Vietnam Proposes Higher Fines for On-the-Spot Violations, Including Remote Penalties

Vietnam's Ministry of Public Security is proposing an increase in the maximum fine amount for administrative violations that can be settled on the spot without a formal report. The suggested limit is VND 1 million (approximately $40 USD) for individuals and VND 2 million ($80 USD) for organizations. This revision also seeks to extend the application of this simplified procedure to include 'cold' penalties, which are detected through remote monitoring systems.

Under current regulations, violations eligible for on-the-spot settlement are limited to fines up to VND 500,000 for individuals and VND 1 million for organizations. The Ministry of Public Security argues that these amounts are significantly low compared to the general fine structures across various state management sectors. Consequently, the scope for applying on-the-spot settlements is narrow, even for common violations with higher potential fines that could otherwise be handled through simpler procedures.

The draft law amendment proposes that on-the-spot settlements apply to violations where the maximum fine within the penalty bracket, or the calculated fine based on illegal gains, does not exceed VND 1 million for individuals or VND 2 million for organizations. A key change is the proposal to allow on-the-spot settlements for violations detected by technical means, such as surveillance cameras or recording devices. Currently, such violations require a formal violation report.

The ministry reasons that many simple violations detected by technical equipment already have sufficient electronic evidence for immediate decision-making. Mandating a formal report in all these cases adds unnecessary procedures, prolongs processing times, increases costs, and is inconsistent with administrative reform and digital transformation goals. This change aims to streamline processes and align with modern administrative practices.

Furthermore, the Ministry of Public Security also proposed raising the maximum fines for administrative violations. For individuals, the maximum fine would increase from VND 1 billion to VND 1.5 billion, and for organizations, from VND 2 billion to VND 3 billion. These adjustments are based on the significant increase in the base salary and per capita income since the current maximum fines were set in 2012. Fines in specific areas, like traffic or environmental protection, could be even higher in major cities, up to double the general maximum.