With the reality of many debt collection activities have become cruel and causing an disorder in the society, on 17 June 2020, National Assembly of Vietnam voted to enact Law on Investment 2020 (become effective from 1 January 2021), which officially prohibited the debt collection business line. Therefore, debt collection companies established and operating under Decree 104/2007/ND-CP dated 14 June 2007 on debt collection service business line and under Law on Investment 2014 must put the debt collection service out of their line of business. For contracts on provision of debt collection services signed before 1 January 2021, their validity must be terminated since 1 January 2021. The parties of contract may be allowed to perform activities to liquidate their contract of debt collection service in accordance with civil law and other relevant laws.
Normally, debts arise from civil and commercial transactions such as lending, buying and selling and purchasing goods, and providing services. These debts are often accompanied by evidences and documents such as contracts, debt confirmations, writing correspondences between the parties and other related documents. The activities of reviewing and assessing the legality of debts as well as assisting in debt settlement in accordance with the law are within the scope of legal service provision activities of law-practicing organizations such as ADK Lawyers.
While debt collection line is prohibited, but debt recovery is a practical need to ensure the normal operation of businesses, ADK Lawyers always has a team of lawyers with extensive experience in supporting the commercial debt collection for businesses by an efficient, enthusiastic, dedicated and lawful manners.
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