International Commercial Arbitration at Vietnam
International Commercial Arbitration in Vietnam
1. Legal Framework
Law on Commercial Arbitration (LCA) 2010:
Vietnam’s arbitration is primarily governed by the Law on Commercial Arbitration 2010 (effective from 2011), which applies to both domestic and international commercial arbitration.
The LCA is heavily influenced by the UNCITRAL Model Law (1985) and incorporates modern arbitration principles, providing a solid legal framework for arbitration.
Civil Procedure Code and related regulations supplement the LCA where necessary.
Vietnam is a party to key international treaties, notably:
1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (acceded in 1995)
2. Arbitral Institutions
Several arbitration centers operate in Vietnam, including:
Vietnam International Arbitration Centre (VIAC) — the leading arbitration institution based in Hanoi
Ho Chi Minh City International Arbitration Centre (VIAC-HCMC)
Parties may also choose ad hoc arbitration under UNCITRAL Arbitration Rules or refer disputes to international institutions such as ICC or SIAC.
3. Seat of Arbitration
Vietnam can serve as the seat (place) of arbitration, commonly Hanoi or Ho Chi Minh City.
The courts in Vietnam have a supportive but limited role — they assist in arbitrator appointment, grant interim measures, and enforce arbitral awards.
4. Recognition and Enforcement of Awards
Vietnam enforces both domestic and foreign arbitration awards under its LCA and through the New York Convention framework.
Enforcement is generally smooth, but courts may review procedural compliance and public policy considerations.
5. Key Features
Party Autonomy: Strong protection of party autonomy in choosing arbitrators, rules, and procedures.
Minimal Court Intervention: Courts intervene only as necessary to support arbitration.
Language: Arbitration proceedings are usually conducted in Vietnamese but may be conducted in English or other agreed languages.
Arbitrability: Most commercial disputes can be arbitrated; however, certain matters like criminal issues, family law, and real estate ownership rights may be excluded.
6. Practical Considerations
Vietnam’s arbitration system has grown rapidly with increased international trade and investment.
VIAC is a respected regional arbitration institution offering efficient and cost-effective services.
Arbitration clauses often specify VIAC or international institutions with Vietnam as the seat or a neutral venue.
Sample Arbitration Clause (Vietnam)
"Any dispute arising out of or in connection with this contract shall be finally resolved by arbitration administered by the Vietnam International Arbitration Centre (VIAC) under its Arbitration Rules. The seat of arbitration shall be Hanoi, Vietnam. The arbitration proceedings shall be conducted in English. The arbitral tribunal shall consist of one arbitrator. The governing law of this contract shall be the laws of Vietnam."
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