On June 27, 2025, the National Assembly passed the revised Law on Credit Institutions 2025, effective from October 15, 2025.
Specifically, credit institutions, foreign bank branches, debt collection and settlement institutions have the right to confiscate collateral of bad debts when meeting the following conditions:
- When there are cases of handling secured assets according to the provisions of Article 299 of the 2015 Civil Code;
- The guarantee contract has an agreement on the guarantee party agreeing to give the guarantee party the right to confiscate the collateral of the bad debt when there is a case of handling the guarantee property in accordance with the provisions of law on guarantee for performance of obligations;
- Measures to ensure that there has been an effective confrontation with third parties according to the provisions of law on ensuring the performance of obligations;
- Guaranteed assets that are not contested assets in the case that have been accepted but have not been resolved or are being resolved at a competent Court; not being subject to temporary emergency measures by the Court; not being seized or subject to measures to ensure enforcement of judgments according to the provisions of law; not subject to temporary suspension of handling according to the provisions of the law on bankruptcy;
- Assets guaranteed to be seized must meet the conditions prescribed by the Government;
- Credit institutions, foreign bank branches, and debt collection and settlement organizations that have fulfilled their obligations to publicize information as prescribed above.
