Signed Contract, Unfulfilled Obligations – How to Enforce Payment Obligations Through Compulsory Measures?
1. Legal Basis & Enforcement Principles
According to the amended 2008 Law on Civil Judgment Enforcement (as applied in 2025), coercive measures to force the violating party to fulfill payment obligations in a contract are widely used, accounting for up to 80% of enforcement cases.
These measures must comply with the principle of proportionality, meaning they must be commensurate with the obligation and necessary costs—no more, no less.
2. When Is the Creditor Entitled to Coercive Enforcement?
When a contract is signed but obligations are not fulfilled, and the violating party refuses to pay after receiving valid notification or a legally effective judgment/decision, the creditor may submit a written request to the Civil Judgment Enforcement Agency (THADS) to enforce the obligation.
Legal grounds for enforcement:
Legally effective judgment or decision by the court.
Enforcement decision issued by THADS.
3. Common Coercive Measures
a) Freezing or Deducting Bank Accounts
The enforcement officer may issue a decision to freeze or deduct funds from the debtor’s bank account up to the amount needed for the obligation and related enforcement costs. This is a fast and efficient measure used right after the coercive decision.
b) Seizing and Disposing of Property
Property seizure is one of the most effective enforcement tools, covering both movable and immovable assets. These assets are sold at auction to recover the debt. The steps include:
Seizure based on valid decision.
Appraisal and notification to co-owners (if any).
Auction based on coercive decision.
c) Garnishment of Salary or Income
If the debtor has a stable income, THADS can garnish a portion of their salary or other earnings proportionally to repay the debt.
d) Exit Ban
If the debtor is preparing to leave Vietnam, THADS may request immigration authorities to impose an exit ban to ensure the payment obligation is fulfilled.
4. Enforcement Procedure
The creditor files a request to THADS along with the valid judgment/decision.
THADS reviews and issues a coercive decision (within 7–15 days).
Corresponding enforcement measures are applied (bank freeze, property seizure, salary garnishment, exit ban).
Proceeds from seized assets are used to pay the creditor, and any surplus is returned to the debtor in accordance with regulations.
THADS issues completion notices and addresses any disputes over jointly-owned property.
5. Fees & Associated Costs
Filing fee for enforcement: As per regulations.
Enforcement costs: Includes fees for seizure, auctions, garnishment, etc., paid by the violating party.
Additional costs: May include asset valuation, legal services, or attorney’s fees.
6. Practical Tips & Effective Solutions
Choose the most appropriate measure based on the asset type, accessibility, timing, and cost.
Closely monitor the progress with THADS to avoid delays.
Legal counsel is highly recommended—to help draft requests, verify asset information, and represent you in enforcement proceedings, especially when assets are hidden or subject to disputes.
Conclusion
If the other party breaches their payment obligation under a contract or a court decision, you may:
Request a bank account freeze,
Seize property and initiate auction procedures,
Garnish income,
Impose an exit ban if evasive behavior is suspected.
Choosing the right enforcement approach ensures optimal debt recovery and minimizes losses. Contact DEDICA Law Firm for expert legal guidance and representation in complex enforcement procedures, ensuring your rights are fully protected.
Contact DEDICA Law Firm for expert legal consultation!
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