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Việt Nam's Ministry of Public Security (MPS) is proposing an entirely new legal mechanism for the nation's criminal law: the deferral of criminal prosecution to allow suspects time to remedy economic damages.

Latest Developments: On April 17, 2026, the MPS released a draft Policy Dossier for the revised Penal Code, opening it for public consultation through May 7. The document represents a shift in Việt Nam’s legislative tradition ; historically, the Ministry of Justice leads the drafting of the Penal Code. However, as seen in the recent June 2025 revision , the MPS has once again taken on the primary drafting role.

The Details: Outlined in Section V of the draft policy submission, the proposed deferral mechanism is presented as a component of the broader institution of exemption from criminal liability. It would empower competent authorities to temporarily suspend the prosecution of a reported individual.

To qualify for this suspension, the violation must meet the following conditions: it must cause economic damage but be committed for the purpose of socio-economic development or national defense and security.

It cannot involve corruption; it must bring socio-economic benefits to a locality or the country; and it must allow for the full remediation of the consequences.

The stated goal is to “ensure fairness and humanity in criminal law; protect those carrying out work for the common good, innovation, and creativity; and encourage offenders to actively cooperate with authorities and remedy damages.”

Because the current Policy Dossier represents only a set of viewpoints and orientations rather than functioning as a full draft law, the exact procedures, conditions, and specific stages at which the deferral mechanism would apply remain unclear.

Background: This mechanism is unprecedented in Việt Nam’s criminal law.

Neither the current Penal Code nor the Criminal Procedure Code contains any provision that allows authorities to halt the entire prosecution process at an early stage strictly to give the accused time to remedy consequences.

Although the MPS categorizes this under exemption from criminal liability, the two differ in nature: deferral temporarily suspends handling, whereas an exemption terminates criminal liability entirely from the outset.

Why It Matters: This proposal is directly guided by the Politburo of the Communist Party.

Resolutions 66/2025 , 68/2025 , and 79/2026 explicitly emphasize the need to avoid criminalizing economic, administrative, and civil relations, instead prioritizing the remediation of economic consequences before imposing criminal penalties.

This aligns with a directive from Oct. 20, 2025, when former Prime Minister Phạm Minh Chính signed Decision No. 2321 to approve the development plan for the revised Penal Code.

Compared to prior amendments , the government included a new requirement to “encourage the application of restorative measures and community reintegration.”

The fully drafted Penal Code is expected to be released for public consultation in July 2026, ahead of a review at the 16th National Assembly's third session and anticipated adoption in 2027.

Lê Sáng wrote this article in Vietnamese and published it in Luật Khoa Magazine on April 20, 2026. The Vietnamese Magazine has the copyrights of the English translation.

Việt Nam’s Penal Code Revision: Police Proposes Deferring Prosecution for Economic Crimes

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