Scenario: Company C. wins an arbitration; the losing party is ordered to pay VND 12 billion. The compliance deadline passes with not a dong paid, and the losing party starts moving money out of its accounts. C. asks counsel: “Can we freeze their accounts right away? When can assets be seized?” The answer depends on distinguishing two entirely different stages: (A) preserving assets during arbitral proceedings through interim urgent measures, and (B) coercively enforcing a final award. Confusing the two stages — or confusing “freezing” with “seizure” — gets the application returned.
1. Stage A — preserving assets DURING proceedings: interim urgent measures
Under Articles 48–53 of the Law on Commercial Arbitration 54/2010/QH12 (effective 01/01/2011; Clause 3, Article 7 amended by Law 81/2025/QH15, effective 01/7/2025):
- Right to request (Article 48); the tribunal applies interim urgent measures (Article 49 — 6 measures, including point (c), seizure of disputed assets; the tribunal decides within 03 working days);
- Request plus evidence (Article 50); Clause 3: the requesting party’s security must be deposited into a blocked bank account; enforcement of the interim-measures decision follows civil judgment enforcement law;
- Modification and cancellation (Articles 51–52) — and damages for wrongfully requested interim measures (Article 52);
- Court-ordered interim measures (Article 53 — decision within 03 working days).
The key enforcement point: a tribunal’s interim-measures decision is subject to civil judgment enforcement (Clause 3, Article 2, Law on Civil Judgment Enforcement 106/2025/QH15), and the enforcement authority issues an enforcement decision on its own initiative immediately upon receipt of the interim-measures decision (point (b), Clause 3, Article 33). Do not assume a tribunal’s interim-measures decision is “unenforceable” — the law requires immediate enforcement. The accompanying risk: a wrongful request triggers damages liability.
2. Conditions for enforcing an arbitral award (Stage B)
Before thinking about freezing or seizure, check all four conditions:
- (i) The award is final, effective from the date of issuance (Article 61.5, Law on Commercial Arbitration);
- (ii) The compliance deadline has passed with no voluntary compliance and no set-aside application within the 30-day limit (Articles 66, 69) — or the set-aside application has been rejected by the court;
- (iii) The enforcement limitation period of 05 years has not expired (Clause 2, Article 34, Law 106/2025) — expiry means the enforcement authority will not accept the request;
- (iv) For ad hoc awards: registration with the court is required before requesting enforcement (Article 62, Law on Commercial Arbitration).
Arbitral awards are enforced under civil judgment enforcement law (Article 67, Law on Commercial Arbitration).
3. Procedure under the Civil Judgment Enforcement Law 106/2025: step-by-step deadlines
Law on Civil Judgment Enforcement 106/2025/QH15 (promulgated 2025, effective 01/7/2026 — some articles effective from 20/01/2026; replacing Law 26/2008/QH12, expired since 01/7/2026; article numbers completely renumbered — do not cite the 2008 Law’s articles):
- File an enforcement request (Article 34) → the provincial-level civil judgment enforcement authority (where the tribunal is seated — point (h), Article 32; the Regional Civil Judgment Enforcement Office organises enforcement as assigned — Clause 2, Article 32) issues the enforcement decision within 05 working days (Clause 3, Article 34); refusal within 05 working days (Clause 4);
- Notification of the decision within 03 working days (Article 35 — exception for interim measures);
- Voluntary compliance: 10 days (Article 36);
- Verification of enforcement conditions within 09 days (Article 37; for interim measures, verification is immediate);
- Freezing — a security measure (Articles 66–67): the enforcement officer applies it on his/her own, without prior notice; the requesting party bears responsibility and compensates if wrong (Clause 3, Article 66);
- After the 10-day voluntary period expires with the obligated party able but unwilling to comply → coercion (Articles 71–72): seizure of assets (Clause 4, Article 71; Articles 78, 80), deduction from bank accounts (Article 73), sale of seized assets (Article 83).
4. Core distinctions: freezing vs seizure; freezing an account vs deducting money
- Freezing = an enforcement security measure (temporary, preventing dissipation) — Articles 66–67: 4 measures including (a) freezing accounts and assets held in custody; (b) suspending registration, transfer or alteration of asset status; (c) temporary seizure of assets and documents; (d) postponing exit.
- Seizure = a coercive measure (to dispose of assets for enforcement) — Clause 4, Article 71, Article 78 (seizure decision), Article 80 (carrying out seizure), Article 83 (sale of seized assets); assets held by third parties may also be seized.
- “Freezing an account” (Article 67 — merely “freezing”, blocking movement) is not “deducting money from an account” (Article 73 — taking money for enforcement).
5. Principles and limits of coercion
- Coercion must be proportionate to the obligation and enforcement costs (Clause 3, Article 72) — freezing/seizure exceeding the obligation invites complaints and compensation liability;
- No coercion between 10 p.m. and 6 a.m., on weekends or public holidays (Article 72);
- A security measure is lifted after 10 days without a coercion decision (Clause 4, Article 66);
- Coercion requires: the 10-day voluntary period has expired and the obligated party is able but unwilling to comply (Article 72) — coercing before the 10 days expire is unlawful.
Frequently asked questions
After winning arbitration, can the losing party’s accounts be frozen immediately?
Freezing is a security measure applied by the enforcement officer during enforcement proceedings (Articles 66–67, Law 106/2025), after the enforcement decision is issued. To stop dissipation during the arbitral proceedings, request interim urgent measures from the tribunal or the court (Articles 49, 53, Law on Commercial Arbitration).
What is the difference between freezing and seizure?
Freezing is a security measure (temporary, anti-dissipation); seizure is coercive (to dispose of assets). Freezing an account (blocking) also differs from deducting money from an account (taking money for enforcement).
What if 5 years have passed since the award took effect?
Once the 05-year enforcement limitation (Article 34.2, Law 106/2025) expires, the enforcement authority will not accept the request.
How is an ad hoc arbitral award enforced?
It must be registered with the court before requesting the civil judgment enforcement authority to enforce it (Article 62, Law on Commercial Arbitration).
Can enforcement proceed during the 30-day set-aside window?
Check first: enforcement may be requested only after the compliance deadline passes with no voluntary compliance and no set-aside application within 30 days (Articles 66, 69), or after the set-aside application is rejected.
Sources
- Law on Civil Judgment Enforcement 106/2025/QH15 (effective 01/7/2026 — some articles effective from 20/01/2026; replacing Law 26/2008/QH12): Article 2.3 (enforcement subjects); Article 32 (jurisdiction — provincial enforcement authorities, Regional offices); Article 33 (enforcement decisions; Clause 3(b) — immediate enforcement of interim measures); Article 34 (enforcement requests; 05-year limitation; 05 working days); Article 35 (03-working-day notification); Article 36 (10-day voluntary compliance); Article 37 (09-day verification); Articles 66–67 (security measures; freezing); Articles 71–73, 78, 80, 83 (coercive measures; seizure; deduction; sale of assets).
- Law on Commercial Arbitration 54/2010/QH12 (effective 01/01/2011; Clause 3, Article 7 amended by Law 81/2025/QH15, effective 01/7/2025): Article 8 (enforcement authorities); Articles 48–53 (interim urgent measures); Article 61.5 (final awards); Article 62 (registration of ad hoc awards); Articles 66–67 (enforcement of awards); Articles 68–69 (set-aside; 30-day limit).
Has your company won an arbitration but the losing party refuses to comply voluntarily, or do you need urgent freezing of assets being dissipated? Reach us via the Contact page of FLAT Law Firm for advice on interim urgent measures, enforcement application procedures and coercive strategy.
The legal content of this article was reviewed by FLAT’s AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.
For reference only, not legal advice.