In the context of globalization and deep international integration, civil, commercial, family, and labor relations involving foreign elements in Vietnam have been increasing in both number and complexity. Determining the jurisdiction of Vietnamese courts over such cases is crucial to ensuring the uniform application of law while protecting the legitimate rights and interests of both domestic and foreign individuals and organizations. The 2015 Civil Procedure Code provides relatively comprehensive provisions on the principles, general jurisdiction, and exclusive jurisdiction of Vietnamese courts in handling civil cases involving foreign elements.
- Determination of civil cases involving foreign elements
According to Clause 2, Article 464 of the 2015 Civil Procedure Code, a civil case involving foreign elements falls into one of the following categories:
- At least one party is a foreign individual, agency, or organization;
- All parties are Vietnamese citizens, agencies, or organizations, but the establishment, alteration, performance, or termination of the relationship occurred abroad;
- All parties are Vietnamese citizens, agencies, or organizations, but the subject matter of the relationship is located abroad.
Accordingly, a foreign element may arise from the subject of the legal relationship, the object of the relationship, or the place where the relationship is established, altered, or terminated. Once a case involving a foreign element is identified, the court shall determine its jurisdiction in accordance with Chapter XXXV of the Civil Procedure Code.
2. General jurisdiction of Vietnamese courts
Under Article 469 of the 2015 Civil Procedure Code, Vietnamese courts have general jurisdiction to resolve civil cases involving foreign elements in the following circumstances:
- The defendant is an individual residing, working, or living permanently in Vietnam;
- The defendant is an agency or organization having its head office in Vietnam or a branch/representative office in Vietnam with respect to disputes arising from the operations of such branch or representative office;
- The defendant owns property located within the territory of Vietnam;
- Divorce cases in which either the plaintiff or the defendant is a Vietnamese citizen, or both parties are foreigners residing, working, or living permanently in Vietnam;
- Civil relations established, changed, or terminated in Vietnam, where the object of such relations is property or work performed in Vietnam;
- Civil relations established, changed, or terminated outside Vietnam but related to the rights or obligations of Vietnamese agencies, organizations, or individuals, or those residing or having head offices in Vietnam.
In general, Vietnamese courts have jurisdiction when the defendant resides, has a head office, or owns assets in Vietnam, or when the civil relationship relates to the interests of Vietnamese entities or citizens. After determining general jurisdiction, the courts further define the specific level and territorial jurisdiction under Chapter III of the Code.
Article 472 of the Civil Procedure Code also allows parties in civil cases involving foreign elements under general jurisdiction to agree on dispute settlement methods in accordance with applicable laws or international treaties to which Vietnam is a signatory. Accordingly, if the parties have agreed to settle their disputes through commercial arbitration or foreign courts, Vietnamese courts will no longer have jurisdiction. In addition, if the defendant enjoys judicial immunity, Vietnamese courts have no authority to adjudicate.
3. Exclusive jurisdiction of the Vietnamese courts
Pursuant to Article 470 of the Civil Procedure Code, the following civil cases involving foreign elements fall under the exclusive jurisdiction of Vietnamese courts:
- Cases related to property rights over immovable assets located within the territory of Vietnam;
- Divorce cases between a Vietnamese citizen and a foreigner or a stateless person, if both spouses reside, work, and live permanently in Vietnam;
- Other civil cases in which the parties have agreed to select Vietnamese courts for settlement under Vietnamese law or international treaties to which Vietnam is a party, and both sides consent to such selection.
Clause 2, Article 470 also stipulates that exclusive jurisdiction applies to certain non-contentious civil matters, including: requests arising from the above-mentioned civil relations; requests to establish legal facts occurring in Vietnam; requests to declare missing or deceased persons or to limit the legal capacity of foreigners residing in Vietnam; and requests to recognize ownerless property located in Vietnam.
In these cases, only Vietnamese courts have jurisdiction, regardless of whether the parties have agreed to select a foreign adjudicating body. This principle ensures national sovereignty and protects property, personal rights, and legal relations occurring within Vietnam’s territory.
4. Jurisdiction by court level
The determination of which level of court has jurisdiction over civil cases involving foreign elements is provided in Articles 35 and 37 of the 2015 Civil Procedure Code. Clause 3, Article 35 provides:
“Disputes or petitions involving parties or property located abroad, or cases requiring judicial entrustment to Vietnam’s representative missions abroad or to foreign courts or competent authorities, shall not fall under the jurisdiction of the district-level people’s courts, except as provided in Clause 4 of this Article.”
Under Clause 4, district-level people’s courts only have jurisdiction in certain special cases, such as annulment of unlawful marriages, divorce, or disputes over marital, parental, and child-related rights and obligations between Vietnamese citizens residing in border areas and citizens of neighboring countries residing in adjacent border regions.
According to Point c, Clause 1, Article 37, most civil cases involving foreign elements fall under the jurisdiction of provincial-level people’s courts. This reflects the complexity, technical requirements, and international dimension of such cases.
5. Commercial arbitration and alternative dispute resolution mechanisms
In addition to the courts, Vietnamese law recognizes the mechanism of resolving disputes involving foreign elements through commercial arbitration. Under the 2010 Law on Commercial Arbitration, parties may agree to select either domestic or foreign arbitration, provided that such an agreement does not contravene international treaties to which Vietnam is a member.
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