Key civil & Commercial highlights under Official Letter No. 250/TANDTC-PC

On 28 April 2026, the Supreme People’s Court of Vietnam issued Official Letter No. 250/TANDTC-PC addressing practical issues in adjudication and judicial proceedings, with important implications for civil and commercial litigation practice in Vietnam.

🔎 1. Enterprises Without a Legal Representative
Courts should not automatically suspend proceedings merely because an enterprise temporarily lacks a legal representative. Courts must instead review the company charter, governance structure, and actual management practice to determine procedural representation.

🏢 2. Expired Term Does Not Automatically Remove Representative Capacity
Where a representative’s term has expired but no successor has been appointed, courts should assess the individual’s actual authority rather than relying solely on formal expiration.

💡 The guidance reflects a substance-over-form judicial approach and may help avoid procedural deadlocks.

🏦 3. Banking & Secured Transaction Disputes
For disputes involving mortgaged land, factories, or leased assets, courts must carefully examine:

✔️ Credit and mortgage agreements;
✔️ Lease arrangements;
✔️ Rights of tenants and third parties;
✔️ Scope of mortgage enforcement rights.

💡 The guidance reinforces the balance between secured creditors’ rights and lawful interests of third parties.

📑 4. Scope of Appellate Review
Appellate courts must remain within the scope of appeal and prosecutorial protest. Procedural omissions at first instance do not automatically justify annulment of judgments.

👥 5. Inheritance & Procedural Standing
Courts are encouraged to request clarification and additional evidence before rejecting inheritance claims for insufficient filing conditions.

💰 6. Repayment by Equivalent Value
Where the original borrowed asset cannot be returned, courts may order repayment through equivalent assets or monetary value under civil law principles.

📌 THE LAM LAW LLC’s – Your legal need, Our Mission OBSERVATIONS
Official Letter No. 250/TANDTC-PC reflects an increasingly practical judicial approach emphasizing the substantive nature of legal relationships over rigid procedural formalities.

For businesses and litigants, the guidance highlights the importance of:
✅ Proper corporate governance documentation;
✅ Clear representative authority;
✅ Careful review of secured transactions;
✅ Strategic litigation planning and appellate scope assessment.

Although not a normative legal instrument, the Official Letter carries significant practical value and will likely influence future civil and commercial adjudication practice across Vietnam.

📎 Reference: pls find attached official letter.

 

THE LAM LAW LLC
🏢Indochina Park Tower, # 4 Nguyen Dinh Chieu Str, Tan Dinh Ward, Ho Chi Minh City.
📞Tel: +84 (0)28 710 58 222 – 6288 3798 – Hotline: +84 (0) 973 097 777
Email: info@thelamlawllc.com

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