Grounds for application of coercive judgment enforcement measures against corporations in Vietnam

Grounds for application of coercive judgment enforcement measures against corporations in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Coercive judgment enforcement measures against corporations in Vietnam 

According to Article 4 of Decree 44/2020/ND-CP, coercive judgment enforcement measures against a corporation include:

- Account freeze.

- Distraint of property of which value is equivalent to the sum put up as guarantee for the execution of judicial measures (briefly called property distraint).

- Impoundment of records and documents and devices containing electronic data; impoundment or withdrawal of seals of corporations.

2. Grounds for application of coercive judgment enforcement measures against corporations in Vietnam

2.1. Bases for issuing account freeze decisions

Specifically, in Article 10 of Decree 44/2020/ND-CP, an account freeze decision shall be issued on the basis of:

- An effective Court judgment/decision;

- A record made as prescribed in Article 5 hereof;

- An account opened by the convicted corporation at a credit institution, state treasury, securities company or Vietnam Securities Depository (hereinafter referred to as the “account”).

- Documents used for verifying the corporation's account.

2.2. Bases for issuing property distraint decisions

According to Article 17 of Decree 44/2020/ND-CP, a property distraint decision shall be issued on the basis of:

- An effective Court judgment/decision.

- A record made as prescribed in Article 5 of Decree 44/2020/ND-CP.

- The convicted corporation does not have an account or the balance in the account opened at the credit institution, state treasury, securities company or Vietnam Securities Depository is insufficient to guarantee the coercive enforcement of a judicial measure.

- Documents used for verifying the corporation's account.

2.3. Bases for issuing decisions on impoundment of records, documents and devices containing electronic data; impoundment or withdrawal of seals of corporations in Vietnam

According to Article 35 of Decree 44/2020/ND-CP, a decision on impoundment of records, documents or devices containing electronic data; impoundment or withdrawal of corporation’s seal shall be issued on the basis of:

- An effective Court judgment/decision;

- A record made as prescribed in Article 5 of Decree 44/2020/ND-CP.

3. Rules for applying coercive judgment enforcement measures against corporations in Vietnam

Rules for applying coercive judgment enforcement measures against corporations according to  Article 3 of Decree 44/2020/ND-CP, are as follows:

- The enforcement is only carried out after receipt of the written coercive enforcement decisions from competent criminal judgment enforcement agencies.

- The decision to apply coercive enforcement measures is made according to the punishment and judicial measures imposed on corporations, contents, nature, degree and conditions for execution of coercive enforcement decisions and local actual conditions.

- The time limit for application of a coercive enforcement measure for guarantee for execution of court judgments does not exceed the sentence-serving term specified in the effective court judgment or decision; the time limit for provision of guarantee for execution of a judicial measure is determined once such judicial measure is completely enforced.

- A corporation may be subject to one or more enforcement measures at the same time if a single coercive enforcement measure does not guarantee their execution.

- Legitimate rights and benefits of corporations, relevant organizations and individuals are protected upon coercive judgment enforcement.

Tran Thanh Rin

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