative penalty decisions, will take effect from January 1, 2026, replacing Decree 166/2013. It introduces several notable provisions aimed at increasing the effectiveness of administrative enforcement in Vietnam.

Who will be affected?

The decree applies to both Vietnamese and foreign individuals or organizations penalized under Vietnam’s administrative law but who fail to comply fully or voluntarily. This includes fines, confiscations of violating goods or tools, and costs incurred by authorities in remediating consequences caused by such violations-especially where no specific penalty decision was issued or costs remain unpaid.

It also outlines responsibilities for authorized individuals and enforcement agencies as well as any organizations or persons involved in implementing these enforcement measures.

Expanded scope of asset seizure

Decree 296/2025 clarifies the sources from which penalties may be collected and assets seized in cases involving organizations, household businesses, family units, cooperatives, and community groups.

For household businesses, family-run operations, or cooperatives, enforcement will first target shared funds and assets. However, if these are insufficient to fulfill the penalty payment, authorities may seize individual funds and assets from any members-unless otherwise specified by partnership agreements or relevant legal provisions.

Restrictions for state agencies

Government bodies, military units, political organizations, socio-political groups, or public service entities funded by the state may not use budgetary or state-derived funds to pay penalties or enforcement costs. These entities are expected to self-fund any costs associated with enforcement actions.

Businesses and cooperatives also included

The decree applies similarly to private enterprises, subsidiaries, cooperatives, and cooperative unions. Enforcement measures may target any cash flow, assets, or income from these entities to cover fines and related enforcement expenses.

Wage and income deductions allowed

The decree introduces a mechanism for partial wage or income deductions from individuals. These deductions may be carried out repeatedly and proportionally, based on total monthly earnings.

For wages and pensions, the deduction rate per instance must not exceed 30% of the net amount received after mandatory contributions such as social insurance, health insurance, unemployment insurance, and personal income tax. The deductions must also preserve the individual’s minimum living standards and support obligations for dependents.

For other income sources, deductions may not exceed 50% of monthly income per instance-again, ensuring basic living conditions are protected under current law.

Obligations of employers and agencies

Organizations, units, and employers managing an individual’s wages, pension, or income are required to comply with enforcement decisions. Within three working days from the nearest pay date, they must deduct the designated portion and transfer it to the account specified in the enforcement decision at the State Treasury.

Simultaneously, they must notify both the affected individual and the enforcing authority about the deduction.

Nguyen Le