Decree No. 304/2025/ND-CP stipulates the conditions for collateral assets of bad debts to be seized.

DECREE

Regulations on the conditions for collateral assets of non-performing debts to be seized 

Pursuant to the Law on the Organization of the Government No. 63/2025/QH15;

Pursuant to the Law on Credit Organizations No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15;

At the proposal of the Governor of the State Bank of Vietnam;

The Government promulgates this Decree stipulating the conditions for collateral assets of non-performing debts to be seized.

Article 1. Scope of Regulation

This Decree stipulates the conditions for collateral assets of non-performing debts to be seized according to Point d Clause 2 Article 198a of the Law on Credit Institutions No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15.

Article 2. Applicability

1. Credit institutions.

2. Branches of foreign banks.

3. Organizations wholly owned by the State with the function of buying, selling, and handling debts (hereinafter referred to as organizations for buying and selling, handling debts).

4. Agencies, organizations, and individuals related.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. The sole place of residence is the lawful place of residence of the guarantor who is an individual and meets the following conditions:

a) It is an asset under the ownership of the guarantor;

b) It is the place where the guarantor is registered as a permanent or temporary resident;

c) If the sole place of residence is seized as collateral, the guarantor does not have another place of residence.

2. The main or sole means of production is movable property used as the primary or sole means of livelihood of the guarantor who is an individual and meets the following conditions:

a) At the time specified in Clause 1 Article 5 of this Decree, the means of production has a value not exceeding 24 months of salary calculated based on the minimum wage level prescribed in Point b Clause 2 of this Article;

b) If the main or sole means of production is seized as collateral, the guarantor does not have sufficient income equal to the minimum wage level prescribed by the Government for workers under labor contracts in the region where the guarantor actually resides.

Article 4. Conditions for collateral assets of non-performing debts to be seized

1. Collateral assets of non-performing debts that are the sole place of residence or the main or sole means of production may only be seized when they meet the conditions prescribed in Points a, b, c, d, e Clause 2 Article 198a of Law No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15 and one of the following conditions:

a) In the case of seizing the sole place of residence, the creditor shall allocate a sum of money to the guarantor equivalent to 12 months of salary calculated based on the minimum wage level prescribed in Clause 2 Article 3 of this Decree, provided that such seizure has been confirmed and proven in accordance with Clause 1 Article 5 of this Decree;

b) In the case of seizing the main or sole means of production that was not formed from borrowed funds, the creditor shall allocate a sum of money to the guarantor equivalent to 6 months of salary calculated based on the minimum wage level prescribed in Clause 2 Article 3 of this Decree, provided that such seizure has been confirmed and proven in accordance with Clause 1 Article 5 of this Decree.

2. Collateral assets of non-performing debts that are not assets prescribed in Clause 1 of this Article may be seized when they meet the conditions prescribed in Points a, b, c, d, e Clause 2 Article 198a of Law No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15.

Article 5. Rights and responsibilities of the guarantor

1. In the guarantee contract or in other documents, the guarantor commits to confirm and prove whether the collateral asset falls within or outside the cases prescribed in Clause 1 Article 4 of this Decree upon request of the creditor within 10 working days from the date of receipt of the request of the creditor. The method of sending the request shall be carried out in accordance with Point d Clause 3 or Point c Clause 4 Article 198a of Law No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15.

2. In the event that the guarantor fails to confirm and prove in accordance with Clause 1 of this Article, the collateral asset, which is the place of residence or means of production, shall be determined as not falling within the cases prescribed in Clause 1 Article 4 of this Decree.

3. Shall be responsible for the content of confirmation and the accuracy and legality of the proof documents in accordance with Clause 1 of this Article, including:

a) Certificate of ownership of the collateral asset and other assets (if any);

b) Bank account statement recording the monthly income of the guarantor;

c) Documents proving the fulfillment of personal income tax obligations by the guarantor;

d) Electricity or water or internet bills recording the guarantor's permanent or temporary residence address;

đ) Other proof documents.

Article 6. Rights and responsibilities of credit institutions, foreign bank branches, organizations buying and selling, handling debts

1. Provide full information to the guarantor regarding the guarantor's rights and obligations as prescribed in this Decree.

2. Deduct the amount of money from the guarantor as stipulated in Clause 1, Article 4 of this Decree and include this amount in the costs for disposing of the collateral.

3. Seize the collateral when meeting the conditions specified in Article 4 of this Decree, or seize the collateral under the circumstances prescribed in Clause 2, Article 5 of this Decree when meeting the conditions specified in Clause 2, Article 4 of this Decree.

The seizure of collateral shall be carried out in accordance with the provisions of Clauses 3, 4, 5, 6, and 7, Article 198a of Law No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15.

Article 7. Effectiveness and Responsibility for Implementation

1. This Decree takes effect from December 1, 2025.

2. The Minister, Heads of ministerial-level agencies, agencies under the Government, and related agencies, organizations, and individuals are responsible for implementing this Decree.

Article 8. Transitional Provisions

For guarantee contracts or agreements signed before this Decree takes effect, the collateral securing non-performing loans will be seized when meeting the conditions specified in this Decree.