In details

1. Abolition of the death penalty for embezzlement and receiving bribes

While the offenses of embezzlement of property and receiving bribes continue to apply to both the public and private sectors, the Amended Law abolishes the death penalty for these two corruption-related crimes, along with eight other offenses.

Specifically, for the most serious cases under Clause 4 of Article 353 and Article 354, where the value of the embezzled assets or bribes is VND 1 billion (approximately USD 38,286) or more, or where the property damage caused is VND 5 billion (approximately USD 191,432) or more, the maximum penalty is now capped at 20 years' imprisonment to life imprisonment. This replaces the previous death sentence. The offender might also be prohibited from holding certain positions or doing certain jobs for one to five years, have part or all their property confiscated, and be liable to a fine that has been increased to between VND 60 million and VND 200 million under the Amended Law.

2. Revised conditions for sentence reduction from life imprisonment

The Amended Law introduces new distinctions regarding eligibility for sentence reduction from life imprisonment, particularly for corruption-related offenses. These are as follows:

• New life imprisonment sentences (on or after 1 July 2025): Individuals sentenced to life imprisonment for embezzlement (Article 353) or receiving bribes (Article 354) on or after 1 July 2025 may only be considered for sentence reduction if they have voluntarily returned at least three-quarters (75%) of the embezzled or bribed assets. Additionally, they must have either actively cooperated with authorities in detecting, investigating and prosecuting crimes, or performed significant meritorious acts.
• Existing life imprisonment sentences (before 1 July 2025): Individuals already serving life imprisonment for these offenses before 1 July 2025 are not subject to the 75% asset return condition when being considered for sentence reduction.
• Extended minimum time served for commuted death sentences: Individuals whose death sentences were commuted to life imprisonment must serve a minimum of 25 years before they are eligible for a first sentence reduction. Regardless of any reductions granted, the total time actually served must be no less than 30 years.

3. Retrospective application of beneficial provisions: Provisions of the Amended Law that are favorable to offenders, such as the abolition of the death penalty for the crimes of embezzlement and receiving bribes, will apply retroactively. This means that they will apply to criminal acts committed before 1 July 2025, provided those acts are discovered, investigated, prosecuted or brought to trial after the Amended Law takes effect. Conversely, any provisions of the Amended Law that are less favorable to offenders will not apply retroactively to acts committed before 1 July 2025.

In conclusion

These amendments mark a significant shift in Vietnam's criminal policy, signaling a move away from the death penalty for certain serious offenses, including high-value corruption, while maintaining stringent long-term imprisonment penalties. The introduction of stricter asset recovery conditions for new life imprisonment sentences underscores the government's continued commitment to reclaiming illicit gains.

These important changes to the country's anti-corruption framework reflect a more rehabilitative approach, while maintaining strict deterrents. Notably, the Amended Law imposes stringent conditions for sentence reduction, including the return of at least 75% of illicit assets and active cooperation with authorities. These changes will affect both ongoing and future cases, with retroactive application of favorable provisions. Companies operating in Vietnam — particularly those in sectors vulnerable to corruption risks — should review and update their anti-bribery and anti-corruption policies (e.g., if the policies refer to the death penalty or the lower fines under the old law, as mentioned above) with the new provisions under the Amended Law. Additionally, local employees, distributors, suppliers and other vendors should be given training, not only to update them on the provisions under the Amended Law, but also to communicate that the abolition of the death penalty does not mean that the anti-corruption regulations have been relaxed. On the contrary, the company will continue to enforce strict anti-bribery and anti-corruption standards.

We will continue to monitor the implementation of these amendments in practice and keep you informed of any developments. If you would like to discuss the potential impact of the Amended Law in more detail, please don't hesitate to contact us using the details provided in this alert.