What happens when someone takes a bank loan and then disappear in Vietnam?

First and foremost, your sibling has the obligation to repay the debt to the bank in accordance with the Loan Contract signed as stipulated in Article 466 of the Civil Code 2015 in Vietnam as follows:

1. If the loaned property is money, the borrower must repay the full amount when due; if the loaned property is an object, the borrower must return an object of the same type, quantity, and quality, unless otherwise agreed.

2. In case the borrower cannot return the object, they may repay it in money according to the value of the borrowed object at the place and time of repayment, provided that the lender agrees.

3. The place of repayment is the residence or head office of the lender, unless otherwise agreed.

4. In case of an interest-free loan, if the borrower does not repay the debt or repays incompletely when due, the lender has the right to request interest payment at the interest rate specified in Clause 2 of Article 468 of this Code on the overdue amount corresponding to the overdue period, unless otherwise agreed or otherwise provided by law.

5. In case of an interest-bearing loan, if the borrower does not repay or repays incompletely when due, the borrower must pay interest as follows:

a) Interest on the principal debt at the agreed interest rate in the contract corresponding to the loan term that is overdue; in case of late payment, additional interest must be paid at the interest rate specified in Clause 2 of Article 468 of this Code;

b) Interest on overdue principal debt at 150% of the loan interest rate according to the contract corresponding to the overdue period, unless otherwise agreed.

If your sibling borrows money and does not repay, and then absconds, they may be subject to criminal liability for the Crime of Abuse of Trust to Appropriate Property as stipulated in Clause 35 Article 1 of the Law Amending the Criminal Code 2017 (amending Article 175 of the Criminal Code 2015) in Vietnam:

1. Anyone who commits one of the following acts to appropriate another person's property valued from VND 4,000,000 to under VND 50,000,000 or under VND 4,000,000 but has been administratively sanctioned for an act of appropriating property or has been convicted for this crime or one of the crimes specified in Articles 168, 169, 170, 171, 172, 173, 174, and 290 of this Code, has not yet had their criminal record expunged and continues to violate, or the property is the primary means of livelihood of the victim and their family, shall be subject to non-custodial reform for up to 03 years or imprisonment from 06 months to 03 years:

a) Borrowing, renting, or receiving property from another person by contract and using fraudulent means or absconding to appropriate such property or, upon the due date, deliberately failing to return the property despite having the means and ability to do so;

b) Borrowing, renting, or receiving property from another person by contract and using the property for illegal purposes leading to the inability to return the property.

2. Committing the crime in one of the following cases shall be punished by imprisonment from 02 to 07 years:

a) Organized crime;

b) Professional nature;

c) Appropriating property valued from VND 50,000,000 to under VND 200,000,000;

d) Abusing positions, powers, or using the name of an agency or organization;

đ) Deceitful means;

e) Causing adverse effects on social security, order, and safety;

g) Dangerous recidivism.

3. Committing the crime by appropriating property valued from VND 200,000,000 to under VND 500,000,000 shall be punished by imprisonment from 05 to 12 years.

4. Committing the crime by appropriating property valued from VND 500,000,000 or more shall be punished by imprisonment from 12 to 20 years.

5. The offender may also be subject to a fine of between VND 10,000,000 and VND 100,000,000, prohibition from holding certain positions, practicing certain professions or doing certain jobs for 01 to 05 years, or confiscation of part or all of their property.”.

Sincerely!