Homepage

[Research Contribution] Criminal Procedure for Prosecuting Commercial Legal Entities: New Regulations, Challenges, and Enforcement Solutions

30 December, 2025

Keywords: Criminal Procedure, Commercial Legal Entity, Criminal Liability, Code of Criminal Procedure, Corporate Crime.

In Vietnam, the rising incidence of criminal law violations by commercial legal entities has created a pressing need to improve the legal framework for prosecution. The 2015 Code of Criminal Procedure, as amended and supplemented in 2021, has established a new legal foundation for holding criminal enterprises accountable. A study by an author from the University of Economics Ho Chi Minh City (UEH) analyzes the legal basis, practical application, and proposes solutions to enhance enforcement efficiency, contributing to the development of a transparent and law-abiding business environment.

When Commercial Legal Entities Become Criminal Subjects: Legal Gaps and the Need for Reform

In the context of deepening international economic integration, commercial legal entities have played a central role in the development of Vietnam’s market economy. As independent business entities, they not only drive growth, create jobs, and contribute to the state budget but are also key factors in shaping the investment environment and national competitiveness. However, alongside this development, many commercial legal entities have exploited their legal status to commit violations such as tax evasion, financial fraud, smuggling, money laundering, environmental pollution, and labor safety breaches. These acts not only harm society and the environment but also erode public trust in the integrity of the law.

In response to this reality, Vietnam took a significant step forward when the 2015 Criminal Code (amended and supplemented in 2017) officially recognized the criminal liability of commercial legal entities, affirming that they too can be subjects of crime. This marked a profound reform, aligning Vietnam with the global trend of ensuring the fairness and effectiveness of the criminal justice system. However, the practical application of this regulation still faces many challenges. Law enforcement agencies struggle to delineate between the liability of the legal entity and that of the individuals involved; regulations on investigation, prosecution, and trial for commercial legal entities remain inconsistent and lack detailed guidance. Furthermore, because the mechanism for prosecuting commercial legal entities is relatively new, the number of cases handled is limited, leading to a lack of experience in implementation and law application.

Given this context, the need for in-depth research on the criminal procedure for prosecuting commercial legal entities has become more urgent than ever. This is not just a theoretical issue aimed at perfecting the legal scientific foundation but also holds significant practical importance in enhancing the effectiveness of handling violations and ensuring deterrence and fairness in judicial activities. Clarifying the theoretical basis, analyzing the current situation, and proposing solutions to improve legal regulations on criminal procedure for commercial legal entities will not only strengthen law enforcement capacity but also demonstrate Vietnam’s commitment to the principles of the rule of law, transparency, and sustainable development.

Criminal Procedure for Commercial Legal Entities in Vietnam: From Practical Application to a Path for Improvement and International Lessons

The research focuses on clarifying the newest and most important points in the 2015 Code of Criminal Procedure, as amended and supplemented in 2021, concerning criminal proceedings against commercial legal entities. Specifically, the Code has more clearly defined the jurisdiction and procedures for initiating prosecution, investigation, prosecution, trial, and enforcement of judgments against legal entities, helping to delineate responsibilities among law enforcement agencies—from investigative bodies and procuracies to courts—more consistently and transparently. The study also clarifies the responsibilities of the legal representative of the commercial legal entity throughout the proceedings, thereby ensuring the rights and obligations of the enterprise are determined fairly.

In addition, the research analyzes the coercive and punitive measures applicable to criminal commercial legal entities, including primary penalties and supplementary judicial measures such as temporary suspension of operations, freezing of accounts, or seizure of assets. However, practical application still faces many challenges and shortcomings, such as a lack of implementation experience among law enforcement agencies, limited legal awareness among businesses, and especially the lack of synchronization between the provisions of the Criminal Code and the Code of Criminal Procedure, which sometimes leads to less-than-desired effectiveness in handling cases.

From a comparative law perspective, the study also references the models of Germany, the United States, and Australia to draw lessons that can be applied in the Vietnamese context, aiming to build a modern, fair, and internationally compliant procedural mechanism. Through this, the work not only contributes theoretically but also has profound practical significance in perfecting the legal framework and enhancing the effectiveness of criminal law enforcement against commercial legal entities in Vietnam.

Solutions to Enhance the Effectiveness of Criminal Law Enforcement Against Commercial Legal Entities in the Current Vietnamese Context

Based on an analysis of legal shortcomings and practical domestic experience, the study proposes a series of solutions to improve the procedure for prosecuting criminal liability of commercial legal entities in Vietnam. First, it is necessary to complete the system of legal documents and sub-law guiding documents, ensuring clear and unified regulations on procedural sequences and formalities. In this, expanding the scope of representatives for the commercial legal entity during proceedings, as well as providing more specific regulations on preventive and coercive measures, are key factors to ensure that the handling of cases is objective and feasible.

The study also suggests re-evaluating the regulations on trial jurisdiction between People’s Courts and Military Courts, as well as refining the regulations on investigation timelines to create synchronization between proceedings against individuals and legal entities. In addition, strengthening the coordination mechanism between law enforcement agencies and state management bodies for enterprises will help improve implementation efficiency, reducing overlap and delays in case processing.

Notably, the author emphasizes the role of digital transformation in criminal proceedings, allowing for activities such as summoning, sending notifications, and exchanging case files through electronic means, which helps enhance transparency and save costs. Perfecting a diverse and flexible mechanism of coercive measures, combining account freezing, asset seizure, and temporary suspension of operations, is also seen as a necessary step to increase deterrence while still protecting the legitimate rights of businesses and their employees.

Improving the criminal procedure for commercial legal entities not only contributes to enhancing the effectiveness of crime prevention and combat but also ensures a healthy business environment, promotes sustainable economic development, and strengthens public trust in the fairness of the judicial system. The results of this study therefore serve as an important policy reference for the process of legal reform and the improvement of the legal enforcement mechanism in Vietnam.

Read the full article: Criminal Procedure for Prosecuting Commercial Legal Entities: New Regulations, Challenges, and Enforcement Solutions HERE.

Author: Dr. Trinh Duy Thuyen – University of Economics Ho Chi Minh City

This article is part of the series spreading research and applied knowledge from UEH with the message “Research Contribution For All.” UEH cordially invites readers to look forward to the next UEH Research Insights newsletter.

News, photos: Author, UEH Department of Communications and Partnerships

Chân Trang (1)