VIETNAM Law and Practice Contributed by: Tony Nguyen, Ta Phuong Thao, Nguyen Minh Duc, Nguyen Phuong Anh, Nguyen Duc Tai and Truong Que Chi, EPLegal
generally two years from the date of infringement and negotiation or mediation does not automatically inter- rupt or extend this period. Parties should therefore monitor limitation deadlines carefully while pursuing ADR. 4.5 Confidentiality Commercial mediation is the clearest form of ADR in Vietnam with formal statutory confidentiality protec- tion. Under Decree No 22/2017/ND-CP, information relating to the mediation process must be kept con- fidential, subject to limited exceptions. Institutional rules, such as those of the Vietnam Mediation Centre, reinforce this obligation. By contrast, negotiation is private in practice but not subject to a general statutory confidentiality regime. Its confidentiality depends on party agreement, typi- cally through contractual confidentiality provisions. 4.6 Costs ADR costs in Vietnam depend on the method used. In negotiation, there are typically no institutional costs and each party bears its own expenses, including legal fees. In commercial mediation, costs are determined by agreement between the parties or by applicable rules. Under the Vietnam Mediation Centre rules, mediation costs include registration fees, mediator remunera- tion and administrative fees, with additional expenses (such as travel or translation) charged on an actual- cost basis. As a default, core costs are shared equally unless otherwise agreed, while costs incurred at the request of one party are borne by that party. 4.7 Courts and ADR Vietnamese courts are generally supportive of ADR, particularly where it facilitates consensual settlement and reduces the need for full adjudication. This is most evident in commercial mediation, where a successful settlement may be recognised by the court under the Civil Procedure Code 2015 and once approved, is enforceable in the same manner as a court judgment. This reflects an integrated approach,
with courts recognising ADR as a legitimate and com- plementary dispute resolution mechanism.
5. Costs, Fees and Funding 5.1 Legal Fees
Legal fees in Vietnam are regulated through a combi- nation of statutory instruments and professional rules. Under the Law on Lawyers 2006 (as amended), fees are generally agreed between the lawyer or law firm and the client in a legal services contract. Procedural costs in court proceedings are regulated by Ordinance No 05/2024/UBTVQH15, which cov- ers costs for experts, interpretation and inspection. Court fees and charges are governed by Resolution No. 326/2016/UBTVQH14 (as amended), which sets out applicable rates and related provisions. 5.2 Third-Party Funding Third-party funding is not expressly regulated in Viet- nam and there is no dedicated statutory framework governing its use in litigation or arbitration. In practice, third-party funding remains uncommon in domestic proceedings, although it may arise in inter- national arbitrations involving Vietnamese parties, par- ticularly where the seat is outside Vietnam. Any such arrangement would need to be carefully structured in accordance with general principles of contract and professional conduct, given the absence of clear leg- islative guidance. 5.3 Contingency Fee Arrangement Contingency-style fee arrangements are available in Vietnam, although Vietnamese law more clearly rec- ognises percentage-based or success-linked remu- neration than a pure “no win, no fee” model. Article 55 (2)(c) of Law on Lawyers permits legal fees to be calculated as a percentage of the value of the claim, contract or project. Such arrangements are therefore permitted, but they must be agreed in the legal ser- vices contract and remain subject to the professional obligations applicable to lawyers and law practice organisations.
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