VIETNAM Law and Practice Contributed by: Tung Ngo, Linh D. Nguyen and Minh Doan, VILAF
• the constitution of the arbitral tribunal or the arbitral procedure was not in accordance with the parties’ agreement or the law of the seat; • the award is not yet binding on the parties; • the award has been annulled or suspended by a competent authority in the seat of arbitration; • the dispute is not arbitrable under Vietnamese law; and/or • recognition or enforcement would be contrary to the fundamental principles of Vietnamese law. Vietnamese courts may refuse to enforce a foreign arbitral award on public policy grounds when enforce - ment would violate the fundamental principles of Vietnamese law, as permitted under Article 459 (1) (dd) of the 2015 Civil Procedure Code. However, it is noteworthy that Vietnamese arbitration law does not strictly use the term “public policy” but uses the term “fundamental principles of Vietnamese law”. This term has been interpreted broadly by the courts ‒ for instance, with regard to: • violations of procedural fairness; • impartiality; or • expiration of the statute of limitations. As a result, there is no consistent or unified standard for how Vietnamese courts apply the public policy exception in the context of recognising and enforcing foreign arbitral awards. 13. Miscellaneous 13.1 Class Action or Group Arbitration Vietnamese law is silent on class arbitration and group arbitration. Although it permits multiparty arbitration through the consolidation of proceedings or multiple claims, there are no specific provisions governing col - lective or representative arbitration of claims. 13.2 Ethical Codes For Counsel In Vietnam, legal counsel are bound by the Code of Ethics and Conduct for Vietnamese Lawyers, issued under Decision No 201/QD-HDLSTQ-2019 of the National Bar Council of the Vietnam Bar Federation.
The following professional standards apply to legal counsel in Vietnam: • independence and objectivity; • confidentiality; • avoiding conflicts of interest; • professional conduct; and • compliance with Vietnamese laws and regulations. For Arbitrators Although there is no unified code of ethics for arbitra - tors in Vietnam, their conduct is governed by the LCA, the rules of arbitration centres, and the codes of ethics for arbitrators issued by those centres. The general standards expected of arbitrators include: • impartiality and independence; Currently, there are no specific regulations or restric - tions governing third-party funding in arbitration under Vietnamese law. As a result, the following implications should be considered. • Permissibility ‒ while third-party funding is not for - mally recognised, parties may enter into third-party funding agreements based on the principle of con - tractual freedom, provided that such agreements do not violate Vietnamese law or social morality. • Disclosure ‒ although there is no legal obligation to disclose third-party funding, non-disclosure could raise concerns about conflicts of interest, especial - ly regarding arbitrator independence or impartiality. • Court perspective ‒ if a dispute related to third-par - ty funding arises in Vietnamese courts (eg, during enforcement), it may be assessed conservatively, owing to the lack of regulation and unfamiliarity with the concept. 13.4 Consolidation Although the LCA does not expressly regulate the consolidation of arbitral proceedings, Article 7 of Resolution 01/2014 allows for consolidation in the following circumstances. • confidentiality; • diligence; and • compliance with Vietnamese law. 13.3 Third-Party Funding
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