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Le Bich Thuy
PhD student at the University of Economics and Law, Vietnam National University HoChiMinh City (VNU-HCM), Vietnam

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Reflections on the Application of the English Law’s Model of Constructive Trusts to the Handling of Specific Property Relations in Vietnamese Legal Practice Nguyen Ngoc Dien; Le Bich Thuy
Jurnal Cita Hukum Vol. 13 No. 3 (2025): Winter Edition
Publisher : Fakultas Syariah dan Hukum, UIN Syarif Hidayatullah Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/jch.v13i3.46846

Abstract

Contemporary Vietnamese legal practice faces various complex scenarios regarding property relations, wherein equitable outcomes cannot be easily achieved solely through the application of existing civil law provisions. Two major issues that have recently garnered significant public attention are cases involving mistaken bank transfers and the recovery of State assets from corruption-related offenders. Current Vietnamese civil law fails to provide optimal protection for senders in mistaken transfers when funds are automatically deducted by banks to settle the recipient's debts. On the other hand, the confiscation of corrupt assets is frequently hindered by the transfer of ownership to third parties or the disguise of assets within business entities. English law offers an equitable solution through the mechanism of the constructive trust. This doctrine automatically regards the legal holder of property as a trustee holding it for the benefit of the true owner (beneficiary) to prevent unjust enrichment. In cases of mistaken transfers, the recipient holds only legal ownership, while equitable ownership remains with the sender, making the assets immune to seizure by the recipient's creditors. In corruption cases, this mechanism enables the State to trace and recover illicit proceeds, even when transformed or transferred. By adopting the principles of constructive trusts into Vietnam's civil law system, the national legal framework can be strengthened to enhance legal certainty, provide fair protection of property rights, and offer greater flexibility in resolving modern property disputes.