Decree 105/2025/ND-CP, effective July 1, 2025, primarily details the implementation of the Law on Fire Prevention, Firefighting, Rescue, and Salvage in Vietnam. This decree significantly impacts businesses by introducing new and updated requirements related to fire safety and emergency response.
1. Enhanced Fire Prevention and Safety Requirements:
– Expanded Scope of Management: The decree specifies a more detailed list of establishments subject to fire prevention and firefighting management, including those with fire and explosion hazards. This means more businesses will fall under stricter regulatory oversight.
– Updated Design and Construction Standards: Businesses undertaking new construction, renovation, or changes in function must adhere to new fire safety design appraisal requirements. This includes specific procedures for design adjustments, construction execution, and acceptance testing for fire prevention and firefighting systems.
– Equipment Mandates: There’s a roadmap for equipping facilities with fire extinguishers and fire alarm transmission devices connected to the national Database System for fire prevention, firefighting, rescue, and salvage. This will require investment in specific equipment by businesses.
– Fire Hydrant and Station Investment: Responsibilities for investment, management, maintenance, and servicing of fire hydrants, as well as investment and management of parking spots and stations for fire engines, are clarified, potentially impacting businesses involved in infrastructure or specific industries.
2. Compulsory Fire and Explosion Insurance:
– Mandatory Coverage: From July 1, 2025, certain types of facilities, including apartment buildings and collective housing with 5 floors or more (or a total floor area of 1,000m² or more), and various other business types, will be required to purchase compulsory fire and explosion insurance. This significantly expands the scope of mandatory insurance for businesses.
– Specific Criteria: The decree provides a detailed list of 44 types of establishments that must comply, with specific criteria based on building height, usable floor area, and capacity for various business sectors (e.g., educational, medical, sports, entertainment, offices, hotels, restaurants).
– Insurer Contributions: Insurers are now required to contribute 2% of the actual premiums collected from compulsory fire and explosion insurance policies to a fund managed by the Department of Fire Prevention, Fighting, and Rescue Police.
3. Compliance and Operational Adjustments:
– Drills and Training: Details and durations for firefighting, rescue, and salvage drills are outlined, requiring businesses to conduct regular exercises to ensure preparedness.
– Data Declaration and Updating: Businesses will be responsible for declaring and updating data related to fire prevention, fighting, rescue, and salvage, integrating with the national database system.
– Inspection Procedures: The decree clarifies the details, competence, and procedures for inspecting fire prevention and firefighting, giving businesses a clearer understanding of inspection processes.
– Mobilization Procedures: Procedures for mobilizing forces, personnel, vehicles, and assets for firefighting and rescue are established, which could impact businesses in emergency situations.
– Formation of Brigades: Requirements for establishing grassroots-level and specialized firefighting and rescue brigades, and their operational conditions, are detailed, which may necessitate internal organizational changes for some large businesses.
4. Potential Financial Implications:
– Increased Costs: Businesses may face increased costs due to mandatory insurance premiums, investment in new fire safety equipment, upgrades to existing infrastructure, and training programs.
– Penalties for Non-Compliance: Non-compliance with the new regulations can lead to administrative penalties, as outlined in related decrees (e.g., Decree 106/2025/ND-CP on administrative violations in fire prevention, firefighting, rescue, and salvage).
In essence, Decree 105/2025/ND-CP aims to strengthen fire safety and emergency response capabilities in Vietnam. For businesses, this translates to new and stricter compliance requirements, significant investments in fire prevention infrastructure and equipment, and the mandatory purchase of fire and explosion insurance for a broader range of establishments.
Download Full Decree No. 105/2025/ND-CP at: