Arbitration in Vietnam
25 October 2013
With the passing of the Ordinance on Commercial Arbitration (“Arbitration Ordinance”) in 2003, arbitration became an officially recognised method for resolving disputes arising from “commercial activities”. On 17 June 2010, the Vietnam National Assembly passed the Law on Commercial Arbitration No. 54/2010/QH12, which took effect on 1 January 2011 (“Arbitration Law” or “Law”) and replaced the Arbitration Ordinance. The Arbitration Law is aimed at encouraging dispute resolution by arbitration and facilitating the development of commercial arbitration activities in Vietnam in accordance with the country’s on-going socio-economic development. Decree 63/2011/ND-CP of the Government dated 28 July 2011 includes further implementing regulations on the Law (“Decree 63”).
In January 2013, the Vietnamese Supreme Court published a draft resolution which is intended to provide additional guidance on the Arbitration Law. As of the date of this note, the draft remains under discussion and the timeline as to when it will be adopted is unclear. It is expected that the resolution will be an important resource which further clarifies the interpretation and application of the Law. The draft resolution includes guidance on, amongst other things, the identification of Vietnamese courts which have competence in respect of arbitration in Vietnam, validity of arbitration agreements, ad hoc arbitration and grounds for annulment of arbitral awards.
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