Under the new decree, karaoke parlors that stay open after midnight would be slapped with a fine of up to VND15 million while current fines range from VND5-10 million ($217-433).
At present, karaoke parlors are only allowed to operate from 8 a.m. until midnight and dance clubs from 8 a.m. until 2 a.m. the next day.
The government also said dance clubs allowing entry for people under 18 would be fined between VND10-15 million.
Karaoke parlors and dance clubs would face a fine of VND15-20 million for placing door latched inside their establishments or setting up alarm equipment, except for fire and explosion detectors.
In recent times, Vietnamese police had intensified their crackdown on nightclubs and karaoke parlors across the country following a spurt in drug abuse at such establishments.
Vietnam has been studying several night-time economy models to help attract tourists and increase spending. But security has been a major reason keeping the government from following suit.