The proposal to raise the maximum administrative fine to VND1.5 billion (US$57,800) for individuals and VND3 billion (US$115,500) for organisations is considered relatively high compared with the current financial capacity and ability of individuals and businesses to pay.

The proposed maximum would be 1.5 times the ceiling set under the current law.

Mai Thi Phuong Hoa, vice chairwoman of the National Assembly (NA)’s Committee on Legal and Judicial Affairs, made the remarks on  during the first conference of full-time NA deputies of the 16th tenure in Hanoi, where deputies discussed the draft amended Law on Handling Administrative Violations.

She said that the draft also contained a range of coercive measures, including suspending electricity, water and internet services, and temporarily postponing exit from Vietnam for individuals or organisations that deliberately failed to comply with penalty decisions.

Other measures included requiring violators to restore the original state of affairs or demolish unlawful structures, as well as additional penalties such as revoking licences or suspending operations.

Against this backdrop, Hoa said the proposed ceiling for administrative fines should be carefully considered and assessed from multiple perspectives to ensure the law remains sufficiently stringent without placing excessive burdens on people's livelihoods or businesses.

“This is particularly important at a time when the Government is undertaking a range of measures to ease the burden on individuals and businesses and support efforts to achieve double-digit economic growth,” she said.

She proposed initially focusing increases in fines on violations affecting public health, food safety and the environment, in line with the Party's recent policy directions.

In the meantime, NA deputy Thach Phuoc Binh from the Mekong Delta province of Vinh Long also called for caution over across-the-board increases before impact assessments are conducted for specific sectors and affected groups.

He said priority should be given to practical remedial measures, including restoring the original state of affairs, demolishing unlawful structures, remedying pollution and returning illegally obtained gains.

The circumstances for licence revocation and suspension of operations should also be clearly defined.

Regarding coercive enforcement, Binh said temporary postponement of exit should only be imposed where there are specific grounds to believe it is necessary to prevent evasion.

“Decisions should clearly state the grounds and duration and provide a mechanism for review and immediate cancellation when the grounds no longer exist,” he said.

He also called for safeguards for innocent third parties when electricity or water services are suspended, saying such measures should not unduly affect residential areas, shared facilities or essential services.

For vehicles, suspension of inspection, registration or licensing should only be applied where a clear link exists between the vehicle, the violator and the outstanding penalty decision, with exceptions for vehicles that have been rented, loaned or legally transferred.

Internet and telecommunications suspension should be treated as a last resort and limited to the person, service or account directly connected to the violation, he added.

For minors committing administrative violations, Binh proposed alternative measures, such as psychological counselling, education and vocational training, community service, apologies and remedial action.

Any consent by minors and their representatives should be voluntary and documented in writing.

Concluding the conference, NA Vice President Nguyen Khac Dinh said the NA deputies had provided detailed comments on the draft law and related legislation, helping improve the consistency and coherence of the legal system.

He ordered the NA’s Committee on Legal and Judicial Affairs and the NA Secretary-General to finalise a report for the drafting and reviewing bodies to study, explain and incorporate the deputies' recommendations.

The NA Standing Committee would work with the Government to further complete the draft legislation and submit it to the NA for consideration at its second session in October, Dinh said.

He also told the Government and the Supreme People's Procuracy to carry out the conclusions of the NA Standing Committee and gather public feedback for submission to the NA.