News
On January 1, 2026, the Government’s Decree No. 296/2025/ND-CP officially takes effect, providing regulations on the enforcement of administrative penalty decisions and replacing Decree No. 166/2013/ND-CP in its entirety. One of the most notable changes is that individuals or organizations who fail to voluntarily pay administrative fines may have their bank accounts frozen. The new Decree establishes a stronger enforcement mechanism to ensure strict compliance with penalty decisions.
Decree 296/2025/ND-CP applies to:
Vietnamese individuals and organizations
Foreign individuals and organizations operating in Vietnam
Conditions for application:
The subject must be a person or entity that has been penalized for an administrative violation but fails to voluntarily comply with the penalty decision or complies only partially.
The Decree provides several enforcement measures, including:
Deduction from wages or income
Deduction from bank accounts – including account freezing
Compulsory implementation of remedial measures
Seizure and auction of assets
Collection of money/assets dispersed by the violator but currently held by other organizations or individuals
Among these, the freezing of bank accounts attracts significant attention due to its direct impact on personal and corporate finances.
An account-freezing measure may only be applied when both of the following conditions are met:
A decision on enforcement measures has already been issued
There are signs that the individual or organization may be dispersing or damaging their assets or funds
In such cases, the enforcement authority may request:
Relevant agencies and organizations
The People’s Committee of the commune where the individual resides or works
The location where the organization is headquartered
→ to implement account freezing to prevent asset dispersal.
Applicable to:
Civil servants and public employees
Officers of the People’s Public Security
Employees working under labor contracts at agencies or enterprises
Seasonal workers
Individuals receiving pensions
Deduction rate:
Not exceeding 30% of monthly take-home salary/pension (after social/health insurance deductions)
For other incomes: not exceeding 50%, but must still ensure the violator and dependents can maintain a minimum standard of living
Implementation timeline:
Within 03 working days from the nearest salary payment date, the agency or enterprise must:
Deduct the amount stated in the enforcement decision
Transfer the deducted amount to the State Treasury
Notify the concerned individual
This measure applies to individuals and organizations who fail to voluntarily pay fines but have funds deposited at:
Commercial banks
Credit institutions
Branches of foreign banks in Vietnam
The State Treasury
Implementation method:
Within 01 working day of receiving the enforcement decision, the bank must:
Freeze an amount equivalent to the payable fine
If the balance is insufficient, the bank must freeze the entire available amount
Notify the individual or organization subject to enforcement
Transfer the frozen funds to the State Treasury upon request
Decree 296/2025/ND-CP strengthens legal compliance by:
Preventing delayed or evasive fine payments
Ensuring deterrence and fairness in law enforcement
Enhancing the effectiveness of administrative sanctions across all sectors: traffic, security, taxation, environment, business activities, and more
Particularly, the account-freezing measure enables authorities to promptly secure payment of fines and limit asset dispersal or intentional non-compliance
