To recover an unpaid debt in Vietnam, you build a clean evidence file, send a formal demand, negotiate a written repayment plan if possible, and, if that fails, file a claim in the competent court or in arbitration if your contract has an arbitration clause. Hiring a "debt collection company" is not an option: debt collection services became a prohibited business line in Vietnam from 2021, so any firm offering to chase your debtor for a cut is operating outside the law.
This guide walks through the lawful route a foreign supplier, service provider or lender usually takes, what tends to slow it down, and where a licensed Vietnamese lawyer earns their place. It is general information, not legal advice; details such as court fees, deadlines and the exact court with jurisdiction should be checked against the rules in force when you act.
Why the old "debt collector" route is closed
Until the end of 2020, debt collection services were a conditional business in Vietnam. Companies with that registration sent staff to sit outside offices, call relatives and pressure debtors in ways that often crossed into harassment. The Law on Investment that took effect in 2021 moved debt collection services onto the list of prohibited business lines. Since then, no company can lawfully be licensed to collect debts for others as a service.
For a foreign creditor this matters in two ways. First, if someone in Vietnam offers to "handle" your debtor for a percentage, you are dealing with an unlicensed operator, and their methods can expose you to complaints, reputational damage and in serious cases criminal liability for coercion. Second, the lawful toolset is narrower than in some countries: you rely on your own staff, your lawyer, negotiation, the courts or arbitration, and the state civil judgment enforcement system.
What remains fully legal is collecting your own receivables. Your accounts team can call, email and meet the customer, and you can authorise a lawyer to send letters and negotiate on your behalf. Banks and licensed credit institutions have their own regulated processes for loans, but those rules do not turn an ordinary trade creditor into a collector. Keep every contact polite, factual and documented. Threats, public shaming on social media or contacting the debtor's family are exactly the behaviours the ban was meant to stop, and they can turn a strong claim into a weak one.
Build the evidence file before you escalate
Vietnamese courts and arbitral tribunals decide on paper. The creditor who arrives with a tidy, translated file has a far easier time than one who relies on emails scattered across inboxes. Before you send any formal demand, gather:
- The signed contract, every appendix and every amendment, including the version in Vietnamese if the contract is bilingual.
- Purchase orders, delivery notes, warehouse receipts or acceptance minutes showing that the goods arrived or the service was accepted.
- Invoices issued in the format required for Vietnamese accounting, plus proof that the customer received them. E-invoices are now the norm, so keep the system records.
- Any reconciliation of accounts (often called a debt confirmation or "bien ban doi chieu cong no") signed by the customer. This single page is often the strongest evidence you can hold.
- Emails, chat messages and meeting notes in which the debtor acknowledged the amount or promised to pay. Export them with dates and sender details intact.
- Records of partial payments, because each one can show acknowledgement of the remaining balance.
- Company information on the debtor: full registered name, enterprise code, registered address and legal representative, taken from the national business registration portal.
If the documents are in English or another language, plan for certified Vietnamese translations. Courts conduct proceedings in Vietnamese, and an untranslated file slows everything down. Where key messages exist only on a phone or chat app, some creditors ask a bailiff office (thua phat lai) to make an official record of the content, which carries weight as evidence later.
A step-by-step path from reminder to claim
Most commercial debts in Vietnam are settled before anyone files a claim. The sequence below is the one experienced in-house teams follow; the aim at every stage is to get either the money or a stronger written acknowledgement.
- Friendly reminder. Your account manager contacts the customer, confirms the amount and asks for a payment date. Many late payments are internal approval delays, not refusals.
- Debt reconciliation. Ask the customer to sign a reconciliation of accounts confirming the outstanding balance. Even if they cannot pay, a signed confirmation fixes the amount and helps on limitation.
- Formal demand letter. Send a letter in Vietnamese and English to the registered address and to the legal representative, stating the contract, the amount, the due date, any late-payment interest you claim and a reasonable deadline. Keep proof of delivery.
- Meeting and repayment plan. If the debtor engages, record any plan in a signed instalment agreement with dates, amounts and what happens if an instalment is missed. Security such as a guarantee or pledge can be added here.
- Lawyer's letter. A letter from a Vietnamese law firm signals that you are ready to file. It often moves a stalled file because the debtor now sees real cost ahead.
- Claim in court or arbitration. Follow the dispute clause in your contract. If it names an arbitration centre, you generally must go there; if it says nothing valid about arbitration, the dispute goes to the court with jurisdiction.
- Enforcement. A judgment or award that the debtor ignores is enforced through the civil judgment enforcement agency, which can freeze accounts and seize assets.
Skipping straight to step six is possible, but it rarely saves time. Courts look favourably on a creditor who tried to settle, and a signed acknowledgement collected in steps two to four can decide the case.
How long you have to claim
Contract claims in Vietnam are subject to a limitation period. Under the Civil Code, the general limitation period for contract disputes is three years from the date the claimant knew or should have known its rights were infringed, which for an unpaid invoice is usually the payment due date. The Commercial Law contains its own limitation rule for certain commercial disputes, and practitioners have long debated which applies in a given case, so treat the shorter period as the safe planning horizon and get advice early.
Two practical points help. First, the limitation period can restart when the debtor acknowledges the debt in writing or pays part of it, which is another reason the reconciliation of accounts matters. Second, limitation is not applied automatically: a Vietnamese court applies it when one party asks for it before the first-instance judgment. A debtor with a lawyer will almost always ask, so do not count on the point being missed.
Do not wait until the last months. Preparing translations, obtaining a power of attorney signed abroad and legalised for use in Vietnam, and assembling evidence can take longer than expected, especially if your headquarters is in another time zone and documents need to travel. A claim lodged early also puts pressure on the debtor while its assets are still visible.
Court, arbitration or insolvency: comparing the options
Once negotiation fails, the creditor usually chooses among three formal routes. The right one depends mainly on what your contract says, the size of the debt and whether the debtor is still trading.
| Route | When it is available | Strengths | Weak points |
|---|---|---|---|
| Court claim | Default route when there is no valid arbitration clause | Court can order interim measures such as freezing assets; judgments are enforced by the state enforcement system | Proceedings in Vietnamese only; first instance and appeal can take a long time; workload varies by area |
| Arbitration | Only if the contract (or a later agreement) contains a valid arbitration clause | Parties can choose the language, arbitrators with commercial experience, confidentiality, final award | Tribunal fees are paid up front; enforcement still goes through the court and the enforcement agency |
| Bankruptcy petition | When the debtor is a company that has failed to pay a due debt for the period set by the Bankruptcy Law | Strong pressure; forces the debtor to engage | Unsecured creditors are paid late in the order of priority; the process is slow and recovery can be small |
| Criminal report | Only where facts suggest fraud or misappropriation, not ordinary non-payment | Police investigation can uncover hidden assets | Not a debt collection tool; filing without basis can backfire and delay a civil claim |
A common mistake by foreign creditors is to treat a criminal complaint as a shortcut. Ordinary late payment is a civil matter. Unless there is real evidence of deception from the start, such as fake documents or a company that never existed, stick with civil and commercial routes.
Mistakes that weaken a good claim
Contract signed by the wrong person. If the person who signed for the Vietnamese company had no authority, the debtor may argue the contract does not bind it. Check the legal representative or a written authorisation before signing.
No proof of delivery or acceptance. An invoice alone shows you asked for money, not that you performed. Courts want acceptance minutes, delivery records or service reports.
Penalty clauses the court will cut. Commercial contracts are subject to a cap on contractual penalties under the Commercial Law. A clause above the cap is not void, but the excess will not be awarded.
Waiting too long. Limitation runs while you send polite emails. Collect written acknowledgements as you go so the clock restarts.
Pressure tactics. Posting about the debtor online or sending people to their office invites a counter-complaint for defamation or harassment and undermines your credibility before the judge.
Ignoring the debtor's finances. A judgment against an empty shell is worth little. Before spending on a claim, check whether the company still trades, owns assets or has receivables of its own that can be targeted.
When you need a Vietnamese lawyer
You can handle reminders, reconciliations and even a first demand letter in-house. A licensed Vietnamese lawyer becomes worth the cost when the debtor stops responding, disputes the quality of what you delivered, or when the amount is large enough that a mistake in procedure would hurt. Lawyers also matter when you need interim measures: asking a court to freeze a debtor's bank account or stop it from transferring assets requires a precise application, and sometimes security from you.
Bring the lawyer the evidence file described above, the dispute clause, a timeline of contacts and a clear statement of what result you would accept. Ask them to assess limitation, jurisdiction, the realistic chance of enforcement and the expected sequence of hearings, rather than only the merits. A foreign company without a presence in Vietnam will need to sign a power of attorney, often notarised and legalised abroad, so start that paperwork early.
If you want a first view before engaging a firm, you can ask a lawyer on AI Co Van to look at your file and tell you which route fits. For anything that turns on numbers, such as court fees, the interest rate a court will apply or the exact deadline in your case, check the current rules with the court or a licensed lawyer rather than relying on a general guide like this one.
Frequently asked questions
Can I hire a debt collection agency in Vietnam?
No. Debt collection services have been a prohibited business line in Vietnam since 2021. You can collect your own receivables through your staff or authorise a lawyer to act for you, but a company offering debt collection as a paid service is operating unlawfully.
Is a signed reconciliation of accounts really that important?
Yes. A reconciliation signed and stamped by the debtor confirms the amount owed at a given date. It is strong evidence in court or arbitration and a written acknowledgement can restart the limitation period, which gives you more time to act.
Can the police help me recover an unpaid invoice?
Generally not. Non-payment of a commercial debt is a civil matter. Police become involved only where there are signs of a crime such as fraud or misappropriation from the outset. Filing a criminal report without that basis usually wastes time.
Do I need to be in Vietnam to file a claim?
Not necessarily. A foreign company can authorise a Vietnamese lawyer through a power of attorney, which usually has to be notarised and legalised in your home country before use in Vietnam. You may still be asked to attend certain hearings or mediation sessions.
What happens if the debtor ignores a court judgment?
Once a judgment becomes legally effective, you can ask the civil judgment enforcement agency to enforce it. The agency can verify assets, freeze bank accounts and seize property. Recovery still depends on the debtor actually having assets, so check this before you sue.
Can I add late-payment interest to the amount I claim?
Usually yes, if the debtor paid late. The contract rate applies within the limits of the law, and if the contract is silent, statutory rules set the basis for calculation. Ask a licensed lawyer to calculate the figure under the rules currently applied by courts.