VIETNAM Law and Practice Contributed by: Tung Ngo, Linh D. Nguyen and Minh Doan, VILAF
rules to align with international practices, includ - ing improvements in tribunal appointment and anticipated developments in multiparty arbitration proceedings. On 23 January 2025, a new arbitration centre was established. The Tien Giang International Commer - cial Arbitration Centre (TGAC) is located in Tien Giang Province (now part of Dong Thap Province), Vietnam. 1.4 National Courts There are no courts in Vietnam specifically designated to handle disputes relating to international or domes - tic arbitration, as such disputes are generally consid - ered civil matters. The 2010 Law on Commercial Arbitration (LCA) is the primary legal instrument governing international arbi - tration in Vietnam. In addition, there are some guid - ance documents relating to the LCA, including but not limited to: • Decree No 63/2011/ND-CP of the government dat - ed 28 July 2011 ((“Decree 63/2011”), which mainly governs the registration and operation of domestic and foreign arbitration institutions in Vietnam; • Resolution No 01/2014/NQ-HDTP of the Judges’ Council of the Supreme People’s Court dated 20 March 2014 (“Resolution 01/2014”), which provides detailed guidance and clarification for several pro - visions of the LCA; and • certain provisions of the 2015 Civil Procedure 2. Governing Legislation 2.1 Governing Law Code, which regulate matters related to the recog - nition and enforcement of foreign arbitral awards. Alignment With UNCITRAL Model Law Vietnam has not formally adopted the UNCITRAL Model Law. However, the LCA incorporates many of its core principles, such as party autonomy and the competence-competence doctrine. Nonetheless, there are notable differences between the two instru - ments, as follows.
• Although both the LCA (Article 9) and the Model Law (Article 30) allow parties to negotiate a settle - ment during arbitration, the LCA further permits the parties to request that the same arbitral tribunal conduct mediation to facilitate a settlement. • Whereas the UNCITRAL Model Law empowers the arbitral tribunal to establish rules for collecting and assessing evidence, consulting experts, and requesting court assistance, the LCA (Article 45) additionally authorises the tribunal to verify facts directly. • One of the grounds for setting aside an arbitral award under Article 68.2 (dd) of the LCA and for non-recognition and enforcement under Article 459.2 (b) of the 2015 Civil Procedure Code is that the award is “contrary to the fundamental princi - ples of Vietnamese law” ‒ a concept not found in the UNCITRAL Model Law. 2.2 Changes to National Law Although there have been no amendments to the primary arbitration legislation (eg, the LCA), several recent developments have promoted the use of arbi - tration as a method of dispute resolution, as follows. • Land Law No 31/2024/QH15 passed by the National Assembly of Vietnam on 18 January 2024 provides under Article 236.5 that disputes between parties arising from commercial activities related to land may now be submitted to Vietnamese com - mercial arbitration in accordance with the arbitra - tion laws. • Case Law No 69/2023/AL affirms that disputes arising from non-disclosure agreements or non- compete agreements between employers and employees may be resolved through commercial arbitration. Pending Amendment to LCA Since 2022, initiatives have been underway to reform the LCA. The draft amendment is expected to: • expand the jurisdiction of arbitral tribunals; • enhance arbitral procedures; • broaden the scope of arbitration in arbitral pro - ceedings; and
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