Public Security Ministry Proposes Penalties for Foreigners 'Not Present in Vietnam'

Vietnam's Ministry of Public Security is proposing a significant expansion of administrative penalty scope, aiming to hold foreign individuals and organizations accountable for violations committed within Vietnamese territory, regardless of their physical presence. This move seeks to close loopholes in current legislation that primarily target entities operating within the country.

The existing Law on Handling Administrative Violations stipulates that foreign individuals and organizations violating administrative laws within Vietnam are subject to penalties. However, the Ministry of Public Security notes that this framework leaves a gap for cases where foreign entities, not physically present in Vietnam, commit offenses that have an impact within the country. Current implementing decrees also lack specific definitions or handling principles for foreign legal entities not registered or actively operating in Vietnam, creating challenges, particularly in sectors like e-commerce, technology, and cross-border communications.

To address this, the draft amendment proposes to broaden the scope of penalties to include foreign individuals and organizations, whether present or not present in Vietnam, who commit administrative violations within the nation's territory. This initiative has garnered input from various ministries. The Ministry of Finance, for instance, has requested an assessment of the feasibility of enforcing penalty decisions against subjects not present in Vietnam and without assets there, citing potential difficulties in serving decisions and applying coercive measures if subjects do not voluntarily comply.

In response, the Ministry of Public Security stated that for the regulations to be effective, international treaties, both bilateral and multilateral, will be necessary to provide a legal basis for coordinated enforcement. The Ministry of Culture, Sports, and Tourism suggested adding a category for subjects not present in Vietnam but who violate laws via cyberspace by providing information, products, services, or content to users in Vietnam. This is particularly relevant given that many cross-border platforms offer services to Vietnamese users without a commercial presence, sometimes failing to properly classify content, issue warnings, or implement age verification measures.

The Ministry of Public Security believes the proposed wording, "present or not present in Vietnam," adequately covers cyberspace violations. Meanwhile, the Ministry of Industry and Trade highlighted the borderless nature of e-commerce, where many participants may operate outside Vietnam or lack a commercial presence, complicating the identification of violators and the application of traditional administrative sanctions like fines or license revocations. The ministry stressed the need for effective and feasible enforcement measures.