Debt Collection in Vietnam

How to recover a commercial claim from a Vietnamese debtor

Vietnam is a rapidly growing market, increasingly chosen by foreign companies for production and trade. However, geographical distance, language differences, and a complex legal system can make the recovery of unpaid debts difficult. Knowing the local rules and the correct procedures is therefore essential to best protect one’s interests.

Actions for international debt recovery in Vietnam

A creditor wishing to recover a debt against a Vietnamese debtor can rely on several instruments:

• Formal demand letter by a local lawyer: this is the necessary first step. The formal notice represents an attempt at amicable recovery and is a mandatory requirement before proceeding in court.
• Judicial action in Vietnam: the creditor may initiate a civil action before the Vietnamese courts. Ordinary proceedings require the submission of documentary evidence of the debt and can be complex, especially if the debtor disputes the claim.
  • Arbitration proceedings: if the commercial contract includes an arbitration clause, it is possible to refer the dispute to recognized arbitral bodies in Vietnam (such as the Vietnam International Arbitration Centre – VIAC). This option is often faster than ordinary courts and facilitates the international enforcement of the arbitral award.

Why rely on an expert lawyer for debt recovery in Vietnam

Vietnam has specific rules on civil and arbitration procedures. A local expert lawyer knows the timing, costs, and most effective strategies to maximize recovery prospects. In particular, the lawyer can assist in drafting the demand letter, choosing the competent forum, or activating arbitration proceedings, thus reducing risks and costs for the creditor.

Ursusnetwork provides specialized legal assistance in international debt collection in Vietnam, identifying the most appropriate strategy according to the type of claim and the debtor’s conditions.