The Asia-Pacific Arbitration Review 2021

Dispute Resolution / Legal insights | January 01, 2021 | By DZUNGSRT & ASSOCIATES

Enforceability of arbitral awards in Vietnam – alarming practice

Accreditation: An extract from the 2021 edition of GAR’s The Asia-Pacific Arbitration Review, first published in July 2020. The whole publication is available at https://globalarbitrationreview.com/edition/1001508/the-asia-pacific-arbitration-review-2021

In summary

In 2019, Vietnam witnessed improvements not only in the quality and quantity of dispute resolution by arbitration but also in a number of initiatives to resolve existing problems within the legislative system. Nevertheless, recent court decisions on the annulment of arbitral awards indicate that when it comes to arbitral awards of high worth or those involving state-related parties, the courts can be unpredictable and conflicting reasoning is not uncommon. Decision 11/2019/QD-PQTT of the Hanoi People’s Court (14 November 2019) is a typical example.

Discussion points

• In 2019, 274 new cases were submitted to the Vietnam International Arbitration Centre (VIAC) – up 52 per cent compared to 2018. The number of domestic disputes is five times higher than international disputes.

• In 2019, the Korean Commercial Arbitration Board (KCAB) officially opened its overseas office in Hanoi.

• The draft resolution of the Supreme People’s Court to guide the recognition and enforcement of foreign
arbitral awards in Vietnam.

• In 2019, five arbitral awards were set aside, accounting for 29 per cent of applications for annulment, but over 90 per cent of the total value of the arbitral awards subject to annulment.

• Decision 11/2019/QD-PQTT of the Hanoi People’s Court set aside VIAC Award 24/14 because the
arbitral tribunal changed the agreed place of hearing; referred to the IBA Rules on the Taking of Evidence to disregard the evidence submitted by the respondent; and did not order an inspection to determine the quantum of damages.

Referenced in this article

• Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958.

• UNCITRAL Model Law on International Commercial Arbitration 1985, as amended 2006.

• Law 54/2010/QH12 on Commercial Arbitration, issued on 17 June 2010.

• Resolution 01/2014/NQ-HDTP of the Supreme People’s Court, issued on 20 March 2014, guiding certain
provisions of the Law on Commercial Arbitration 2010.

• Decision 11/2019/QD-PQTT, 14 November 2019, on setting aside arbitral awards of the Hanoi People’s Court.

• Case 24/14,10 April 2019, of the arbitral tribunal of VIAC.