The new decree lowers the minimum criteria for mandatory fire and explosion insurance and adds more facility types to the list of properties subject to coverage. This shift marks a more proactive regulatory approach, aiming to increase protection across a wider range of assets. Key changes are summarised in the comparison table below.
Vietnam Fire-fighting Legal Framework Update
Decree 105/2025/ND-CP and Legal Insights
Overview
Vietnam Expands Scope of Compulsory Fire and Explosion Insurance Under Decree 105/2025/NĐ-CP
Vietnam has tightened fire safety regulations under Decree 105/2025/NĐ-CP, which shall take effectiveness since July 1st 2025 and officially replaces Decree 67/2023/NĐ-CP. The new decree lowers the thresholds and significantly broadens the range of properties required to carry mandatory fire and explosion insurance.
Under the now-superseded Decree 67/2023/NĐ-CP, “insured properties” were defined as facilities exposed to fire and explosion risks—such as houses, buildings, machinery, and stored goods—with eligibility criteria often clarified via annexes and guiding documents. These typically focused on volume or height thresholds, especially for residential and mixed-use buildings.
Decree 105/2025/NĐ-CP expands these criteria, applying mandatory coverage to a wider array of properties that were previously excluded. Businesses and property owners should promptly review whether their sites now fall under the revised scope.
| Property Type | Previous Rulegations (Under Decree 67/2023/ND-CP and related guidelines) | New Requirements (Under Decree 105/2025/ND-CP) |
| Apartment Buildings, Collective Housing, Dormitories | Generally required if 7 stories or taller, OR total volume of 10,000 m³ or more. | Significantly expanded to: 5 stories or taller, OR total floor area of 1,000 m² or more. |
| Mixed-Use Buildings (Combining Residential & Business) | Generally required if 5 stories or taller, OR total volume of 5,000 m³ or more. | Now broadly included under residential combined with business activities if meeting specific area/functional criteria, or within other expanded categories. The key change is the lower residential threshold impacting these too. |
| Schools & Educational Institutions | Mandatory requirements were generally less specific or broadly applied to general educational facilities. | Now explicitly included with specific thresholds: Nursery schools, kindergartens with 50 children or more / 500 m² floor area; other schools (elementary, high school, university, etc.) with 3 stories or more / 1,500 m² floor area. |
| Healthcare Facilities | Mandatory requirements were generally less specific or broadly applied. | Now explicitly included: 3 stories or more / 300 m² floor area. |
| Government & Business Offices | Mandatory requirements were generally less specific or broadly applied. | Now explicitly included: 3 stories or more / 500 m² area. |
| Sports & Entertainment Venues | Mandatory requirements were generally less specific or broadly applied. | Now explicitly included: Stadiums, sports arenas, swimming pools, shooting ranges with 1,000 seats or more / 1,000 m² area. |
| Other Public/Commercial Spaces | Limited specific mandates for a broad range of public and commercial venues. | Broadened to explicitly include: Conference centers, libraries, museums, train stations, aquariums, karaoke businesses, nightclubs, entertainment venues, restaurants, hotels, and a variety of other public and commercial spaces if they meet specified area or functional criteria. |
Why the Change Now?
Although fire incidents have declined compared to late 2024, the risk remains high—especially in dense urban areas and mixed-use properties that often fall short on fire safety. The Ministry of Public Security has played a central role in pushing for stricter regulations to address these concerns. Through Decree 105/2025/NĐ-CP, the government seeks to raise fire safety awareness and legal responsibility among property owners, while also ensuring stronger financial readiness for post-incident recovery. A key provision requires insurers offering mandatory fire and explosion coverage to contribute 2% of their previous year’s collected premiums to a national fire prevention fund. This fund is intended to boost Vietnam’s overall fire response and prevention capacity.
Navigating Your Business Compliance with Us
With the 1 July 2025 deadline nearing, property owners, developers, and businesses in Vietnam must act quickly to comply with Decree 105/2025/NĐ-CP. Failure to obtain the required fire and explosion insurance may result in legal penalties and serious financial consequences.
At Henrison Law, we closely follow every regulatory shift to keep our clients protected. Our legal team is ready to help you navigate the new fire insurance requirements under Decree 105/2025/NĐ-CP with tailored, practical support:
Compliance Assessment – We assess whether your property or business is now subject to mandatory insurance.
Insurance Guidance – We advise on selecting the right insurance products and coverage to meet legal requirements.
Policy Review – We review your insurance policy to ensure it provides sufficient protection and complies with the law.
Risk & Liability Advisory – We help you understand your legal exposure and suggest strategies to reduce fire-related risks.
Let us help you stay compliant—and protected.
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