The demand for recognition and enforcement of Foreign Arbitral Awards in Vietnam has increased significantly throughout the years and has turned into a matter of elevated attention.
Recently, CNC has received multiple inquiries pertaining to this issue – Recognition and Enforcement of Foreign Arbitral Awards in Vietnam. As such, CNC has prepared the “Recognition and Enforcement of Foreign Arbitral Awards In Vietnam” article to clarify matters regarding this procedure.
This article encompasses:
(i) What are Foreign Arbitral Awards?
(ii) Principles of Recognition and Enforcement of Foreign Arbitral Awards in Vietnam
(iii) Awards recognized and enforced in Vietnam
(iv) Unsuccessful cases of recognition and enforcement
(v) Qualified Entities for requests, appeals, and reclaims
(vi) Procedures
(vii) Application’s components
(viii) Fee
(ix) The validity of the decision for recognition and enforcement
What are Foreign Arbitral Awards?
Foreign Arbitral Awards are awards containing the following elements:
Principles: Recognition and Enforcement of Foreign Arbitral Awards in Vietnam
To ensure the benefits of relevant entities, on the basis of national sovereignty, the recognition and enforcement of Foreign Arbitral Awards must adhere to certain legal principles, including:
However, during the accession process to the New York Convention of 1958 – Convention on Recognition and Enforcement of Foreign Arbitral Awards, Vietnam has reserved three fundamental principles, which are:
Which Foreign Arbitral Awards may be recognized and enforced in Vietnam?
For foreign arbitral awards to be recognized and enforced in Vietnam, the following conditions must be met:
Article 424, Code of Civil Procedure 2015 on the recognition and enforcement of foreign arbitral awards in Vietnam
Cases of unsuccessful recognition and enforcement of Foreign Arbitral Awards.
Firstly: the Courts find that evidence submitted by the enforcing party is substantive and legal, and the arbitral awards adhere to one of the following situations:
Secondly: foreign arbitral awards may be rejected by Vietnamese Courts if it is found that:
Article 459, Code of Civil Procedure 2015, Unsuccessful Cases of recognition and enforcement of Foreign Arbitral Awards
Qualified Entities for requests, appeals, and reclaims
Note: The right to request for recognition and enforcement is only applied when:
The Procedure for recognition and enforcement of Foreign Arbitral Awards in Vietnam
The Procedure for recognition and enforcement of Foreign Arbitral Awards in Vietnam requires at least 6 months, including the following stages:
Evaluation Procedure Request
Succinctly, the Court temporarily suspends the request in one of the following situations
Upon the decision for temporary suspension, the Judge observes and encourages the involved party to remedy the causes of the temporary suspension within the shortest time possible so that the request can be resolved. When the causes of the temporary suspension have been addressed, the Judge issues a decision to resume the evaluation request.
The Court suspends the request in any one of the following situations
Some notes regarding the meetings
Temporary suspension of enforcement, cancellation of the decision on recognition, and enforcement of foreign arbitral awards
Application’s Components
| No. | Materials | Notes |
| 1 | Application for Recognition and Enforcement of Foreign Arbitral Award | The following content must be included:
Part I. · Full name · residence or workplace address of the winning party · the winning party’s legal representative Winning party is an organization: · Full name · Address of the headquarters or that organization must be listed Part II: · Full name · Residence or workplace address of the enforcing party Winning party is an organization: · Full name · Address of the headquarters of that organization must be listed. Winning party is an individual without residency or workplace in Vietnam or an organization whose headquarters is located outside of Vietnam: · Location and category of the relevant asset must be listed. Part II: Winning party’s request |
| 2 | Foreign Arbitral Award | Original or notarized copy |
| 3 | Arbitration Agreement | Including:
i. Arbitration Clause in the contract or ii. Arbitration Agreement signed by parties or exchanged via emails Original or notarized copy |
| Note: | Notarized, legally authenticated Vietnamese translation of the attached documents and materials MUST BE provided |
Fees
The validity of the decision for recognition and enforcement.
However
The Foreign Arbitral Award may only be recognized and enforced in Vietnam after the decision by the Courts on the recognition and enforcement of the Foreign Arbitral Award becomes effective.
Upon the request to recognize the arbitral award, the Court is requested to not only recognize the legal validity of the awards but also to guarantee the enforcement of the award.
To guarantee the enforcement of the award, Vietnam’s Government ensures the transfer of money and assets – relevant to the enforced arbitral award – from Vietnam to foreign countries. This transfer of money and assets is made in accordance with the law of Vietnam.
Further support
We are honored to receive any request from Clients/Potential Clients for support on the recognition and enforcement of Arbitral Awards in Vietnam to ensure that the process is performed swiftly and smoothly.
All inquiries and requests may be submitted via email or phone by contacting:
Ms. Nguyen Thi Kim Ngan | Senior Associate
T: (+84-28) 6276 9900
Ms. Nguyen Thi Hong Tra | Associate
T: (+84-28) 6276 9900
CNC© | A Boutique Property Law Firm
28 Mai Chi Tho, An Phu Ward, Thu Duc City, Ho Chi Minh City, Vietnam
T: (+84-28) 6276 9900 | F: (+84-28) 2220 0913
cnccounsel.com | contact@cnccounsel.com
Disclaimers:
This article is prepared or used for the purpose of introducing or updating clients on information about matters and/or the developments of legal perspective in Vietnam. The information contained within this article does NOT constitute advice of any kind and could be subjected to changes without prior notice.