Arbitration in Vietnam 2026: VIAC's New Rules, Enforcement and Clause Drafting for Foreign Investors

Key Takeaways

• The statute is the same; the courts and the rules are not. The Law on Commercial Arbitration No. 54/2010/QH12 (LCA) still governs. In 2025 only its court-jurisdiction provision (Article 7.3) was amended. A full revision has not been submitted to the National Assembly.
• VIAC has new rules. The VIAC Rules of Arbitration 2026 apply to arbitrations commenced from 1 July 2026. They add multi-contract claims, consolidation, joinder, third-party funding disclosure, the VIAC.eCase online platform and a much wider Expedited Procedure.
• Three courts hear set-aside. Since 1 July 2025, only the People's Courts of Hanoi, Da Nang and Ho Chi Minh City can set aside an arbitral award made in Vietnam. Most other court support moved to the new regional people's courts.
• A VIAC award is a Vietnamese award. If the debtor does not comply and no set-aside application is filed within 30 days, the creditor goes straight to the civil judgment enforcement agency. No recognition proceeding is needed.
• A foreign award must first be recognised by a Vietnamese court. Between 2012 and 2019, Vietnamese courts recognised 41 of 83 foreign awards. Awards from jurisdictions outside the New York Convention, such as Taiwan, face a longer road.
• There is no emergency arbitrator at VIAC. Urgent relief before the tribunal is formed comes from the court, and only after the request for arbitration has been filed.
• Check who can agree to foreign arbitration. Under the Investment Law 2025, a Vietnamese subsidiary may choose foreign or international arbitration only if it is a foreign investor or a foreign-controlled economic organisation.

Foreign-invested companies sign arbitration clauses in Vietnam every day: supply contracts with local vendors, EPC and factory construction contracts, distribution agreements, joint venture agreements. Most of those clauses are copied from a group template and not read again until a payment is missed.

In Vietnam, the clause decides more than the forum. It decides whether an award can be enforced directly against assets in Vietnam, or whether the winning party must first ask a Vietnamese court for permission. This guide sets out the rules that apply in 2026 and the choices a foreign investor should make before signing and after a dispute arises.

1. What Changed in 2025–2026, and What Did Not

Two points are often misreported. First, the 2025 court reform did not rewrite arbitration law. The grounds for setting aside an award, the 30-day deadline and the enforcement route are unchanged; only the courts that handle them changed. Second, the long-discussed comprehensive amendment of the LCA is still being prepared. Proposals such as an emergency arbitrator or a waiver of set-aside are not law. Draft your clauses for the law as it stands.

2. Can the Dispute Go to Arbitration?

Under Article 2 of the LCA, arbitration is available for disputes arising from commercial activities, disputes in which at least one party engages in commercial activities, and other disputes that the law allows to be arbitrated. For manufacturers, traders and contractors this covers nearly every contract dispute. Individual employment disputes and challenges to administrative decisions are outside it.

Limitation period. Unless a specialised law provides otherwise, a request for arbitration must be filed within two years from the date the claimant's rights were infringed (LCA Article 33). The Commercial Law sets the same two years for commercial claims (Article 319), with a shorter period for some logistics claims. Informal negotiation does not stop the clock.

Can a Vietnamese subsidiary agree to arbitration abroad? Most foreign groups contract through a locally incorporated company, so this question matters. Article 13 of the Law on Investment 2025 draws the line as follows:

• A dispute between investors in which at least one party is a foreign investor, or an economic organisation described in Article 20.1(a), (b) or (c), may be resolved by a Vietnamese court, Vietnamese arbitration, foreign arbitration, international arbitration, or an arbitral tribunal established by agreement of the parties.
• A dispute between domestic investors and foreign-invested economic organisations that fall outside those criteria must be resolved by Vietnamese arbitration or a Vietnamese court.

Article 20.1 turns on foreign ownership of more than 50% of charter capital, held directly or through such entities. A subsidiary majority-owned by a foreign parent will normally qualify for the wider list. A minority foreign stake normally will not. Check the shareholding before agreeing to a seat outside Vietnam, because an invalid arbitration agreement is the first ground for setting aside an award.

3. Where Will You Collect? Vietnamese Seat, Neutral Seat or Home Seat

Choose the seat by asking where the other party's assets are. The comparison below uses VIAC, SIAC in Singapore and a seat in the investor's home country as examples; the same logic applies to HKIAC, ICC or any other foreign institution.

Why VIAC is strongest when the assets are in Vietnam. An award made by a Vietnamese arbitration centre is a domestic award even if the arbitrators or one party are foreign. Under LCA Article 66, if the debtor has not complied by the deadline in the award and no set-aside application has been filed, the creditor applies directly to the civil judgment enforcement agency. There is no separate recognition hearing in which the debtor can re-argue the case.

Why the recognition step matters. Data from Vietnam's Ministry of Justice, reported by Tilleke & Gibbins, show that Vietnamese courts recognised 41 of 83 foreign arbitral awards between 1 January 2012 and 30 September 2019. Practice has developed since, and we have not found a later official figure, but the lesson stands: a foreign award adds a contested court stage that a VIAC award avoids.

A foreign institution seated in Vietnam does not avoid that stage. Under LCA Article 3, an award of an arbitral institution established under foreign arbitration law is a foreign award even when the arbitration is seated in Hanoi or Ho Chi Minh City. It still needs recognition.

If your country is a New York Convention party. Vietnamese courts recognise foreign awards on the basis of a treaty or of reciprocity (Civil Procedure Code, Article 424). Vietnam acceded to the Convention in 1995 with the reciprocity and commercial reservations, so an award made in another Convention state, such as Singapore, Hong Kong, Japan, Korea, the United States or an EU member, has a treaty basis. Recognition can still be refused on the Convention grounds, which is why the statistics above matter.

If your country is outside the Convention: the Taiwan example. Taiwan is not a party to the Convention. The gap is narrowed by the 2010 Taiwan–Vietnam Agreement on Judicial Assistance in Civil Matters, in force since 2 December 2011. Article 1 includes arbitral awards in its scope, and Article 24 provides that each side shall recognise and enforce awards made in the territory of the other in accordance with the New York Convention and the arbitration laws of both sides. That is a written legal basis, but we have found no published Vietnamese court decision applying it to a Taiwanese award, and an untested route invites delay. Investors from other non-Convention jurisdictions should check whether a comparable bilateral agreement exists before relying on a home seat.

The reverse direction. Enforcing a VIAC award at home depends on your own arbitration law. For Convention countries this is the ordinary Convention procedure. For Taiwan, Articles 47 to 51 of the Arbitration Act allow recognition of foreign awards, and a Taiwanese court recognised a VIAC award as early as 2004 (Taiwan High Court, Kaohsiung Branch, 92 Kang-Zi No. 687).

Rule of thumb. If the counterparty's assets are in Vietnam, choose VIAC. If the counterparty is a multinational with assets in several Convention countries, a neutral seat such as Singapore or Hong Kong is reasonable. Choose a seat in your home country only when the counterparty has assets there that would cover the claim.

4. How to Draft an Arbitration Clause That Works in Vietnam

LCA Article 18 lists the situations in which an arbitration agreement is invalid, including where the signatory lacked authority, where the dispute is not arbitrable, and where the agreement is not in writing. A clause that does not clearly identify the institution causes separate trouble. A careful clause covers the following.

• Name the institution exactly: "Vietnam International Arbitration Centre (VIAC)". Avoid "an arbitration centre in Hanoi" or "Vietnamese arbitration".
• Refer to the rules: VIAC's Rules of Arbitration. The 2026 Rules apply to any arbitration commenced from 1 July 2026 unless the parties agreed otherwise.
• State the number of arbitrators: one for routine supply disputes, three for high-value or technical disputes.
• Fix the seat: the place where the tribunal makes the award determines which of the three courts hears a set-aside application. Hanoi covers 18 northern provinces and cities, Da Nang 7 central ones, and Ho Chi Minh City 9 southern ones.
• Choose the language: the parties may choose it if the dispute has a foreign element or at least one party is a foreign-invested enterprise (LCA Article 10). English is the practical default. Other languages are permitted, but confirm that enough qualified arbitrators can work in them.
• Choose the governing law: a foreign law may be chosen only for a dispute with a foreign element (LCA Article 14). A contract between two Vietnamese entities with no foreign element is governed by Vietnamese law.
• Decide on the Expedited Procedure: for arbitration agreements concluded after the 2026 Rules took effect, the parties are deemed to accept the Expedited Procedure if the VIAC President decides to apply it. For a complex contract, exclude it expressly in writing (Rules, Article 24(7)).
• Check signing authority: confirm that the Vietnamese signatory is the legal representative or holds a written authorisation. Lack of authority is among the most frequently argued objections.

Sample clause. The first sentence is VIAC's model clause; the rest are the optional additions VIAC recommends, plus an opt-out. Adapt it before use.

Any dispute arising out of or in relation with this contract shall be resolved by arbitration at the Vietnam International Arbitration Centre (VIAC) in accordance with its Rules of Arbitration. The number of arbitrators shall be [one / three]. The place of arbitration shall be [Ho Chi Minh City / Hanoi], Vietnam. The governing law of the contract shall be the law of [ ]. The language of the arbitration shall be English. [The parties agree to exclude the application of the Expedited Procedure under VIAC's Rules of Arbitration.]

5. A VIAC Arbitration Under the 2026 Rules, Step by Step

What is new in 2026. Several changes matter to foreign groups running multi-contract supply chains.

• Multiple contracts. A claimant may file one Request under several arbitration agreements if the contracts are related, raise similar questions and contain compatible arbitration agreements. The VIAC President decides (Article 6).
• Consolidation. The VIAC President may consolidate pending arbitrations at a party's request, for example where the agreements are compatible and the disputes arise from the same transaction or series of transactions (Article 17).
• Joinder. An existing party may ask to join an additional party that has agreed in writing or is prima facie bound by the arbitration agreement (Article 18). This helps where a Vietnamese counterparty has shifted performance to an affiliate.
• Third-party funding. A funded party must disclose the funding and the funder's name and contact details (Article 16(7)).
• Technology. The tribunal may discuss with the parties the use of information technology tools, including AI-based tools (Article 16(6)).
• Confidentiality. The Rules now state an express duty of confidentiality covering the proceedings and documents (Article 42).
• Expedited Procedure. The VIAC President may apply it where the total of claims and counterclaims does not exceed the amount VIAC publishes on its website, where the case is suitable, or where the parties agree (Article 24). A sole arbitrator normally sits, hearings are online or hybrid by default, and the award is due within two months of the notice constituting the tribunal.

Who can sit as arbitrator. Under Appendix I of the 2026 Rules, an arbitrator must be on VIAC's List of Arbitrators or meet demanding criteria: at least 15 years of work experience together with a relevant degree or membership of an international arbitration body, prior service as arbitrator in at least five cases, and participation in drafting at least three awards. A foreign party that wants to nominate a professional from its own country who is not on the list should check these criteria before the dispute, not during the 30-day defence period.

Costs. VIAC charges by the amount in dispute, and the claimant advances the full amount. Use VIAC's published schedule to estimate it before filing. The tribunal may order one party to bear all or part of the other's reasonable legal costs (Article 41(2)), so claim legal costs in the Request for Arbitration or the Counterclaim.

6. Urgent Relief: How to Freeze Assets Before They Move

• No emergency arbitrator. The 2026 Rules contain no emergency arbitrator mechanism.
• The tribunal, once constituted, may order interim measures under Article 29 of the Rules and Article 49 of the LCA. They include preserving the status quo of disputed assets, seizure of disputed assets, prohibiting transfers, and provisional payment. Under the LCA the tribunal may require the applicant to provide security.
• The court may order interim measures only after the request for arbitration has been filed (LCA Article 53). It can then act whether or not the tribunal has been formed. Since 1 July 2025 this function belongs to the regional people's courts.
• No double applications. If a party has applied to a court for a measure, the tribunal will decline an application for the same measure, and the party must notify VIAC immediately. Applying to the court does not waive the arbitration agreement.

Practical sequence: prepare the Request for Arbitration and the court application together, file the arbitration first, then file in court within days.

7. After the Award: Set-Aside, Enforcement and Collection Abroad

Setting aside. A party may apply to set aside an award within 30 days of receiving it (LCA Article 69). Since 1 July 2025 the application goes to the People's Court of Hanoi, Da Nang or Ho Chi Minh City, according to where the tribunal made the award. A panel of three judges decides, and its decision is final (Article 71). There are five grounds (Article 68):

• there was no arbitration agreement, or it is invalid;
• the composition of the tribunal or the procedure was contrary to the parties' agreement or the law;
• the dispute was outside the tribunal's jurisdiction;
• evidence was forged, or an arbitrator received money or other benefits from a party that affected the award;
• the award is contrary to the fundamental principles of Vietnamese law.

The fifth ground is argued often. The best defence is procedural discipline. Under LCA Article 13 and Article 43 of the Rules, a party that does not object to an irregularity within the applicable time limit loses the right to raise it later, before the tribunal or the court.

Enforcing a VIAC award in Vietnam. When the period for voluntary compliance has passed and no set-aside application has been filed, the creditor applies to the competent civil judgment enforcement agency (LCA Article 66).

Enforcing a foreign award in Vietnam. The application for recognition must be filed within three years from the date the award takes legal effect (Civil Procedure Code, Article 451). Only a final award that resolves the entire dispute qualifies (Article 424); partial and interim awards do not. Since the 2025 reform, the application is heard at first instance by the regional people's court where the debtor has its head office or where the assets are located. File the original or a certified copy of the award and the arbitration agreement, with certified Vietnamese translations (Article 453). The Code does not expressly require consular legalisation, but confirm the court's practice before filing.

Enforcing a VIAC award abroad. The procedure follows the arbitration law of the country where the assets are. In Convention countries it is the ordinary Convention procedure; prepare the original or a certified copy of the award and the arbitration agreement, with translations where required. Taiwan, as a non-Convention example, requires an application to the district court with the award, the arbitration agreement, the full text of the arbitration rules applied, and Chinese translations (Arbitration Act, Article 48).

8. Seven Mistakes Foreign Investors Make

• Copying the parent company's clause with a home-country seat when every relevant asset is in Vietnam.
• Not checking who signed for the Vietnamese side, then losing months on an objection to the arbitration agreement.
• Letting the two-year limitation period run while negotiating informally.
• Underestimating the advance on costs and missing VIAC's payment deadline, so that the Request is deemed withdrawn.
• Expecting an emergency arbitrator and losing the window to freeze assets.
• Failing to object in time to a procedural irregularity, then trying to raise it at the set-aside stage.
• Forgetting the Expedited Procedure default in new contracts, then facing a sole arbitrator and a two-month timetable in a complex dispute.

Louis & Partners Vietnam advises foreign-invested companies on disputes with Vietnamese counterparties, working with Louis Group's offices in Taiwan and Thailand where a cross-border element is involved. We review arbitration clauses before signing, assess where a counterparty's assets are and which forum will reach them, prepare VIAC filings and parallel court applications for interim measures, and coordinate recognition and enforcement in Vietnam and abroad. Our lawyers work in Vietnamese, English and Chinese. Contact our Hanoi office or Ho Chi Minh City office .

This article reflects the law and the VIAC Rules as of 5 October 2026. It provides general information only and is not legal advice. For advice on a specific contract or dispute, please contact Louis Group.

Related reading

• The Complete Guide to Establishing Your Business in Vietnam for Taiwanese Companies 2026
• Arrested in Vietnam as a Foreigner 2026: How to Reach a Lawyer in Hours, Not Weeks

Frequently Asked Questions (FAQ)

Is Vietnam's arbitration law changing in 2026?

No. The Law on Commercial Arbitration 2010 remains in force. In 2025 only Article 7.3, on court jurisdiction, was amended. A broader revision is being prepared but has not been submitted to the National Assembly.

Do the VIAC Rules 2026 apply to a contract signed before 1 July 2026?

Yes, if the arbitration is commenced on or after 1 July 2026 and the parties have not agreed otherwise. The Expedited Procedure is the exception: for an older arbitration agreement it applies only if the parties agree to it before VIAC notifies them that the tribunal has been constituted.

Can a VIAC arbitration be conducted in English?

Yes, if the dispute has a foreign element or at least one party is a foreign-invested enterprise. English is the common choice. Other languages are possible, but confirm arbitrator availability first.

Will a Vietnamese court enforce a foreign arbitral award?

Awards made in New York Convention states have a treaty basis and are recognised through the Civil Procedure Code procedure, although recognition can be refused on Convention grounds. Awards from non-Convention jurisdictions depend on reciprocity or a bilateral agreement; Taiwan, for example, relies on Article 24 of the Taiwan–Vietnam Agreement on Judicial Assistance in Civil Matters, which has no published precedent yet. A VIAC award avoids the recognition step altogether.

Which court hears an application to set aside a VIAC award?

The People's Court of Hanoi, Da Nang or Ho Chi Minh City, depending on where the tribunal made the award. The application must be filed within 30 days of receiving the award, and the court's decision is final.

Can I freeze a Vietnamese counterparty's assets before starting arbitration?

No. Under the Law on Commercial Arbitration a court may order interim measures only after the request for arbitration has been filed, and VIAC has no emergency arbitrator. File the arbitration first, then apply to the regional people's court.

How long does a VIAC arbitration take?

It depends on complexity. The Rules give the respondent 30 days to defend and require the award within 30 days of the final hearing. Under the Expedited Procedure the award is due within two months of the tribunal's constitution, subject to extension by VIAC.

Can my Vietnamese subsidiary agree to SIAC or ICC arbitration?

Usually yes if the subsidiary is majority foreign-owned, because Article 13 of the Law on Investment 2025 allows disputes involving a foreign investor or a foreign-controlled economic organisation to go to foreign or international arbitration. A minority foreign stake normally does not qualify, and the dispute must then go to Vietnamese arbitration or a Vietnamese court.

Is the International Financial Centre's arbitration centre relevant to my company?

Only if the dispute is connected with investment or business activities at the International Financial Centre. For most foreign manufacturers and traders, VIAC remains the relevant institution.