Dealing with cultural and language barrier in Vietnam might intervene in the process of recovery the debts from companies or natural persons, but this is not an issue which cannot be solved. With an extensive experience in this area, our lawyers in Vietnam can handle the debt collection process for both local and foreign investors in this country. Besides that, legal assistance is provided when opening a business in Vietnam by our team of advisors who are at your disposal at any time.
We also offer legal assistance to those intersted in immigration to Vietnam who want to apply for citizenship in Vietnam.
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What is debt collection in Vietnam?
The recovery process of money is called debt collection and involves a series of procedures with respect to the laws governing this country. When the terms and conditions of a contract between two parties are not respected, debts can arise. Our lawyers in Vietnam can perform debt collection procedures for companies interested in money or assets recovery.
For complete information on immigration to Vietnam, be sure to get in touch with the Vietnamese embassy or consulate in your area. In Vietnam, laws really tend to change quickly, and as a result, official information may be contradictory or out of date. You can also rely on our immigration lawyers who will help you with the necessary steps in moving here as soon as possible.
If you need support in drafting and filing your company’s financial statements, you can rely on our accountants in Vietnam. Our specialists can offer timely solutions in order to avoid late filings and penalties imposed by the financial authorities. Contact us and find out how our specialists can help you.
Types of debt collection procedures that can be completed in Vietnam
The main laws that provide for the recovery of debts in Vietnam or, better said, commercial relations between parties are covered by the Civil Law which also provides for various payment agreements. While in theory these relations are covered from a legal point of view, in practice respecting payment terms does not always go as one or both parties want. This is where the debt recovery procedures intervene.
There are two types of procedures that can be employed when seeking to have a debt extinguished:
- the amicable procedure, which is often the first go-to solution;
- court proceedings, which implies the involvement of the Vietnamese justice system.
No matter the path you choose, our lawyers in Vietnam are at your service. Our law firm also relies on immigration lawyers in Vietnam in order to offer a wide range of services, including on residency. The residence permit in Vietnam is valid for 3 years. Every 3 years, the permit must be renewed, otherwise it can be revoked. It is worth noting that renewal must be completed a few months ahead in order to avoid complications. Feel free to address our immigration lawyers for support in applying your renewing your stay documents.
Procedures to complete before requesting legal help for debt collection in Vietnam
There are various steps a company or any other creditor can undertake in order to prevent the unpleasant situation of wasting time and money on debt recovery procedures in Vietnam. Among these, ensuring the contract contains specific terms related to the payment of any amount of money, as well as protection measures in case late payments are recommended.
Even with all the measures, unexpected situations where debts arise can still appear, case in which our law firm in Vietnam advises creditors to:
- gather detailed information about the debtor;
- gather all the documents attesting to the debt (invoices, contracts, purchase forms, correspondence with the debtor).
Then, the creditor can contact the debtor in an attempt to reach an agreement. It is also common in Vietnam to send notices of late payments in order to delay the debt collection procedure. However, it is worth noting that there is no minimum threshold to start the recovery procedure. In other words, once the creditor considers all reasonable actions have been undertaken.
As a general rule, creditors can use the services of debt collection agencies or law firms in Vietnam, however, a recent change in the Companies Law prohibits the creation of such agencies in order to improve consumers’ rights.
We also advise to use the services of Vietnamese lawyers who can act in the spirit of the law and who can complete all the procedure in accordance with the requirements of the creditors, but also by respecting the debtor’s rights. Moreover, our attorneys will always try to create a bridge between the parties, so these can both obtain the results wanted in the shortest time.
Do not hesitate to get in touch with us if you want to immigrate to Vietnam. Employment and business are the main ways through which foreign citizens decide to move here and start new lives. If you need support in choosing the right visa for you, contact us. We will review your case and help you decide for the most appropriate solution.
Dunning letters in debt recovery in Vietnam
Sending dunning or warning letters in trying to recover a debt in Vietnam is quite common. These can be sent directly by the creditor or by our lawyers if no response was obtained in the first instance.
These must contain the exact amount due alongside interests (if any) which must be specified separately, as well as exact information on the contract the debt is related to. Also, payment instructions and the means through which it can be made is also indicated to be written in the mail.
Our law firm in Vietnam can handle such procedures which can often result in the creditor obtaining an answer from the debtor in order to open communication lines. If you need debt collection in other countries, such as Netherlands, we can put you in touch with our local partners.
What is the amicable procedure of debt collection in Vietnam?
The amicable procedure for collecting the debts in Vietnam is the proper solution instead of a lawsuit which can be time-consuming in many cases. The following stages are part of the amicable procedure for recovering the debts in this country, with complete legal assistance offered by our team of attorneys in Vietnam:
- the debtors are notified via official letters or email that they have late payments or debts;
- our debt collection lawyers will develop a solid communication with the debtors involved in the case and will initiate a negotiation;
- the existing contract can be modified with additional documents consisting of new payment terms;
- if both parties agree on the new payment conditions, then the new contract is signed.
The amicable procedure for debt collection in Vietnam can be explained by our attorneys in Vietnam who can help foreign investors understand the business matters and the legislation in this country. They can also explain how you can immigrate to Vietnam.
Court proceedings in debt recovery in Vietnam
In most cases, court proceedings in debt collection in Vietnam are started after trying to amicably recover outstanding payments.
The procedure begins with filing a petition with first-instance courts that fall under the supervision of the People’s Courts of Justice.
In the case of debt recovery in court the help of a lawyer is required. The attorney will file the petition alongside various documents that prove the case. Among these the correspondence with the debtor through which the attempt of resolving the case amicably, proof of the amount of money due, any dunning letter (if sent), as well as other evidence that can be used to resolve the case.
In most cases, in court proceeding the creditor will obtain the desired result with the mention that he or she can also request for any interest to be paid alongside the debt.
If you need support in debt recovery in Vietnam, our specialists are at your disposal with tailored solutions. Apart from these, we also have other specialists in our team, such as accountants. Our accountants in Vietnam are here to provide you a range of in-depth accounting services. You may free your business from the weight of compliance by employing our services. This way, you will have more time to spend on the management of your business in Vietnam. You can also rely on us for tailored bookkeeping services.
The main sources of loans among Vietnamese consumers
Most debts arising in Vietnam are related to consumer loans which are not paid back in time. However, in 2021, the number of such loans has dropped.
In the first half of 2021:
- 47% of the consumers obtained loans from Vietnamese banks;
- 29% of people chose to borrow money from friends and family;
- 17% of them preferred consumer financing institutions;
- 3% loaned money from foreign banks.
Our specialists can also help you with immigration to Vietnam.
Our support in debt collection procedures in Vietnam
The target of our lawyers in Vietnam is to adopt the best solutions and approaches for a positive result in a debt collection case. The amicable procedure is suggested in the first instance when companies need to recover a particular sum of money, in order to maintain the business relationship between the parties involved. Each case is treated seriously and more than that, our advisors will only act in compliance to the applicable laws.
We invite you to contact our law firm for extra details about how debt collection is made in Vietnam. Our immigration lawyers in Vietnam also offer advice on how to apply for citizenship in Vietnam.