Law must be a solid foundation for business confidence

Resolution 66 emphasizes a key principle: economic and civil relations must not be criminalized, and administrative measures should not be used to settle civil or commercial disputes. If authorities focus only on strict sanctions without providing guidance, explanation, and support, business confidence in the legal system will erode. Many violations arise not from intent to defraud but from lack of awareness or unclear regulations.

One common example is a director who used a personal account to receive payments without issuing invoices or declaring revenue. This constitutes tax evasion under current law, yet if the behavior stems from outdated practices or unclear rules, criminal charges may be disproportionately harsh. Administrative measures such as back-tax collection, warnings, and filing support would be sufficient to correct the mistake and encourage compliance. Criminal prosecution, by contrast, creates fear and discourages innovation, pushing businesses toward risk-averse choices that limit private sector growth.

For the law to truly become a reliable foundation for businesses, several principles are essential:

• Differentiate between intentional fraud and unintentional errors.

• Encourage voluntary disclosure and correction of mistakes by businesses.

• Improve the quality of legislation to ensure clarity, stability, and consistency while listening to business feedback.

• Strengthen legal education and dissemination through practical, accessible guidance.

Vietnam’s target of reaching the top 3 in ASEAN and top 30 globally for business environment by 2030 requires a legal system that is transparent, predictable, and applied with flexibility and fairness. When businesses feel protected and supported by the law, they will invest with greater confidence, innovate, and contribute more strongly to national prosperity.