Starting August 31, Decree 281/2026 amending Decree 123/2024 on administrative penalties in land management takes effect. One of its key changes is expanding the authority of commune people’s committee chairpersons to impose fines up to VND250 million (US$9,525), compared to the previous limit of VND5 million (US$190).
Lawyer Le Van Hoan of the Ho Chi Minh City Bar Association explained that the old ceiling of VND5 million (US$190) was far below the penalty ranges for most land violations, such as encroachment or unauthorized land-use changes, which often involve large assets and scale. Without higher authority at the commune level, many cases had to be transferred directly to provincial authorities, causing overload and delays in enforcement.
Lawyer Le Van Hoan emphasized that granting commune leaders the power to fine up to VND250 million (US$9,525) strengthens local government’s deterrence capacity, allowing violations to be stopped early. It also prevents offenders from exploiting delays in case transfers to complete illegal construction or legitimize violations. The expanded authority provides commune leaders with legal tools for enforcement, such as restoring land to its original state or reclaiming illicit gains, ensuring effective land management at the grassroots level.
This change also eliminates intermediate steps, shortens administrative procedures, and reduces the risk of overdue penalty decisions. It optimizes resources for the state management system following the restructuring of administrative units.
Authorities in communes now handle nearly all fields, not just land. Therefore, increasing their authority and penalty limits is not simply about higher values but aligns with the two-tier local government model. This adjustment is considered a major breakthrough in grassroots state management, Lawyer Le Van Hoan added.
