Arbitration and Dispute Resolution in Vietnam: FAQs
Vietnam has courts reorganised in July 2025, institutional arbitration through the Vietnam International Arbitration Centre (VIAC) and membership of the New York Convention. Whether you can choose foreign arbitration depends on whether a foreign investor is involved. These answers help you choose a forum, draft a clause and enforce the result.
Re-checked against official Vietnamese sources every month · Reviewed · How we check
How are commercial disputes resolved in Vietnam?
By negotiation and mediation first, then by arbitration or the courts, as Article 13 of Law No. 143/2025/QH15 on Investment provides. Since 1 July 2025, Law No. 81/2025/QH15 has reorganised the courts into the Supreme People's Court, 34 provincial courts and 355 regional courts, abolishing the district courts and the high people's courts. Regional courts now hear most commercial cases at first instance, with appeals to the provincial court, and applications to annul arbitral awards are concentrated in designated courts in Hanoi, Da Nang and Ho Chi Minh City. Arbitration under Law No. 54/2010/QH12 on Commercial Arbitration is the usual choice for foreign investors.
Can I choose foreign governing law and a foreign arbitration seat?
Often, but not always. Article 13(3) of Law No. 143/2025/QH15 allows disputes between investors where at least one is a foreign investor, or a company more than 50% foreign-owned, to go to Vietnamese courts, Vietnamese arbitration, foreign or international arbitration, or ad hoc arbitration. Disputes among domestic investors, or companies below that threshold, must go to Vietnamese arbitration or courts. Contracts with a foreign element may generally choose a foreign governing law, but in arbitration a dispute with no foreign element is decided under Vietnamese law. Vietnamese mandatory rules and fundamental principles still apply, so take advice before relying on a foreign seat.
What is VIAC and how do I write an arbitration clause?
The Vietnam International Arbitration Centre (VIAC) is Vietnam's leading arbitral institution, attached to the Vietnam Chamber of Commerce and Industry. Its new VIAC Rules 2026 apply to arbitrations commenced on or after 1 July 2026 unless the parties agree otherwise. VIAC's model clause reads: any dispute arising out of or in relation with this contract shall be resolved by arbitration at the Vietnam International Arbitration Centre (VIAC) in accordance with its Rules of Arbitration. VIAC recommends adding the number of arbitrators, the seat, the governing law and the language, particularly where a foreign party or foreign-invested company is involved. An expedited-procedure clause is also available.
Will Vietnamese courts enforce foreign arbitral awards?
Generally yes. The New York Convention has been in force for Vietnam since 11 December 1995, applied on a reciprocity basis, and the Civil Procedure Code 2015 (Law No. 92/2015/QH13, as amended) governs recognition. The applicant must file within three years of the award taking legal effect, with the original or certified copy of the award and arbitration agreement, legalised and translated into Vietnamese. Since July 2025 the application is heard at first instance by a regional court, with appeal to the provincial court. Recognition can be refused on New York Convention-style grounds, including conflict with the basic principles of Vietnamese law, which courts have sometimes read broadly.
Can I enforce a foreign court judgment in Vietnam?
Sometimes. Under Article 423 of the Civil Procedure Code 2015, a foreign judgment in a civil or commercial matter can be recognised if Vietnam and the judgment country are parties to a treaty on judicial assistance, or otherwise on the basis of reciprocity. Vietnam has bilateral judicial assistance agreements with about 17 countries, including China, France and Russia, but not with the United Kingdom, the United States or Singapore, where reciprocity is uncertain. The application must be filed within three years of the judgment taking legal effect, and recognition may be refused on listed grounds, including public policy. Arbitration is therefore usually the safer choice for cross-border contracts.
Do investment treaties protect my investment in Vietnam?
They may. According to UNCTAD, Vietnam has signed 66 bilateral investment treaties, of which 45 are in force, plus around 20 other treaties with investment provisions. The CPTPP allows investor-state arbitration for breaches of its protection standards, although claims under investment authorisations or investment agreements are suspended. RCEP, in force since 1 January 2022, has no investor-state mechanism. The EU-Vietnam Investment Protection Agreement, signed in 2019, is still not in force because not all EU member states have ratified it. Vietnam is not a party to the ICSID Convention, so treaty claims usually proceed under UNCITRAL rules. Check your investor's nationality and structure.
How are disputes between an investor and the State resolved?
Article 13 of Law No. 143/2025/QH15 requires negotiation and mediation first. A dispute between a foreign investor and a Vietnamese authority then goes to Vietnamese arbitration or the Vietnamese courts, unless the contract or a treaty to which Vietnam is party provides otherwise; disputes between domestic investors, or companies not more than 50% foreign-owned, and the State go to Vietnamese arbitration or courts. Treaty claims are coordinated under Decision No. 14/2020/QD-TTg, with the ministry whose measure is challenged leading and the Ministry of Justice advising. Negotiate the dispute clause in any State contract carefully and preserve treaty options.
Yes. Article 13 of Law No. 143/2025/QH15 makes negotiation and mediation the first step for investment disputes, and Decree No. 22/2017/ND-CP regulates commercial mediation by registered mediators and mediation centres, including the Vietnam Mediation Centre (VMC) at VIAC. A mediated settlement is contractual, but a party can ask a court to recognise a successful out-of-court settlement under the Civil Procedure Code, after which it can be enforced like a judgment. Courts also offer pre-action mediation under the Law on Mediation and Dialogue at Court 2020. A stepped clause of negotiation, then mediation, then arbitration is common and preserves relationships.
How long do court cases take and what interim relief is available?
Under the Civil Procedure Code, the court has two months from accepting a commercial case to prepare it for trial, extendable by one month for complex cases, and the hearing should open within one month of the decision to bring it to trial. In practice first-instance cases, especially with foreign parties, often take longer, and appeals must be lodged within 15 days of judgment. Courts can grant interim measures such as asset seizure, account freezing and bans on transfers, normally within three working days or 48 hours when filed with the claim, and may require security. Arbitral tribunals may also order interim measures under the Law on Commercial Arbitration.
How do I secure a loan or claim with collateral in Vietnam?
Security is created under the Civil Code 2015 (Law No. 91/2015/QH13) and becomes effective against third parties on registration, with priority generally following the order of registration. Security over movable assets is registered online under Decree No. 99/2022/ND-CP with the Ministry of Justice's Department of Secured Transaction Registration and State Compensation (formerly the National Registration Agency for Secured Transactions), while mortgages over land use rights are registered with the land registration office. The Land Law 2024 still bars mortgaging land use rights to foreign lenders, so offshore lenders use an onshore security agent. A new decree to replace Decree 99/2022 is being drafted.
Ask the Be Vietnam Wise advisor. It checks official Vietnamese sources and points you to the governing law, or read how to find and check a Vietnamese lawyer.
This page gives legal and tax information, not legal advice. Rates, thresholds and procedures change; the answers are re-checked against official sources every month, but you should confirm anything important with the relevant authority or a licensed Vietnamese lawyer before you act.