Measures to secure judgment enforcement in Vietnam

Measures to secure judgment enforcement in Vietnam (Source: Internet)

1. Authority to carry out measures to secure judgment enforcement in Vietnam

According to Clauses 1 and 2, Article 66 of the Law on Enforcement of Civil Judgments 2008, the competence to apply civil judgment enforcement security measures is as follows:

- Enforcers may, at their own will or when requested in writing by involved parties, promptly apply measures to secure judgment enforcement in order to prevent dispersal or destruction of assets or shirking of judgment enforcement. When applying measures to secure judgment enforcement, enforcers are not required to notify such in advance to involved parties.

- Parties who request enforcers to apply security measures shall be held responsible before law for their requests. In case they make a wrongful request, causing damage to parties subject to security measures or third parties, they shall pay compensations.

2. Measures to secure judgment enforcement in Vietnam

According to Section 1, Chapter IV of the Law on Enforcement of Civil Judgments 2008 (amended in 2014), measures to ensure civil judgment enforcement are as follows:

2.1. Freezing of accounts and assets in places consigned for safekeeping in Vietnam

- The freezing of accounts and assets in places consigned for safekeeping shall be carried out in case judgment debtors have accounts and assets consigned for safekeeping.

- The decision on freezing of accounts and assets in places consigned for safekeeping must clearly state the amount of money and assets to be frozen. Enforcers shall hand freezing decisions to agencies, organizations or individuals currently managing accounts and assets of judgment debtors.

In case of necessity to immediately freeze judgment debtors’ accounts and assets without freezing decisions, enforcers shall make written records requesting agencies, organizations and individuals managing judgment debtors’ accounts and assets to carry out the freezing of such accounts and assets. Within 24 hours after making written records, enforcers shall issue account and asset freezing decisions.

Agencies, organizations and individuals managing accounts and assets shall promptly abide by the enforcers’ requests for account and asset freezing. In this case, written records and account and asset freezing decisions must be immediately submitted to same-level people’s procuracies.

- Within 10 days after the issuance of decisions on freezing of accounts and assets in places consigned for safekeeping, enforcers shall apply coercive measures or issue decisions on termination of the freezing as prescribed.

2.2. Seizure of assets and papers of involved parties in Vietnam

- Enforcers who are performing the judgment enforcement task may seize assets and papers related to the judgment enforcement which are currently managed and used by involved parties or other organizations and individuals. Related agencies, organizations and individuals shall coordinate with and assist enforcers and fulfill their requests for seizure of assets and papers.

- Asset and paper seizure decisions must clearly state types of to-be-seized assets and papers. Enforcers shall hand these decisions to involved parties or organizations and individuals currently managing and using such assets and papers.

In case of necessity to immediately seize assets and papers without asset and paper seizure decisions, enforcers shall request the handover of such assets and papers and make written records thereof.

Within 24 hours after making written records, enforcers shall issue asset and paper seizure decisions. Written records and asset and paper seizure decisions must be promptly submitted to same-level people’s procuracies.

- A written record of the seizure of assets and papers must be made and signed by enforcers and persons managing such assets and papers. In case such persons refuse to sign, the written record must bear signatures of witnesses. Written records of seizure of assets and papers must be handed over to persons managing assets and papers.

- Enforcers shall request involved parties, and related agencies, organizations and individuals to provide necessary papers and documents to prove their ownership and use rights of such assets and papers; and notify involved parties and related agencies, organizations and individuals of their rights to initiate lawsuits for requesting determination of the asset ownership and use rights of the seized assets and papers.

When necessary, enforcers shall verify and clarify or request the court or a competent agency to determine persons having ownership and use rights of the seized papers and assets.

- Within 10 days after having a ground to determine that seized assets and papers are under ownership and use rights of judgment debtors, enforcers shall issue a decision on application of coercive measures as prescribed in Chapter IV of Law on Enforcement of Civil Judgments 2008;

In case of having a ground to determine that seized assets and papers are not under ownership and use rights of judgment debtors, or are under ownership and use rights of judgment debtors who have fulfilled their obligations, enforcers shall issue decisions to return assets and papers to persons with rights to own and use them.

2.3. Suspension of registration or transfer of ownership or right to use or change in the current state of assets in Vietnam

- When it is necessary to prevent involved parties from, or these parties are detected to have committed acts of, transferring the ownership or use rights, dispersing, destroying or changing the current state of assets and shirking the judgment enforcement, enforcers shall issue decisions to suspend the registration or transfer of ownership or right to use or change in the current state of assets by judgment debtors and their common assets with other persons.

- Such decisions must be promptly sent to related agencies, organizations and individuals for suspension of registration or transfer of ownership or right to use or change in the current state of these assets.

- Enforcers shall request involved parties, and related agencies, organizations and individuals to provide necessary papers and documents to prove their ownership and use rights of assets; and notify involved parties and related agencies, organizations and individuals of their rights to initiate lawsuits for requesting determination of the asset ownership and use rights.

When necessary, enforcers shall verify and clarify or request the court and competent agencies to determine asset ownership and use rights for judgment enforcement, and settle disputes over assets; and request the destruction of papers and cancellation of transactions related to such assets in accordance with law.

- Within 10 days after having a ground to determine assets are under ownership and use rights of judgment debtors, enforcers shall issue decisions on application of coercive measures as prescribed in Chapter IV of Law on Enforcement of Civil Judgments 2008;

In case of having ground to determine that assets are not under ownership and use rights of judgment debtors, enforcers shall issue decisions to terminate the suspension of the registration or transfer of ownership or right to use or change in the current state of assets.”

Quoc Dat

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