Legal Debt Recovery Services in Ho Chi Minh City

Legal debt recovery service is an option chosen by many businesses and individuals when they face overdue debts or disputes concerning payment obligations. In practice, many people still search for terms such as “debt collection for hire” or “debt collection services.” However, the provision of debt collection services as a business activity has been prohibited under Point h, Clause 1, Article 6 of the Law on Investment 2025. In this context, engaging legal services provided by a law-practicing organization is an appropriate means of assisting businesses in handling outstanding debts through measures such as negotiation, litigation, and judgment enforcement in accordance with the law. This article discusses the circumstances in which legal debt recovery services should be considered, the factors affecting service fees, and key legal considerations that businesses should bear in mind when handling outstanding debts in Ho Chi Minh City.

1. When should you use Legal debt recovery services in Ho Chi Minh City?

Overdue debts are an ongoing risk that any business may face in the course of its operations. In such circumstances, businesses should consider taking appropriate legal measures to protect their rights and interests.

In principle, where conventional debt collection efforts have failed to produce results, or where a matter presents a potential risk of dispute, businesses should consider engaging debt recovery services to have their documents and evidence reviewed and receive advice on an appropriate course of action. Legal debt recovery services may be considered in the following circumstances:

• Customers or business partners repeatedly delay payment and show no willingness to cooperate.
• Debts remain overdue for an extended period, directly affecting the business’s cash flow and financial planning.
• The debtor deliberately avoids contact by telephone or email or fails to respond to debt reminder letters that have been sent.
• The debtor shows signs of ceasing operations, preparing for dissolution, or dissipating assets.
• The business has taken internal debt collection measures but has failed to achieve the desired results.

From a legal perspective, delays in handling outstanding debts may not only reduce the amount that can realistically be recovered but may also result in the claim becoming time-barred or unenforceable because the debtor has dissipated its assets. In such circumstances, proactively engaging legal debt recovery services can help establish an appropriate course of action tailored to each individual case.

2. Legal debt recovery services fees in Ho Chi Minh City

Legal debt recovery service fees are not subject to a fixed rate applicable to every matter. Fees are determined based on the value of the debt, the nature and complexity of the matter, the scope of work requested by the client, and the appropriate course of action for each specific case. On this basis, TNTP offers various service packages designed to meet the needs of different groups of clients.

Businesses may refer to TNTP’s corporate debt recovery service fee schedule in Ho Chi Minh City, which is structured according to different stages, including negotiation, litigation, and judgment enforcement, as follows:

3. Factors affecting the cost of Legal debt recovery services in Ho Chi Minh City

The cost of legal debt recovery services depends on various factors and is determined on a case-by-case basis. A comprehensive review of the case file at the outset helps determine the scope of work, appropriate course of action, and estimated costs. Factors commonly taken into consideration include:

• The amount of debt to be recovered;
• The completeness of the documentation, including contracts, invoices, acceptance records, debt reconciliation records, and other relevant documents;
• The debtor’s operating status and ability to make payment;
• The nature of the matter, including whether it involves merely a delay in payment or whether a dispute concerning the debt has already arisen;
• The scope of work required across multiple localities or outside Ho Chi Minh City;
• The scope of work to be performed by the lawyer, including legal advice, negotiation, representation in dealings with the debtor, participation in legal proceedings, dispute resolution through arbitration, or assistance with judgment enforcement;
• The urgency of the matter, particularly where the limitation period for initiating legal proceedings is approaching or the debtor shows signs of dissolution, bankruptcy, or asset dissipation.

After conducting a comprehensive review of the case file, TNTP will discuss with the client the scope of work, proposed course of action, and appropriate service fees for the specific matter. This approach enables clients to make informed decisions regarding the appropriate debt recovery strategy while ensuring transparency throughout the provision of legal services.

4. Types of debtssubject to recovery

Outstanding debts arising in the course of business may result from various types of transactions and contractual relationships. Each type of debt has its own characteristics in terms of documentation, evidence, and appropriate methods of handling. The following are common categories of debts that businesses may need to recover:

• Debts arising from sale and purchase agreements for goods;
• Debts arising from service agreements;
• Debts arising from other business and commercial relationships, such as agency, distribution, processing, logistics, franchising, business cooperation, and other commercial transactions;
• Debts arising in the construction sector;
• Debts payable pursuant to a court judgment, decision, or arbitral award;
• Debts arising from other civil relationships.

5. Criteria for selecting a reputable legal debt recovery service provider in Ho Chi Minh City

The selection of a legal debt recovery service provider directly affects the approach to handling outstanding debts, as well as the creditor’s ability to protect its lawful rights and interests. In practice, no service provider can guarantee a successful recovery in every case, as the recoverability of a debt depends on various factors, including the available documents and evidence, the debtor’s legal status, and its ability to make payment.

Accordingly, when selecting a legal service provider, businesses should consider its overall professional competence, practical experience, and service delivery approach. The following are some criteria that businesses may consider when selecting a legal debt recovery service provider:

• Experience in reviewing and assessing legal documents and records relating to the outstanding debt;
• Experience in resolving disputes arising from commercial activities, including the sale and purchase of goods, provision of services, construction, and other business sectors relevant to the debt;
• The ability to comprehensively assess a matter and develop an appropriate course of action;
• Transparency regarding the scope of work, methods of implementation, and service fees;
• Application of measures that comply with applicable laws;
• The ability to represent or assist clients throughout the entire process of resolving a matter, from negotiation through legal proceedings, arbitration, and judgment enforcement;
• Maintaining the confidentiality of information, documents, and data provided by clients in accordance with the law and the ethical and professional rules applicable to lawyers.

6. TNTP’s principles for providing legal debt recovery services

When assisting businesses with debt recovery, TNTP reviews the case file before accepting each matter and develops an appropriate course of action based on applicable laws and the actual circumstances of the debt. All information concerning the scope of work, service fees, and expected timeline is clearly discussed with the client before implementation.

In providing legal debt recovery services, TNTP will:

• Review and assess the case file and relevant documents before proposing a course of action;
• Agree with the client on the scope of work, service fees, and implementation method before commencing the work;
• Advise on relevant legal matters arising during the debt recovery process;
• Regularly update the client on the progress of the matter and promptly discuss any issues arising during the course of the engagement;
• Assist the client with appropriate negotiation measures, legal proceedings before courts or arbitral tribunals, and judgment enforcement measures, depending on the circumstances of the matter;
• Maintain the confidentiality of information, documents, and data relating to the matter and the client;
• Refrain from using any measures that are contrary to applicable law;
• Not make or provide any guarantee or assurance of a successful debt recovery. TNTP undertakes to perform its work in compliance with applicable laws and the ethical and professional rules applicable to lawyers, while using its best efforts to protect the lawful rights and interests of the client.
• During the review and assessment of the case file, if TNTP identifies significant legal risks associated with a contract, transaction, or proposed course of action, TNTP will proactively alert the client to and analyze such risks, enabling the client to make a fully informed decision as to whether to continue entering into or performing the relevant contract or transaction and/or proceeding with the related work.

7. Legal considerations when using legal debt recovery services in Ho Chi Minh City

Debt recovery should be conducted in accordance with applicable laws to protect the lawful rights and interests of creditors while minimizing legal risks that may arise during the recovery process. Accordingly, before selecting a debt recovery strategy, businesses should take into consideration the following key legal matters:

• Businesses should distinguish between the former business of providing debt collection services and legal debt recovery services provided by lawyers or law-practicing organizations.

Currently, “debt collection” are a prohibited business under Point h, Clause 1, Article 6 of the 2025 Law on Investment. In contrast, lawyers assist with debt recovery through activities such as providing legal advice, acting under a power of attorney, participating in legal proceedings, and performing other work in accordance with the law.

• The existence of a legitimate debt does not mean that a creditor is entitled to use any and all measures to compel the debtor to make payment. All debt recovery activities must be conducted within the scope permitted by law and must not infringe upon the lawful rights and interests of relevant organizations or individuals.
• Businesses should not use or agree to the use of unlawful measures, such as threats, coercion, defamation, dissemination of information for the purpose of exerting pressure, unlawful seizure of assets, or unlawful obstruction of the debtor’s business activities
• Businesses should proactively retain all relevant contracts, invoices, payment records, delivery records, acceptance records, debt reconciliation records, emails, and other relevant documents. These documents are important for assessing the debtor’s payment obligations and may serve as evidence if a dispute arises or legal proceedings need to be initiated.
• Legal measures should be implemented promptly once a debt becomes overdue or the debtor ceases to cooperate.

8. Frequently ssked questions about legal debt recovery services in Ho Chi Minh City

• How are the costs of legal debt recovery services in Ho Chi Minh City determined?

Service fees are determined based on various factors, including the amount of the debt, the case file, the nature of the dispute, the debtor’s ability to make payment, and the scope of work requested by the client.

• Can a debt still be recovered if there is no debt reconciliation record?

A debt reconciliation record is one of the documents that may serve as evidence of a payment obligation; however, it is not the only form of evidence. If no debt reconciliation record is available, a lawyer may still assess the case based on other documents, such as contracts, contract appendices, invoices, delivery records, acceptance records, payment records, emails, messages, and other documents evidencing the existence of the payment obligation.

• Can a debt still be recovered if the debtor has ceased operations?

The recoverability of a debt depends on various factors, including the company’s legal status, its legal representative, available assets, financial obligations, and the conditions for judgment enforcement. In such circumstances, reviewing the debtor’s legal information and taking appropriate measures from an early stage is important to mitigate the risk of reduced recovery prospects.

• Can a debt still be recovered if the debtor has ceased business operations but its owner establishes a new company or transfers its business activities to another company?

The cessation of a company’s operations, a change in its legal representative, the establishment of a new legal entity, or the conduct of transactions through another company does not, in itself, terminate the debtor’s payment obligations in respect of the existing debt.

In addition, where a creditor has initiated legal proceedings and obtained a legally effective judgment or decision, the company remains obligated to comply with the judgment or decision. During the judgment enforcement process, the company’s legal representative may be subject to measures prescribed by law, including temporary suspension of exit from Vietnam, until the enforcement obligation has been fulfilled. If the company resumes operations or becomes capable of satisfying the enforcement obligation, it must continue to fulfill its payment obligations. The legal representative may also, in certain circumstances, be jointly liable for payment of the debt.

When assessing a case, a lawyer will review the company’s enterprise registration information, changes in its legal status, relationships among relevant legal entities, and transactions that may affect the debtor’s ability to make payment in order to determine an appropriate course of action.

If there are indications of asset transfers, diversion of funds, or other conduct that may adversely affect the recoverability of the debt, TNTP will advise the client on appropriate legal measures to protect its lawful rights and interests.

Overdue debts not only place pressure on cash flow but also directly affect a business’s business plans and operations. With experience handling debt recovery matters across various sectors, TNTP can assist businesses in assessing their case files, developing appropriate recovery strategies, and carrying out the necessary legal procedures to protect their lawful rights and interests.

If your business has an overdue or difficult-to-recover debt or requires advice on a debt recovery strategy in Ho Chi Minh City, please contact TNTP for assistance.

Sincerely,