At its core, this shift reflects a deeper institutional change: from state-centric control to enterprise-driven responsibility—supported by transparency, technological infrastructure, and community oversight.
From Pre-Audit to Post-Audit: A Policy Pivot
Traditionally, Vietnam employed a pre-audit approach in its regulatory framework. This involved state inspections and evaluations of licenses, documentation, and technical standards before a business could begin operations. The rationale was to ensure market order and protect public interests.
However, over time, this system became synonymous with bureaucracy, inefficiency, and even corruption. Pre-audit procedures created opportunities for rent-seeking behavior, arbitrary enforcement, and unnecessary delays—all of which raised compliance costs and discouraged entrepreneurship. For many firms, especially startups and small enterprises, navigating pre-operational inspections meant not just paperwork, but also unofficial payments and systemic uncertainty.
Recognizing these issues, Vietnam has begun moving toward a post-audit model. This system reflects a governance philosophy grounded in trust: businesses are allowed to operate more freely, but must meet clearly defined standards and remain subject to inspection and accountability after operations commence.
This shift has already proven effective in certain sectors. In the food industry, for example, post-clearance inspections have replaced pre-clearance controls, significantly streamlining customs procedures. In healthcare, regulatory adjustments around medical equipment have allowed businesses to bypass lengthy licensing processes—without sacrificing oversight or compliance.
Institutional Modernization: Standardization, Transparency, and Tech Integration
Transitioning to post-audit governance requires a comprehensive overhaul of Vietnam’s legal and administrative infrastructure. First and foremost, laws and regulations governing business conditions and technical standards must be rewritten in a format that is clear, consistent, and easily accessible. This is especially crucial for micro, small, and medium-sized enterprises (MSMEs), which often lack the legal and financial resources to interpret complex regulatory texts.
Rather than publishing vague, jargon-filled legal documents, regulators should present all business requirements—including technical standards and compliance procedures—in intuitive, standardized formats. These should be widely publicized through centralized portals and digital platforms that businesses can rely on.
To support this transformation, Vietnam must invest in legal technology. One-stop digital platforms, legal search engines, and AI-powered chatbots can make it easier for businesses to navigate their compliance responsibilities. A transparent, up-to-date information ecosystem will reduce inadvertent violations and help create a legal environment that is predictable, fair, and accessible.
For industries with complex technical standards—such as construction, pharmaceuticals, fire safety, and accounting—Vietnam should develop public-private mechanisms to support legal compliance. Consulting organizations that assist enterprises in understanding their responsibilities should be licensed, regulated, and held accountable for the quality of their advice. If a consulting firm misleads a client and causes regulatory violations, affected businesses should have the right to sue for damages. This arrangement not only protects enterprises, but also incentivizes accuracy and professionalism within the legal advisory sector.
Importantly, decentralization must accompany modernization. Local governments and specialized agencies should be empowered to carry out inspections, supported by inter-agency coordination mechanisms that prevent duplication of efforts and passing of responsibility.
Supervision Beyond the State: The Role of the Community
One of the most powerful but underutilized forces in the post-audit model is community oversight. Consumers, media outlets, and professional associations all have a direct stake in business conduct—and can act as a real-time warning system for regulatory breaches.
When businesses engage in misconduct—such as fraud, mislabeling, or producing substandard goods—it is often consumers who feel the consequences first. With access to online platforms and social media, they can quickly raise alarms and generate public pressure that prompts action. In this sense, community oversight not only supports regulatory compliance, but can often identify risks faster than formal institutions.
Professional associations also play an important role by defining ethical standards and monitoring sector-specific behavior. With their deep technical knowledge, these groups can offer constructive criticism, recommend policy changes, and support industry self-regulation.
But for community monitoring to function effectively, it must be institutionalized. Vietnam needs a robust, accessible system for submitting complaints and feedback. This system should protect whistleblowers from retaliation and ensure timely, transparent resolution of cases. Publishing the results of inspections, sanctions, and regulatory actions can further empower citizens to hold businesses accountable.
A New Social Contract Between Business and the State
The post-audit mechanism represents more than just a change in administrative procedures—it signals a shift in the social contract between the Vietnamese state and the private sector. In this new model, businesses are no longer treated as potential violators who must be vetted before participation. Instead, they are seen as responsible entities with the autonomy to operate, innovate, and grow—so long as they comply with clearly defined legal frameworks.
For the government, this means transitioning from gatekeeping to stewardship: creating the rules of the game, ensuring they are understood, and stepping in only when violations occur. For businesses, it means accepting greater responsibility for self-compliance and being prepared to justify their actions when scrutinized.
Crucially, this model does not equate to deregulation. Rather, it replaces bureaucratic control with smart governance—using technology, legal clarity, and community engagement to ensure a balanced, dynamic, and trustworthy business environment.
As Vietnam strives to become a more competitive and innovation-driven economy, regulatory reform will be central to its success. The shift from pre-audit to post-audit management is a forward-thinking move that aligns with global best practices. But for this model to reach its full potential, it must be supported by transparent laws, digital infrastructure, decentralized enforcement, and active community participation.
Done right, this approach will not only reduce burdens on businesses—it will strengthen compliance, enhance public trust, and accelerate the country’s path toward sustainable and inclusive economic growth.
