Non-payment for delivered goods is one of the most common commercial disputes involving Vietnamese companies. For foreign suppliers and business partners, the situation can be especially frustrating—goods have been shipped, invoices issued, and reminders sent, yet payment is delayed or refused without clear justification.
At this point, many businesses ask the same question:
How do we legally sue a Vietnamese company for unpaid goods, and what should we do first?
This article provides a practical legal roadmap for initiating claims in Vietnam, explains common pitfalls, and highlights how early legal involvement can significantly improve recovery prospects.
Before initiating any legal action, it is critical to confirm that the claim is legally valid under Vietnamese law.
Key questions include:
Was there a valid contract or purchase order?
Were the goods delivered in accordance with agreed terms?
Has payment become due under the contract or invoice?
Are there any contractual conditions precedent to payment?
Many disputes arise not because goods were unpaid, but because payment conditions were not legally triggered due to missing documents or unclear terms.
Vietnamese courts and arbitration tribunals rely heavily on documentary evidence.
You should collect and preserve:
Contracts, purchase orders, and amendments
Invoices and payment requests
Delivery documents (B/L, delivery notes, acceptance records)
Emails, messages, and written confirmations
Any evidence of partial payment or acknowledgment of debt
Weak or inconsistent documentation is one of the main reasons foreign companies lose payment disputes—even when goods were clearly delivered.
Before filing a lawsuit, the contract must be reviewed to determine:
Whether disputes must go to court or arbitration
Which court or arbitration center has jurisdiction
Whether Vietnamese law applies
Filing in the wrong forum or jurisdiction can delay the case or cause it to be dismissed entirely.
This is a common mistake when foreign companies act without local legal advice.
In many cases, a formal legal demand letter sent by a Vietnamese law firm can prompt payment or negotiation.
A well-structured demand letter:
Sets out the legal basis of the claim
Fixes a clear payment deadline
Preserves the right to initiate legal proceedings
Signals seriousness and legal preparedness
Skipping this step may escalate disputes unnecessarily or weaken later arguments.
If demand letters and negotiation do not result in payment, legal action may be unavoidable.
In Vietnam, unpaid goods claims are typically resolved through:
Vietnamese courts, or
Arbitration (if agreed in the contract)
Each route has different procedures, timelines, and enforcement mechanisms. Choosing the wrong path can significantly affect recovery prospects.
When filing a lawsuit in Vietnam:
Claims must be submitted in Vietnamese
Documents may need notarization and legalization
Strict procedural requirements apply
Timelines can be longer than expected
Foreign companies often underestimate the importance of local procedural compliance, leading to delays or dismissal.
Winning a judgment does not automatically mean recovering payment.
Before suing, it is essential to assess:
Whether the Vietnamese company has assets
Where those assets are located
Whether enforcement measures will be effective
A strategic legal approach focuses not only on winning, but on actual recovery.
Foreign suppliers often weaken their cases by:
Waiting too long before taking action
Continuing delivery despite non-payment
Accepting vague payment promises
Negotiating without legal guidance
Filing claims without understanding local procedure
By the time legal action is taken, leverage may already be lost.
The earlier a lawyer is involved, the stronger the position.
Early legal support helps to:
Structure communication with the debtor
Preserve evidence properly
Avoid harmful admissions
Select the correct dispute resolution forum
Improve chances of recovery
Waiting until frustration peaks often reduces legal options.
Non-payment disputes are stressful, but decisions driven by emotion often backfire.
A strategic approach considers:
Cost vs recoverable amount
Strength of evidence
Enforcement feasibility
Business impact
Not every unpaid invoice should lead to immediate litigation—but when it does, it must be done correctly.
Most payment disputes could be prevented with better legal structure from the beginning.
Ongoing legal consultancy helps businesses by:
Drafting clear payment and delivery clauses
Aligning contracts with actual trading practice
Monitoring payment risk early
Advising on legally safe responses to late payment
Escalating disputes before leverage is lost
Legal risk is managed before invoices become unpaid claims.
Foreign suppliers face additional challenges:
Language barriers
Different legal cultures
Unfamiliar enforcement procedures
Difficulty assessing debtor solvency
Without local legal support, these challenges compound quickly.
DEDICA supports foreign companies and FDI enterprises in:
Assessing unpaid goods claims under Vietnamese law
Sending formal demand letters
Representing clients in court or arbitration
Advising on enforcement strategies
Structuring contracts to prevent future non-payment
DEDICA’s approach is practical, recovery-focused, and commercially aware, helping clients protect both cash flow and long-term interests.
When a Vietnamese company fails to pay for goods, legal action may be necessary—but how and when you act matters greatly.
Successful recovery depends on:
Early evidence preservation
Correct forum selection
Procedural compliance
Enforcement planning
Businesses that wait too long or act without legal guidance often lose leverage—even when the debt is clear.
By engaging legal advisors early—and ideally through ongoing legal consultancy—companies can avoid many payment disputes altogether and respond decisively when they arise.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
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