In the trend of globalization, it has become very common for Chinese enterprises to do business with suppliers in Vietnam. However, many suppliers in Vietnam incur debts with Chinese enterprises because suppliers have received deposits but have not delivered or delivered goods incorrectly and sufficiently, etc. In this article, we will analyze and offer solutions for Chinese enterprises when uncollectible debts arise in Vietnam.
1. What should Chinese enterprises do when uncollectible debts arise in Vietnam?
1.1 Authorize a law firm to provide debt collection support services in Vietnam
To carry out the collection of uncollectible debts in Vietnam, Chinese businesses need to seek the help of law firms with experience in debt collection in Vietnam. Based on the address of the supplier’s office with the debt, Chinese businesses should research and choose a law firm with its address in the same city as the suppliers to make debt collection more convenient.
1.2 Conduct consular legalization of documents
According to Vietnamese law, in order to authorize a law firm in Vietnam or request the competent authorities in Vietnam to settle the case, Chinese enterprises need to consular legalize the necessary documents for these documents to be legally valid and usable in Vietnam. The consular legalization of documents can take from 01 to 03 months.
1.3 Send information, and documents related to debts arising from suppliers in Vietnam
When working with a law firm in Vietnam, Chinese enterprises need to submit the following information and documents:
- Documents related to establishing commercial transactions with suppliers in Vietnam: Contracts, Agreements, Commitments, exchanged messages, emails, etc.;
- Documents related to transaction execution: Goods handover minutes, Value-added invoices, Debt reconciliation minutes, Goods distribution minutes, etc.;
- Documents related to the costs incurred by the Chinese enterprises due to the fault of the supplier in Vietnam when delivery is delayed or not delivered;
- Other documents related to the debt (if any).
2. The main works that a law firm in Vietnam will perform when assisting Chinese enterprises in debt collection for debtors who are suppliers in Vietnam
The works that law firms in Vietnam often perform to collect debt include:
- Search for information about suppliers in Vietnam: name, tax code, legal representative, current address, operation status, business, etc.
- Contact directly suppliers in Vietnam by phone, messages, and email to request the suppliers pay the debts for the Client.
- Attend meetings with suppliers in Vietnam to agree on the debt payment plan and a debt settlement plan.
- Draft and adjust Official Dispatch requesting payment and send suppliers in Vietnam after the Client agrees with the contents of the Official Dispatch.
- Monitor the payment of suppliers in Vietnam and report progress and results to the Client.
- Proceed to initiate a lawsuit at a competent Court/Commercial Arbitration.
- Support Client in the process of enforcing effective judgments/decisions of competent Courts/Commercial Arbitration.
3. Legal services to support debt collection of TNTP
With a team of experienced legal experts, TNTP is confident in assisting customers in collecting uncollectible debts. With the motto of always protecting the legitimate rights and interests of the Clients, TNTP tries and ensures to support the Clients and deploy the work in the fastest, most timely, and most effective way, regularly reporting the progress of the case. work as well as giving the next action plan so that the Client can easily monitor and evaluate the work results. Clients can completely trust and feel secure when using TNTP’s debt collection support legal services.
Above is the article “What should Chinese enterprises do when uncollectible debts arise in Vietnam?”. We hope this article was useful to you.
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