Litigation 2025

VIETNAM Law and Practice Contributed by: Stephen Le Hoang Chuong, Le & Tran

11.3 Interest Awarded on Costs The laws are silent concerning the interest on court costs. However, the prevailing party may specifically request the court to impose interest on court costs. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Alternative dispute resolution (ADR) is increas- ingly being used in Vietnam as a way to resolve commercial disputes. ADR methods such as mediation and arbitration play a valuable role in dispute resolution by offering parties more flexible, efficient, and collaborative avenues to resolve their conflicts. Arbitration is the most popular ADR, particularly in international commercial disputes. Vietnam has several arbitration centres, including the Vietnam International Arbitration Center (VIAC), which provides a platform for resolving disputes through arbitration. Mediation is also a frequently selected ADR method in Vietnam, commonly used in both civ- il and commercial disputes. Many Vietnamese businesses and organisations have recognised its advantages and have incorporated mediation clauses into their contracts. 12.2 ADR Within the Legal System The Vietnamese legal system promotes ADR in several ways. First, the Law on Commercial Arbitration (LCA) provides a comprehensive framework for the use of arbitration in Vietnam. In principle, the parties may freely choose ADR as their dispute resolu- tion method.

as the costs of litigation or the costs of expert witnesses.

11. Costs 11.1 Responsibility for Paying the Costs of Litigation In Vietnam, the responsibility for paying the costs of litigation, including court fees and expenses, primarily falls upon the losing party in a legal proceeding. Court fees, which are determined based on the value of the claim, are typically borne by the party initiating the lawsuit, but if the plaintiff prevails, these fees may be recover- able from the defendant. Additionally, expenses related to the litigation, such as witness fees and travel expenses, may also be recoverable by the prevailing party. However, the recovery of attorney’s fees is not automatic in Vietnam. Generally, each party is responsible for its own attorney’s fees, unless there are specific legal provisions allowing for the recovery of such fees, as is the case in some intellectual property disputes. Parties do have the option to challenge the amount of costs awarded by the court if they believe it is insufficient or unjust. The court will revise its decision if it makes errors in distribut- ing court costs between the parties. 11.2 Factors Considered When Awarding Costs In general, the losing party will bear the court cost. In some situations, if the losing parties are elderly, employees, or a specified person under the law, court costs may be waived.

1537 CHAMBERS.COM

Powered by