Commercial Arbitration in Vietnam: A Guide for Foreign Parties

For cross-border contracts, foreign parties frequently prefer arbitration over court litigation for disputes connected to Vietnam — for confidentiality, neutrality and enforceability.

The legal basis

Arbitration is governed by the Law on Commercial Arbitration 2010. Parties can agree to arbitrate commercial disputes, choose the seat, language and rules, and appoint arbitrators. The Vietnam International Arbitration Centre (VIAC) is the leading domestic institution; parties may also choose foreign institutions.

Enforceability

Vietnam is a party to the New York Convention, so foreign arbitral awards can, in principle, be recognised and enforced in Vietnam, subject to the Convention's grounds and local procedure. A valid arbitration agreement is the foundation.

Drafting the clause

A robust clause specifies the institution and rules, seat, language, number of arbitrators and governing law. Ambiguous clauses cause costly disputes about jurisdiction, so precision at the contract stage pays off later.

Frequently asked questions

Can foreign parties arbitrate Vietnam disputes?

Yes. Parties can agree to arbitrate commercial disputes and choose VIAC or a foreign institution.

Are foreign awards enforceable in Vietnam?

In principle yes, under the New York Convention, subject to its grounds and local procedure.

What makes a good arbitration clause?

Clear institution/rules, seat, language, number of arbitrators and governing law.

How LTV Law helps

LTV Law drafts arbitration clauses and represents parties in commercial arbitration and enforcement. Contact our team.

This article is for general information only and does not constitute legal advice.