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Arbitration & Mediation

Commercial Arbitration in Vietnam: How a Case Runs From Notice to Final Award

How a commercial arbitration in Vietnam actually runs: the request, the tribunal, written rounds, the hearing, the award and what courts can still do.

Two business people seen from behind walking down a quiet corridor of an office tower in Hanoi toward a closed meeting room, blank folders under their arms, soft morning light

A commercial arbitration in Vietnam starts when one party files a request (or statement of claim) with the arbitration centre named in the contract, or sends it to the other side in an ad hoc case. A tribunal of one or three arbitrators is then formed, the parties exchange written submissions and evidence, a private hearing is held, and the tribunal issues a final and binding award. There is normally no appeal on the merits; a court can only set the award aside on narrow grounds.

That is the short answer. The rest of this guide walks through each stage in the order you will meet it, with the practical points foreign companies tend to miss: deadlines that run from the day you receive papers, the importance of the language and seat you agreed on, and the limited but real role that Vietnamese courts keep alongside the tribunal. Specific time limits and fees depend on the centre’s current rules and on the law in force, so treat this as a map of the road rather than a timetable.

Before anything is filed: read the clause you actually signed

Arbitration exists only because the parties agreed to it. Before you think about strategy, pull out the contract and find the dispute resolution clause. Check four things. Does it clearly choose arbitration rather than saying disputes may go to "arbitration or court"? Does it name a specific centre, such as the Vietnam International Arbitration Centre (VIAC), or describe an ad hoc process? Where is the seat, meaning the legal home of the arbitration? And what language and governing law did you choose?

A clause that names an institution that does not exist, or gives both arbitration and court as options without saying who chooses, is a common source of delay. Vietnamese courts have historically tried to save unclear clauses where the parties’ intention to arbitrate is plain, but you should not count on a generous reading. If the clause is defective, the respondent may argue that the tribunal has no jurisdiction, and you can lose months on that fight alone.

Also check whether the contract demands a step before arbitration, such as negotiation for a fixed period or mediation. Tribunals often treat these steps as conditions. Skipping them hands the other side an easy procedural objection, so keep a written record of your attempts to negotiate, including dates and who attended.

Stage one: the request and the response

In institutional arbitration the centre’s rules govern the paperwork. The pattern is broadly similar across Vietnamese centres:

  1. The claimant files a request or statement of claim with the centre, attaching the contract containing the arbitration agreement, a summary of the facts, what it is asking for (payment, damages, performance, a declaration) and supporting evidence available at that stage.
  2. The claimant pays the filing or registration fee and an advance on costs according to the centre’s current fee schedule. The case usually does not move until payment is made.
  3. The centre sends the request to the respondent, together with the rules and the list of arbitrators. In an ad hoc case the claimant sends the request directly and keeps proof of delivery.
  4. The respondent files a statement of defence within the time set by the rules, and may raise jurisdictional objections and counterclaims at this point. Jurisdictional objections raised late can be treated as waived.
  5. Each side nominates an arbitrator if the tribunal is to have three members, and the two nominees or the centre choose the presiding arbitrator.

Deadlines in this stage are usually counted from receipt, not from the date on the letter. If your Vietnamese counterpart’s registered address is out of date, or mail sits unopened at a representative office, time can run without anyone noticing. Keep your own contact details in the contract current and tell the centre promptly if they change.

Forming the tribunal and challenging arbitrators

Choosing an arbitrator is one of the few moments in the process where you have real control, so treat it seriously. You can usually choose from the centre’s list; some rules also allow candidates from outside the list when a foreign element is involved. Look at the candidate’s experience in your industry, language ability, availability, and any links with the other party, its lawyers or its group companies.

An arbitrator must be independent and impartial and must disclose circumstances that could raise doubts. If you learn that an arbitrator has a conflict, the rules allow you to request a replacement, but the window for doing so is short. Waiting until you lose before mentioning a conflict you knew about is unlikely to help you later.

In ad hoc arbitration, where no centre is administering the case, the Vietnamese court with jurisdiction can be asked to appoint an arbitrator when a party fails to do so or when the two party-appointed arbitrators cannot agree on a presiding arbitrator. This court support function is one reason ad hoc arbitration seated in Vietnam is workable, though most foreign parties still prefer the predictability of an institution.

Once constituted, many tribunals hold a preliminary meeting or issue a procedural order setting out the timetable, the number of written rounds, how documents are exchanged, whether witness statements are needed, and the hearing date. Read that order carefully; it becomes the rulebook for your case.

Evidence, witnesses and interim measures

Evidence is mostly documents. Contracts, invoices, delivery records, emails and messages carry most cases. Vietnamese practice places weight on original or properly certified copies, so keep originals organised. Documents in a foreign language may need translation into the language of the arbitration, and the tribunal can ask for certified translations.

Witnesses are possible but used selectively. Factual witnesses and experts can give evidence, usually through written statements followed by questioning at the hearing. The tribunal decides how much weight to give them. If a witness refuses to attend, the tribunal can ask the court to summon that person.

The tribunal can order interim measures. Vietnamese law lets a tribunal order certain provisional measures, for example preserving evidence, prohibiting a party from changing the status of disputed assets, or freezing property related to the dispute. The party asking may have to provide security against damage caused by a wrong order.

The court can also act. Before the tribunal is formed, or where the measure must bind third parties such as a bank, you may apply to the competent court for interim relief. Courts and tribunals are not supposed to grant the same measure twice, so coordinate the two routes carefully.

Court help in collecting evidence. Where a third party holds key evidence, the tribunal or a party with the tribunal’s permission can ask the court to help obtain it. Plan this early because it adds time.

The hearing: what actually happens in the room

Arbitration hearings in Vietnam are held in private unless the parties agree otherwise. Typically each side presents opening submissions, witnesses and experts are questioned, and the parties close with oral or written final submissions. The hearing may take one day for a simple debt claim or several days for a construction or joint venture dispute. Hearings can also be held online or in hybrid form if the rules and the tribunal allow it.

The language you chose in the contract decides the language of the hearing. If you agreed on English, the proceedings can run in English even though the seat is Hanoi or Ho Chi Minh City; if the clause is silent and the dispute has no foreign element, Vietnamese will normally be used. Interpreters are allowed for witnesses who do not speak the language of the arbitration, and you should check the quality of interpretation in advance rather than discovering problems mid-testimony.

If the respondent does not show up without a valid reason, the tribunal can generally proceed on the documents. If the claimant fails to appear without good reason, the claim may be treated as withdrawn. Respondents who ignore an arbitration hoping it will go away often discover that the award is issued all the same and is enforceable.

At any time, the parties can settle. A settlement reached during the proceedings can be recorded by the tribunal in a decision that has the same effect as an award, which is a useful way to make a deal enforceable rather than relying on a private agreement that may later be ignored.

The award and what you can do with it

The tribunal issues a written award stating the reasons, the decision on each claim, the allocation of arbitration costs, and the date and place it was made. An award made by a tribunal seated in Vietnam is final from the date it is issued. There is no second-instance hearing on the merits, which is one of the main reasons businesses choose arbitration in the first place.

A losing party can apply to the competent court to set the award aside, but only on narrow grounds: no valid arbitration agreement, improper composition of the tribunal or procedure, a dispute outside the tribunal’s jurisdiction, fabricated evidence, an arbitrator taking a bribe, or an award contrary to the fundamental principles of Vietnamese law. The deadline to apply is short and runs from receipt of the award, so diarise it the day the award arrives.

If the losing side neither pays nor applies to set the award aside within the time allowed, the winning party can ask the state civil judgment enforcement agency to enforce it. For an ad hoc award, registration of the award with the court may be needed first. If the award was made by a tribunal seated outside Vietnam, a different route applies: recognition by a Vietnamese court under the New York Convention before enforcement.

When you need a Vietnamese lawyer

Arbitration does not require a lawyer by law, and parties can represent themselves. In practice, foreign companies usually benefit from Vietnamese counsel at specific points:

  • When the clause is ambiguous and jurisdiction may be challenged.
  • When drafting the statement of claim, because the relief you request frames everything the tribunal can award.
  • When choosing an arbitrator and checking for conflicts within the Vietnamese market.
  • When you need interim measures from a Vietnamese court or help collecting evidence from a third party.
  • When the award arrives, to calendar the set-aside deadline and prepare for enforcement.
  • When assets of the losing party need to be traced before enforcement.

A licensed Vietnamese lawyer can also check the centre’s current rules and fee schedule, which change from time to time. If you want a first view before engaging a firm, you can ask a lawyer on AI Co Van (aicovan.com) to explain how the clause in your contract is likely to be read.

Frequently asked questions

How long does a commercial arbitration in Vietnam usually take?

There is no fixed duration. A straightforward debt claim with a sole arbitrator may finish within several months, while a complex dispute with three arbitrators, experts and counterclaims can take a year or more. Expedited procedures under some centre rules can shorten simple cases.

Can the arbitration be conducted in English if the seat is in Vietnam?

Yes, if the parties agreed on English or the tribunal decides so in a dispute with a foreign element. For disputes without a foreign element, Vietnamese is generally required. Check what your clause says and confirm with the centre at the start of the case.

Is the arbitral award public?

No. Arbitration in Vietnam is confidential by default, and hearings are private unless the parties agree otherwise. The award only becomes visible to outsiders if it reaches a court in set-aside or enforcement proceedings, and even then publication practices vary.

What happens if the other side ignores the arbitration completely?

The tribunal can proceed and issue an award based on the evidence submitted, provided the respondent was properly notified. That is why correct service matters. An award issued this way is binding and can be enforced like any other award.

Can I appeal an arbitral award if I think the tribunal got the facts wrong?

Not on the merits. Courts do not re-try the facts or re-examine the tribunal’s legal reasoning. You can only seek to set the award aside on limited procedural and public policy grounds, within a short deadline after receiving it.

Do I need to pay the full arbitration costs upfront?

The claimant usually pays a filing fee and an advance on costs when starting the case, according to the centre’s current schedule. The tribunal later decides who bears the costs, often ordering the losing party to bear most of them. Check current fees directly with the centre.

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