Is the pledgee allowed to decide on the method of disposal of the pledged property in Vietnam on its own?

Is the pledgee allowed to decide on the method of disposal of the pledged property in Vietnam on its own?

In Article 303 of the Civil Code 2015, there are provisions on the method of disposing of pledged or mortgaged property as follows:

1. The securing party and the secured party may agree any of the following methods of realizing collateral:

a) Put collateral up for an auction;

b) The secured party sells collateral itself;

c) The secured party accepts the collateral as substitutions for the performance of obligations of the securing party;

d) Other methods.

2. If there is no agreement on methods of realizing collateral as prescribed in Clause 1 of this Article, the collateral shall be put up for auction, unless otherwise prescribed by law.

Pursuant to the current regulations, the pledgee must not decide on the method of disposal of the pledged property in Vietnam. In case it is necessary to dispose of the pledged property, the agreement of the two parties is required, or if there is no agreement, the auction shall be conducted.

Before disposing of the pledged property, is the pledgee entitled to receive back the property in Vietnam?

In Article 302 of the Civil Code 2015, there are provisions on the right to receive back collateral as follows:

The securing party may reclaim the collateral if, before the realization of the collateral, it completely performs its obligations and pay all expenses incurred for the late performance of obligations, unless otherwise prescribed by law.

According to this Article, if, before disposing of the pledged property in Vietnam, the pledgor fails to perform its obligations and pay the expenses incurred, it may be entitled to receive the property back, unless otherwise provided.

Best Regards!