Decree No. 105/2025/ND-CP of the Government detailing a number of articles and measures to implement the Law on Fire Prevention, Fire Fighting and Rescue will take effect from July 1, 2025.
Accordingly, the Decree clearly stipulates 44 types of facilities subject to compulsory fire and explosion insurance purchase, in which, apartment buildings, collective housing with 5 floors or more or with a total floor area of 1,000 m2 is a mandatory group.
Thus, this decree has been changed in a more tightening direction compared to current regulations. Decree 67/2023 stipulates that apartment buildings, collective houses, and dormitories with a height of 7 floors or more or a total volume of 10,000 m3; Mixed-use houses with a height of 5 floors or more or a total volume of 5,000 m2 or more must purchase fire insurance.
In addition, food service establishments and other service establishments as prescribed by law have a total floor area of 300m2 or more.
Forces trading in flammable goods with a total floor area of 200m2 or more; offices of state agencies, offices, offices of enterprises, political and social organizations with houses of 3 floors or more or with a total floor area of 500m2 or more.
Or multi-purpose houses, mixed-use houses, except for houses combined with production and business with houses of 3 floors or more or with a total floor area of 500m2 or more.
The warehouse of goods with fire and explosion risk category A, B, C has a total floor area of 200m2 or more; car parking lot, motorbike, car and motorbike display house has a total floor area of 500m2 or more.
Social assistance facilities with houses with 3 floors or more or a total floor area of 300m2 or more.
Housing combined with production and business with a total area for production and business of 200m2 or more.
kindergartens, kindergartens, and kindergartens with 50 or more children or a total floor area of 500m2 or more.
Or primary schools, junior high schools, high schools, high schools with many levels of education, universities, colleges, vocational high schools...
The deduction from enterprises implementing compulsory fire and explosion insurance is 2% of the total actual insurance premium in the fiscal year before the previous year, implemented according to current regulations.
Meanwhile, also from July 1, 2025, Decree 106/2025/ND-CP regulating administrative sanctions for violations in the fields of fire prevention, fire fighting and rescue will take effect.
Accordingly, the penalty for violations of regulations on compulsory fire and explosion insurance is stipulated in Article 17 of Decree 106/2025/ND-CP.
The act of not buying compulsory fire and explosion insurance may be subject to a fine of VND30 - 40 million for a group 2 establishment that does not buy compulsory fire and explosion insurance. From 40 - 50 million VND for establishments in group 1 that do not purchase compulsory fire and explosion insurance.
The above fine applies to individuals. If it is an organization, the fine is twice as high, and can be up to 100 million VND (according to Article 4 of Decree 106/2025/ND-CP).
In addition, the act of not fully paying the proceeds from fire and explosion insurance for fire prevention and fighting activities will also be subject to a fine of 10 to 50 million VND, depending on the level.
