New 2026 Insurance Rules for FDI Enterprises in Vietnam: Key Updates

On 15 September 2026 — less than a month ago — a new decree significantly changed compulsory fire and explosion insurance duties for businesses, including FDI factories. The sharpest change: insurers may refuse to sell coverage if your facility lacks approved fire-prevention designs. This article updates the new points and provides a comprehensive 2026 insurance checklist for FDI enterprises.

1. What’s new: Decree 347/2026 on compulsory fire/explosion insurance

Decree 347/2026/ND-CP (effective 15 September 2026) amends compulsory fire and explosion insurance rules, with four new points FDI enterprises must know:

1.1. Insurers may refuse facilities lacking fire-design approval

The most directly impactful change for FDI factories: insurers are entitled to refuse compulsory fire/explosion insurance contracts for facilities without approved fire-prevention designs. A factory operating before fire-safety acceptance not only breaches fire regulations but may be unable to buy compulsory insurance — violating yet another duty.

1.2. Low-risk standalone works meeting standards are excluded

Standalone works assessed as low fire/explosion risk and meeting safety standards are excluded from the compulsory purchase scope. Businesses should review their facility lists to determine correct applicability.

1.3. Premiums calculated per work item

Premiums are calculated separately for each work item rather than bundled — better reflecting each item’s risk level, but requiring accurate per-item declarations when purchasing.

1.4. Fire-police funding raised to 75%

The share of compulsory fire/explosion insurance revenue supporting the Fire Prevention and Fighting Police is raised to 75% — reflecting the State’s push to strengthen firefighting capacity.

Underlying basis: Article 35 and Appendix VII (44 facility groups) of Decree 105/2025/ND-CP (effective 1 July 2025) define which facilities must buy compulsory fire/explosion insurance.

2. Checklist: 3 compulsory covers every FDI enterprise must buy

Under Article 8 of the Law on Insurance Business 08/2022/QH15 (effective 1 January 2023), compulsory insurance lines include:

Compulsory insurance	Basis	Applies to
Motor vehicle third-party liability	Decree 67/2023/ND-CP	Vehicle owners (company cars, motorbikes)
Compulsory fire/explosion insurance	Decrees 105/2025/ND-CP + 347/2026/ND-CP	44 facility groups per Appendix VII (factories, warehouses, buildings…)
Compulsory construction investment insurance	Decree 119/2015/ND-CP	Investors and contractors during construction

3. Five recommended (non-compulsory but essential) covers

All-risks property insurance: protects factories and machinery against non-fire risks (storms, subsidence, impact);
Business interruption insurance: compensates lost profit when the factory must halt after an incident;
Product liability insurance: essential for FDI manufacturers exporting to demanding markets;
Employee health / accident top-ups: beyond compulsory social insurance, aiding retention;
Employer’s liability / general liability: guards against third-party compensation claims.

4. Three traps FDI enterprises fall into

Trap 1 — Factory without fire-safety acceptance

As analysed: since 15 September 2026, lacking approved fire designs may mean being unable to buy compulsory fire/explosion insurance. Priority one: complete fire safety before operation — not only for fire-law compliance but to qualify for compulsory cover.

Trap 2 — Confusion over social insurance for foreign employees

Many FDI enterprises are unclear about social insurance duties for foreign workers (participation conditions, contribution rates, exemptions). Unrelated to commercial insurance directly, it belongs to the overall compliance checklist HR–legal should review in parallel.

Trap 3 — Overlapping, duplicative policies

Buying multiple policies with overlapping scope (e.g. property insurance already covering fire/explosion plus a separate voluntary fire policy) wastes premiums. Map each contract’s coverage in a matrix before renewing or buying anew.

5. Frequently asked questions

What are the penalties for skipping compulsory insurance?

Failure to buy compulsory insurance may draw administrative sanctions under the insurance-business sanctioning regulations. Specific fines apply per violation under the current sanctioning text.

How much is the fire/explosion premium?

Specific premiums are quoted by insurers under their own rules and tariffs based on the law — this article lists no prices. Businesses should obtain quotes from 2–3 insurers to compare.

Must a leased factory buy fire/explosion insurance?

The compulsory purchase duty attaches to covered facilities regardless of ownership or lease. Lessor and lessee should agree clearly in the lease who buys and bears the premium.

6. Conclusion

The 2026 insurance checklist for FDI enterprises: 3 compulsory (motor TPL, fire/explosion, construction investment) + 5 recommended — and update immediately on Decree 347/2026: complete fire safety first, then you can buy fire/explosion insurance. Do not let your factory operate missing any link in this checklist.

If your business needs an insurance and fire-safety compliance review, contact FLAT Law Firm for advice.

This article has been reviewed by the QA Council.

Transparency note: this article was prepared by the FLAW AI Legal Council based on legislation in force at the time of writing (14 October 2026). It is for general information only, is not an official legal text, and does not replace legal advice for your specific case. Specific premiums are quoted by insurers — this article lists no prices.