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Debt Collection and Recovery Lawsuits in Vietnam: Measures and Procedures

5 min readFLAT LAW FIRM
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An overdue business debt rarely disappears on its own: the longer it is left, the more evidence scatters and the greater the risk that the debtor dissipates assets. Vietnamese law gives the creditor an escalating ladder of measures, from debt reconciliation and negotiation before litigation, to a lawsuit before a court or arbitration, and finally to judgment enforcement. This article sets out the general framework for business debt collection for corporate creditors; narrower angles such as personal debt, recovery from Chinese counterparties or online consumer loans are only cross-referenced.

Before litigation: lock down the evidence and build lawful pressure

The first step is always debt reconciliation: the contract, annexes, delivery records, invoices and a signed debt reconciliation or acknowledgment are the core evidence set. A debt confirmation signed after the debt arose is especially valuable because it locks both the amount and the payment commitment at a fixed point in time. The creditor then sends a payment demand letter stating principal, interest and a final payment deadline; the letter is both evidence that the debtor was asked to perform the payment obligation under Article 280 of Civil Code 23/2015/QH13 and the reference point for late-payment interest.

Where negotiation is still possible, commercial mediation under Decree 22/2017/ND-CP, or a staged repayment agreement with additional security, is usually far cheaper and faster than litigation. If the contract contains an arbitration agreement, the dispute goes to commercial arbitration under Law on Commercial Arbitration 54/2010/QH12 instead of a court. One boundary must be kept in mind: hired debt-collection business is a prohibited business line under the current list in Investment Law 143/2025/QH15; an enterprise may not hire an outside unit to collect debts as a business service, and threats or coercion outside the legal framework are never permitted.

Suing for the debt: dossier, interim measures and limitation periods

The lawsuit dossier under Civil Procedure Code 92/2015/QH13 comprises the petition together with the contract, delivery or acceptance records, invoices, the debt reconciliation, demand letters and interest evidence. For a property loan contract, Article 466 of the Civil Code is the basis for repayment of principal, interest and interest on overdue principal. If there are grounds to believe the debtor is dissipating assets, the creditor should ask the court to apply interim emergency measures such as freezing accounts or assets at the start of the case, rather than discovering after judgment that the assets are gone.

Limitation must be distinguished, as the batch condition requires: disputes from civil contracts carry a three-year limitation under Article 429 of Civil Code 23/2015/QH13, while commercial disputes carry a two-year limitation under Article 319 of Commercial Law 36/2005/QH11. The same debt can fall under a different clock depending on the nature of the relationship; a single limitation period for every business debt would be wrong. The creditor should classify its debt relationship when preparing the dossier.

After judgment: enforcement and the enforcement request period

Winning the case is only a necessary condition. Under Law on Civil Judgment Enforcement 106/2025/QH15, the period to request enforcement is five years under Clause 2, Article 34; the judgment creditor should file the enforcement request as soon as the judgment takes effect and at the same time supply asset information about the debtor to the enforcement agency. At this stage, tracking the debtor’s assets, accounts and business activity determines the real recovery rate more than the wording of the judgment itself.

Frequently Asked Questions

What measures can a business take to recover a debt before filing a lawsuit?

Before suing, a business should climb the ladder of measures: reconcile and confirm the debt in writing, send a payment demand letter stating principal, interest and a final deadline, negotiate a repayment schedule (possibly with additional security), and consider commercial mediation under Decree 22/2017/ND-CP. If the contract has an arbitration agreement, the dispute belongs to commercial arbitration under Law on Commercial Arbitration 54/2010/QH12. Only if these steps fail is a court lawsuit the sensible next step, together with a request for interim emergency measures if the debtor shows signs of dissipating assets.

Is commercial hired debt-collection service still legal in Vietnam?

No. Hired debt-collection business is a prohibited investment business line under the current list in Investment Law 143/2025/QH15 (which replaced Investment Law 61/2020/QH14 from 1 March 2026). The creditor enterprise must recover the debt itself within the legal framework, or through lawyers and legal proceedings; hiring an outside unit to practise debt collection as a business service is unlawful, and any threat or coercion outside the statutory procedures is prohibited.

What documents are needed to sue for debt recovery, and what is the limitation period?

The core dossier comprises: the contract and annexes, delivery records or acceptance minutes, invoices, the debt reconciliation or acknowledgment, demand letters and interest evidence; for a property loan contract, the repayment basis is Article 466 of Civil Code 23/2015/QH13. The limitation period must be distinguished: three years under Article 429 of the Civil Code for civil contract disputes, and two years under Article 319 of Commercial Law 36/2005/QH11 for commercial disputes — there is no single limitation period for every business debt.

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Reviewed by the Legal Practice Group – FLAT LAW FIRM

This legal analysis has been verified against current Vietnamese regulations and cross-border FDI transaction practices by the attorneys at FLAT LAW FIRM.