Author:

• Nguyen Huyen Anh – Lawyer
• Le Hong Dang – Paralegal

According to the provisions of Article 317 of the Commercial Law 2005, commercial disputes may be resolved through four methods: negotiation between the parties, mediation through an intermediary, resolution by commercial arbitration, and resolution by the Court. Among these, commercial arbitration is increasingly chosen by business entities due to its flexibility, confidentiality, and its ability to ensure independence during the dispute resolution process

This article analyzes the conditions for the recognition and enforcement of foreign arbitral awards in Vietnam in accordance with the provisions of Vietnamese law. On that basis, it clarifies requirements regarding the jurisdiction of the arbitral tribunal, the validity of the arbitration agreement, procedural sequence, and the grounds upon which Vietnamese Courts may refuse to recognize and enforce an arbitral award.

1. Overview of Commercial Arbitration and Arbitral Awards

Commercial arbitration is a method of dispute resolution outside of the Court. Accordingly, the parties agree to resolve the matter through an Arbitral Tribunal of their own choosing. This method is recognized in the laws of many countries as well as in international treaties, and is increasingly favored by business entities for its flexibility, confidentiality, and capacity to ensure neutrality during dispute resolution.

The result of the arbitration process is an arbitral award. An arbitral award is a decision issued by the Arbitral Tribunal to resolve the whole or part of the dispute between the parties. According to arbitration law, an arbitral award is final and binding[1] on the disputing parties.

In addition to domestic arbitral awards, Vietnamese law also recognizes the concept of foreign arbitral awards. According to the Law on Commercial Arbitration 2010 (“LCA”): A foreign arbitral award is an award rendered by a foreign arbitration outside the territory of Vietnam or within the territory of Vietnam to resolve a dispute as agreed upon and chosen by the parties. The recognition and enforcement of these awards in Vietnam are carried out in accordance with the provisions of civil procedure law and international treaties to which Vietnam is a member.

2. Conditions for Foreign Arbitral Awards to be Recognized and Enforced in Vietnam

According to Clause 1, Article 424 of the 2015 Civil Procedure Code, a foreign arbitral award may be considered for recognition and enforcement by a Vietnamese Court when it meets certain conditions, specifically:

“1. The following foreign arbitral awards shall be considered for recognition and enforcement in Vietnam:

a) Awards of foreign arbitrations where such country and the Socialist Republic of Vietnam are both members of an international treaty on the recognition and enforcement of foreign arbitral awards;

b) Awards of foreign arbitrations not falling under the case specified in Point a of this Clause on the basis of the principle of reciprocity.”

The provisions in Article 424 establish the basis for Vietnamese Courts to consider the recognition and enforcement of foreign arbitral awards. This mechanism is regarded as a legal tool to guarantee and protect the legitimate rights and interests of Vietnamese individuals and organizations in international legal relations, while ensuring equality in the application and enforcement of law between nations.

To have an award recognized and enforced in Vietnam, the judgment creditor or their legal representative must perform the request procedures at a Vietnamese Court. Specifically, Article 425 of the Civil Procedure Code 2015 stipulates:

“1. The judgment creditor or their legal representative has the right to request a Vietnamese Court to recognize and enforce in Vietnam a civil judgment or decision of a foreign Court, or an award of a foreign arbitration, if the individual bound by the enforcement resides or works in Vietnam, or the agency or organization bound by the enforcement has its head office in Vietnam, or the assets related to the enforcement of the foreign Court’s judgment/decision or foreign arbitral award are located in Vietnam at the time of the request.

2. The judgment debtor or their legal representative has the right to request a Vietnamese Court not to recognize a civil judgment or decision of a foreign Court.
3. The involved parties, persons with related legitimate rights and interests or their lawful representatives may file their petition requesting Vietnamese Courts not to recognize civil judgments or decisions of foreign Courts which are not requested for enforcement in Vietnam.”

3. Time Limit for Requesting Recognition and Enforcement of Commercial Arbitral Awards in Vietnam

After ensuring the conditions in Section 2, the judgment creditor, persons with related legitimate rights and interests, or their legal representatives have the right to submit an application to a competent Vietnamese Court (through the Ministry of Justice) of Vietnam for the Vietnamese Court to recognize and enforce the award within a time limit of 03 years from the date the award takes legal effect.

In cases where the applicant can prove that due to a force majeure event or objective impediment they could not submit the application within the aforementioned 03-year limit, the period during which the force majeure or objective impediment occurred shall not be included in the time limit for submission.

This 03-year regulation aims to ensure the requester’s rights while creating stability in legal relations after the award has taken effect. The provision of law allowing the exclusion of the period during which a force majeure event or an objective impediment occurs from the statutory time limit reflects the principle of protecting the lawful right to request of the involved party, ensuring that the expiry of the time limit does not take place in circumstances where the party is unable to exercise its rights due to reasons beyond its control.

At the same time, this regulation also provides a legal basis for the Court to consider the matter with flexibility, while still within the framework of the law, when accepting and handling a request for recognition and enforcement of an arbitral award.

4. Cases of Non-recognition and Non-enforcement of Foreign arbitral awards in Vietnam

Beside the conditions for consideration, the 2015 Civil Procedure Code also stipulates cases where a Vietnamese Court may refuse to recognize and enforce these awards. According to Article 459, the Court may not recognize a foreign arbitral award when:

(i) The arbitration agreement between the parties is not legally valid under the law of the country chosen by the parties or under the law of the country where the award was rendered, if the parties did not choose an applicable law for that agreement;

(ii) The parties lacked the capacity to establish the agreement under the applicable law;

(iii) The agency, organization, or individual bound by the enforcement was not promptly and duly notified of the appointment of the Arbitrator or the dispute resolution procedures at the foreign arbitration, or for other legitimate reasons could not exercise their procedural rights;

(iv) The foreign arbitral award was rendered regarding a dispute not requested by the parties or exceeding the request of the parties to the arbitration agreement. If the decision on the requested matter can be separated from the unrequested matter, the former may still be recognized and enforced in Vietnam;

(v) The composition of the arbitral tribunal or the dispute resolution procedures were not in accordance with the arbitration agreement or the law of the country where the award was rendered, if the agreement was silent on such matters;

(vi) The foreign arbitral award has not yet become binding on the parties;

(vii) The foreign arbitral award has been set aside or suspended by a competent authority of the country where the award was rendered or the country whose law was applied.

In addition to the aforementioned grounds cited by the party bound by enforcement, Vietnamese Courts also have the right to proactively review and refuse the recognition of a foreign arbitral award in cases where the dispute, according to Vietnamese law, does not fall within the scope of resolution by arbitration, or if the recognition and enforcement of that award are contrary to the fundamental principles of Vietnamese law. These regulations aim to ensure that the recognition and enforcement of foreign arbitral awards in Vietnam are carried out in accordance with the national legal order, while simultaneously protecting the legitimate rights and interests of the parties involved.

In summary, the recognition and enforcement of foreign arbitral awards in Vietnam are placed within a strict legal framework to ensure harmony between respecting the arbitration mechanism for dispute resolution and protecting the national legal order. The cases of non-recognition as prescribed by civil procedure law demonstrate the oversight role of Vietnamese Courts in reviewing the legality and fairness of the arbitral proceedings, as well as the conformity of the award with the fundamental principles of Vietnamese law.

This mechanism contributes to building trust for entities participating in international commercial relations, while affirming Vietnam’s commitment to complying with international legal standards regarding dispute resolution by arbitration.

[1] Article 4 Law on Commercial Arbitration

Time of writing: 12/03/2026

The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer  at  info@cdlaf.vn

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