Vietnam debt collection: recovering unpaid invoices legally

Vietnam debt collection follows a fixed legal path: a written reminder, talks, a court claim, and then enforcement of the judgment. Third-party collection agencies are not part of that path. Since 1 January 2021, running a debt collection service business has been banned. A company chasing an unpaid invoice should know what it can do itself, what a lawyer can do, and which tactics break the law.

Start with the contract and a written demand

Before any step, check the paper. Find the signed contract, the invoice, the delivery record and any emails that confirm the amount. A court will ask for proof that the debt exists and that it is due.

Then send a written reminder. State the amount, the due date, the contract clause and a clear deadline to pay. Keep a copy and proof of delivery. A polite, dated letter shows good faith and starts a record.

Late payment interest can be claimed if the contract allows it. Under the Civil Code 2015, interest agreed by the parties generally cannot go above 20 percent a year. The Commercial Law 2005 also lets a seller claim interest on late payment for goods or services. Check the contract first, because the rate you may charge depends on what the parties agreed and which law governs the deal.

Sources: Civil Code No. 91/2015/QH13, Article 468; Commercial Law No. 36/2005/QH11, Article 306, as discussed in Conventus Law, "Late payment interest in Vietnam: the matrix and some implications to manage the caps".

Negotiate, and put any deal in writing

Most unpaid invoices end here. Call or meet the debtor. Ask why payment is late. Offer a sensible plan, such as instalments, if that helps you get paid.

Write every agreement down. A short payment schedule signed by both sides is stronger than a phone call. It also confirms the debt, which helps if you later go to court.

You may also hire a lawyer to send a demand letter or to negotiate for you. One law firm update says that, after the 2021 ban, only a lawyer or law firm can lawfully collect a debt on behalf of a third party. Ask any lawyer you hire to explain the scope of the work and the fees in writing.

Sources: VCI Legal, "Client update on Debt Collection in Vietnam" (Investment Law 2020, Article 6).

Why collection agencies are not an option

Debt collection used to be a licensed business under Decree 104/2007/ND-CP. That changed with the Law on Investment 2020, No. 61/2020/QH14. Article 6 lists the debt collection service business among activities that are prohibited. The ban took effect on 1 January 2021.

This means a company should not hire a collection agency, and an agency should not offer the service. Firms that once worked under the old decree had to stop. If someone offers to collect for a share of what they recover, treat it as a warning sign.

A creditor may still chase its own debts. A company can use its own finance staff to send reminders and hold meetings. The line is crossed when pressure turns into threats or harm, as the next section shows.

Sources: Law on Investment No. 61/2020/QH14, Article 6; VCI Legal, "Client update on Debt Collection in Vietnam".

Go to court before time runs out

If talks fail, the next step is a civil claim at the People's Court. The Civil Procedure Code 2015 sets the court process. Courts also look at limitation periods, so do not wait.

For contract disputes, the general limitation period is three years from the day the injured party knew, or should have known, that its rights were harmed (Article 429 of the Civil Code 2015). One 2026 practice guide notes that commercial disputes can carry a two-year period under the Commercial Law 2005. Because the two periods differ, count from the shorter one unless a lawyer tells you otherwise.

Prepare your file carefully. Include the contract, the invoices, delivery proof, your demand letters, and any written promise to pay. Expect the process to take time. The same guide says the path from filing a claim to a first-instance judgment typically exceeds six months.

Arbitration is another route if your contract has an arbitration clause. In that case the clause usually decides where the dispute goes, so read it before you file in court.

Sources: Civil Code No. 91/2015/QH13, Article 429; Civil Procedure Code No. 92/2015/QH13; Chambers and Partners, Dispute Resolution 2026, Vietnam practice guide.

Enforce the judgment

A judgment does not pay you by itself. You must ask the civil judgment enforcement agency to act. Under Article 30 of the Law on Enforcement of Civil Judgments, the request must be made within five years after the judgment takes legal effect. If the judgment sets a due date for the debtor, the five years run from that date.

Once the agency issues an enforcement decision, the debtor gets a short period to pay voluntarily. If the debtor does not pay and has the means, the agency can use coercive measures. Article 71 lists them: deducting money from bank accounts, deducting from income, seizing and handling assets, and forcibly transferring property. Enforcers, not creditors, carry out these steps.

Be ready for a debtor with no assets. Enforcement can only reach what the debtor owns, so look into the debtor's accounts and property early, within the law, and ask your lawyer which facts the agency needs from you.

Sources: Law on Enforcement of Civil Judgments No. 26/2008/QH12, Articles 30 and 71 (English text published by Apolat Legal); amended by Law No. 64/2014/QH13.

What is not allowed when you chase a debt

Pressure that turns into threats is a crime, not a collection method. In early 2023, Vietnamese police arrested staff of a law firm on suspicion of extortion, under Article 170 of the Criminal Code, after reports that debt collectors threatened borrowers and their relatives. The case shows that a law firm label does not make harassment legal.

Avoid the following:

• Threats of violence against the debtor or the debtor's family.
• Calls or messages to relatives, friends or colleagues meant to shame the debtor.
• Posting the debt or the debtor's photo on social media.
• Taking the debtor's property or holding it without a court order or a legal basis.

Stay with letters, meetings, a lawyer, the court and the enforcement agency. That path is slower, but it is the one that holds up and protects your company.

Sources: VCI Legal, "Client update on Debt Collection in Vietnam" (Criminal Code Articles 170 and 299; the 2023 Phap Viet case).

This article is general information, not legal advice. Laws change, so confirm the current text with a Vietnamese lawyer before you act.