What are the cases applying coercive exploitation of assets for judgment enforcement in Vietnam?

What are the cases applying coercive exploitation of assets for judgment enforcement in Vietnam? (Internet image)

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

1. What are the cases applying coercive exploitation of assets for judgment enforcement in Vietnam? 

According to Clause 1, Article 107 of the Law on Enforcement of Civil Judgments 2008, enforcers may coerce the exploitation of assets of judgment debtors in the following cases:

- The value of assets of judgment debtors is much larger than the judgment execution obligation and these assets can be exploited for judgment enforcement;

- Judgment creditors agree with coercive exploitation of assets for judgment enforcement, provided the exploitation of assets does not affect the rights and legitimate interests of third parties

Note:

Enforcers shall issue decisions on coercive exploitation of assets. Such a decision must clearly state the form of exploitation; sum of money, and time limit, time, place and mode of remittance of money to the civil judgment enforcement agency for judgment enforcement.

Decisions on coercive exploitation of assets shall be promptly sent to agencies competent to manage or register these assets and commune-level People’s Committees in localities where these assets exist.

Transactions over and transfer of ownership of exploited assets are subject to approval of enforcers.

(Clause 2, Article 107 of the Law on Enforcement of Civil Judgments 2008)

2. Forms of coercive exploitation of assets for judgment enforcement in Vietnam

Assets of judgment debtors may be coercively exploited for judgment enforcement in the following forms:

- Assets which are being exploited by judgment debtors themselves or by other parties with the permission of judgment debtors may be further exploited by current exploiters.

For unexploited assets, including land use rights, enforcers shall request judgment debtors to sign asset exploitation contracts with organizations or individuals wishing to exploit these assets.

- Exploiters of assets specified in Clause 1 of Article 108 of the Law on Enforcement of Civil Judgments 2008 shall remit proceeds from the asset exploitation to civil judgment enforcement agencies after subtracting necessary expenses.

- Within 30 days after being requested, if judgment debtors fail to sign asset exploitation contracts with other parties, enforcers shall distraint and handle assets for judgment enforcement.

(Article 108 of the Law on Enforcement of Civil Judgments 2008)

3. Cases of termination of the enforcement of property exploitation

According to Clause 1, Article 109 of the Law on Enforcement of Civil Judgments 2008, enforcers may issue decisions on termination of coercive exploitation of assets in the following cases:

(i) The exploitation of assets is ineffective or impedes the judgment enforcement;

(ii) Judgment debtors and asset exploiters fail to properly comply with enforcers’ requests for asset exploitation;

(iii) Judgment debtors have fulfilled the judgment enforcement obligation and fully paid judgment enforcement expenses;

(iv) There is a decision on judgment enforcement termination.

Note:

 In case the coercive exploitation of assets is terminated under (i) and (ii), enforcers shall continue to distrain and handle these assets for judgment enforcement.

In case the coercive exploitation of assets is terminated under (iii) and (iv), enforcers shall, within 5 working days after the date of decision issuance, issue decisions on release and return of these assets to judgment debtors.

(Clause 2, Article 109 of the Law on Enforcement of Civil Judgments 2008)

4. Tasks and powers of enforcers in Vietnam

Specifically, in Article 20 of the Law on Enforcement of Civil Judgments 2008, enforcers have the following tasks and powers:

- To promptly organize the enforcement of judgments or rulings assigned to them; to issue judgment enforcement decisions according to their competence.

- To strictly enforce contents of judgments or rulings; to correctly apply legal provisions on the order of and procedures for judgment enforcement, ensuring the interests of the State and the rights and legitimate interests of involved parties and persons with related interests and obligations; and to strictly observe regulations on standard professional ethics of enforcers.

- To summon involved parties and persons with related interests and obligations for judgment enforcement.

- To verify assets and judgment execution conditions of judgment debtors; to request concerned agencies, organizations and individuals to supply documents for the verification of addresses and assets of judgment debtors or coordinate with concerned agencies in handling material evidence, assets and other matters related to judgment enforcement.

- To decide on the application of measures to secure judgment enforcement and coercive measures to enforce judgments; to work out plans on coercive judgment enforcement; and to confiscate assets for judgment enforcement.

- To request under law police offices to detain persons resisting the judgment enforcement.

- To make written records of violations of the law on judgment enforcement; to impose administrative sanctions according to their competence; to propose competent agencies to discipline or administratively sanction violators or examine violators for penal liability.

- To decide on the application of coercive measures to recover money and assets already paid to involved parties in contravention of law, collect judgment enforcement charges and other amounts payable by involved parties.

- To use support tools while on duty under the Governments regulations.

- To perform other tasks assigned by heads of judgment enforcement agencies.

When performing their tasks or exercising their powers, enforcers shall comply with law and take responsibility before law for judgment enforcement and have their lives, health, honor, dignity and prestige protected by law.

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