Debt recovery due to signing a contract to buy gloves with Vietnamese Enterprise without delivery

Since 2020, due to the influence of the Covid-19 epidemic, the import and export of masks in particular, medical equipment and supplies in general has increased significantly. In addition, the phenomenon of business being deceived when signing contracts to buy gloves with Vietnamese glove manufacturers is increasing, causing serious economic losses for them.

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Debt Recovery Due To Signing A Contract To Buy Gloves With Vietnamese Enterprise Without Delivery Ans Law Firm
Debt Recovery Due To Signing A Contract To Buy Gloves With Vietnamese Enterprise Without Delivery – Mr Do Ba Thich, director of Ans Law Firm

1. Recovery of debt due to contract signing without delivery

The Covid-19 epidemic broke out over the past year, causing medicines, medical equipment, and many items to be pushed to an important position in social life such as masks, gloves, and so on.

With the urgency of the market, many enterprises with the function of producing and exporting gloves have had many new orders with Vietnamese enterprises. However, many agencies have signed contracts worth from hundreds to billions VND, receiving a large amount of deposit from partners, but many Vietnamese glove manufacturers have provided goods that do not meet the quality of their commitments, and not even delivery nor return the deposit. Like the case in early 2021, four glove manufacturing companies in Vietnam, GHO, PRO, 736, and Khoi Tam, were all denounced by their partners for receiving a huge deposit, even nearly 7 billion VND but did not deliver goods or provide substandard goods.

The fraudulent act of the enterprise signing the gloves sale and purchase contract without delivery has seriously violated the business ethics and affected the reputation and honor of Vietnamese companies. It is extremely serious damage to partners because their salary payment for employees, the maintenance of business, and office rent are also affected, those are some HR technology trends nowadays.

Debt due to signing a contract to buy gloves with Vietnam without delivery can be a bad, large and complex kind of debt. Therefore, the most optimal method to deal with these debts is to recover them. Debt recovery also ensures the financial health and safety of the business, operates the apparatus effectively, and avoids risks in business activities.

2. Debt classification

Those debts are debts arising from breach of sale and purchase contract

3. Reception process of debt dossier

Debt dossier is received through the following steps:

  • The customer provides all relevant debt documents, including:
  • If the creditor is an enterprise, the dossier includes a certificate of business registration and all debt documents, if any, such as glove sales contract, invoice, delivery note, debt confirmation, and so on.
  • If the creditor is an individual, the dossier includes Identity cards and all debt vouchers as evidence, if any, such as Debt confirmation, loan appointment paper, loan purchase, sale, and so on.

*) Note: Only photocopy credit documents are provided

  • Brief description of the debt’s content.
  • After receiving the debt dossier its basis to sue, the debt recovery lawfirm will proceed to sign a legal service contract to claim debt with the customer. At the same time, the customer will conduct a debt collection authorization and be provided with all necessary paperwork.

4. Handling process of debt dossier

a. The first step is to verify the debt dossier:

  • Verifying the legality of debt documents is to review and compare all the debt vouchers provided by customers as if it has legal basis or not.
  • Verifying that the debtor still exists in reality or not. For example, whether the masking business is still active or has ceased operations, or has moved its headquarters to another location, has been dissolved, or has gone bankrupt.
  • Verifying the debtor’s ability to pay debts. (Does the business have many assets or not? Is it indebted to many people? Has it fallen into bankruptcy?)
  • Verification results show that one of the three conditions such as the debt profile is not sufficient for legal basis or the debtor is no longer in reality, the dossier will be returned to the customer by an official document.
  • The time limit for verifying each debt profile is no later than 30 days from the date of receipt of complete documents. During the verification period, debt collection will still proceed if the debtor has made a payment.

b. The second step is to approach debt collection negotiation:

  • After verification process of the debt file finds it valid, the debt recovery lawfirm will contact the debtor by sending an invitation letter or meeting the debtor directly for settlement. During this time, if the debtor is willing to cooperate in repaying the debt, the debt will be recovered according to this agreement method if the creditor agrees.
  • Conversely, during the time of approaching the debtor, if the creditor shows no goodwill to repay the debt, he/she will conduct necessary legal procedures to sue the debtor to the law agency if the creditor so requests.

c. The third step is to sue for debt collection:

After approaching the debtor to negotiate debt recovery but the debtor is not willing to cooperate in debt settlement, the debtor will carry out legal procedures to sue the debtor to come to the law to resolve such as:

  • Making a petition
    • Filing a petition
    • Joining the lawsuit when there is a summons from the court
    • Instructions for requesting judgment enforcement and so on.
    • Customers must pay for the lawsuit themselves such as (court fees, fees, other fees if any)
    • Appointing a representative to go to the Court on behalf of the client, and at the same time, appointing a lawyer to participate in court to protect the interests of the client when necessary.

5. Benefits of conducting debt collection

  • The work is done by professionally trained lawyers who are well-experiences, operating on the basis of the law;
    • Time-saving; business and individuals can avoid troublesome procedures, also shorten debt time;
    • Cost-saving (Basic fee is collected after the work has results);
    • Business and individuals can handle difficult cases such as debtors relocated/moved headquarters or hidden;
    • Business and individuals can be consulted about management, preventing bad debts arising;
    • Fees for legal services when needed can be reduced or exempted;
    • Improving the reputation and professionalism of the business itself;
    • Maintaining the respect, prestige and honor of the business; and
    • Keeping the relationship and creating respect from the partner.

Frequently Asked Questions

When you should to recovery your money ?

– When the Seller can not delivery Gloves to your address.
– The Seller find a lot of reason for late delivery.
– Do not agree for SGS check after receiving 30% of your credit.

What are required documents to litigate debt recovery in Vietnam ?

There are some required documents to litigate debt recovery in Vietnam:
– A lawsuit petition;
– All chat between the Buyer and Seller
– Selling and Buying agreement and other documents;
– Authority’s certification of the defendant’s residence and working address. (We can help you)
– Identity Card and Passport of the litigator;
– Documents proving that the case still has a statute of limitations for the lawsuit (if any).

How many Step to recover your debt in Vietnam ?

There are 6 steps to recover your debt in Vietnam:
Step 1. Classify customers to request debt recovery processing;
Step 2: Debt classification;
Step 3: Receiving the debt documents;
Step 4: Verification of debt records; 
Step 5: Debt recovery negotiation; 
Step 6: To execute a debt recovery lawsuit

Why chose ABB Law ?

ABB Law firm is focused on our clients’ demands for an exceptional legal service model that provides value. We understand that, for clients, value is not a mere hourly rate comparison
– Our lawyers have acted on, and advised on, some of debt collection in Vietnam especially Gloves and Face mask selling and buying contract.

 

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