FAQs on Recognition and Enforcement of Foreign Arbitral Awards in Vietnam

Question 1: What is the statute of limitations for filing a request for recognition and enforcement of a foreign arbitral award in Vietnam?

Answer: The limitation period for filing is 03 years from the date the foreign arbitral award takes legal effect. However, if the applicant can prove that a force majeure event or objective obstacle prevented them from filing on time, the duration of such event or obstacle shall not be included in the limitation period.

Question 2: Are foreign language documents attached to the application required to be translated into Vietnamese?

Answer: Yes. Any application as well as accompanying documents in a foreign language must be submitted with a Vietnamese translation that is legally notarized or authenticated.

Question 3: Within what timeframe must the Ministry of Justice transfer the dossier to the competent Court?

Answer: Within 05 working days from the date of receipt of the application and valid documents as prescribed, the Ministry of Justice must transfer the dossier to the competent Court.

Question 4: How long does the preparation period for considering the application at the Court last, and what decisions can the Court issue?

Answer: The preparation period is 02 months from the date of case docketing. During this period, the Court shall issue one of the following decisions:

(a) Suspension of the consideration;

(b) Termination of the consideration; or

(c) Holding a meeting to consider the application. If the Court requests further clarification on unclear points, this period may be extended but shall not exceed an additional 02 months.

Question 5: When does the Court issue a decision to terminate the consideration of an application?

Answer: The Court will issue a termination decision in one of the following cases:

• The judgment creditor withdraws the application, or the judgment debtor has voluntarily enforced the award.

• The judgment debtor is an individual who has passed away without an heir to their rights and obligations.

• The judgment debtor is an agency or organization that has been dissolved or declared bankrupt, and its rights and obligations have been fully settled, or there is no successor to its procedural rights and obligations.

• The Court cannot determine the location of the judgment debtor’s assets in Vietnam.

Question 6: How is the Council for considering applications for recognition and enforcement of foreign arbitral awards constituted?

Answer: The Council consists of three Judges, with one Judge acting as the presiding chair as assigned by the Chief Justice of the Court. This meeting also requires the mandatory participation of a Prosecutor from the equivalent People’s Procuracy (the meeting will proceed even if the Prosecutor is absent).

Question 7: Does the Court have the right to re-examine the merits of the dispute already decided by the foreign Arbitrator?

Answer: No. When considering the application, the Council is not permitted to re-adjudicate the settled dispute. The Court's duty is solely to inspect and contrast the award and accompanying documents with Vietnamese law and international treaties to decide on recognition or non-recognition.

Question 8: In what typical cases will a foreign arbitral award not be recognized by Vietnamese Courts?

Answer: The Court will refuse recognition if:

• The parties to the arbitration agreement lacked the capacity to sign it, or the agreement is legally invalid.

• The judgment debtor was not promptly and properly notified of the appointment of Arbitrators or the arbitration procedures.

• The award deals with a dispute not contemplated by or exceeding the scope of the submission to arbitration.

• The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties.

• The award has not yet become binding or has been set aside or suspended by a competent authority in the country where it was made.

• Additionally, the award will not be recognized if it is contrary to the fundamental principles of Vietnamese law or if the dispute is not arbitrable under Vietnamese law.

Question 9: What is the time limit for parties to appeal the Court's decision regarding recognition or termination/suspension?

Answer: The parties or their legal representatives have the right to appeal within 15 days from the date the Court issues the decision. If a party is absent from the meeting, this time limit is calculated from the date they receive the decision.

Question 10: Which level of Court has the jurisdiction to hear appeals or protests, and what is the time limit for resolution?

Answer: The Provincial People's Court has the jurisdiction to review the decisions of the Regional People's Court that are appealed or protested. The review period is 01 month from the date of receiving the dossier; if further explanation from the parties is required, this period may be extended but shall not exceed 02 months.