RESOLUTION 198/2025/QH15: A NEW LEGAL FRAMEWORK EMPOWERING ENTERPRISES ON THEIR DEVELOPMENT JOURNEY

Following the May 2, 2025 newsletter that analyzed tax and fee issues under Resolution No. 198/2025/QH15, this newsletter by W&A summarizes and analyzes key issues in the Principles of Inspection and Examination and Principles of Enforcement Against Violations, corresponding to Articles 4 and 5 of the Resolution. As a result, enterprises, business households, and individual business owners will gain a deeper, more comprehensive understanding of the spirit of these regulations and their significance in promoting the development of the private sector.

Chapter II of the Resolution, titled “Improving the Business Environment,” demonstrates a strong commitment to reforming inspection and examination activities as well as restructuring the handling of violations comprehensively, with the goal of promoting private sector growth.

Key Principles

Principles of Inspection and Examination Activities:

Only once per year: Enterprises, business households, and individual business owners shall be subject to inspection or examination per year, unless there is clear evidence of violations. Notably, in this digital transformation era, digital inspections and digital examinations as well as other digital methods are prioritized and encouraged to align with the digital age. Remote management via inspection and examination will reduce in-person disruption.

No overlapping supervision on the same matter: If a business entity has already been inspected on a specific regulatory matter, it will not be re-examined on the same issue in the same year, unless there is clear evidence of the breach. This provision puts an end to overlapping inspections and examinations and facilitates business operations by minimizing unnecessary repeated oversight on the same issue within a year, which otherwise hampers production and business activities.

Transparency of plans and conclusions: All inspection and examination plans and conclusions must be made public in accordance with legal provisions to ensure transparency. Any abuse or misuse of inspections or examinations to harass or hinder enterprises, business households, or individual business owners will be strictly dealt with.

Exemption from physical inspections: To encourage voluntary legal compliance and build trust between the State and business entities, those who comply well with legal regulations may be exempted from inspections. This means compliant businesses will save time and effort otherwise spent on inspection-related procedures.

Principles of Enforcement Against Violations and Resolving Cases:

Clear allocation of responsibilities: Legal, individual, criminal, civil, and administrative responsibilities are clearly distinguished to avoid overlapping penalties or misattribution of liability. Civil, economic, and administrative measures are prioritized that gives a chance to businesses and individuals are encouraged to take the initiative in remedying violations and damages. In situations where legal application could lead to criminal liability, criminal measures should only be considered when truly necessary. If there are criminal elements involved, timely remedial action will be a key factor in determining how the case is resolved.

No retroactive application of unfavorable laws: If a new regulation is issued after a violation occurs and is detrimental to the business, household, or individual, it will not be retroactively applied. This principle contributes to a stable legal environment, protecting investor and business confidence.

Presumption of innocence in legal proceedings: Investigations, prosecutions, and trials must be based on clear evidence, and no party may be subjected to prejudice or assumptions that could place them at a disadvantage. This is a major step toward establishing the rule of law and preventing the abuse of power that could harm business entities.

Enforcement measures must follow due authority: Sealing, freezing, or seizing assets must be conducted strictly within the proper authority, procedure, and order—without unduly affecting the operations of the involved entity. Necessary measures should be applied reasonably to secure related assets while minimizing the impact on business operations.

Asset distinction: Legitimate assets must be clearly distinguished from those related to violations or other unrelated assets. Appropriate measures are encouraged to preserve evidence and ensure timely resolution while reducing the negative impact of investigations on businesses. This helps avoid waste and unlocks economic resources.

These principles reflect the State's effort to establish a fair, transparent, and stable legal environment for private-sector economic activity. Business stakeholders should stay updated and comply with these provisions in their operations, while also understanding their rights and interests in case they need to be exercised.

W&A is ready to support businesses in implementing and taking full advantage of the incentives from Resolution No. 198/2025/QH15. Please contact us for detailed consultation and timely assistance.

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