VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
2.6 Lease Enforcement 2.6.1 Restrictions on Lessors’ Abilities
lawsuit. The statutory timeframe for the court to review and grant injunctive relief (if this request for injunctive relief is acceptable) is about three to five working days in total. A lessor cannot obtain summary judgment or equita - ble relief. A full trial must be conducted before a final judgment is issued and the concept of equitable relief is not recognised under Vietnamese law. 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments Vietnamese courts generally uphold foreign law as the governing law of an aircraft lease. The courts will request the parties or the relevant authorities stipu - late the foreign law within six months. If there is no response, the Vietnamese courts will apply Vietnam - ese law to settle the case. The Vietnamese courts generally uphold submissions to a foreign jurisdiction. However, if the initiating party submits a claim to a foreign court, the Vietnamese courts will only consider the foreign court order or judgment as evidence. Foreign court orders or judg - ments must be recognised by Vietnamese courts first in order to have legal effect in Vietnam. The Vietnamese courts will generally uphold a waiver of immunity. 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards Foreign judgments rendered by foreign courts are generally difficult to have recognised and enforced in Vietnam, even though there is a legal basis for recog - nition. The courts recognise and enforce judgments: • rendered by courts of countries with which Vietnam has signed treaties on the recognition and enforce - ment of court judgments; or • on a reciprocal basis. Vietnam has only signed a limited number of treaties on the recognition and enforcement of civil and com - mercial court judgments, primarily with countries from the former Soviet bloc. The recognition and enforce - ment of foreign court judgements from most coun - tries (including the US or the UK) therefore needs to
There are no restrictions on a lessor’s ability to termi - nate a lease or sell the aircraft following termination. A lessor can terminate a lease in line with the lease agreement and they can also sell the aircraft after termination if no restrictions are stated in the lease agreement. There is a restriction on a lessor’s ability to re-export the aircraft if it is not the holder of the irrevocable deregistration and export request authorisation (IDE - RA) (which is obtained in line with the Convention on International Interests in Mobile Equipment and the related Protocol on Matters specific to Aircraft Equip - ment). If the IDERA has been registered with CAAV, only the authorised party under the IDERA is entitled to apply to deregister and export the aircraft. A foreign lessor without a legal presence and tax code in Vietnam wishing to re-export the aircraft must appoint a qualified local customs agent to declare re- export clearance with the relevant customs authority on their behalf. The aircraft does not need to be physi - cally located in Vietnam at the time of termination and sale. 2.6.2 Lessor Taking Possession of the Aircraft A court order is required for the lessor to take physical possession of the aircraft without the consent of the lessee or operator. 2.6.3 Specific Courts for Aviation Disputes No specific courts have competence to decide aviation disputes. The general provincial level People’s Courts will handle aviation disputes if the case involves a for - eign element. Vietnam has also declared provincial level People’s Courts as the applicable court under the Cape Town Convention. Aviation dispute cases have been submitted to, and considered by, the provincial level People’s Courts. 2.6.4 Summary Judgment or Other Relief A lessor can only obtain injunctive relief pending final judgment in emergency circumstances relating to enforcing an aircraft lease. The lessor must file an application with the court during the settlement of a
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