22 October 2007
On 14 June 2007 the Government issued Decree No. 104/2007/ND-CP ("Decree 104") relating to the Provision of Debt Collection Services. Decree 104 became valid on 28 July 2007.
Decree 104 applies to economic organisations and individuals carrying out debt collection services in Vietnam, including: creditors, debtors, debt collection service enterprises, other related organisations and individuals.
Debt collection services must be implemented in accordance with the following principles:
- Only enterprises with debt collection service business registration certificates may provide debt collection services.
- Debt collection service enterprises may not conduct other business lines nor provide services other than those relating to debt collection.
- Debt collection service enterprises may only take debt settlement measures in compliance with the law.
- Debt collection services are provided under mandate contracts between creditors or debtors and debt collection service enterprises within the scope of right recognised by law.
Debt collection service enterprises must satisfy conditions as to capital. The legal capital for a debt collection service business is VND 2,000,000,000 (two billion). Throughout the course of operation, debt collection service enterprises shall maintain their charter capital at a level no lower than the legal capital.
Decree 104 became effective on 28 July 2007.Author:
Anh PhamFor further information, please contact:
Name: Dao Nguyen
Phone: +84 8 3822 8860
Fax: +84 8 3822 8864