Statute of Limitations for Civil Disputes in Vietnam
In civil disputes in Vietnam, one crucial factor that is often overlooked is the statute of limitations for filing a lawsuit. Many individuals and businesses lose their right to initiate legal proceedings simply because they file a claim too late—often without realizing it. So what exactly is the statute of limitations, how is it calculated, and how can you ensure your legal rights are not “out of time”? Let’s explore this in more detail with DEDICA.
1. What is the statute of limitations and when does it begin?
According to the Vietnamese Civil Code 2015, the statute of limitations is the time frame within which an individual or entity has the legal right to request the court to resolve a dispute in order to protect their lawful rights and interests. If this period expires and no legal action has been taken, the court may dismiss the lawsuit—provided that the defendant invokes the expiration of the time limit.
The period starts from the day the person with the right to sue knew or should have known that their rights or interests were violated. This means that the statute of limitations does not necessarily start on the date a contract was signed or an event occurred, but rather from the date you knew—or were supposed to know—about the violation.
For example, if you signed a contract to supply goods in 2021 but only discovered in May 2023 that the other party failed to make payment, then the statute of limitations would begin in May 2023, not in 2021.
2. Statutes of limitations in common civil disputes in Vietnam
The statute of limitations varies depending on the type of civil dispute. Specifically:
For civil contract disputes (such as sale, service, or cooperation contracts), the limitation period is 3 years.
In cases of claims for non-contractual damages, the period is also 3 years from the date the damage occurred or was discovered.
If you want to request a declaration of a void civil transaction (due to fraud, coercion, mistake, or breach of formal requirements), the limitation is 2 years.
For commercial disputes, especially those between businesses, the statute of limitations is 2 years from the date the claim arises.
For inheritance disputes, the time limit is 30 years for real estate and 10 years for movable assets.
For ownership disputes, the same time frames apply: 30 years for immovable property, 10 years for movable property.
Important note: In some cases, the law does not apply a statute of limitations, such as:
Claims to recover property that has been unlawfully possessed,
Claims to protect personal rights unrelated to property,
Certain land-related disputes as governed by specific land laws.
3. When is the statute of limitations paused or restarted?
In reality, there are many legitimate reasons why a party might not be able to file a lawsuit on time. Vietnamese law anticipates these and allows for the suspension of the limitation period in certain circumstances:
Events of force majeure, such as natural disasters or epidemics, which prevent the filing of a claim.
The claimant does not have a legal representative (e.g., minors, incapacitated individuals).
During these periods, the time is excluded from the calculation, and the limitation period resumes once the event concludes.
There are also cases where the statute of limitations can be restarted—essentially giving you a "fresh clock." This occurs if:
The breaching party acknowledges the obligation (e.g., signs a debt confirmation or repayment agreement).
The breaching party performs part of the obligation (e.g., makes a partial payment or delivers part of the goods).
Both parties engage in reconciliation or renegotiation.
For instance, if a contract has a 3-year statute of limitations and the other party sends you an email in the second year acknowledging the debt and requesting to pay in installments, the statute resets. You then have another 3 years starting from the date of that email.
4. Can a lawsuit be filed after the statute of limitations has expired?
A common misconception is that once the statute of limitations expires, the right to sue is lost. This is not entirely accurate.
You still have the right to file a lawsuit. However, if the defendant does not invoke the statute of limitations, the court may proceed to hear and decide the case. But if the defendant raises the expiration of the limitation period, the court may dismiss your claim—even if it has merit.
Therefore, the best practice is to act within the statutory time limit or have a clear legal strategy to extend, restart, or pause the limitation period if necessary.
5. Conclusion
Understanding the statute of limitations for civil disputes not only helps protect your lawful interests but also prevents your claims from being rejected due to late filing. In the increasingly complex world of civil and commercial transactions in Vietnam, missing the deadline to file a lawsuit could cost your business billions of Vietnamese dong—with no way to recover.
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