Debt Recovery: Navigating Cultural Sensitivities

When it comes to Vietnam debt collection services, one must not underestimate the significance of cultural sensitivities in Vietnam. In this article, we explore the intricacies of debt collection in Vietnam and emphasize the importance of working with local law firms that not only understand the legal landscape but also conduct their actions ethically.

Understanding the Landscape

Vietnam’s economic landscape has witnessed remarkable growth over the past few decades, attracting businesses from all over the world doing business in Vietnam. However, this economic boom has also resulted in an increase in debt-related issues. For businesses operating in Vietnam or dealing with Vietnamese clients, debt collection can be a complex and challenging process.

The Cultural Factor

Vietnamese culture places a strong emphasis on interpersonal relationships, respect for authority, and saving face. These cultural values influence how debt collection should be approached in Vietnam. Heavy-handed or aggressive tactics that might work in some countries can be counterproductive here, potentially damaging your reputation and business relationships.

Why Choose Vietnam Debt Collection Services?

Local Expertise: Vietnam debt collection services offered by local law firms in Vietnam possess an intimate knowledge of the country’s legal system. We understand the intricacies of debt collection laws and regulations in Vietnam, which can be complex for foreigners to navigate.

Cultural Sensitivity: Vietnam Local law firms are well-versed in the cultural nuances that underlie debt collection in Vietnam. We can communicate with debtors in a respectful and culturally sensitive manner, preserving relationships where possible.

Effective Negotiation: These firms can employ effective negotiation techniques tailored to the Vietnamese context. They can often achieve better results by leveraging their understanding of local customs and expectations.

Ethical Actions: Most importantly, reputable Vietnam law firms prioritize ethical practices. They recognize that while debt collection is essential, it must be carried out in a manner that upholds the principles of fairness and respect.

The Ethical Approach to Debt Collection in Vietnam

Ethical debt collection practices are not just a matter of reputation; they are a legal requirement in Vietnam. The legal system in Vietnam places a strong emphasis on fairness and transparency in all financial transactions, including Vietnam debt collection services. Engaging in unethical practices can result in legal repercussions and damage your business’s reputation.

It should be emphasized that, Vietnam government has recently cracked down on unlawful Vietnam debt collection services and prosecute a number of firms with the wrong ways of demanding debts from debtors.

By working with Vietnam law firms that understand these principles, you not only ensure compliance with the law but also demonstrate your commitment to ethical business practices. This can go a long way in maintaining positive relationships with clients, partners, and customers in Vietnam.

Debt collection in Vietnam is a multifaceted endeavor that requires a deep understanding of both the legal framework and the cultural sensitivities of the country. To navigate this complex landscape successfully, it is highly advisable to partner with Vietnam debt collection services provided by experienced local law firms.

We not only possess the legal expertise to handle debt collection efficiently but also understand the importance of conducting their actions ethically. By choosing the ethical path, you not only protect your business interests but also contribute to building trust and positive relationships in Vietnam’s dynamic business environment. Remember, in Vietnam, success in debt collection is not just about collecting debts; it’s about doing so with respect, fairness, and cultural sensitivity.

We understand chasing late payment is costly and time consuming.

At ANT Lawyers, a law firm in Vietnam with offices in Ho Chi Minh City and Hanoi, we could act on client’s behalf in dealing with the debtor, and in the meantime do a thorough research on debtors’ assets for payment obligations for evaluation of options to reclaim the debts.

Debt recovery lawyers at ANT Lawyers Vietnam beside other legal profession skills are equipped with negotiation, and alternative dispute resolution skill that helps handling disputes effectively and professionally.

If pre-litigation efforts fail, we will look at an alternative strategy and taking legal actions will be the last resort.

We have experience in dealing with debt recovery cases for clients being exporters, insurance companies and corporate clients from EU, US, Canada, Australia, Hong Kong. ANT Lawyers is an exclusive Vietnam law firm member of Prae Legal, an international law firm network. We do act as Vietnam agent for one of the largest debt recovery specialist firms of its kind from the UK.

If you need help in addressing debt recovery and litigation issues, please either email us at ant@antlawyers.vn or call to our office at: +84 28 730 86 529.

Let ANT Lawyers help your business in Vietnam.

Restructure the Debt Payment due to Covid-19

On March 13, 2020, the State Bank issued Circular No. 01/2020/TT-NHNN providing guidance for the credit institutions, foreign bank branches to restructure the debt payment, exemption and reduction periods, charge, keep the debt group in support of customers affected by Covid-19 epidemic, which is an important legal grounds to support the economy.

Accordingly, the debt group restructuring is carried out as follows:

Debts which are restructured repayment term are the principal amount and/or interest (including the debt balance of debts within the scope of regulation of Decree No. 55/2015/ ND-CP of June 9, 2015 of the Government on the credit policy for agricultural and rural development (amended and supplemented)), which fully meets the following conditions: arising from lending activities, financial leasing; Arising the obligation to repay the principal and/or interest within the period from January 23, 2020 to the next day after 03 months from the date the Prime Minister announces the end of the Covid -19 epidemic; Customers are unable to pay the debt principals and/or interests on time according to the signed contracts, loan agreements, financial leases due to the decrease in revenue and income due to Covid -19 epidemic.

The debt repayment restructuring shall be carried out in cases where the outstanding debt is still due or overdue for up to 10 days from the due date of payment or due under the contract, financial leasing agreements; or The overdue debt balance in the period from January 23, 2020 to the next day after 15 days from the effective date of this Circular.

Credit institutions, foreign bank branches may decide on rescheduling of repayment of outstanding debts in the above-mentioned cases, based on customers’ requests and assessments of credit institutions, foreign bank branch on the ability to repay the principal and/or interest of the customer in full after rescheduling, in accordance with the influence of Covid – 19 service and ensuring the credit institution, the foreign bank branch fails to restructure the debt repayment term for debts in violation of legal regulations and the restructuring time in case of extending an extended repayment period shall not exceed 12 months from the last day of the debt term, finance lease (the time the customer must pay all principal and interest under the signed contract, loan agreement, financial lease).

In addition, credit institutions and foreign bank branches shall decide on the exemption and reduction of interests and fees according to internal regulations for the outstanding debts arising from credit extension activities, except for bond purchase and investment activities for which the principal and/or interest payment is due within the period from January 23, 2020 to the next day after 03 months from the date of Prime Minister announced the end of the Covid -19 epidemic and the customer was unable to pay the debt on time, both principal and/or interest, according to the signed contract or agreement due to the decrease in revenue and income due to the impact of the Covid- 19 epidemic.

This Circular takes effect from the date of signing. From the effective date of this Circular, customers of credit institutions, foreign bank branches, other relevant organizations and individuals will have their debt repayment restructured, exemption and reduction periods, charge, keep the debt group unchanged. The Government has always issued policies, legal documents to support businesses, organizations and individuals to borrow credit during the period of the Covid -19 epidemic, so that they can help businesses as well as the country’s economy to maintain and develop in the future.

What Are Challenges in Debt Recovery Litigation Procedures for Enterprise?

Lawyers at debt recovery law firms in Vietnam could provide solutions

    

In the operation of the enterprises, the arising of bad debts could be unavoidable. However, in order to be able to file lawsuit and collect debts and minimize bad debts in practice, there are still many difficulties. Currently, the process of debt recovery according to the provisions of the law still encounter many problems and shortcomings, while enterprises need more effective solutions to recover debts fully and quickly in order to ensure revenue and financial balance for enterprise.  Hence, why not mind your business and let lawyers at debt recovery law firms in Vietnam help with effective strategies and solutions.

Filing a lawsuit with the help of litigation lawyers in Vietnam

In order to be able to recover debts according to the provisions of the law, enterprises could hire dispute lawyers to go through two stages with relatively complicated procedures. Accordingly, the lawsuit need to be filed and after the court’s judgment, the enterprise needs to file a petition for civil judgment enforcement. Because, the trial stage and the judgment execution phase are two independent stages, each with a different processes.

Trial hearing at court stage

First, the stage of lawsuits in court. When the enterprise’s interests are infringed, the enterprise will need to file a lawsuit at a competent court. This is a traditional method of lawsuits that forces enterprise to comply with the court’s strict processes and procedures and relevant legal regulations.

Specifically, in order to initiate a lawsuit at the court, an enterprise must meet the following conditions to initiate a lawsuit:

(i) there is a debt incurred and the debtor fails to pay the debt as committed, leading to a dispute and the enterprise believes that rights and interests are infringed;

(ii) the dispute between the enterprise and the debtor in this case must fall under the exclusive jurisdiction of the court, not under the jurisdiction of any other agency or organization (arbitration);

(iii) in some cases, if there is an agreement or is required by law to carry out pre-litigation procedures such as conciliation, negotiation, notification, etc., the enterprise must complete such procedures before requesting a competent court to settle disputes between the enterprise and the debtor. In addition, in the petition, the enterprise needs to enclose invoices, vouchers and loan documents to prove that the debt collection has legal ground.

These are the basic conditions that enterprise need to keep in mind when filing a lawsuit to ensure that the petition is valid and not returned.  To improve the success chance, the enterprise could consult with lawyers at debt recovery law firms in Vietnam for advice.

After the petition is accepted and the enterprise completes the payment of the court fee advance, the court will conduct verification and collect evidences; conducting meetings, checking the handover, accessing and disclosing evidences and conciliation. In case the involved parties cannot reconcile with each other on the payment plan or agree on interest and debt, the court will bring the case to trial. During this period, enterprises need to consider late payment interest, principal and debtor’s financial situation in order for request to be accepted by the court and serve as a basis for possible judgment enforcement.

Judgement enforcement stage

Second, the procedure for requesting judgment enforcement. After the judgment or decision of the court takes legal effect, it must be respected by organizations and all citizens.

Accordingly, enterprises, especially debtors, within the scope of their responsibilities, should strictly abide by judgments and decisions and must take responsibility before law for judgment enforcement.

Within 5 years from the date the judgment or decision takes legal effect, the creditor can by himself or authorize lawyers at debt recovery law firms in Vietnam to make a written request for judgment enforcement and send it to the district-level judgment enforcement agency where the court is located for first-instance trial court to request judgment enforcement.

Accordingly, enterprises need to prepare a written request for judgment enforcement together with the judgment or decision requested for enforcement and other relevant documents. For the extent of the petition for judgment enforcement, the enterprise needs to show information about the debtor’s assets or judgment enforcement conditions.

In addition, enterprises have the right to request civil judgment enforcement agencies to apply measures to secure judgment enforcement, including: freezing of accounts, temporary seizure of assets and papers, temporary suspension of registration, transfer, etc. change the current state of assets to avoid the debtor’s dispersal of assets and inability to repay the debt according to the judgment.

At the same time, the judgment enforcement agency will issue a notice of judgment enforcement, setting a time limit for the debtor to voluntarily execute the judgment of 15 days from the date the debtor receives or is duly notified execution decision. At the end of the above-mentioned voluntary time limit, the debtor who has conditions for judgment enforcement but does not voluntarily execute the judgment will be subject to coercion.

The enforcement of money assets will be applied by the judgment enforcement agency one of the measures such as deducting money from the account; subtract from the judgment debtor’s income, collect money from the judgment debtor’s enterprise activities; collect money from judgment debtors who are holding or collect money from judgment debtors who are kept by third parties or sell assets of judgment debtors to collect debts.

Risks during the judgement enforcement in Vietnam

Although the judgments and decisions have taken effect, the initiation of lawsuits and judgment enforcement in many cases still cannot be enforced making the debt recovery further challenging.  It means that, it would be challenging for the claimant itself to pursue the judgement enforcement process and hence lawyers at debt recovery law firms in Vietnam could be relied on for advice and solution for each situation arisen as mentioned below.  

One is the determination of the debtor’s address for the court to serve the documents. The debtor always tends to evade and not cooperate, i.e. constantly changing addresses and causing difficulties for the court in the process of settling the case. Accordingly, the court could not proceed to serve the debtor, then some courts have decided to return the petition to the claimant, or suspend the case because it considers that there are not enough conditions to initiate a lawsuit or not summon the defendant. This factor causes delays in the legal process when enterprises initiate lawsuits.

The second is the application of trial procedure in absentia. In order to fully meet the conditions for trial in absentia, the court will take time and many measures to verify and post procedural documents according to regulations. Besides, for debt disputes with complicated elements, it takes more time to collect more documents and evidences, conduct solicitation of document expertise, etc. or the case has many people with interests and obligations related, the trial was adjourned several times. Therefore, the intangible interests of enterprises have been seriously affected.

Third is the execution process. In fact, many enterprises have had court judgments, but the judgment enforcement process has lasted for many years, and enterprise have not been able to recover their debts. This problem may arise from the lack of flexibility in the coordination between banks, other agencies and organizations and the judgment enforcement agency, which is detrimental to the verification and distraint of assets of the agency, directly affecting the time of judgment enforcement.

Fourth is for the distraint, auction of assets that are assets that are difficult to determine the value of, or properties that are in dispute or there are no auction participants are also reasons for the delay in debt recovery.

Fifth is due to human subjective factors. Specifically, due to opposing and uncooperative acts of changing the current status of mortgaged assets, obstructing the verification of judgment enforcement conditions, asset valuation, and asset auction. For movable property, the debtor could actively move or disperse in order to cause difficulties in the handling process. In addition, there are cases where enforcers violate the time limit for notifying or serving judgment enforcement decisions/notices, failing to conduct verification…

Hence, enterprises that wish to proceed debt recovery effectively need to proactively collect information, judgment execution conditions of the debtor and provide it to the judgment enforcement agency. Besides, it is necessary to seek the legal advice of debt recovery law firms in Vietnam with experience in litigation and enforcement for debt recovery process in Vietnam.

How Debt Recovery Lawyers in Vietnam Could Assist to Collect Debt

Do you know debt recovery service is banned in Vietnam?

The collection of bad debt and late payment after sales or services are difficult and sensitive tasks in Vietnam. How debt recovery lawyers in Vietnam follow the law and help client?

Before 2021, there are companies that can register and provide the debt recovery service in Vietnam. From Jan 1st, 2021, the law bans the debt recovery service in Vietnam. How to resolve this puzzle for the client? Can lawyers in Vietnam help?

The reason the debt recover service in Vietnam is banned is because of the negative social reactions created in the past by company that provide debt recovery service. There are incidents the debt recovery service providers utilize methods to put pressure on debtors through threats to physically harm or defame the debtors on social media.

How debt recovery lawyers in Vietnam help?

Therefore, when there are disputes on payment or debt, the client could engage law firms in Vietnam whom is aware of law and the process to follow the laws. The debt recovery lawyers in Vietnam who take the case should be well informed about the legal nature of the debt profile and they must have skills on debt recovery.

Depending on the nature of each case and each specific dossier, the law firm in Vietnam can be able to make suitable plans to deal accordingly with the debtor.

Solutions proposed by debt recovery lawyers in Vietnam

There will be a number of methods and different solutions in the work of debt recovery by lawyers in Vietnam. However, the recovery of debt will apply the following two basic methods:

1. Mediation and agreement methods are ways that lawyers and legal professionals will come directly to negotiate and persuade debtor to make their debt payment schedule based on understanding of law and various drivers.

2. Resolve through court proceeding, or arbitration. This method will be applied in the case that debtors are unwilling to cooperate, trying to evade responsibility, or the payment plan is delayed.

Time limit for settling the debt collection is influenced by different factors but the two most important factors are the legality of the documents and the payment capability of debtors.

There are debtors, after being explained the consequences and losses of non-payment, late payment by lawyers and legal experts, they were aware of and make plans to pay debts.

But there are debtors that the client requires the support and intervention of the state authorities. In such case, the duration of the case will be prolonged.

Cre:https://antlawyers.vn/library/hire-lawyers-to-collect-debt.html

Needing Debt Recovery Service in Vietnam: Dispute lawyer could help.

Debt recovery service in Vietnam undertaken by dispute lawyer in legal ways.

Debt recovery is always a big issue for businesses and individuals. In order to promote the production process, the process of debt recovery is always one of the concerns with the business leaders. One of the the appropriate method is the intervention of law. Dispute lawyer in Vietnam will help advise and represent the clients with debt recovery service in Vietnam.

What dispute lawyer in Vietnam would do to carry out debt recovery service in Vietnam?

With a team of experienced lawyers and legal experts that have participated and solved many debt recovery cases for businesses and individuals, the law firm that assist with advisory and representation in debt recovery service in Vietnam could carry out the following actions:

1.Study the case to find the legal basis and debt information that should be handled;

2.Assess the payment capability of the debtor to creditor;

3.Represent the client to exposure debtor to negotiate, persuade and require debt repayment;

4.Advise and instruct customer the most beneficial solutions in accordance with the law;

5.Implement civil litigation proceedings or criminal proceedings depending on the type of entity and the nature of the transactions arising overdue debts;

Litigation lawyer in Vietnam file lawsuit to bring debtor to court for debt recovery service in Vietnam

In case of debt recovery through litigation, the dispute lawyer in Vietnam helping client with debt recover service in Vietnam could undertake following actions:

1.Draft petition and other papers relating to the recovery of debt;

2.Represent client (individuals and organizations) to submit the petition to the Court and the competent authorities to recover the debt as stipulated by law;

3.Appoint litigation lawyer in Vietnam to participate in protecting the legitimate rights and interests of clients (individuals and organizations) at the Court at all levels;

4.Represent client (individuals and organizations) to participate in judgment enforcement.

Cre:https://antlawyers.vn/library/debt-recovery-service-in-vietnam.html