At a glance
- HCMC People’s Council Resolution 57 took effect on October 1 and allows electricity and water supply to be suspended for facilities that violate construction, fire-safety or environmental rules.
- In early November, a plastics company in Binh Chanh (the former Binh Chanh district) became the first case, losing its production power supply.
- The cut applied only to production electricity, not household power, and supply is restored once the violations are corrected.
- Owners of factories, shops and offices should first check environmental registration, fire-safety documents, land legality and the registered business address.
What has changed
Resolution 57 of the Ho Chi Minh City People’s Council took effect on October 1, 2026. It was issued to implement the Law on Urban Development (Luật Phát triển đô thị). It allows authorities to suspend electricity and water supply to buildings or business sites that violate construction, fire-safety or environmental rules.
Until now, enforcement mostly meant fines and orders to fix problems. If violations continue, authorities now have a way to cut the infrastructure supply itself. This is a rule of the HCMC People’s Council. Whether other provinces or cities have the same mechanism needs separate checking [needs verification].
The first case: a plastics company in Binh Chanh
According to the HCMC Power Corporation, this was the first time the city applied the measure after Resolution 57 took effect. Local media reported it on November 8.
- Target: Thieu Nguyen (Thiệu Nguyễn) Plastics Co., Ltd., in Tan Vinh Loc commune (the former Binh Chanh district).
- Action: The commune People’s Committee worked with Binh Chanh Power Company to remove the transformer. The cut was reported complete on November 8. The photos of the removal are dated November 5.
- Scope: Production electricity only. Household electricity was not affected.
What violations were found
- No environmental registration and no fire-safety documents
- Wastewater discharged directly into the environment while grinding and washing scrap
- About 14 tonnes of solid waste dumped and buried illegally
- Breaches of electricity-trading rules, inadequate legal status of the land, and a business registration address that differed from the actual operating site
The commune had already fined the company VND 73 million and ordered it to remedy the damage. By November 4, however, the site was still operating and still dumping waste, so the commune applied the new rule. The commune’s vice chairwoman said the company pays about VND 300 million a month in electricity, and that cutting power would stop operations completely.
Local officials also said some businesses change their names and keep operating, or reoffend, so earlier enforcement was never conclusive. The new rule appears aimed at this kind of repeat violation.
When can power and water be cut?
According to the report, Resolution 57 lets the chairperson of the commune-level People’s Committee decide to suspend supply. The types of violation mentioned are:
| Category | Examples |
|---|---|
| Construction | Works that do not conform to planning, have no permit, or differ from the permit |
| Design | Works exempt from permits but built differently from the approved design |
| Land | Works encroaching on land |
| Fire safety and environment | Violations of fire-safety rules or environmental rules |
The article uses an open-ended wording (“and so on”), so this list may not be complete. It does not describe the detailed conditions or procedure, such as advance notice or a correction period, so the text of the resolution should be checked [needs verification]. Power and water are restored once the violations are corrected.
What it means for foreign business owners
The article does not say whether foreign-invested companies are treated differently. Because the violation types are construction, fire safety and environment, the rule could also affect shops, restaurants, offices and anyone renting space, not only factory operators. Ask a local lawyer or consultant whether and how it applies to your entity [needs verification].
Tenants should also consider the risk that a problem on the landlord’s side could lead to a cutoff, for example a building erected without a permit or built differently from its permit. The article does not explain how this would work in practice, so professional advice is needed [needs verification].
For Korean nationals: the report makes no mention of foreign investors, so Korean-owned businesses should treat it the same way as any other operator and confirm applicability locally.
A practical checklist
- Environmental registration and permits: If your business produces wastewater or waste, confirm that registrations and waste-handling contracts are in place.
- Fire-safety documents: Make sure they are kept on site and up to date.
- Building legality: For a leased factory, office or shop, ask the landlord for the construction permit, proof the building matches planning, and land-use rights.
- Registered address: If it differs from where you actually operate, that can be treated as a violation. The case company was cited for this.
- Electricity contract: The case company was also cited for breaching electricity-trading rules, so check that the contract holder and the stated use (production or household) match reality.
- Act immediately on any notice: If a fine is followed by no correction, the next step may be a supply cutoff. Keep written records of what you fixed.
Bottom line
This case involved a company with no environmental registration that kept dumping waste after being fined. A well-run business is unlikely to become a target right away. Still, losing production power halts operations entirely, so the risk is significant. Closing gaps in your paperwork is the most realistic preparation. Whether the rule applies to your site should be confirmed against the resolution itself and with local professionals. This article is general information, not legal advice.
Frequently asked questions
If production power is cut, is household electricity cut too?
In the reported case, the measure applied only to production electricity and household power was not affected. Criteria for other cases should be checked in the resolution text [needs verification].
When are power and water restored?
According to the report, supply is restored once the violations are corrected. The article does not describe the verification procedure or how long it takes [needs verification].
Who decides to suspend supply?
According to the report, the chairperson of the commune-level People’s Committee can decide to suspend electricity and water to facilities with construction, fire-safety or environmental violations.
Sources
This article summarises publicly available reports and is not legal, tax or investment advice. Check with the relevant authorities or a qualified adviser before making important decisions.