Will borrowers failing to repay be prosecuted for criminal liability in Vietnam?

Will borrowers failing to repay be prosecuted for criminal liability in Vietnam? (Illustration)

Pursuant to the provisions of Article 466 of Vietnam's Civil Code 2015, the borrower is obliged to repay the debt to the borrower. Specifically:

• The borrower must pay in full the amount borrowed.
• In addition, if the borrower fails to pay the full amount by the due date, the lender has the right to demand interest on the overdue principal.

Thus, paying the debt when it is due is the borrower's obligation. If the debt is due but the borrower does not pay, there are 02 cases as follows:

- Case 1: If the borrower fails to repay the loan due to inability to pay and there is no sign of running away or using deceitful tricks to appropriate property, this will be a civil dispute. In order to get the money back, the lender can go to the Civil Court to carry out the procedures to claim the property.

- Case 2: If the borrower is able to repay the debt but does not pay it but deliberately uses fraudulent tricks or flees to appropriate property, it may be prosecuted for criminal liability for the crime of abusing trust to appropriate property in Article 175 of Vietnam's Criminal Code 2015.

• Uses deception to appropriate property;
• Refuses to repay the loan or return the property when the repayment or return of property is due despite he/she is capable of doing so;
• Uses property for illegal purposes which result in the offender's inability to repay the loan or return the propertyp
• The offence is committed by an organized group;
• The offence is committed in a professional manner;
• The property obtained is assessed at from VND 50,000,000 to under VND 200,000,000;
• The offence involves abuse of the offender's position or power or committed in the name of an agency or organization;
• The offender employs deceitful methods to commit the offence;
• Dangerous recidivism;
• The property obtained is assessed at from VND 200,000,000 to under VND 500,000,000;
• The offence has a negative impact on social safety, order and security;
• The property obtained is assessed at from ≥ VND 500,000,000.

In addition, the offender might also:

• Be liable to a fine of from VND 10,000,000 to VND 100,000,000.
• Be prohibited from holding certain positions or doing certain works for 01 - 05 years or
• Have all or part of his/her property confiscated.

Thus, from the above regulations, anyone in Vietnam who performs the act of appropriating property by borrowing; borrowing other people's property through the form of a contract that by the time of repayment, despite the conditions and ability, but deliberately fails to pay, may constitute a crime of abuse of trust to appropriate property with a penalty of up to 20 years in prison.

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