VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser of an aircraft can verify that an aircraft is free of any mortgages by submitting a formal request and obtaining official information from CAAV and NRAST. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees There are no differences in enforcing a security assign - ment as opposed to a loan or a guarantee in general. Subject to the parties’ agreement, the conditions to enforce a security assignment, a loan or a guarantee might be different. If the debtor does not voluntarily fulfil its obligations, the creditor will have to take the matter to a suitable dispute resolution forum, such as a court or arbitration, to facilitate enforcement. 3.4.2 Security Trustees’ Enforcement of Their Rights The security trustee concept is not recognised under Vietnamese law. 3.4.3 Application of Foreign Laws See 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments . 3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards See 2.6.6. Domestic Courts’ Recognition of Foreign Judgments/Awards . 3.4.5 Secured Parties’ Right to Take Possession of Aircraft In principle, a secured party needs to obtain a court order to take physical possession of an aircraft to enforce a security agreement or aircraft mortgage without the consent of the lessee or operator. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions In principle, the provincial level People’s Courts have authority to decide enforcement actions under a secu - rity agreement or aircraft mortgage.
3.4.7 Summary Judgments or Other Relief A secured party can only obtain injunctive relief pend - ing final judgment in emergency cases to enforce a security agreement or aircraft mortgage. The secured party must file an application to the court during the settlement of a lawsuit. The statutory timeframe for the court to review and grant injunctive relief (if such a request for injunctive relief is acceptable) is about three to five working days in total. Depending on the court’s decision or request, the secured party may have to provide security or a guarantee in order to obtain injunctive relief. A secured party cannot obtain summary judgment or equitable relief. A full trial must be conducted before a final judgment is issued and the concept of equitable relief is not recognised under Vietnamese law. 3.4.8 Judgments in Foreign Currencies A secured party under a security agreement or aircraft mortgage can pursue monetary claims in a foreign currency and the Vietnamese court can award or rec - ognise as requested. 3.4.9 Taxes/Fees Payable A secured party does not have to pay a significant amount of taxes or fees in connection with the enforce - ment of a security agreement or aircraft mortgage in Vietnam. Court filing fees, enforcement fees and legal fees will be the main required fees. 3.4.10 Other Relevant Issues See 2.6.13 Other Relevant Issues . 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft In a notable case, a provincial level court in Vietnam applied injunctive relief by temporarily suspending implementation of CAAV’s deregistration certificate when the aircraft had already been registered in a foreign country after CAAV’s deregistration certificate was issued.
4.2 Current Legislative Proposals See 2.6.13 Other Relevant Issues .
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