Some Legal Aspects of Non-judicial Foreclosure in Case of Default on Credit Contract in Vietnam

This paper aims to present the authors’ examination of some aspects of Vietnam’s positive law regarding non-judicial foreclosure. Upon default, a bank as a secured creditor may enforce his security right over the collateral that is understood as foreclosure. Foreclosure includes judicial foreclosure and non-judicial foreclosure. In the way of non-judicial foreclosure, a secured creditor can take possession and dispose the secured property without a court’s involvement. So, it may save the secured creditor time and cost. The law governing the non-judicial foreclosure should not only provide the efficient mechanics of self-help repossession but also protections to a grantor. It should be examined whether Vietnamese law meets this requirement. By this study, some drawbacks and shortages of Vietnamese law in relation to non-judicial foreclosure are exposed and then some recommendations for improvement of positive law of Vietnam governing the exercise of the non-judicial foreclosure are presented.Â