Owed Over VND 460 Million After Supplying Concrete for a Major Project – How Can a Business Protect Its Rights?
PT Co., Ltd. is a company operating in the commercial concrete supply industry. In 2018, it signed a contract with BD Trading and Services JSC to supply concrete for the project “Casting concrete wave-blocking components for the VinFast auto plant construction in Cat Hai, Hai Phong.” However, after fulfilling its obligations, PT found itself... being owed a large sum of money with no clear way to recover it legally.
How Did PT Get “Trapped” by Its Partner?
After supplying concrete worth nearly VND 2.9 billion, PT only received about VND 2.3 billion. The remaining amount—over VND 574 million—was left unpaid for years. Despite numerous attempts to work with the client and push for payment, BD only made a few small payments—VND 30 million here, VND 50 million there—and then went silent.
Remarkably, in a written statement to the court, BD itself admitted to still owing PT VND 464,648,500 and interest due to late payment. However, their justification was financial difficulties, losses due to the COVID-19 pandemic, and an inability to secure new contracts.
This raises an important question: Are business difficulties a legitimate reason to default on payment? And what can companies like PT do to recover what they are lawfully owed?
When Should a Business File a Lawsuit?
Litigation isn’t always the go-to solution. But in some cases, filing a lawsuit is the most effective and necessary course of action to protect legal rights. In PT’s situation—with a clear contract, proof of delivery, and the debtor’s acknowledgment of debt—filing a lawsuit was the logical step.
PT carefully prepared its case file, including the contract, debt reconciliation documents, payment receipts, and delivery notes. This made it easier for the court to clearly assess the facts and the defendant’s obligations and to issue an accurate ruling.
How Did the Court Rule in This Case?
At the preliminary hearing on April 23, 2025, the People's Court of Thuy Nguyen City, Hai Phong, ruled as follows:
Fully accepted PT’s lawsuit request.
Ordered BD to pay a total of over VND 614 million, including the principal debt of VND 464,648,500 and late payment interest of VND 149,884,944, calculated at an average annual overdue interest rate of 14.25% based on rates from three major banks.
This ruling serves as a warning and underscores the importance of honoring contractual commitments and paying on time. It also provides a valuable lesson for other creditors on how to handle similar situations professionally and legally.
Lessons from DEDICA: Don’t Just “Politely Remind” When You're Owed Money
Having supported numerous companies through commercial disputes, DEDICA has observed a concerning trend: many businesses are reluctant to litigate. Instead, they prefer to wait or “gently remind” their partners—only to see the debt drag on and, eventually, become unrecoverable.
So, what should a business do when faced with an unpaid debt? Here are practical tips from DEDICA’s experienced legal team:
1. Send a Formal Payment Request – With a Clear Deadline
Don't just call or text. Prepare an official letter requesting payment within a specific timeframe. This not only demonstrates goodwill but also serves as critical evidence if litigation becomes necessary.
2. Keep Contracts and Documents Well Organized
To win in court, you need solid evidence. Contracts, invoices, delivery notes, debt confirmation statements, and related emails are all key “weapons” in legal battles.
3. Factor in Late Payment Interest
Under the Commercial Law, a buyer who pays late must pay interest on the overdue amount. The applicable interest rate can be based on the average overdue rate of three commercial banks—a significant amount that can help offset losses.
4. Don’t Be Afraid to Litigate – Time It Right
Delays may cost you the right to sue due to expiration of the statute of limitations. Therefore, it’s crucial to assess debt recoverability early and take legal action when necessary. Sometimes, just the act of announcing a lawsuit can prompt immediate payment from the debtor.
DEDICA – Your Trusted Partner in Commercial Disputes
If you're dealing with unpaid debts, breached contracts, or legal uncertainties, DEDICA is ready to support you from day one. With a team of experienced litigators who have represented clients in multi-billion VND cases, we offer:
Strategic Legal Advice: We won’t rush you into litigation but instead provide a thorough risk-reward analysis.
Comprehensive Dossier Preparation: From demand letters to formal complaints, we ensure all documents are accurate and legally sound.
Professional Litigation Representation: DEDICA’s lawyers will represent you in negotiations, hearings, and enforcement proceedings until the case is fully resolved.
Contact DEDICA Law Firm for expert legal consultation!
📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City
🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)
Reach out today for a free initial consultation with our team of professional lawyers!
