It would also increase the maximum administrative fine for individuals from the current VND1 billion ($38,000) to VND1.5 billion ($57,000), while raising the ceiling for organizations from VND2 billion ($76,000) to VND3 billion ($114,000).

The government has proposed specific maximum fines for individual sectors within the draft law, including higher ceilings in several areas.

The bill would also revise and supplement provisions concerning those subject to administrative penalties, aggravating and mitigating circumstances, and exemptions from administrative liability.

Another significant change involves more detailed regulations governing penalty procedures, the removal of unnecessary administrative steps and improvements to the handling of violations in digital environments.

The draft would allow authorities to impose penalties without drawing up a formal violation record when offenses are detected through technical equipment or specialized enforcement devices.

It also proposes more flexible conditions for postponing, reducing or waiving monetary penalties and allowing fines to be paid in installments.

Additional provisions would permit the postponement or exemption of certain supplementary penalties and remedial measures to better reflect practical circumstances.

Regarding enforcement, Quang said the amended law would introduce several new coercive measures, including temporary exit bans, sealing offices and business premises, and suspending electricity and water supplies.

Other proposed measures include suspending vehicle inspections, registrations and the issuance of driving licences, as well as cutting off internet, telecommunications and digital infrastructure services or imposing technical restrictions and access blocks.

The draft would establish stricter principles and conditions for applying these measures to safeguard human and citizens' rights and prevent harm to individuals or organizations unrelated to the violations.

Particular attention would be given to restrictions involving electricity, water, internet, telecommunications and digital infrastructure services.

Another provision in the draft would allow funds collected from administrative fines, after being paid into the state budget, to be allocated to support administrative enforcement, the application of administrative measures and oversight of the law's implementation.

However, although the provision remains in the submitted draft, Quang said the drafting agency had requested its withdrawal, retaining the arrangements under the existing Law on Handling Administrative Violations.

Concerns that excessive fines could exceed offenders' ability to pay

Presenting the legislative appraisal report, Phan Chi Hieu, chairman of the National Assembly's Law and Justice Committee, said the reviewing body had called for further examination of the sectors in which limitation periods for administrative penalties could be extended.

The committee urged clearer distinctions between sectors to uphold the principle that administrative violations should be detected and prevented promptly.

It expressed concern about extending the limitation period for administrative penalties to three years, or potentially four years for cases transferred by criminal procedure authorities.

Under Vietnam's Penal Code, the statute of limitations for criminal prosecution of less serious offenses is five years.

The committee warned that extending the administrative penalty period could narrow the legal distinction between administrative violations and criminal offenses, potentially exposing offenders to heavier legal liability.

It therefore called for particularly careful consideration of the proposal.

On the proposed increases in maximum administrative fines, the committee acknowledged that higher penalties could strengthen deterrence.

However, it cautioned that excessively high fines might exceed the actual financial capacity of some individuals and businesses, undermining their effectiveness.

The committee recommended that the government consider more fundamental approaches, including remedial measures and supplementary penalties such as licence revocation or temporary suspension of operations.

It also suggested examining international experience to strengthen deterrence, prevent violations and encourage greater compliance with the law.

Regarding the proposed coercive measures, the committee questioned whether several of them were appropriate mechanisms for enforcing administrative penalty decisions.

Measures such as suspending electricity, internet, telecommunications or digital infrastructure services, as well as imposing technical restrictions or blocking access, appeared primarily designed to stop or terminate violations rather than compel compliance with existing penalty decisions, it said.

The committee also raised concerns about suspending vehicle inspections, registrations and the issuance of driving licences.

Such restrictions would target vehicles or other assets rather than directly identifying and holding accountable the individuals responsible for violations.

For these reasons, the committee concluded that the proposed measures did not yet offer a sufficiently fundamental or comprehensive solution.

It recommended further reviewing and revising the relevant provisions to ensure they are appropriate, practical and enforceable.

Tran Thuong