From July 28, the legal capital for the debt collection service business is VND 2,000,000,000 in Vietnam

From July 28, the legal capital for the debt collection service business is VND 2,000,000,000 in Vietnam​ (Illustration)

Decree 104/2007/ND-CP stipulates the conditions in debt collection service activities of debt collection service business enterprises as follows:

1. Capital Conditions

The legal capital for the debt collection service business is VND 2,000,000,000 in Vietnam (Two billion dong). Throughout its operation, the debt collection service business enterprise must maintain its charter capital not lower than the statutory capital.

2. Standards for Managers and Branch Directors of Debt Collection Service Business Enterprises in Vietnam:

- Have full civil act capacity.

- Have a university degree or higher in one of the following fields: economics, management, law, security.

- No criminal record.

- Persons who have worked for another debt collection service business enterprise that had its Business Registration Certificate revoked must satisfy the additional condition: within the last three years immediately preceding, they must not have held a managerial position at a debt collection service business enterprise that had its Business Registration Certificate revoked.

3. Condition on criteria of employees involved in debt collection services in Vietnam

- Workers must be recruited under an indefinite-term labor contract or a fixed-term labor contract of six months or more.

- Have full civil act capacity.

- Have an intermediate level of education or higher in one of the following fields: economics, management, law, security.

- No criminal record.

More details can be found in Decree 104/2007/ND-CP, which comes into effect in Vietnam from July 28, 2007.

Ty Na

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