Commercial Debt Recovery Process: From Negotiation to Judgment Enforcement (2026 Updated)

I. Phase I: Negotiation and Amicable Settlement

In business operations, overdue debts or breaches of payment obligations are unavoidable risks. Before resorting to costly legal proceedings, negotiation and settlement are always top priorities to save time, reduce costs, and protect the reputation of both parties.

Creditors should apply the following optimal negotiation methods:

a) Formal Payment Notifications via Email and Post

This is a crucial step in establishing legal events. Creditors should send official notices via Professional Email and Registered Post (with acknowledgment of receipt) to ensure authenticity.

• Content: Clearly state the principal debt, overdue interest (if any), contractual basis, and the final payment deadline.

• Purpose: This notice serves as evidence that the creditor has urged the fulfillment of obligations before initiating a lawsuit.

b) Direct Meetings to Assess the Debtor's Financial Status

To ensure legal validity, both parties must execute a Minutes of Working with the following key contents:

• Legal Basis Confirmation: Specify the contract number, addendums, or relevant commercial agreements.

• Breach Confirmation: The debtor acknowledges the payment delay and provides specific reasons.

• Debt Finalization and Repayment Schedule: State the exact debt amount (including accrued interest) and the committed repayment term (lump-sum or installments).

• Sanction Commitments: Clearly state that if the debtor continues to violate the committed schedule, the creditor will apply stricter measures such as service suspension, litigation, or intervention by authorities.

c) Flexible Communication Channels

Besides formal documents, maintaining debt reminders via telephone and messaging apps (SMS, Zalo, Viber, etc.) helps maintain consistent pressure.

• Note: All call logs and messages should be archived or recorded via "vi bằng" (bailiff's witness) if necessary to prove the creditor's goodwill and the debtor's evasion.

II. Phase II: Litigation at Competent Courts: A Decisive Legal Measure

When all negotiation efforts fail, filing a lawsuit is the inevitable legal path to protect the legitimate rights and interests of the business. This stage requires meticulous preparation of the evidence dossier to ensure the highest success rate.

1. Building a Comprehensive Litigation Dossier

• Administrative Documents: Statement of Claim (following the Supreme People’s Court form) and a detailed list of evidence.

• Contractual Evidence: Original contracts, addendums, security documents (guarantees, mortgages), and performance records (delivery notes, VAT invoices, payment vouchers).

• Debt Confirmation: Debt reconciliation minutes and working minutes regarding the arrears.

• Legal Standing: Business Registration Certificate, Company Charter, and Power of Attorney for the representative.

• Important Note: Documents in foreign languages must be legally translated and notarized into Vietnamese. Original copies must be available for court cross-checking.

2. Submission and Court Acceptance

The Plaintiff may submit the dossier via:

• Direct submission at Court.

• Postal services.

• Online via the Court's E-portal (if available).

3. Case Admittance

Upon receiving the dossier, if the case falls under its jurisdiction, the Judge will issue a notice for the Court Fee Advance. The Plaintiff must pay this advance and submit the receipt to the Court within 07 days. The case is officially admitted only after the receipt is submitted.

4. Litigation Timeline (Cases with Foreign Elements - Art. 476 CPC 2015)

• Mediation Meeting: 06 to 08 months from the date of admittance.

• Trial: 09 to 12 months from the date of admittance.

• Re-opening (if any): Usually within 01 month following the initial date.

III. Phase III: Litigation Costs: Essential Information for Businesses

1. Document Preparation and Legalization

• Consular Legalization: To certify foreign documents for use in Vietnam.

• Translation & Notarization: Mandatory conversion of documents into Vietnamese by functional units.

2. Commercial Court Fees (Property Disputes)

Court fees are calculated based on the disputed value:

Disputed Value (VND)	Court Fee Calculation
Up to 60,000,000	3,000,000 VND
Over 60,000,000 to 400,000,000	5% of the disputed value
Over 400,000,000 to 800,000,000	20M + 4% of the amount exceeding 400M
Over 800,000,000 to 2,000,000,000	36M + 3% of the amount exceeding 800M
Over 4,000,000,000	112M + 0.1% of the amount exceeding 4B

• Note on Advance: Generally 50% of the estimated court fee.

3. Incidental Expenses

• Interpretation Fees: For non-Vietnamese speaking parties.

• On-site Appraisal Fees: For checking disputed assets or scenes.

• Forensic Examination Fees: For verifying signatures, seals, or technical expertise.

IV. Phase IV: Petition for Judgment Enforcement

Winning the lawsuit is just the first step. If the debtor fails to comply voluntarily, the business must initiate civil judgment enforcement procedures.

1. Statute of Limitations (Law No. 106/2025/QH15)

Effective from late 2025, the standard time limit to request enforcement is 05 years from the date the judgment becomes legally effective or the obligation becomes due.

2. Exceptions to the Statute of Limitations

• Force Majeure & Objective Obstacles: Periods of emergencies or natural disasters are excluded from the 5-year limit.

• Re-submission: The time limit is preserved if the request is re-submitted after a previous return by the enforcement agency according to regulations.

3. Basic Execution Procedure

1. File the Petition: Attach the original judgment and evidence of the debtor's assets.

2. Asset Verification: Proactively provide information on the debtor's bank accounts, real estate, or inventory.

3. Coercive Measures: If necessary, the Enforcement Agency will apply measures such as asset seizure or freezing to satisfy the judgment.

See more related services and articles

1) Procedures for Debt Recovery Litigation with Foreign Elements in Vietnam

2) Procedures for Initiating Civil and Commercial Lawsuits in Vietnam

3) GUIDELINES ON ONLINE SUBMISSION OF LAWSUITS AND EVIDENCE UNDER RESOLUTION NO. 01/2026/NQ-HDTP

4) Summary of Judgment No. 17/2023/KDTM-PT: Application of Incoterms 2010 in International Fisheries Disputes

5) Legal Proceedings at the Specialized Court of the Vietnam International Financial Center