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
6.2 Interim Relief to Support Arbitration and ADR Vietnamese courts may grant interim relief in support of arbitration to protect the effectiveness of proceed- ings. In practice, such measures include preserving or freezing disputed assets, prohibiting their transfer ordering or restraining specific acts, requiring tem- porary payments and securing or disposing of assets where necessary. These measures are intended to safeguard parties’ rights and ensure that any eventual award can be effectively enforced. 6.3 Timing of Applications for Interim Relief The applications for interim relief can be made throughout the resolution process. In cases of emer- gency where it is necessary to immediately protect evidence and prevent serious consequences, agen- cies organisations and individuals have the right to request a competent court to issue a decision apply- ing the interim reliefs simultaneously with filing a law- suit with that court. An Arbitral Tribunal can grant interim relief once it has been established. If a party has already requested a Court to apply a measure, they cannot request the Arbitral Tribunal for the same measure and vice versa. 6.4 Security for Costs Vietnamese law does not provide for general security for costs in the sense of requiring a claimant to secure a defendant’s legal fees. However, security is required in connection with inter- im relief. A party requesting interim measures must provide financial security to cover potential losses if the measure is later found to be unjustified. Additionally, claimants must pay a court fee advance for their claim to be accepted, although this is not treated as security for costs. In arbitration, tribunals may also require a requesting party to provide security when seeking interim meas-
Article 36 (1) of the VIAC Rules provides that the tri- bunal shall allocate arbitration fees unless the parties have agreed otherwise and Article 36 (2) confirms that the tribunal has authority to order one party to pay all or part of the other party’s legal costs and other reasonable expenses. Beyond these two provisions, neither the LCA nor the VIAC Rules set out specific criteria for assessing the reasonableness or quantum of costs. In practice, tribunals typically consider fac- tors such as the parties’ agreement, the outcome of the case, fairness, procedural conduct, proportionality between the costs claimed and the amount in dispute and whether the costs were reasonably and properly In court proceedings, costs are assessed more strict- ly by statute. Article 2 (1) of the Ordinance 05/2024 defines litigation costs as expenses that are “neces- sary and reasonable” and Article 4 (2)(b) provides that certain costs must be supported by actual contracts, invoices and vouchers. In practice, courts will consid- er whether the claimed cost falls within a recognised statutory category, whether it was necessary for the conduct of the case, whether the amount is properly evidenced and which party is required by law to bear that cost. incurred. Litigation Courts in Vietnam may grant a wide range of interim relief measures to preserve assets, prevent harm and maintain the status quo pending resolution of the dis- pute. In commercial practice, the most relevant measures include asset distraint, freezing of bank accounts or property, prohibitions on asset transfers and orders requiring or restraining certain acts. Courts may also suspend contractual or employment-related deci- sions, restrict a party from leaving Vietnam or take other urgent measures as provided by law. 6. Interim Remedies 6.1 Availability of Interim Relief These measures are applied flexibly depending on the nature of the dispute and the need to protect the par- ties’ rights.
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