Enforcement of Civil and Commercial Judgments in Vietnam: Procedure and Handling Non-Compliant Debtors

Winning a case in court or at commercial arbitration is only half the battle. In practice, many Vietnamese businesses find themselves in a frustrating situation: the judgment has been effective for months or even years, yet the losing party still refuses to pay — stalling, dissipating assets, or simply going silent. At that point, commercial judgment enforcement is the only legal tool that turns a paper judgment into real money in the company's account.

This guide walks through the full procedure for requesting and organizing the enforcement of civil and commercial judgments in Vietnam under the Law on Civil Judgment Enforcement 2025 (No. 106/2025/QH15) — the new statute effective from 1 July 2026, replacing the 2008 Law. It focuses on the scenario where the judgment debtor does not comply voluntarily: what the enforcement authorities do, what the creditor must do proactively, and the mistakes that cost companies their winnings despite having won the case.

Contents

• 1. What is civil and commercial judgment enforcement? Who should care?
• 2. Current legal framework: the 2025 Law on Civil Judgment Enforcement
• 3. Step-by-step commercial enforcement procedure
• 4. When the loser won't comply: coercive measures
• 5. Costs, timelines, and key legal milestones
• 6. Common risks and mistakes that cost companies money
• 7. Quick checklist for the judgment creditor
• 8. Frequently asked questions
• 9. When to work with a lawyer

1. What is civil and commercial judgment enforcement? Who should care?

Civil judgment enforcement is the organized execution of effective court judgments and decisions, commercial arbitral awards, and certain other decisions, carried out by civil judgment enforcement authorities and enforcement officers. In the commercial context, it covers every business dispute resolved by a court or commercial arbitration: contract debt claims, breach damages, debt collection, shareholder disputes, construction disputes…

The core principle, set out in Article 4 of the 2025 Law: a judgment debtor who is able to comply but does not comply voluntarily shall be subjected to coercive enforcement. In other words, the law does not let the loser decide whether to pay. When the debtor has assets and income but deliberately evades the obligation, the State uses coercive power to make them perform.

Who needs this procedure? First, every enterprise that has won a case or arbitration but has not received payment. Second, enterprises preparing to sue — because the real enforceability of a judgment is a decisive factor in litigation strategy (suing a counterparty with no remaining assets wins nothing). Third, foreign investors in Vietnam: commercial arbitral awards, including foreign awards recognized and permitted for enforcement by Vietnamese courts, are organized for enforcement under this Law.

A clear distinction: civil and commercial judgment enforcement differs from criminal judgment enforcement (imprisonment, capital punishment…) and from the enforcement of administrative decisions. This article covers only the enforcement of civil and commercial obligations: payment of money, delivery of assets, and performance or non-performance of specific acts.

2. Current legal framework: the 2025 Law on Civil Judgment Enforcement

Before walking through each step of the procedure, it is essential to know the legal framework in force: since 1 July 2026, all civil and commercial judgment enforcement in Vietnam has been governed by the 2025 Law on Civil Judgment Enforcement (No. 106/2025/QH15), which comprehensively replaced the 2008 Law. The three sections below summarize the statute in force, the scope of enforceable judgments and decisions, and the subordinate instruments that remain relevant.

2.1. The statute in force

The Law on Civil Judgment Enforcement 2025 (No. 106/2025/QH15) was passed by the 15th National Assembly on 5 December 2025 and took effect on 1 July 2026 (Article 115). It comprehensively replaces the 2008 Law on Civil Judgment Enforcement (No. 26/2008/QH12) after 17 years. The new Law has 5 chapters and 116 articles, with major changes to the organizational model (a single-level local enforcement system with regional civil judgment enforcement divisions), digital transformation of enforcement, and a "return of enforcement request" mechanism for long-standing dormant cases.

Important note on timing: the 2008 Law expired on 1 July 2026, except the transitional provisions in Clause 1, Article 116 of the new Law. Every legal citation on judgment enforcement from now on must rely on Law 106/2025/QH15. Under Article 116, enforcement not yet completed before 1 July 2026 continues under the new Law, while procedures already correctly performed under the old law need not be repeated. If a company's case began before July 2026, review which stage each law applies to.

2.2. Which judgments and decisions are enforceable?

Article 2 of Law 106/2025/QH15 lists all judgments and decisions enforceable under the Law. For businesses, four groups matter:

• Effective civil and commercial court judgments and decisions: first-instance judgments not appealed or protested; appellate judgments; cassation and reopening decisions. The most common group.
• Commercial arbitral awards (Clause 3, Article 2): domestic arbitral awards and interim measures of arbitral tribunals are enforced directly under this Law without a court recognition procedure. This is essential for companies choosing arbitration: winning arbitration gets you straight to enforcement.
• Civil judgments and decisions of foreign courts, and foreign arbitral awards recognized and permitted for enforcement in Vietnam by Vietnamese courts: crucial for cross-border transactions, especially FDI enterprises and contracts with Chinese elements.
• Judgments and decisions enforceable immediately even though appealable under the Civil Procedure Code (e.g., decisions on wages, compensation for loss of life and health) and decisions applying interim measures.

2.3. Related subordinate instruments

Beyond Law 106/2025/QH15, companies should know Circular 216/2016/TT-BTC setting enforcement fee levels — the instrument determining how much a company pays when it receives money or assets from enforcement. Government decrees guiding the new Law continue to be updated; when working with a lawyer, always ask for the latest guidance before calculating costs.

3. Step-by-step commercial enforcement procedure

The commercial enforcement procedure consists of six sequential steps, each tied to a specific statutory deadline. Understanding this sequence and its time milestones helps the judgment creditor stay proactive, detect delays early, and avoid losing rights to an expired limitation period.

3.1. Step 1: Check the limitation period for requesting enforcement — the single most important step

Before anything else, check the limitation period for requesting enforcement. Under Clause 2, Article 34 of Law 106/2025/QH15, this is 5 years from the date the judgment or decision takes legal effect, or from the date the obligation becomes due. Once the 5 years expire without a request, the party loses the right to request the civil judgment enforcement authority to organize enforcement.

Why is this the most important step? Because it is the only door into the enforcement process, and once closed it almost never reopens. The Law excludes only two non-counting situations: periods of emergency, objective obstacles, or force majeure (which the requesting party must prove), and re-requests after the enforcement authority has returned the enforcement request. In practice, many companies win a case and then "leave it aside," only to discover the debtor has assets again after the 5 years have passed — when the judgment has only sentimental value left.

How the period is calculated: if the judgment sets a performance deadline (e.g., payment in 3 instalments), the 5 years run from each due date. For periodic obligations, each period has its own limitation.

3.2. Step 2: File the enforcement request

The parties (the judgment creditor or the judgment debtor) have the right to request enforcement. A notable new point of the 2025 Law: requests may be filed digitally, in person, orally, or by post (Clause 1, Article 34). Companies should prefer digital or in-person filing for clear receipts.

Where to file? At the competent civil judgment enforcement authority — under the new model, the provincial civil judgment enforcement authority and regional civil judgment enforcement divisions. In addition, the 2025 Law recognizes civil judgment enforcement offices (private practice organizations of enforcement practitioners, succeeding the former bailiff offices) — parties may choose to request enforcement through these offices instead of the state authority (Point a, Clause 1, Article 6). The request dossier consists of the request form and the enforceable judgment or decision.

3.3. Step 3: Issuance of the enforcement decision (5 working days)

Upon receiving the request, the civil judgment enforcement authority checks the request content and attached documents and notifies the requesting party. The head of the civil judgment enforcement authority issues the enforcement decision within 5 working days of receiving the request and the judgment or decision (Clause 3, Article 34). This short statutory deadline reflects the spirit of not letting cases stall on administrative procedure.

The authority may refuse the request within 5 working days only in the cases listed in Clause 4, Article 34: the requesting party has no right to request; the judgment creates no rights or obligations; the requested authority lacks jurisdiction; the limitation period for requesting enforcement has expired; or the request content is already covered by an enforcement decision. If refused incorrectly, the party may complain under Chapter IV of the Law.

3.4. Step 4: Notification and the 10-day voluntary period

Enforcement decisions, notices, and summons must be notified to the parties within 3 working days of issuance (Article 35). After valid notification, the judgment debtor has a 10-day voluntary enforcement period (Clause 1, Article 36).

These 10 days are the "last chance" for the loser to comply voluntarily without coercive measures and the resulting coercion costs. The parties also have the right to agree on the enforcement — the agreement must be in writing, clearly stating the time, place, content, performance deadline, and legal consequences of breach (Clause 2, Article 36). Agreements are recognized by law unless they violate prohibitions of law or aim to evade the enforcement fee. If one party fails to honour the agreement, the other may request enforcement of the unperformed part under the judgment.

3.5. Step 5: Verification of enforcement conditions

When the 10-day voluntary period expires without compliance, within 9 days, the enforcement officer verifies the enforcement conditions (Clause 1, Article 37). This is the decisive stage: assets for coercion, or a decision that enforcement conditions are lacking.

Enforcement officers have very broad verification powers under Article 37: requiring the debtor to truthfully declare accounts, assets, and income; requiring banks, asset registration authorities, and organizations or individuals managing assets to provide information (written reply within 3 working days; account information immediately); verifying at ownership and land-use registration authorities and secured-transaction registries; even requesting valuation, land-boundary measurement, unsealing, and asset measurement. The 2025 Law also permits digital verification, mining asset and income databases of the debtor (Article 5, Clause 3, Article 37).

For the creditor, the law grants the right to personally or through an authorized person verify the enforcement conditions and provide information on the debtor's assets and income to the enforcement authority (Clause 5, Article 37). In practice, this is a right winning companies should use fully: enforcement officers handle hundreds of cases at once, while the company itself knows best where the counterparty's assets are — which bank accounts, which real estate, which shareholdings. Providing accurate, timely information to the enforcement officer is the best way to shorten the enforcement timeline.

3.6. Step 6A: Conditions exist — apply securing and coercive measures

If verification shows the debtor has assets and income, the enforcement officer moves to securing and coercive measures (see Section 4).

3.7. Step 6B: No enforcement conditions — decision on non-enforceability and request-return mechanism

If verification shows the debtor has no income or assets to enforce (or the assets may not be distrained and disposed of), the head of the civil judgment enforcement authority issues a decision that enforcement conditions are lacking, within 5 working days (Clause 1, Article 38).

This decision does not mean the case is "dead." The enforcement officer must still re-verify enforcement conditions at least once every 6 months (once a year for special cases such as a person serving a prison sentence with 2 or more years remaining). Information on debtors lacking enforcement conditions is published on the civil judgment enforcement web portal and posted at the commune-level People's Committee. With new asset information, the officer must verify within 10 days and issue a decision to continue enforcement.

An important new point of the 2025 Law: after 2 years from the decision that enforcement conditions are lacking, with no new information, the civil judgment enforcement authority returns the enforcement request to the party (Clause 4, Article 38). The party may re-request enforcement whenever it discovers the debtor has become able to perform — and in this case the limitation period is not counted (Clause 2, Article 34). This mechanism resolves years-long dormant cases while protecting the creditor's rights from being "buried" by time.

4. When the loser won't comply: coercive measures

Once the 10-day voluntary period expires without compliance, the law gives enforcement authorities two groups of tools: securing measures to "lock" assets before they can be dissipated, and coercive measures to compel performance. The four sections below examine each group, the legal limits on coercion, and how to handle special situations frequently encountered in practice.

4.1. Securing measures — "lock" assets before they are dissipated

Before or alongside coercion, the law permits securing measures to prevent the dissipation or destruction of assets and evasion of enforcement (Article 66). Four measures: freezing accounts and assets in custody; suspending transactions, registration, transfer of ownership and use rights, and change of asset status; seizing assets and documents; and suspending exit from the country (Article 70).

For businesses, the two most practically valuable are freezing bank accounts (Article 67 — the enforcement officer may make a record requesting immediate freezing even before issuing the decision, but must issue it within 24 hours) and suspending registration and transfer of asset ownership (Article 68 — applied to real estate, shares, and capital contributions to block transfer, mortgage, and conveyance). Suspending exit from the country is especially effective against individuals who are representatives or owners of debtor enterprises intending to leave the country to evade obligations.

The creditor has the right to request in writing the application of securing measures (Point e, Clause 1, Article 6), but bears responsibility for the request — wrongful requests causing damage must be compensated. So before requesting an account freeze or an exit suspension, the company needs solid grounds and should consult a lawyer.

4.2. Six coercive enforcement measures

When the voluntary period expires and the debtor is able but unwilling to comply, they are subjected to coercion (Clause 1, Article 72). Article 71 of Law 106/2025/QH15 lists 6 coercive measures:

1. Deduction of money in accounts, collection of money, disposal of valuable papers (Article 73): the bank must deduct and transfer the money into the enforcement authority's account or directly to the creditor immediately upon receiving the decision. The deducted amount may not exceed the enforcement obligation and coercion costs.
2. Deduction from income: applied to wages and business income of the debtor.
3. Exploitation of assets: leasing or exploiting assets to generate proceeds for enforcement.
4. Distraint and disposal of assets, including assets held by third parties: the "heaviest" measure — distraining real estate, vehicles, machinery, shares, and capital contributions, then auctioning them to pay the creditor. Assets held by third parties (e.g., leased or deposited) may also be distrained.
5. Delivery of assets, objects, and documents: compelling delivery of specific assets under the judgment (e.g., handing over a house or a land-use right certificate).
6. Compelling performance or non-performance of specific acts: applied to non-monetary obligations (e.g., ordering demolition of an illegal construction or a public apology…).

Coercive measures must be proportionate to the debtor's obligation and the enforcement costs (Clause 3, Article 72) — a VND 10 billion asset may not be distrained to enforce a VND 500 million obligation, except where the asset is indivisible or the judgment has already ordered its distraint and disposal.

4.3. Legal limits on coercion

The law also sets limits to keep coercion proportionate: no coercion from 22:00 to 06:00 the next morning, on weekends or holidays (Clause 5, Article 72); where coercion requires mobilizing forces, the enforcement officer must prepare a coercion plan, the head approves it, and the police authority builds a protection plan within 3 working days; the officer must estimate coercion costs and notify the parties at least 2 working days before the scheduled coercion date. Debtors and interested parties disagreeing with the coercion decision may complain under Chapter IV of the Law.

4.4. Special situations: asset dissipation, absconding, corporate dissolution

Commercial enforcement is often more complex in practice. Some situations and responses:

• The debtor dissipates assets after judgment: request the enforcement officer to apply securing measures immediately (account freezing, suspension of asset transfer registration) under Article 66; in urgent cases, the head of the enforcement authority and the enforcement officer may apply securing and coercive measures immediately without waiting out the voluntary period (Clause 1, Article 72).
• The corporate representative absconds, the company is an "empty shell": verify accounts and assets in the representative's personal name where grounds exist; at the same time check whether the company has been dissolved or bankrupted — if a bankruptcy decision has been issued, enforcement shifts to the bankruptcy procedure under the 2025 Law on Recovery and Bankruptcy.
• Assets mortgaged to a bank: secured assets that the judgment has ordered to be disposed of may be distrained and disposed of for enforcement (Point c, Clause 3, Article 72); the mortgagee bank is paid in the statutory priority order.
• Disputes over ownership of distrained assets: interested parties may sue or request the court to determine asset ownership or use rights (Article 39); the creditor may also request the court to determine and divide ownership of the enforcement assets (Point dd, Clause 1, Article 6).

5. Costs, timelines, and key legal milestones

Enforcement is neither free nor instantaneous. The three sections below consolidate the costs companies should budget for (enforcement fees, coercion costs) and a table of statutory time milestones for proactive case management.

5.1. Enforcement fees — paid by the judgment creditor

Under Clause 10, Article 3 of Law 106/2025/QH15, the enforcement fee is the amount the party must pay when the creditor receives money or assets under the judgment or decision. Specific levels are set in Article 4 of Circular 216/2016/TT-BTC, calculated on the money or asset value actually received:

Example: a company receiving VND 12 billion from enforcement pays VND 220 million + 0.5% × 2 billion = VND 230 million. Creditors may also be considered for fee exemption or reduction under the law (Point l, Clause 1, Article 6). Note: this schedule is cited from the instrument still referenced as applicable at the time of writing; if the Government issues new fee regulations under the 2025 Law, the levels may change — check for updates before calculating.

5.2. Coercion costs — borne by the debtor, advanced by the creditor

Beyond the enforcement fee, coercion incurs costs (valuation, auction, coercion protection, asset custody…). The debtor bears enforcement costs under the law (Point d, Clause 2, Article 7), but the creditor has the right to advance coercion costs (Point l, Clause 1, Article 6). In practice, without the advance, the officer can hardly proceed with coercion — this is a budget item companies should prepare, later reimbursed from the enforcement proceeds.

5.3. Statutory time milestones

6. Common risks and mistakes that cost companies money

Mistake 1: Letting the 5-year limitation expire before requesting enforcement. Symptoms: winning the case then "leaving it aside," thinking an effective judgment enforces itself, or relying on the debtor's promises to pay gradually. Consequence: after 5 years, the right to request organized enforcement is lost — the judgment becomes an unenforceable piece of paper. Prevention: as soon as the judgment takes effect, calculate the 5-year mark, add it to the company's debt-tracking system, and file early instead of waiting for the debtor to have a change of heart.

Mistake 2: Not proactively providing the debtor's asset information. Symptoms: filing the request then "sitting and waiting" for the officer to find assets. Consequence: officers handle hundreds of cases; generic verification easily concludes "lacking enforcement conditions" while the debtor is still doing business and moving money through other accounts. Prevention: use the self-verification right in Clause 5, Article 37 — review the debtor's bank accounts, real estate, shares, and vehicles from the prior contractual relationship; provide written information to the officer from the outset.

Mistake 3: Requesting securing measures too late, letting the debtor dissipate assets. Symptoms: waiting until the 10-day voluntary period ends before thinking about account freezing. Consequence: accounts emptied, real estate transferred to relatives — enforcement deadlocked. Prevention: assess dissipation risk when filing; if signs exist, request securing measures in writing under Article 66 (account freezing, suspension of asset transfer registration). In urgent cases, the officer can freeze immediately by record within 24 hours (Article 67).

Mistake 4: Confusing the enforcement limitation with the lawsuit limitation. Symptoms: thinking that suing within the limitation period is "done," not noticing that the enforcement request limitation is an independent 5-year period running from the judgment's effect. Consequence: losing the enforcement right despite a fully valid win. Prevention: manage the two deadlines separately in the case file.

Mistake 5: Not factoring enforcement fees and coercion costs into the case economics. Symptoms: winning VND 2 billion but not budgeting the 3% fee (VND 60 million) and the coercion advance. Consequence: cash-flow surprises, even hesitating to advance coercion costs and stalling the case. Prevention: include estimated enforcement fees and coercion costs in the cost-benefit analysis from the moment the decision to sue is made.

Mistake 6: Making "oral agreements" with the debtor without a written record. Symptoms: the debtor promises gradual payment, the parties agree orally, and the creditor withdraws the request or stops following up. Consequence: the debtor breaks the promise, the limitation runs out, and no written agreement binds anyone. Prevention: every enforcement agreement must be in writing per Clause 2, Article 36 (time, place, content, deadline, legal consequences of breach, signatures).

Mistake 7: Ignoring the right to complain when refused or disagreeing with an enforcement decision. Symptoms: accepting an enforcement authority's refusal (e.g., on limitation grounds) without complaining. Consequence: losing the chance of review, when many refusal decisions may be wrong on limitation calculation or jurisdiction. Prevention: study Chapter IV (Articles 96–111) on complaints and denunciations in enforcement; complain timely and with grounds.

7. Quick checklist for the judgment creditor

• [ ] Check the 5-year limitation immediately from the judgment's effect or the obligation's due date (Article 34)
• [ ] Prepare the request form + copies of the effective judgment/decision
• [ ] File with the competent civil judgment enforcement authority (in person, digitally, or by post) and keep receipts
• [ ] Track the 5-working-day deadline for the enforcement decision; complain if wrongly refused
• [ ] Assess asset-dissipation risk and request securing measures (account freezing, suspension of asset transfers) when needed
• [ ] Use the 10-day voluntary period to negotiate a written enforcement agreement
• [ ] Proactively verify and provide the debtor's asset and income information to the officer (Clause 5, Article 37)
• [ ] Budget the coercion-cost advance and estimate the enforcement fee under Circular 216/2016/TT-BTC
• [ ] Track any decision that enforcement conditions are lacking; supply new asset information immediately when discovered to re-request enforcement
• [ ] Keep all documents, receipts, and decisions in the case file for complaints when needed

8. Frequently asked questions

What should I do if the losing party won't comply voluntarily?

File an enforcement request with the competent civil judgment enforcement authority within the 5-year limitation. After the 10-day voluntary period expires without compliance, the enforcement officer verifies enforcement conditions (Article 37) and applies coercive measures such as account deductions, income deductions, and distraint and disposal of assets (Articles 71, 72). The creditor should proactively provide the debtor's asset information and request securing measures (account freezing, suspension of asset transfers) from the outset if dissipation is a risk.

How long is the limitation period for requesting commercial enforcement?

5 years from the date the judgment or decision takes legal effect, or from the date the obligation becomes due, under Clause 2, Article 34 of the 2025 Law on Civil Judgment Enforcement (106/2025/QH15). After expiry, the party loses the right to request organized enforcement. Periods of emergency, objective obstacles, or force majeure (proven) are not counted.

Are commercial arbitral awards enforced like court judgments?

Yes. Clause 3, Article 2 of the 2025 Law provides that arbitral awards and interim measures of arbitral tribunals under the Law on Commercial Arbitration are enforced under this Law. The request procedure, the 5-year limitation, and coercive measures apply the same as for court judgments. Foreign arbitral awards must first be recognized and permitted for enforcement in Vietnam by a Vietnamese court.

How are commercial enforcement fees calculated?

The creditor pays a fee when receiving money or assets. Under Article 4 of Circular 216/2016/TT-BTC: 3% of money/assets received (above two times the base salary, up to VND 5 billion); a graduated scale up to VND 15 billion (VND 220 million + 0.5% of the excess over 10 billion); above VND 15 billion, VND 245 million + 0.01% of the excess over 15 billion. Example: receiving VND 12 billion means a fee of VND 230 million. This schedule is cited from the instrument in force at the time of writing; check for updates before detailed calculation.

What if the losing party has no assets to enforce?

The head of the civil judgment enforcement authority issues a decision that enforcement conditions are lacking (Article 38). The officer still re-verifies at least once every 6 months; the debtor's information is published on the civil judgment enforcement web portal. After 2 years with no new information, the authority returns the enforcement request; the party may re-request whenever it discovers the debtor has assets, with no limitation period counted in this case.

Can enforcement be requested through a private civil judgment enforcement office instead of the state authority?

Yes. Point a, Clause 1, Article 6 of Law 106/2025/QH15 allows the creditor to choose a civil judgment enforcement authority or a civil judgment enforcement office. These offices are the practice organizations of enforcement practitioners — successors of the former bailiff offices, which must be renamed under the transitional rules before 1 July 2027 (Clause 5, Article 116). This option suits companies needing more proactive, flexible enforcement organization.

9. When to work with a lawyer

Enforcement is the "combat" stage where every procedural mistake can cost real money. Work with a lawyer when you see any of these signs:

• The 5-year limitation is nearly up and no enforcement request has been filed — precise calculation of the start date, non-counting cases, and urgent filing with the competent authority are needed.
• The debtor is suspected of dissipating assets — assessment and timely, well-grounded requests for securing measures (account freezing, suspension of asset transfer registration, exit suspension) to avoid compensation liability for wrongful requests.
• The case has foreign elements — foreign arbitral awards needing recognition in Vietnam, or enforcement against assets in multiple localities, requiring complex procedural coordination.
• The enforcement request was refused or you disagree with a coercion or distraint decision — grounded complaints under Chapter IV of the Law within the statutory deadlines.
• The debtor is a company showing signs of dissolution or shifting assets to "backyard" companies — analysis of whether distraint can extend to related assets or whether the case must shift to bankruptcy proceedings.

FLAT Law Firm accompanies enterprises through the full dispute lifecycle — from pre-litigation enforceability assessment, representation in court and commercial arbitration, to organizing enforcement and handling non-voluntary debtors. Contact our hotline 0988424851 for advice tailored to your company's specific case.

References

• Law on Civil Judgment Enforcement 2025 (No. 106/2025/QH15), passed 5/12/2025, effective 1/7/2026.
• Law on Civil Judgment Enforcement 2008 (No. 26/2008/QH12, as amended) — expired 1/7/2026.
• Circular 216/2016/TT-BTC dated 10/11/2016 of the Ministry of Finance on enforcement fee levels.
• Full text of Law 106/2025/QH15 cross-checked at thuvienphapluat.vn on 28/9/2026.