VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
rely on the basis of reciprocity, which remains without precedent. Vietnam enforces foreign arbitral awards via the 1958 New York Convention. The provisions of the Con - vention have been incorporated into Vietnam’s Civil Procedure Code. Nonetheless, the process may be burdensome. Vietnam’s Civil Procedure Code requires the Vietnam - ese courts, when considering recognition requests, not to re-try a case which a foreign court or arbitral institute has rendered a judgment or award on. 2.6.7 Judgments in Foreign Currencies A lessor under an aircraft lease can pursue monetary claims in a foreign currency in principle and a Vietnam - ese court can award/recognise as requested. 2.6.8 Limitations on Lessors’ Actions Following Termination There are no limitations on a lessor recovering default interest (unless the aircraft lease is governed by Viet - namese law, in which case the applicable statutory ceiling rate is 20% per annum) and additional rent following termination of the lease (unless the aircraft lease is governed by Vietnamese law; in this case liq - uidated damages will not be recognised). In general, if the parties do not specify the applicable interest rate under the lease agreement, the lessor may claim interest at the average interest rate appli - cable to overdue debts in the market at the time of payment for the delayed period. However, the Vietnamese courts may only award addi - tional rent following termination of the lease if it is proven that it is linked to a direct and actual loss. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees The main fees connected with the enforcement of an aircraft lease will be court filing fees, enforcement fees and legal fees. 2.6.10 Mandatory Notice Periods Vietnamese law does not stipulate whether a lessor must comply with mandatory notice periods if it ter - minates an aircraft lease (regardless of its terms) that:
• relates to an aircraft operated domestically; or • is leased by a domestic operator. 2.6.11 Lessees’ Entitlement to Claim Immunity A lessee is generally not entitled to claim sovereign or other immunity from a suit or a lease enforcement action. The entitlement to sovereign or other immunity from a suit can generally be waived. 2.6.12 Enforcement of Foreign Arbitral Decisions Vietnam has adopted the 1958 New York Convention and its provisions have been incorporated into Viet - nam’s Civil Procedure Code. The Vietnamese courts therefore recognise and enforce final arbitral deci - sions via this route, provided that the decision does not fall within any grounds for non-recognition under Vietnamese law. 2.6.13 Other Relevant Issues The Vietnamese courts do not generally grant liqui - dated damage claims. In addition to seeking injunctive relief in a lawsuit before the court, a lessor can seek to arrest an aircraft without a lawsuit in line with the ordinance on procedures for arrest of aircraft. For foreign documents to be submitted to the Viet - namese courts, they must be duly notarised/legalised and translated into Vietnamese. Hostile aircraft repos - session in Vietnam is still possible although it may take several years from deregistration of the aircraft using the relevant mechanisms in the Cape Town Conven - tion. 2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation Vietnamese law recognises the general concept of contractual assignment. Contractual novation is tech - nically a common law concept and is not common in Vietnam. 2.7.2 Assignment/Novation of Leases Under Foreign Laws In principle, a New York or English law-governed assignment and assumption agreement or novation agreement or deed can be held valid to the extent that the agreement or deed does not contradict fundamen - tal principles of Vietnamese law (ie, public policy). In
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