Administrative penalties are essential deterrents, but enforcement often fails. This occurs when businesses are inactive at registered addresses, lack funds or assets, dissolve, or individuals subject to enforcement cannot pay fines.

Many individuals and organizations deliberately delay or evade enforcement obligations, highlighting limitations of the current system.

According to the Ministry of Public Security, this leaves penalty decisions unenforced, difficult to implement fully. After nearly 13 years, the Law on Handling Administrative Violations has shown limitations and is currently undergoing revision.

To address these limitations, the current draft proposes adding four more direct and deterrent enforcement measures:

- An exit ban for individuals and organizational leaders who have not complied with administrative penalty decisions, when immediate prevention of their evasion is necessary.

- Sealing headquarters, premises, or parts of production, business, or service facilities to enforce penalties such as license revocation, temporary operational suspension, and remedial actions.

- Requesting utility service cessation (electricity, water) for construction works, production, business, or service establishments to enforce penalties like license revocation, temporary operational suspension, and remedial actions.

- Temporarily suspending vehicle inspections, vehicle registration, and driver's license issuance to enforce administrative penalty decisions in road, rail, inland waterway, maritime, and civil aviation traffic safety and order.

Prioritizing Seizure of Lower-Value Assets

A significant and humane technical change in the draft concerns asset seizure. Current regulations broadly allow asset seizure corresponding to the fine amount. The draft clarifies that if an organization or individual has multiple assets of varying values, authorities should prioritize seizing lower-value assets first.

This minimizes negative impacts on the lives and business operations of those subject to enforcement, while ensuring the recovery of fines for the state budget.

Regulations state that individuals and organizations face enforcement if they do not voluntarily comply with administrative penalty decisions or reimburse agencies for remedial measures.

However, the current Law on Handling Administrative Violations primarily targets measures directly impacting violators' finances and assets.

Specifically, authorities can deduct salaries, income, or funds from accounts; seize assets for auction; or collect money and other assets held by third parties if there are signs of asset dissipation.

These traditional measures face challenges when violators lack fixed income, have no bank account balances, or have used sophisticated methods to dissipate assets before enforcement.

These new enforcement measures are expected to be more effective by modernizing electronic processing, allowing authorities to revoke licenses, professional certificates, or update enforcement status directly on individuals' and organizations' electronic identification accounts.

This makes monitoring measures like exit bans or suspension of vehicle inspections more accurate and immediate.

The draft is open for public comment until 9/7 and is expected to be submitted to the National Assembly for consideration and approval at the second session of the 16th National Assembly in October 2026.

Hai Thu