You lent money and the borrower never repaid — after how long do you "lose the right" to sue? The official guidance from Vietnam's central judicial authorities contains a distinction many people miss: the principal and the interest are subject to two different limitation regimes.
Principal: no statute of limitations
Under Article 155(2) of the Civil Code 2015, the statute of limitations does not apply to claims for protection of ownership rights. Official guidance from the Supreme People's Procuracy (Official Letter 443/VKSTC-V9/2023) and the Supreme People's Court (Official Letter 02/TANDTC-PC) confirms that a claim for repayment of the loan principal under a loan contract is a claim for protection of ownership over the lent money — and is therefore not limited by any statute of limitations.
In other words, even after many years, the lender retains the right to sue for the principal, and the court may not refuse to hear the claim on "time-barred" grounds.
Interest: 3-year limitation
Unlike the principal, a claim for interest (contractual interest, overdue interest) is a dispute over performance of contractual obligations, subject to the 3-year contractual limitation under Article 429 of the Civil Code 2015.
When the interest limitation starts running
The 3-year limitation for interest runs from the moment the lender knew or should have known that their lawful rights and interests were infringed — in practice, usually the due date on which the borrower failed to pay. Correctly fixing this date determines whether the interest claim is still alive.
The limitation restarts when the borrower acknowledges the debt
Under Article 157 of the Civil Code 2015, the limitation period restarts where the obligor (the borrower) acknowledges part or all of its obligations to the obligee. In practice, acknowledgment commonly takes the form of a written repayment commitment, a signed debt-reconciliation record, or a partial repayment. This is pivotal in debt-recovery strategy: a valid acknowledgment can "revive" an expired limitation for the interest portion.
Important caveat: official guidance, but academic debate remains
This must be presented carefully and completely:
- The principal/interest distinction above follows guidance from the Supreme People's Procuracy and the Supreme People's Court (Official Letters 443/VKSTC-V9/2023 and 02/TANDTC-PC). Academic circles still debate the scope of this distinction.
- Do not confuse this with Article 319 of the Commercial Law 2006 — the 2-year limitation applies to commercial disputes, a separate regime that does not mechanically extend to every civil loan contract.
- State the consequence of expiry precisely: an expired limitation does not mean the court refuses to accept the case — the court still accepts it, but the defendant may invoke the expired limitation to have the plaintiff's claim dismissed.
Frequently asked questions
If the principal has no limitation, can I afford to wait before suing? No. Even though the law permits late filing, evidence (loan contract, transfer slips, debt-acknowledgment messages) gets harder to collect and easier to contest with time. Suing early is always the better strategy.
How do I recover a loan made without a written contract? You may still sue if other evidence proves the loan relationship (bank transfers marked as loans, messages, witnesses…). Proof is much harder, however — which is why a written document should always be made when lending.
Is there a cap on lending interest rates? Yes. Article 468 of the Civil Code 2015 caps agreed interest at 20%/year of the loan amount, unless another relevant law provides otherwise. Interest above the cap is not protected by law.
Legal sources
- Civil Code 2015 (91/2015/QH13): Articles 149–157 (limitation), Article 429 (3-year contractual limitation), Article 463 (loan contracts) — in force at the time of writing (October 2026).
- Official Letter 443/VKSTC-V9/2023 (SPP) and Official Letter 02/TANDTC-PC (SPC) on limitation for loan principal.
Need to recover a loan or assess litigation prospects? The FLAT Law Firm team advises on debt-recovery strategy, reviews limitation issues, and represents clients in litigation and enforcement. Contact us at contact us.
The information in this article is general reference based on the law and guidance in force at the time of writing, not legal advice for any specific matter.
Transparency note: This article was drafted by FLAT Law Firm's AI content production system and is undergoing internal review (AI Legal Council QA and owner approval before publication). It has not been reviewed by a human lawyer.