Arbitration is an increasingly favored method for resolving commercial disputes in Vietnam, offering a quicker, cost-effective alternative to court proceedings.
This article provides an overview of Vietnam’s arbitration laws to help you understand this dispute resolution option.
The main legal framework governing arbitration in Vietnam is the Law on Commercial Arbitration No. 54/2010/QH12, which came into force on January 1, 2011. Based on the UNCITRAL Model Law, it aligns with international standards. Additional regulations include:
- Civil Procedure Code No. 92/2015/QH13, which addresses recognition and enforcement of arbitral awards in Vietnam.
- Decree No. 63/2011/ND-CP, offering guidance on implementing the Law on Commercial Arbitration.
- Law on Enforcement of Civil Judgments No. 64/2014/QH13, detailing enforcement procedures for arbitral awards.
Arbitration Process in Vietnam
Arbitration Agreement
- Disputes proceed to arbitration based on a written arbitration agreement, often embedded as a clause in contracts. This agreement should outline the rules, institution, number of arbitrators, and language of proceedings.
Arbitral Institutions
- Domestic arbitration institutions include the Vietnam International Arbitration Centre (VIAC) and the Pacific International Arbitration Centre (PIAC). Parties may also choose international institutions like the International Chamber of Commerce (ICC) or the Singapore International Arbitration Centre (SIAC).
Arbitral Proceedings
- Proceedings adhere to the rules of the chosen institution, covering arbitrator appointment, evidence exchange, and hearings. Proceedings are generally confidential, with language and law selection up to the parties.
Arbitral Awards
- These binding decisions can be enforced like court judgments. Vietnam’s membership in the 1958 New York Convention facilitates recognition and enforcement of foreign arbitral awards under specific conditions.
Enforcement of Arbitral Awards
- Domestic Awards: Governed by the Civil Procedure Code and Law on Enforcement of Civil Judgments. Applications for enforcement must be filed within one year after the award’s effectiveness.
- Foreign Awards: Recognized and enforced under the New York Convention. Applications go through the Ministry of Justice and are forwarded to the competent court, subject to procedural requirements.
Vietnamese courts may refuse enforcement if issues such as lack of party capacity, inadequate notice, procedural discrepancies, or public policy conflicts arise.
Arbitration provides an efficient, confidential alternative to court litigation in Vietnam. With a clear legal framework, parties can address disputes effectively. If you need support in navigating the arbitration process or have other legal concerns, our law firm offers guidance and representation tailored to your needs.
Contact Our Lawyers for Consultation:
TLA Law Firm is one of the leading law firms, with a team of experienced lawyers and staff in areas such as criminal law, civil law, corporate law, and family law. If you have any questions regarding this matter, please contact us for prompt assistance.
- Lawyer Vu Thi Phuong Thanh, Director of TLA Law Firm, Hanoi Bar Association
Email: vtpthanh@tlalaw.vn - Lawyer Tran My Le, Chairman of the Member Council, TLA Law Firm, Hanoi Bar Association
Email: tmle@tlalaw.vn
Address: 7th Floor, 6 Duong Dinh Nghe Street, Yen Hoa, Cau Giay, Hanoi
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