Regulations Governing Foreign Investors Engaging in Commercial Arbitration and Mediation Services in Vietnam

1. Legal Basis

- The WTO General Agreement on Trade in Services (GATS) and Vietnam's Schedule of Specific Commitments on Trade in Services;

- AFAS, VJEPA, VKFTA, EVFTA, CPTPP;

- Law on Investment No. 143/2025/QH15 dated February 11, 2025;

- Law on Commercial Arbitration No. 54/2010/QH12 dated June 17, 2010;

- Decree No. 22/2017/ND-CP dated February 24, 2017, on Commercial Mediation.

2. Definition of Commercial Arbitration and Mediation Services

According to Section 86 of the Annex on the Explanation of Services Listed in the United Nations Central Product Classification (CPC), as set out in Vietnam's Handbook on Commitments in Trade in Services under the WTO, arbitration and mediation services (CPC 86602) comprise:

Services involving assistance through arbitration and mediation in resolving disputes between management and employees, between enterprises, and between individuals.

Exclusions: Services provided by representatives acting on behalf of one of the parties in a dispute, as well as advisory services in the field of labor relations, which are classified under Subclass 86190 (Other legal information and advisory services), Subclass 95110 (Services furnished by business and employers' organizations), and Class 95200 (Services furnished by trade unions).

3. Market Access Restrictions

Pursuant to Point d, Section II.1.F (Other Business Services) of Vietnam's Schedule of Specific Commitments on Trade in Services under the WTO, commitments concerning arbitration and mediation services for commercial disputes between traders (CPC 86602**) are as follows:

• For the first three years following Vietnam's accession to the WTO: Unbound. Thereafter: None.
• None, except that the head of a branch must be a resident of Vietnam.

Furthermore, pursuant to Annex NCM II-VN-23 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam reserves the right to adopt and maintain any measure relating to arbitration and mediation services (CPC 86602), except for arbitration and mediation services for commercial disputes between enterprises.

4. Vietnamese Legal Regulations Governing Commercial Arbitration and Mediation Services

4.1. Conditions and Forms of Operation of Foreign Commercial Mediation Organizations in Vietnam

Pursuant to Article 33 of Decree No. 22/2017/ND-CP, a foreign commercial mediation organization that is lawfully established and operating abroad and respects the Constitution and laws of the Socialist Republic of Vietnam may operate in Vietnam in accordance with the provisions of this Decree.

Foreign commercial mediation organizations may operate in Vietnam in the following forms:

(i) A branch of a foreign commercial mediation organization;

(ii) A representative office of a foreign commercial mediation organization.

4.2. Conditions for Establishing an Arbitration Center

Pursuant to Clause 1, Article 24 of the 2010 Law on Commercial Arbitration, an arbitration center may be established upon the application of at least five founding members who are Vietnamese citizens and satisfy the eligibility requirements for arbitrators stipulated in Article 20 of this Law. The establishment of the arbitration center is subject to the issuance of an establishment license by the Minister of Justice.

In general, foreign investors' provision of commercial arbitration and commercial mediation services in Vietnam is governed by a multilayered legal framework comprising international commitments on trade in services and relevant domestic legislation. Properly identifying the scope of market access commitments, applicable reservations, and operational requirements for each type of organization is essential to ensuring the legality of investment activities. Accordingly, continued review and improvement of the legal framework, together with efforts to ensure consistency among relevant legal provisions, will help enhance transparency, facilitate foreign investment, and strengthen the effectiveness of state management in this specialized service sector.