Is debt collection service legal in Vietnam?

Is debt collection service legal in Vietnam?

Pursuant to Article 6 of the Law on Investment in 2020 stipulating banned business lines in Vietnam as follows:

1. The business investment activities below are banned:

a) Business in narcotic substances specified in Appendix I hereof;

b) Business in chemicals and minerals specified in Appendix II hereof;

c) Business in specimens of wild flora and fauna specified in Appendix 1 of Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of rare and/or endangered species of wild fauna and flora in Group I of Appendix III hereof;

d) Prostitution business;

dd) Human trafficking; trade in human tissues, corpses, human organs and human fetuses;

e) Business activities pertaining to asexual human reproduction;

g) Trade in firecrackers.

h) Provision of debt collection services.

2. The Government’s regulations shall apply to production and use of the products mentioned in Points a, b, and c Clause 1 of this Article during analysis, testing, scientific research, medical research, pharmaceutical production, criminal investigation, national defense and security protection.

As regulations above, debt collection services are banned under law provisions in Vietnam.

What are the fines for provisions of debt collection services in Vietnam?

Pursuant to Article 16 of the Decree 122/2021/NĐ-CP stipulating as follows:

1. A fine ranging from VND 80,000,000 to VND 100.000.000 shall be imposed for contributing capital to, purchasing stakes or purchasing shares of a business organization without satisfying the prescribed conditions.

2. A fine ranging from VND 100,000,000 to VND 200,000,000 shall be imposed upon:

a) any investor that transfers part or whole of their investment project without satisfying the prescribed conditions; or

b) any foreign investor or business organization specified in Point a, Point b or c Clause 1 Article 23 of the Law on Investment 2020 that receives part or whole of an investment project without satisfying the prescribed conditions.

3. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for making business investment in banned business lines prescribed by law.

4. Remedial measures: The violator is compelled to terminate their business investment activities and return the illegal benefits obtained from the business investment in the banned business lines if the violation specified in Clause 3 of this Article is committed.

As regulations above, the act of provision of debt collection services in Vietnam shall be fined from VND 200,000,000 to VND 300,000,000. The violator is compelled to terminate their business investment activities and return the illegal benefits obtained from the business investment in the banned business lines

Best regards!