Vietnam’s Deputy Minister of Justice Attends Paris Arbitration Week 2026 and Meets with President of the ICC International Court of Arbitration

March 24 2026 | Department of International Cooperation | Vietnam Law Newspaper

Within the framework of an official visit to the French Republic, on 23 March 2026, Nguyen Thanh Tinh, Deputy Minister of Justice of Vietnam, together with an inter-agency delegation, attended the opening ceremony of Paris Arbitration Week 2026 (PAW 2026) and held a meeting with the President of the International Court of Arbitration at the headquarters of the International Chamber of Commerce (ICC).

On the morning of 23 March 2026, Deputy Minister Nguyen Thanh Tinh led the Ministry of Justice delegation, comprising Mr. Nguyen Huu Huyen (Director General of the Department of International Cooperation), Mr. Nguyen Tan Cuong (Deputy Director General of the Department of Judicial Support), Ms. Hoang Thanh Hang (Officer of the Department of International Law and Investment Dispute Settlement), and Nguyen Trung Nam, Director of EPLegal and Founding Representative of the International Arbitration Centre under the proposed International Financial Centre of Vietnam, to attend the opening ceremony.

The significance of Paris Arbitration Week was evident from its opening session, which featured high-level speakers including Gérald Darmanin, Éléonore Caroit, and Louis Degos. Their opening remarks underscored the importance and global standing of this year’s forum.

Paris Arbitration Week serves not only as a major platform for international experts and arbitrators to discuss key issues in commercial and investment arbitration, but also as a forum promoting connectivity grounded in the rule of law, diversity, and innovation. The presence of the Vietnamese Ministry of Justice delegation reflects Vietnam’s strong commitment to international integration in the field of dispute resolution through arbitration.

Following the opening ceremony, Deputy Minister Nguyen Thanh Tinh and the delegation held a working session with Claudia Salomon, along with Ms. Donna Huang (Head of North Asia Case Management, ICC) and Mr. Tejus Chauhan (Head of South Asia Case Management, ICC).

During the meeting, the Deputy Minister shared Vietnam’s strategic vision, objectives, and legal framework for the development of an international financial centre. He emphasised that, for such a centre to operate effectively, it is essential to establish a transparent, credible dispute resolution mechanism aligned with international standards. He also expressed his expectation that the ICC leadership would share practical experience in the selection of the President and arbitrators of the International Court of Arbitration, thereby providing guidance for the establishment of an international arbitration centre within Vietnam’s future financial centre.

In response, Ms. Claudia Salomon commended Vietnam’s strategic direction in developing its international financial centre and agreed on the importance of a transparent and internationally aligned dispute resolution framework. She further provided two key recommendations: (i) the legal framework governing the arbitration centre should be consistent with national law; and (ii) the role of courts in supporting arbitration is critical. She also elaborated on the ICC’s procedures for appointing its President and arbitrators, highlighting the principles of transparency and fairness underpinning the process.

At the conclusion of the meeting, the Deputy Minister reaffirmed Vietnam’s respect for investors’ freedom to choose dispute resolution mechanisms and expressed high regard for the reputation of the ICC International Court of Arbitration. He also called for continued support from the ICC in the establishment and development of the international arbitration centre within Vietnam’s future international financial centre.

Source: Thứ trưởng Bộ Tư pháp Việt Nam Nguyễn Thanh Tịnh tham dự Tuần lễ Trọng tài quốc tế Paris 2026 và gặp chủ tịch Toà án Trọng tài quốc tế


For more information on EPLegal’s expertise in these areas, please feel free to get in touch with our team.

Tập trung đất nông nghiệp, tích tụ đất nông nghiệp theo quy định của Luật Đất đai năm 2024

Cao Nhật Anh | Tạp chí Luật học – Số đặc biệt “Luật Đất đai năm 2024: Những điểm mới và vấn đề tổ chức thi hành”, tháng 9/2025

Tóm tắt: Bài viết trình bày một số vấn đề lí luận cơ bản về tập trung đất nông nghiệp, tích tụ đất nông nghiệp; phân tích các quy định của Luật Đất đai năm 2024 đồng thời bình luận, đánh giá và đề xuất một số nội dung để tổ chức thi hành có hiệu quả các quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp trên thực tế.

Từ khoá: Luật Đất đai năm 2024; tập trung đất nông nghiệp; tích tụ đất nông nghiệp
Nhận bài: 14/4/2025     Hoàn thành biên tập: 28/9/2025 Duyệt đăng: 28/9/2025

1.  Đặt vấn đề

Luật Đất đai năm 2024 thay thế Luật Đất đai năm 2013, thể chế hoá Nghị quyết số 18- NQ/TW ngày 16/6/2022 của Hội nghị lần thứ 5 Ban Chấp hành trung ương Đảng khoá XIII về tiếp tục đổi mới, hoàn thiện thể chế, chính sách, nâng cao hiệu lực, hiệu quả quản lí và sử dụng đất, tạo động lực đưa nước ta trở thành nước phát triển có thu nhập cao (sau đây gọi là Nghị quyết số 18-NQ/TW). Một trong những nội dung đáng chú ý của Luật này là những sửa đổi, bổ sung về chế độ sử dụng đất nông nghiệp nói chung và bổ sung quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp nói riêng nhằm thể chế hoá quan điểm của Đảng: “Mở rộng đối tượng, hạn mức nhận chuyển quyền sử dụng đất nông nghiệp phù hợp với đặc điểm, điều kiện của từng vùng, địa phương, với việc chuyển đổi nghề, việc làm, lao động ở nông thôn. Tạo điều kiện thuận lợi để người sử dụng đất nông nghiệp được chuyển đổi mục đích sản xuất cây trồng, vật nuôi, nâng cao hiệu quả sử dụng đất nông nghiệp theo quy hoạch. Tăng cường quản lí chất lượng đất, khắc phục tình trạng thoái hoá, suy giảm chất lượng đất”1. So với Luật Đất đai năm 2013, quy định về tập trung đất nông nghiệp, quy định về tích tụ đất nông nghiệp là một trong những nội dung mới của Luật Đất đai năm 2024 nhằm góp phần hoàn thiện thể chế pháp lí về đất nông nghiệp ở nước ta. Bài viết tìm hiểu, phân tích về nội dung các quy định này của Luật Đất đai năm 2024.

2. Thực trạng sử dụng đất nông nghiệp và sự cần thiết xây dựng các quy định về tập trung đất nông nghiệp và tích tụ đất nông nghiệp của Luật Đất đai năm 2024

Theo thống kê năm 20232, tổng diện tích đất nông nghiệp của nước ta là 27.976.827 ha (chiếm tới 84,4% tổng diện tích đất cả nước) bao gồm đất sản xuất nông nghiệp 11.649.036 ha, đất lâm nghiệp 15.465.524 ha, đất nuôi trồng thuỷ sản 783.328 ha, đất làm muối 15.246 ha, đất nông nghiệp khác 63.692 ha. Việt Nam có 8 vùng đất nông nghiệp gồm: Đồng bằng sông Hồng, Đông Bắc bộ, Tây Bắc bộ, Bắc Trung bộ, Duyên hải Nam Trung bộ, Tây Nguyên, Đông Nam bộ và đồng bằng sông Cửu Long (ĐBSCL). Mỗi vùng đều có đặc trưng cây trồng rất đa dạng. Trong đó, ĐBSCL chủ yếu là lúa; Tây Nguyên là cà phê, rau, hoa, trà; miền Đông Nam bộ là cao su, mía, bắp, điều… Đất nông nghiệp hiện được chia thành 5 loại: Đất sản xuất nông nghiệp, Đất lâm nghiệp, Đất nuôi trồng thủy sản, Đất làm muối, Đất nông nghiệp khác. Đất nông nghiệp ở nước ta phân bố không đồng đều giữa các vùng trong cả nước. Vùng ĐBSCL có tỉ trọng đất nông nghiệp trong tổng diện tích đất tự nhiên lớn nhất cả nước, chiếm 62,9% diện tích toàn vùng3. Ít nhất là vùng Duyên hải miền Trung. Đất nông nghiệp chịu ảnh hưởng mạnh mẽ do thổ nhưỡng tại các vùng nên độ phì nhiêu (Soil Fertility) và độ màu mỡ (Soil Productivity) của đất nông nghiệp giữa các vùng cũng khác nhau. Đất đai ở vùng Đồng bằng Sông Hồng và ĐBSCL được bồi tụ phù sa thường xuyên nên rất màu mỡ, mỗi năm đất phù sa bồi tụ ở ĐBSCL thêm 80m. Vùng Tây Nguyên và Đông Nam Bộ phần lớn là đất bazan.

Tuy nhiên, Việt Nam là một trong những quốc gia có bình quân diện tích ruộng đất thấp nhất so với khu vực và thế giới. Diện tích đất sản xuất nông nghiệp bình quân đầu người trên thế giới là 0,52 ha, trong khu vực là 0,36 ha, Việt Nam là 0,25 ha. Sau mỗi chu kì hai mươi năm, tình trạng phân mảnh tăng gấp đôi. Sự phân mảnh còn dẫn đến tình trạng lãng phí đất đai được sử dụng làm ranh giới, bờ bao. Con số này không dưới 4% diện tích canh tác4. Quỹ đất nông nghiệp tiếp tục suy giảm do công nghiệp hoá và đô thị hoá. Theo số liệu của Tổng cục Quản lí đất – Bộ Tài nguyên và Môi trường (nay là Bộ Nông nghiệp và Môi trường), bình quân mỗi năm đất nông nghiệp giảm gần 100 nghìn hécta, đặc biệt năm 2007 giảm 120 nghìn hécta, trong khi mỗi năm số lao động bước ra khỏi ruộng đồng chỉ vào khoảng 400 ngàn người. Hơn nữa, mức gia tăng dân số ở nông thôn không giảm nhiều như mong đợi, khiến cho bình quân đất canh tác trên đầu người ngày càng giảm mạnh. Như vậy, phát triển nông nghiệp quy mô nhỏ trong những năm qua đang làm cho đất đai bị khai thác cạn kiệt, chi phí sản xuất cao, khó áp dụng tiến bộ khoa học kĩ thuật. Đây là một trong những rào cản gây khó khăn cho hàng hoá nông sản của nước ta tham gia vào chuỗi cung ứng, chuỗi giá trị toàn cầu do không áp dụng được máy móc hiện đại, công nghệ tiên tiến vào sản xuất nông nghiệp. Hiện nay, giá cả hàng hoá nông sản Việt không cạnh tranh được với sản phẩm cùng loại của các nước trong khu vực và thế giới. Nguyên nhân cơ bản của thực trạng này là năng suất lao động thấp. Mức năng suất lao động tính theo sức mua tương đương năm 2019 của Việt Nam chỉ cao hơn Campuchia so với các quốc gia Đông Nam Á5. Điều này đặt ra yêu cầu cấp thiết phải tích tụ, tập trung đất nông nghiệp khắc phục tình trạng manh mún về ruộng đất hiện nay tạo điều kiện thuận lợi để thực hiện công nghiệp hoá – hiện đại hoá nông nghiệp, nông thôn và góp phần nâng cao năng suất lao động trong sản xuất nông nghiệp. Muốn vậy, Nhà nước cần thực hiện đồng bộ các giải pháp mà trước hết là phải xây dựng hệ thống pháp luật về tích tụ, tập trung đất nông nghiệp đồng bộ, thống nhất, đầy đủ nhằm tạo cơ sở pháp lí khắc phục tình trạng manh mún về ruộng đất. Luật Đất đai năm 2024 được ban hành với những sửa đổi, bổ sung về chế độ sử dụng đất nông nghiệp nói chung và bổ sung quy định về tập trung đất nông nghiệp, quy định về tích tụ đất nông nghiệp góp phần hoàn thiện thể chế pháp lí về đất nông nghiệp.

3. Phân biệt tập trung đất nông nghiệp và tích tụ đất nông nghiệp, các phương thức tập trung, tích tụ đất nông nghiệp

3.1. Phân biệt tập trung và tích tụ đất nông nghiệp

Trước khi tìm hiểu nội dung các quy định về tập trung đất nông nghiệp và tích tụ đất nông nghiệp của Luật Đất đai năm 2024, cần phải hiểu rõ bản chất của hai khái niệm này. Mặc dù tích tụ đất nông nghiệp và tập trung đất nông nghiệp thường được sử dụng đi kèm với nhau song nội hàm của hai thuật ngữ này lại có sự khác nhau. Các nghiên cứu về tập trung đất nông nghiệp và tích tụ đất nông nghiệp được công bố đều thống nhất quan niệm về hai khái niệm này như sau:

Thứ nhất, tích tụ đất đai (accumulation) là một hành vi trong đó chủ thể sở hữu và sử dụng ruộng đất dùng các biện pháp khác nhau như mua, chuyển nhượng và các biện pháp khác nhằm tăng được quy mô ruộng đất mà mình sở hữu và sử dụng6.

Tập trung đất đai (land concentration) được hiểu là quá trình làm tăng quy mô đất đai cho sản xuất – kinh doanh hay mục đích nào đó nhưng không làm thay đổi quyền hay quyền sử dụng của các chủ thể sở hữu và sử dụng ruộng đất7.

Thứ hai, theo tác giả Đỗ Kim Chung, điểm giống nhau của hai khái niệm này là đều là quá trình tăng quy mô diện tích đất đai phục vụ mục đích kinh tế nhất định. Tuy nhiên, chúng có điểm khác nhau cơ bản:

Một là, tích tụ ruộng đất là một quá trình mà một cá nhân tích góp bằng việc mua hay sử dụng các biện pháp khác để có thể sở hữu được nhiều diện tích đất hơn. Trong khi đó, tập trung ruộng đất là liên kết nhiều mảnh ruộng của nhiều chủ sở hữu khác nhau lại thành mô hình cánh đồng mẫu lớn.

Hai là, mục tiêu cơ bản của tích tụ đất đai là để sở hữu được diện tích lớn, trong khi đó, tập trung đất đai không vì mục tiêu sở hữu đất đai mà tạo điều kiện để sản xuất – kinh doanh một sản phẩm nào đó với quy mô tập trung. Tập trung đất đai không làm thay đổi phương thức sở hữu đất đai như đối với trường hợp tích tụ đất đai mà chỉ thay đổi cách thức quản lí, sử dụng đất đai hợp lí và hiệu quả hơn. Sự khác nhau này bắt nguồn từ sự khác nhau về phương thức tích tụ và tập trung đất đai.

Trong nền kinh tế thị trường, việc tích tụ và tập trung đất đai mang tính tất yếu. Các hoạt động này giúp cho các hộ ở nông thôn thực hiện được chuyên môn hoá theo hộ theo lợi thế của mình với phương châm “hộ nào giỏi nghề gì sẽ làm nghề ấy”. Hộ thuần nông có xu hướng mở rộng diện tích đất thông qua các hoạt động tích tụ, tập trung đất đai. Trong khi đó, các hộ ngành, nghề sản xuất tiểu, thủ công nghiệp, thủ công truyền thống… ở nông thôn chuyển nhượng đất cho các hộ thuần nông để tập trung vào việc phát triển ngành, nghề sản xuất phi nông nghiệp. Các hộ sử dụng đất nông nghiệp kém hiệu quả sẽ chuyển nhượng, cho thuê lại đất cho những hộ sản xuất – kinh doanh, sử dụng đất hiệu quả trong nông nghiệp.

3.2. Phương thức tập trung, tích tụ đất nông nghiệp

Thứ nhất, theo quan điểm của tác giả Đỗ Kim Chung, các phương thức để tích tụ đất đai bao gồm thị trường, được thừa kế, được tặng cho. Trong đó, cơ chế thị trường thông qua các hoạt động mua bán, chuyển nhượng quyền sử dụng đất (QSDĐ) là phương thức tích tụ đất đai cơ bản nhất.

Các chính phủ đều thừa nhận đất đai là hàng hoá đặc biệt và tạo điều kiện cho các hoạt động giao dịch thị trường (market transaction) vận hành thông suốt, đồng bộ để có thể tích tụ đất đai. Tuy nhiên, sự tích tụ đất đai theo cơ chế thị trường có thể tạo ra bất bình đẳng trong việc chiếm hữu đất đai: Có một số người sẽ chiếm hữu rất nhiều đất; trong khi đó, nhiều hộ gia đình, cá nhân nông dân không có đất. Để hạn chế sự bất bình đẳng này, các nước đều ban hành và thực thi chính sách “hạn điền” quy định diện tích đất tối đa mà một hộ gia đình, cá nhân được nhận chuyển nhượng đất nông nghiệp hoặc nhận chuyển nhượng QSDĐ nông nghiệp.

Bên cạnh đó, cá nhân có thể được thừa kế ruộng đất của cha ông hoặc được tặng cho đất. Việc tích tụ đất đai theo phương thức này thường diễn ra giữa các thành viên trong quan hệ gia đình, họ hàng ở khu vực nông thôn.

Thứ hai, các phương thức chủ yếu để tập trung đất đai bao gồm:

1) Thuê QSDĐ;

2) Góp vốn bằng QSDĐ vào tổ chức kinh tế;

3) Hợp tác, liên kết sản xuất để có cánh đồng quy mô lớn; 4) Chuyển đổi QSDĐ; 5) Dồn điển đổi thửa; 6) Thu hồi đất để thực hiện các dự án phát triển nông nghiệp công nghệ cao để thu hút doanh nghiệp đầu tư vào lĩnh vực nông nghiệp. Tuy nhiên, cần lưu ý rằng phương thức tập trung đất đai này chỉ được thực hiện, áp dụng ở các nước xác lập sở hữu toàn dân về đất đai, sở hữu nhà nước về đất đai.

4. Nội dung quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp của Luật Đất đai năm 2024

4.1. Về tập trung đất nông nghiệp

Tập trung đất nông nghiệp được quy định tại Điều 192 Chương XIII. Chế độ sử dụng đất của Luật Đất đai năm 2024. Điều luật này bao gồm 05 khoản, theo đó:

Thứ nhất, khoản 1 giải thích tập trung đất nông nghiệp là gì? Tập trung đất nông nghiệp được thực hiện thông qua các phương thức cụ thể nào? Tìm hiểu nội dung khoản 1 Điều 192 sẽ có “lời giải”, cụ thể:

Một là, tập trung đất nông nghiệp là việc tăng diện tích đất nông nghiệp để tổ chức sản xuất.

Hai là, tập trung đất nông nghiệp được thực hiện thông qua các phương thức sau đây:

  • Chuyển đổi QSDĐ nông nghiệp theo phương án dồn điền, đổi thửa;
  • Thuê QSDĐ;
  • Hợp tác sản xuất, kinh doanh bằng QSDĐ.

Thứ hai, việc tập trung đất nông nghiệp phải bảo đảm các nguyên tắc sau đây:

Một là, bảo đảm công khai, minh bạch, tự nguyện, dân chủ, công bằng.

Việc tập trung đất nông nghiệp góp phần khắc phục tình trạng manh mún về ruộng đất, tạo điều kiện để công nghiệp hoá, hiện đại hoá (CNH-HĐH), nâng cao năng suất lao động trong lĩnh vực nông nghiệp ở nước ta. Tuy nhiên như phần trên đã đề cập, bản chất của tập trung đất nông nghiệp là làm tăng quy mô diện tích đất nhưng không làm thay đổi quyền sở hữu hoặc QSDĐ của các chủ thể sử dụng đất thông qua một số phương thức cơ bản gồm thuê QSDĐ; chuyển đổi QSDĐ, góp vốn bằng QSDĐ… Các phương thức này thực hiện thông qua giao dịch dân sự được xác lập giữa các chủ thể sử dụng đất với nhau dựa trên nguyên tắc tự nguyện, dân chủ, công bằng mà không ai (kể cả nhà nước) có quyền áp đặt hoặc bắt ép người sử dụng đất thực hiện việc tập trung đất đai nếu họ không tự nguyện. Thực tiễn cho thấy việc thực hiện các giao dịch trên đây để tập trung đất nông nghiệp không đạt hiệu quả hoặc khó thành công nếu vi phạm nguyên tắc dân chủ, công bằng.

Công khai, minh bạch là một tiêu chí cơ bản của quản trị tốt (good-governance) được các nước trên thế giới thừa nhận và thực hiện trong mọi hoạt động của đời sống xã hội8. Ở nước ta, công khai, minh bạch là một nguyên tắc; đồng thời là một yêu cầu của hoạt động, vận hành tổ chức quản lí xã hội. Việc tập trung đất nông nghiệp ở nước ta cũng không phải là một trường hợp ngoại lệ.

Hai là, bảo đảm quyền, lợi ích hợp pháp của Nhà nước, người sử dụng đất và của tổ chức, cá nhân có liên quan; không ảnh hưởng đến quốc phòng, an ninh.

Do đất đai được sử dụng vào nhiều mục đích khác nhau. Nó vừa là tài sản công của quốc gia vừa là tài sản riêng của mỗi cá nhân. Việc sử dụng đất ảnh hưởng trực tiếp đến quyền, lợi ích của Nhà nước, của người sử dụng đất và của tổ chức, cá nhân có liên quan. Vì vậy, đảm bảo hài hoà lợi ích hợp pháp của Nhà nước, người sử dụng đất, của tổ chức, cá nhân có liên quan là nguyên tắc, là yêu cầu cốt lõi trong quản lí và sử dụng đất. Mục đích cơ bản của tập trung đất nông nghiệp là tăng quy mô diện tích đất nhưng vẫn không làm thay đổi quyền sở hữu hoặc QSDĐ của các chủ thể tạo điều kiện thuận lợi để áp dụng máy móc, các thành tựu khoa học, công nghệ hiện đại nhằm nâng cao hiệu quả sử dụng đất và năng suất lao động trong nông nghiệp. Tuy nhiên, vấn đề đặt ra là việc tập trung đất đai đem lại lợi ích lớn nhất cho chủ thể nào. Nếu tập trung đất nông nghiệp chỉ mang lại lợi ích cho nhà nước mà người sử dụng đất hoặc tổ chức, cá nhân có liên quan không được hưởng lợi ích từ việc làm này và ngược lại thì sẽ khó đạt được sự đồng thuận xã hội. Do đó, Luật Đất đai năm 2024 quy định tập trung đất nông nghiệp bảo đảm quyền, lợi ích hợp pháp của nhà nước, người sử dụng đất và của tổ chức, cá nhân có liên quan. Mặt khác, việc tập trung đất nông nghiệp không ảnh hưởng đến quốc phòng, an ninh. Có nghĩa là khi thực hiện tập trung đất nông nghiệp có liên quan đến khu vực quốc phòng, an ninh thì phải có ý kiến của Bộ Quốc phòng, Bộ Công an. Trường hợp các cơ quan này có ý kiến không đồng ý thì việc tập trung đất nông nghiệp không được thực hiện.

Ba là, tuân thủ quy định của pháp luật về đất đai, pháp luật về dân sự và quy định khác của pháp luật có liên quan; phù hợp với quy hoạch, kế hoạch sử dụng đất đã được cơ quan có thẩm quyền phê duyệt.

Nguyên tắc này đảm bảo việc tập trung đất nông nghiệp không thể thực hiện một cách tùy tiện, thiếu thống nhất mà phải tuân thủ pháp luật và phù hợp với quy hoạch, kế hoạch sử dụng đất đã được cơ quan có thẩm quyền phê duyệt. Có như vậy, việc tập trung đất nông nghiệp mới không phá vỡ trật tự quản lí đất đai của nhà nước, ngăn ngừa tình trạng vi phạm pháp luật, lợi ích nhóm…; đồng thời, khẳng định vai trò của quy hoạch, kế hoạch sử dụng đất trong quản lí và sử dụng đất ở nước ta.

Bốn là, phù hợp với đặc điểm về đất đai, địa hình, khí hậu, văn hoá, quá trình chuyển dịch lao động, chuyển đổi nghề, việc làm ở nông thôn của từng vùng, từng khu vực, từng địa phương và phù hợp với nhu cầu của thị trường. Việc tập trung đất nông nghiệp không thể thực hiện “rập khuôn” giống nhau ở các địa phương mà phải xem xét đến các yếu tố đặc thù, điều kiện cụ thể của từng địa phương. Có như vậy, tập trung đất nông nghiệp mới thực hiện thành công, mang lại hiệu quả thiết thực, bền vững. Nguyên tắc này là một biểu hiện sinh động của cặp phạm trù “thống nhất – đặc thù” hay “cái chung – cái riêng” được vận dụng trong nội dung về tập trung đất nông nghiệp của Luật Đất đai năm 2024. Như vậy, tập trung đất nông nghiệp không phải là việc làm mang tính phong trào mà việc tập trung đất nông nghiệp phải tương thích, phù hợp với quá trình chuyển dịch lao động, chuyển đổi nghề nghiệp, việc làm theo hướng CNH- HĐH nông nghiệp, nông dân, nông thôn góp phần nâng cao hiệu quả sử dụng đất nông nghiệp; nâng cao năng suất lao động trong khu vực sản xuất nông nghiệp.

Thứ ba, Nhà nước có chính sách khuyến khích tổ chức, cá nhân thực hiện tập trung đất để sản xuất nông nghiệp; ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tập trung.

Kinh phí cho công tác đo đạc, chỉnh lí hồ sơ địa chính, cấp giấy chứng nhận QSDĐ, quyền sở hữu tài sản gắn liền với đất để thực hiện dồn điền, đổi thửa nhằm tập trung đất để sản xuất nông nghiệp do ngân sách nhà nước bảo đảm.

Quy định này khuyến khích tổ chức, cá nhân thực hiện tập trung đất để sản xuất nông nghiệp từ phía nhà nước trong việc hỗ trợ kinh phí đo đạc, chỉnh lí hồ sơ địa chính, cấp giấy chứng nhận QSDĐ, quyền sở hữu tài sản gắn liền với đất và chuyển giao ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tập trung. Mặt khác, người sử dụng đất thực hiện tập trung đất nông nghiệp không phải chịu chi phí cho việc đo đạc, chỉnh lí hồ sơ địa chính, cấp giấy chứng nhận QSDĐ, quyền sở hữu tài sản gắn liền với đất…

Thứ tư, tổ chức kinh tế, cá nhân thực hiện việc tập trung đất nông nghiệp phải lập phương án sử dụng đất gửi ủy ban nhân dân (UBND) cấp xã để theo dõi. Trường hợp trong phương án sử dụng đất mà có thay đổi mục đích sử dụng đất trong nội bộ nhóm đất nông nghiệp thì phải thỏa thuận với người sử dụng đất về việc hoàn trả đất nông nghiệp sau khi đã tham gia tập trung đất đai. Trường hợp tập trung đất nông nghiệp mà phải điều chỉnh lại QSDĐ thì thực hiện theo quy định tại Điều 219 Luật Đất đai năm 2024.

Việc tập trung đất nông nghiệp được thực hiện dựa trên sự tự nguyện, dân chủ, bình đẳng, công khai giữa những người sử dụng đất nhằm làm tăng diện tích đất tạo điều kiện áp dụng máy móc, thành tựu khoa học công nghệ hiện đại, tiên tiến vào sản xuất nâng cao năng suất lao động trong nông nghiệp. Dẫu vậy, việc tập trung đất nông nghiệp vẫn phải đặt dưới sự giám sát, quản lí của nhà nước đảm bảo không làm thay đổi mục đích sử dụng đất nông nghiệp. Trong điều kiện kinh tế thị trường, việc tập trung đất nông nghiệp để sản xuất – kinh doanh chịu tác động mạnh mẽ của cơ chế thị trường nên khó tránh khỏi có trường hợp thay đổi mục đích sử dụng đất nhằm đáp ứng với nhu cầu thị trường, sự cạnh tranh trên thị trường. Cơ quan quản lí nhà nước về đất đai ở cơ sở là UBND cấp xã nơi thực hiện việc tập trung đất nông nghiệp có trách nhiệm theo dõi phương án sử dụng đất của tổ chức kinh tế, cá nhân đảm bảo việc tập trung đất nông nghiệp tuân thủ đúng quy định của pháp luật, đúng mục đích sử dụng đất…

Thứ năm, UBND các cấp có trách nhiệm tuyên truyền, phổ biến chính sách, pháp luật, hướng dẫn, hỗ trợ các bên trong việc thực hiện tập trung đất nông nghiệp và bảo đảm ổn định quy hoạch đối với diện tích đất nông nghiệp đã tập trung.

Cho dù tập trung đất nông nghiệp làm tăng quy mô, diện tích đất nông nghiệp đáp ứng yêu cầu của CNH-HĐH nông nghiệp, nông dân, nông thôn dựa trên sự tự nguyện, dân chủ, bình đẳng, công khai minh bạch, tuân thủ pháp luật và phù hợp với quy hoạch, kế hoạch sử dụng đất… giữa các chủ thể sử dụng đất song không thể thiếu được vai trò, trách nhiệm của các cấp chính quyền – với tư cách là cơ quan quản lí nhà nước về đất đai – trong tuyên truyền, phổ biến chính sách, pháp luật, hướng dẫn, hỗ trợ các bên trong việc thực hiện tập trung đất nông nghiệp và bảo đảm ổn định quy hoạch đối với diện tích đất nông nghiệp đã tập trung. Sự “vào cuộc” quyết liệt, kịp thời, hiệu quả trong việc thực hiện trách nhiệm của UBND các cấp là một nhân tố cơ bản, quan trọng để mang lại thành công đối với việc tập trung đất nông nghiệp.

4.2. Về tích tụ đất nông nghiệp

Tích tụ đất nông nghiệp được quy định tại Điều 193 Chương XIII – Chế độ sử dụng đất của Luật Đất đai năm 2024. Nội dung Điều luật này bao gồm 04 khoản, cụ thể:

Thứ nhất, tương tự như khoản 1 Điều 192 về tập trung đất nông nghiệp; khoản 1 Điều 193; các nhà làm luật thiết kế nội dung khoản này để trả lời câu hỏi tích tụ đất nông nghiệp là gì? Tích tụ đất nông nghiệp thông qua các phương thực cụ thể nào? Theo khoản 1 Điều 193:

Một là, tích tụ đất nông nghiệp được giải thích là việc tăng diện tích đất nông nghiệp của người sử dụng đất để tổ chức sản xuất.

Hai là, việc tích tụ đất nông nghiệp được thực hiện thông qua các phương thức sau:

1) Nhận chuyển nhượng QSDĐ nông nghiệp;

2) Nhận góp vốn bằng QSDĐ nông nghiệp.

Thứ hai, khoản 2 Điều 193 quy định việc tích tụ đất nông nghiệp phải bảo đảm các nguyên tắc sau đây:

Một là, bảo đảm quyền, lợi ích hợp pháp của nhà nước, người sử dụng đất và của các tổ chức, cá nhân có liên quan; không ảnh hưởng đến quốc phòng, an ninh;

Hai là, tuân thủ quy định của pháp luật về đất đai, pháp luật về dân sự và pháp luật có liên quan; sử dụng đúng mục đích, phù hợp với quy hoạch, kế hoạch sử dụng đất đã được cơ quan có thẩm quyền phê duyệt;

Ba là, phù hợp với đặc điểm về đất đai, địa hình, khí hậu, văn hoá, quá trình chuyển dịch lao động, chuyển đổi nghề, việc làm ở nông thôn của từng vùng, từng khu vực, từng địa phương và phù hợp với nhu cầu của thị trường.

Như vậy, những nguyên tắc mà tích tụ đất nông nghiệp phải đảm bảo tuân thủ cũng chính là những nguyên tắc của việc tập trung đất nông nghiệp. Điều này cho thấy tính thống nhất của quy định về nguyên tắc phải đảm bảo trong tích tụ đất nông nghiệp và tập trung đất nông nghiệp của Luật Đất đai năm 2024. Đồng thời, nó vừa thể hiện sự chặt chẽ của pháp luật song vẫn tôn trọng sự tự nguyện, dân chủ, bình đẳng của các chủ thể trong việc thực hiện tích tụ đất nông nghiệp, tập trung đất nông nghiệp, tạo tiền đề để CNH-HĐH nông nghiệp, nông dân, nông thôn ở nước ta.

Thứ ba, Nhà nước có chính sách khuyến khích tổ chức, cá nhân ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tích tụ.

Quy định này vừa đưa ra thông điệp về chính sách của Nhà nước vừa xác định trách nhiệm của Nhà nước trong việc khuyến khích tổ chức, cá nhân ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tích tụ. Tuy nhiên, để tổ chức thi hành hiệu quả quy định này thì chính sách nêu trên phải được thể chế hoá thành các quy định cụ thể, đầy đủ, thống nhất, đồng bộ mang tính pháp lí để xác định trách nhiệm, nghĩa vụ của các chủ thể có liên quan.

Thứ tư, UBND các cấp có trách nhiệm tuyên truyền, phổ biến chính sách, pháp luật, hướng dẫn, hỗ trợ các bên trong việc thực hiện tích tụ đất nông nghiệp và bảo đảm ổn định quy hoạch đối với diện tích đất nông nghiệp đã tích tụ.

Như phần trên đã phân tích, tương tự như tập trung đất nông nghiệp, việc tích tụ đất nông nghiệp khó đạt được thành công và mang lại hiệu quả thiết thực, bền vững nếu thiếu sự vào cuộc quyết liệt, sâu sát, kịp thời của UBND các cấp với vai trò là cơ quan quản lí nhà nước về đất đai. Khoản 4 Điều 193 Luật Đất đai năm 2024 đã xác định trách nhiệm của UBND các cấp trong việc tuyên truyền, phổ biến chính sách, pháp luật, hướng dẫn, hỗ trợ các bên trong việc thực hiện tích tụ đất nông nghiệp và bảo đảm ổn định quy hoạch đối với diện tích đất nông nghiệp đã tích tụ. Đây cũng là cơ sở pháp lí để chính quyền các cấp thực thi trách nhiệm trong việc hướng dẫn, hỗ trợ người sử dụng đất tích tụ đất nông nghiệp đảm bảo đúng pháp luật, dân chủ, bình đẳng9.

5. Một số kiến nghị về tổ chức thi hành các quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp của Luật Đất đai năm 2024

Luật Đất đai năm 2024 có hiệu lực thi hành từ ngày 01/8/2024. Điều này có nghĩa là để Điều 192 – Tập trung đất nông nghiệp, Điều 193 – Tích tụ đất nông nghiệp nhanh chóng đi vào cuộc sống và phát huy tác dụng tích cực, Nhà nước cần thực hiện một số giải pháp cụ thể sau:

Thứ nhất, tiếp tục nghiên cứu, soạn thảo, ban hành các quy định chi tiết, đầy đủ, thống nhất, đồng bộ để tổ chức thi hành hiệu quả Luật Đất đai năm 2024 nói chung và các quy định về tập trung đất nông nghiệp, về tích tụ đất nông nghiệp nói riêng.

Mặc dù, Luật Đất đai năm 2024 đã bổ sung các quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp (Điều 192, Điều 193) nhằm đáp ứng yêu cầu phát triển đất nước trong kỉ nguyên mới, tiếp đó, Nghị định số 102/2024/NĐ-CP ngày 30/7/2024 của Chính phủ quy định chi tiết thi hành một số điều của Luật Đất đai (sau đây gọi là Nghị định số 102/2024/NĐ-CP) cụ thể hoá Điều 192 về tập trung đất nông nghiệp, Điều 193 tích tụ đất nông nghiệp bằng quy định tại Điều 77 – Thực hiện tập trung đất nông nghiệp, Điều 78 – Thực hiện tích tụ đất nông nghiệp (Muc 4. tập trung đất nông nghiệp, tích tụ đất nông nghiệp – Chương VII. Chế độ sử dụng đất), tuy nhiên, điều này là chưa đủ, bởi lẽ một số nội dung về tập trung đất nông nghiệp, tích tụ đất nông nghiệp của Luật Đất đai năm 2024 dường như chưa được hướng dẫn chi tiết thi hành, trong đó có thể kể tới một số vấn đề như: quy hoạch sử dụng đất, chính sách hỗ trợ các chủ thể thực hiện tích tụ, hạn mức tích tụ tập trung, quyền và nghĩa vụ cụ thể của chủ thể

Một là, khoản 3 Điều 192 quy định: “Nhà nước có chính sách khuyến khích tổ chức, cá nhân thực hiện tập trung đất để sản xuất nông nghiệp; ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tập trung”. Đây là quy định mang tính nguyên tắc, định hướng và để triển khai thi hành điều khoản này cần có các quy định cụ thể, chi tiết làm rõ các vấn đề sau:

Chính sách khuyến khích của Nhà nước được đề cập tại khoản 3 Điều 192 bao gồm những chính sách cụ thể nào? Được quy định ở văn bản nào và do cơ quan nào ban hành? Chính sách khuyến khích tổ chức, cá nhân thực hiện tập trung đất để sản xuất nông nghiệp; ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tập trung có nội dung cụ thể như thế nào… Theo tác giả, các biện pháp, hình thức, nội dung chi tiết, cụ thể khuyến khích hỗ trợ tổ chức, cá nhân thực hiện tập trung đất để sản xuất nông nghiệp; ứng dụng khoa học, công nghệ để sử dụng tiết kiệm, hiệu quả quỹ đất đã tập trung trên các khía cạnh ưu đãi về vốn, về khoa học, công nghệ, về miễn, giảm tiền sử dụng đất, tiền thuê đất, về thời hạn sử dụng đất cần phải được bổ sung quy định chi tiết, cụ thể trong các văn bản hướng dẫn thi hành Luật Đất đai năm 2024…

Hai là, Điều 192 và Điều 193 Luật Đất đai năm 2024 quy định trách nhiệm của UBND các cấp về tuyên truyền, phổ biến chính sách, pháp luật, hướng dẫn, hỗ trợ các bên trong việc thực hiện tập trung đất nông nghiệp, tích tụ đất nông nghiệp và bảo đảm ổn định quy hoạch đối với diện tích đất nông nghiệp đã tập trung, đã tích tụ. Tác giả cho rằng nội dung này cần cụ thể hoá bằng văn bản hướng dẫn xác định cụ thể, rõ ràng về trách nhiệm cụ thể của UBND các cấp; đồng thời, quy định rõ chủ tịch UBND các cấp là người chịu trách nhiệm thực hiện nội dung này. Mặt khác, cần quy định cụ thể chế tài xử lí người đứng đầu UBND các cấp nếu không thực hiện hoặc thực hiện không đầy đủ trách nhiệm này.

Thứ hai, các cơ quan nhà nước có thẩm quyền cần rà soát, sửa đổi, bổ sung những văn bản pháp luật có liên quan, khắc phục những nội dung mâu thuẫn, chồng chéo để đảm bảo tính thống nhất, đồng bộ với quy định về tập trung đất nông nghiệp, quy định về tích tụ đất nông nghiệp của Luật Đất đai năm 2024 và các văn bản hướng dẫn thi hành. Thứ ba, trong điều kiện sắp xếp, sáp nhập các tỉnh, thành phố trực thuộc Trung ương; sắp xếp, sáp nhập các xã, phường, thị trấn; bỏ đơn vị hành chính cấp huyện, cần rà soát, sửa đổi, bổ sung quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp có liên quan đến UBND cấp huyện của Luật Đất đai năm 2024 và các văn bản hướng dẫn thi hành nhằm đáp ứng, phù hợp với mô hình tổ chức chính quyền địa phương hai cấp: Cấp tỉnh và cấp xã đã bắt đầu đi vào hoạt động từ 01/7/2025. Theo đó, cần quy định rõ trách nhiệm, chức năng của UBND cấp huyện về tập trung đất nông nghiệp, tích tụ đất nông nghiệp sẽ được chuyển giao cho UBND cấp xã thực hiện hay một phần chuyển giao cho UBND cấp tỉnh, một phần chuyển giao cho UBND cấp xã thực hiện kể từ ngày 01/7/2025 là thời điểm dự kiến chấm dứt hoạt động của UBND cấp huyện. Điều này cần được quy định rõ ràng, cụ thể để tránh bị gián đoạn việc tổ chức thi hành Luật Đất đai năm 2024. Thứ tư, Chính phủ nghiên cứu thành lập

Tổ theo dõi thi hành Luật Đất đai năm 2024 nói chung và thi hành các quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp nói riêng trong phạm vi cả nước để tham mưu báo cáo Chính phủ giải quyết những vấn đề phát sinh, tháo gỡ các vướng mắc, khó khăn trong quá trình triển khai thi hành Luật này (trong đó có các quy định về tập trung đất nông nghiệp, tích tụ đất nông nghiệp) v.v./.

TÀI LIỆU THAM KHẢO

  1. Đỗ Kim Chung (2018), “Tích tụ và tập trung ruộng đất: Cơ sở lí luận và thực tiễn cho phát triển nông nghiệp hàng hoá ở Việt Nam”, Tạp chí Khoa học nông nghiệp Việt Nam, số 16(4);
  2. Vũ Công Giao (2017), “Một số vấn đề lí luận về quản trị tốt”, Tạp chí Tổ chức Nhà nước và pháp luật, https://tcnn.vn/news/ detail/36119/Mot_so_van_de_ly_luan_ve_quan_tri_totall.html
  3. Tường Vy (2021), Bài 1: Thực trạng năng suất lao động tại Việt Nam, https://www. qdnd.vn/kinh-te/cac-van-de/bai-1-thuc-trang- nang-suat-lao-dong-tai-viet-nam-650759
  4. Trần Quang Huy (chủ biên) (2024), Bình luận khoa học Luật Đất đai năm 2024, Nxb. Công an nhân dân, Hà Nội.
  5. Đỗ Hoài Nam (2017), “Tích tụ và tập trung ruộng đất để đẩy mạnh liên kết giữa doanh nghiệp và nông dân”, Tạp chí Khoa học Xã hội Việt Nam, số 11.

  1. Ban Chấp hành Trung ương Đảng (2022), Nghị quyết số 18-NQ/TW, Phần 4, Mục 2.7.
  2. Quyết định số 3411/QĐ-BTNMT ngày 24/10/2024 phê duyệt và công bố kết quả thống kê diện tích đất đai năm 2023.
  3. Tổng cục Thống kê (2021), https://www.nso.gov. vn/du-lieu-va-so-lieu-thong-ke/2021/08/dong-bang- song-cuu-long-phat-huy-loi-the-vua-lua-so-mot-ca- nuoc/, truy cập 15/9/2025.
  4. Đỗ Hoài Nam (2017), “Tích tụ và tập trung ruộng đất để đẩy mạnh liên kết giữa doanh nghiệp và nông dân”, Tạp chí Khoa học Xã hội Việt Nam, số 11.
  5. Tường Vy (2021), Bài 1: Thực trạng năng suất lao động tại Việt Nam, https://www.qdnd.vn/kinh-te/ cac-van-de/bai-1-thuc-trang-nang-suat-lao-dong- tai-viet-nam-650759, truy cập 15/9/2025.
  6. Đỗ Kim Chung (2018), “Tích tụ và tập trung ruộng đất: Cơ sở lí luận và thực tiễn cho phát triển nông nghiệp hàng hoá ở Việt Nam”, Tạp chí Khoa học nông nghiệp Việt Nam, số 16(4), tr 414.
  7. Đỗ Kim Chung (2018), tlđd.
  8. Vũ Công Giao (2017), “Một số vấn đề lí luận về quản trị tốt”, Tạp chí Tổ chức Nhà nước và pháp luật, https://tcnn.vn/news/detail/36119/Mot_so_van_de_ ly_luan_ve_quan_tri_totall.html, truy cập 15/9/2025.
  9. Trần Quang Huy (chủ biên) (2024), Bình luận khoa học Luật Đất đai năm 2024, Nxb. Công an nhân dân, Hà Nội.

Vietnam Narrows Jurisdiction for Setting Aside Arbitral Awards: A Key Step Toward Modern Arbitration Reform

July 18 2025 | Tony Nguyen and Do Pham Khanh Huyen | Lexology

Abstract

With effect from 1 July 2025, Vietnam has now restricted the power to set aside arbitral awards to only three major courts in Hanoi, Ho Chi Minh City and Da Nang City. This reform, though procedural in nature, is a significant step forward in aligning Vietnam’s arbitration ecosystem with international best practices. By curbing judicial inconsistency and enhancing institutional expertise, it lays the groundwork for a more arbitration-friendly jurisdiction, especially in the context of Vietnam’s ambition to build an international financial and legal hub.

1. A Legislative Milestone: Centralising Court Oversight of Arbitration

As from 1 July 2025, only three provincial-level People’s Courts located in Hanoi, Ho Chi Minh City and Da Nang City have had jurisdiction to hear applications to set aside arbitral awards. This change stems from a broader restructuring of Vietnam’s court system under Resolution No. 81/2025/UBTVQH15, issued by the Standing Committee of the National Assembly, which establishes regional-level People’s Courts and redefines the allocation of judicial responsibilities.

To implement this new court structure, the Judicial Council of the Supreme People’s Court issued Resolution No. 01/2025/NQ-HDTP, which provides procedural guidance on jurisdictional transfers. Specifically, Clause 8 of Article 4 assigns exclusive authority to hear set aside arbitral awards to the regional People’s Courts in Hanoi, Ho Chi Minh City and Da Nang City.

This marks a critical institutional reform, paving the way for greater judicial specialisation, reducing interpretative inconsistencies, and enhancing confidence in Vietnam’s arbitration regime.

2. Solving a persistent problem: Inconsistency and judicial overreach

Prior to the 2025 reform, 63 provincial-level People’s Courts across Vietnam were authorised to hear applications to set aside arbitral awards.[1] In theory, this decentralised system promoted local access to justice. In practice, however, it resulted in fragmented jurisprudence, varying legal interpretations, and a lack of consistency in applying arbitration law.

Many local courts in small and remote provinces of Vietnam lacked judges with sufficient experience in arbitration and frequently applied domestic civil procedure standards that were ill-suited to the arbitration context. The risk that an award might be set aside due to a technicality or judicial misapplication discouraged parties from choosing Vietnam as the seat of arbitration.

This has been proven in several circumstances. In a case of application for enforcement of a CIETAC’s arbitral award in 2022,[2] the Hai Phong City People’s Court held that the arbitral tribunal failed to examine the Claimant’s contractual obligations and its breach of a fundamental contractual obligation, therefore rejected [the defendant’s] refusal to pay under the L/C, despite the fact that the submitted documents did not comply with the internationally accepted Uniform Customs and Practice for Documentary Credits. The Court also commented that the tribunal only considered [the defendant’s] obligation, without examining the applicant’s obligation. This approach is “inconsistent with the fundamental principles of Vietnamese law and international law, and adversely affects the legitimate rights and interests of the defendant.” On that basis, the Court refused recognition and enforcement of the award in Vietnam. This approach is an obvious breach of the New York Convention 1958, which requires that the courts are restrained from assessing the substance of the dispute.

Another example of the quality issues with the lower court level is in a case in 2019[3] when the parties chose Hanoi as the place of arbitration. The arbitral tribunal had decided to hold the hearing in Singapore, and the judge concluded that it is a violation of fundamental principles of Vietnamese law. In this judge’s view, such conduct does not conform with the arbitration agreement and procedures agreed by the parties, it was regarded as a procedural violation, which is a ground for setting aside the arbitral award. The court obviously confused between the legal seat of arbitration with the physical place where the arbitral tribunal decided the hearing to be conducted. There are multiple other examples of the abuse of the concept “principles of Vietnamese laws” by the lower level courts.[4]           

Therefore, by concentrating jurisdiction in the three most prominent regional courts in Hanoi, Ho Chi Minh City and Da Nang City, the 2025 reform has hope for addressing the above shortcomings by increasing the quality of judgments related to arbitration, enabling a more uniform and expert application of arbitration law, reducing forum shopping and allowing for the gradual development of a coherent pro-arbitration body of case law. This is the starting point to make Vietnam be seen as a reliable arbitration jurisdiction in the region.

3. Lessons from Other Jurisdictions: Global Trend Toward Centralization

Prominent arbitration centers follow a clear trend: jurisdiction over setting aside arbitral awards is centralised in specialised, higher courts. This model ensures consistent application of the law, judicial expertise, and enhanced credibility.

Singapore: Under the International Arbitration Act and Arbitration Act, only the High Court (General Division/SICC) hears set aside arbitral awards. Courts apply a strict standard, leaving awards intact unless procedural injustice or fundamental violation is proven. In Swire Shipping v Ace Exim [2024], the court emphasised the need to identify a clear “extractable error” rather than re-litigate substantive issues.[5]

Hong Kong: In Hong Kong, applications to set aside arbitral awards are handled exclusively by the Court of First Instance of the High Court, pursuant to Section 81 of the Arbitration Ordinance (Cap. 609).[6] This centralization of jurisdiction is a deliberate institutional design aimed at ensuring judicial expertise and consistency in arbitration-related matters. The court maintains a dedicated arbitration list, and its judges are highly experienced in applying international arbitration standards, including those under the UNCITRAL Model Law. Hong Kong courts adopt a pro-enforcement and pro-finality approach, intervening only in exceptional circumstances such as serious breaches of due process, lack of jurisdiction, or contravention of fundamental public policy.

As a result, the annulment rate in Singapore and Hong Kong are notably low, with successful challenges remaining rare. This outcome underscores the jurisdiction’s strong commitment to respecting the autonomy and integrity of arbitral proceedings.[7]

Conclusion

These comparative models demonstrate that the success of arbitration-friendly jurisdictions hinges not merely on the legislative framework but on the institutional capacity and judicial culture that support it. Vietnam’s decision to centralise jurisdiction over applications to set aside arbitral awards in only three regional-level People’s Courts located in Hanoi, Ho Chi Minh City and Da Nang City marks a significant institutional reform that aligns the country with global best practices in arbitration governance. This move addresses longstanding concerns about fragmented jurisprudence and inconsistent legal reasoning under the previous decentralised framework, and reflects a growing commitment to fostering judicial professionalism and predictability in the resolution of commercial disputes. By consolidating judicial oversight, Vietnam has the opportunity to develop a coherent and stable body of arbitration-related case law, enhance investor confidence and support its broader ambition of establishing Ho Chi Minh City and Da Nang City as a credible international financial centre.

Nonetheless, the long-term success of this reform will depend on the institutional capacity of the designated courts, the training and specialization of their judges, and the transparency with which arbitration decisions are published and disseminated.


1, Article 7 of Law on Commercial Arbitration 2010 and Article 5 of Resolusion 01/2014/NQ-HDTP of Council of Judges the People’s Supreme Court.
2, Case No. 03/2022/QĐST-KDTM by Hai Phong City People’s Court dated 28 September 2022.
3, Case No. 09/2019/QD-PQTT dated 24 September 2019 of Hanoi People’s Court.
4, See for example, case No. 06/2020/QD-PQTT dated 07 December 2020 of Hai Phong City People’s Court. See also Tony Nguyen and Manh Pham, ‘Vietnamese Court Sets Aside Arbitral Award for Failure to Legalize POA: An Abuse of Due Process Requirements‘ (2023) Kluwer Arbitration Blog, at accessed 17 July 2025.
5, Swire Shipping Pte Ltd v Ace Exim Pte Ltd [2024] SGHC 211, at accessed 11 July 2025.
6, Global Arbitration Review, The Guide to Challenging and Enforcing Arbitration Awards – Hong Kong (4th edn, Law Business Research, 2024), at accessed 11 July 2025.
7, Skadden, Seating an Arbitration in Hong Kong or Singapore: Considering a Decades-Old Conundrum in 2025 (Skadden, 2 April 2025), at accessed 11 July 2025.

Source: Vietnam Narrows Jurisdiction for Setting Aside Arbitral Awards: A Key Step Toward Modern Arbitration Reform – Lexology

Insights from FEED and recommendations for the North-South High-speed Railway project

May 21 2025 | Dr. Nguyen Trung Nam (Tony Nguyen) – Founding Partner; Pham Hong Lien – Trainee Associate | Lexology

I. North – South High-Speed Railway Project: Project Introduction and FEED Approach Framework:

1. Project Overview:

The North – South High-Speed Railway Project is not merely a transportation infrastructure endeavor but also a symbol of Vietnam’s aspiration to elevate its standing. Expected to become the backbone of the national transportation system, this modern, international-standard railway line promises to bring about a revolution in transportation, promoting comprehensive and sustainable socio-economic growth. The project will address the pressing issue of transport capacity, meet the increasing travel demands of people and businesses, and significantly shorten travel time between major economic hubs. The project has a very large scale with a length of 1,541 km, connecting Hanoi and Ho Chi Minh City, passing through 20 provinces and cities. The double-track line with a gauge of 1,435 mm, a design speed of 350 km/h, includes 23 passenger stations and 5 freight stations, serving both passenger and freight transport, as well as national defense purposes. The total initial investment is approximately 1.7 trillion VND (67 billion USD).

Furthermore, the North – South High-Speed Railway will also establish a new economic corridor, opening up opportunities for inter-regional connectivity from North to South, facilitating trade, tourism, and investment. The project is expected to attract investment to localities along the route, create numerous jobs, improve the quality of life, and become a powerful driving force for the development of the nation as a whole.

In striving for this aspiration, Vietnam faces significant challenges regarding investment capital, advanced technology, and environmental protection. Effective project management is a crucial factor determining success. This large-scale and complex project demands a rigorous, transparent, and high-risk control management approach to avoid delays, budget overruns, or failure.

Considering this background, FEED (Front-End Engineering Design) is a sagacious choice. FEED helps clearly define the project scope, thoroughly assess technical, financial, and environmental aspects, enabling accurate investment decisions and minimizing risks during implementation. Applying FEED ensures the project is carried out methodically, scientifically, and efficiently, contributing to the realization of the vision for a modern transportation system and promoting Vietnam’s socio-economic development.

2. The Legal Framework of Vietnam Applicable to FEED

Although the amended Law on Construction 2020 and Decree 15/2021/ND-CP do not mandate the compulsory application of FEED for all projects, the additional regulations and definitions have strongly encouraged the adoption of this method, especially for projects with complex technical characteristics, high technology, and large scale similar to the North – South High-Speed Railway. The recognition of FEED through the definition of “Front-End Engineering Design (FEED)” in the law (Clause 11, Article 3 of Decree No. 15/2021/ND-CP [1]detailing certain contents on the Management of Construction Investment Projects) demonstrates the acknowledged important role of this method in project management, encouraging investors to consider applying FEED as an effective tool. The law also provides for multi-stage design implementation, creating a clear legal basis for applying FEED in projects requiring high technical expertise, thereby ensuring quality and efficiency. Notably, the reference to “according to international practice” in the FEED definition not only helps Vietnam integrate with advanced management standards but also encourages the adoption of proven effective methods for large-scale projects. Regulations on design appraisal and cost management both emphasize accuracy and efficiency, indicating that the application of FEED is an effective measure to achieve these goal. In summary, despite its non-mandatory nature, the inclusion of regulations related to FEED has created a favorable legal framework, demonstrating a clear encouragement for the adoption of this method for complex projects, showing that the state has recognized the potential benefits of FEED in enhancing management efficiency and project quality

II. Insights from International Large-scale Project Management

1. Implementing FEED Across Industries

The FEED phase plays a pivotal role and is widely applied across various industries, particularly the Oil and Gas sector, where offshore drilling platforms, refineries, petrochemical plants, and gas pipelines often undergo a very detailed FEED stage. For instance, the Sakhalin-II project in Russia utilized FEED to determine the configuration and technology for its LNG plant, and the Ichthys LNG project in Australia optimized its offshore and onshore infrastructure design thanks to FEED. The application of FEED is highly valued in the chemical industry in the construction of new plants or expansions to ensure safety, efficiency, and regulatory compliance. In the energy sector, power plant projects, particularly complex projects like nuclear power or Carbon Capture and Storage (CCS), often implement FEED to optimize performance and ensure safety. Application of FEED also extends to the large-scale mining industry to strategically plan efficient and sustainable mineral extraction, processing, and transportation. While not as prevalent as in the aforementioned sectors, certain major and intricate infrastructure projects, such as airports, seaports, or urban railway systems, may also see elements of the FEED process employed to meticulously define technical requirements, rigorously analyze alternatives, and proactively manage risks. In essence, FEED is a pivotal stage employed to empower investors to make judicious decisions, substantially mitigate risks, and ultimately ensure the successful realization of their ambitious and complex undertakings.

2. Implementing FEED in the Railway Industry:

Experience from leading countries globally in the high-speed rail sector reveals that leading nations such as Japan, France, and Spain all place significant emphasis on the preliminary engineering design phase, a step analogous to FEED, and consider it a pivotal element for success. In Japan, a comprehensive and meticulous design process prior to construction has laid a solid foundation for the renowned Shinkansen system, known for its safety and efficiency. Similarly, France has invested considerably in early detailed studies and designs for its extensive TGV network, aiming to optimize routes, select appropriate technologies, and minimize construction risks. These invaluable lessons from these countries underscore that allocating adequate time and resources to the pre-construction phase, including clearly defining technical requirements, assessing environmental impacts, and undertaking detailed planning, is a decisive factor in ensuring the technical, schedule, and cost success of large-scale high-speed rail projects.

Studying the case of the United Kingdom, two major high-speed rail projects, HS1 (High Speed 1, also known as the Channel Tunnel Rail Link, which successfully established a crucial connection between London and the European high-speed rail network via the Channel Tunnel) and HS2 (High Speed 2, designed to connect major cities in the North and South of England, fostering economic growth and reducing regional disparities), offer valuable lessons regarding the critical importance of thoroughly applying FEED principles. HS1, despite initially encountering budget overruns and delays, but largely due to meticulous technical preparation and initial design, became a successful high-speed rail line, efficiently linking London with the European rail network and yielding significant economic and social benefits. Conversely, HS2 is currently grappling with substantial challenges concerning costs, schedules, and public opposition, which can be partly attributed to a potentially insufficient emphasis and investment in the pre-project phase, akin to FEED. The scaling down of the project further raises doubts about the feasibility of achieving its original benefits. Drawing upon the successful experiences of Japan, France, Spain, and HS1, alongside the challenges currently faced by HS2, the critical importance of a rigorous and comprehensive preliminary engineering design process (analogous to FEED) becomes unequivocally evident. Despite potential variations in approach and terminology, committing significant time and effort to thorough research in this phase serves as the bedrock for ensuring the long-term success of large-scale high-speed rail projects

III. Implementing FEED for the North – South High-Speed Railway Project Management:

1. Why FEED Should Be Applied to the North – South High-Speed Railway Project Management

FEED assumes a pivotal role, yielding substantial benefits for all stakeholders involved in construction projects. As evidenced by successful projects documented by Assai Software and Rockwell Automation, the expenditure allocated to FEED typically constitutes a mere 2% of the total initial capital investment. Nevertheless, this crucial phase furnishes a comprehensive and lucid overview of the project’s scope, technical requisites, technology, and financial parameters, thereby empowering project owners to make sound decisions, generate accurate cost estimations, and proactively mitigate potential risks. Consequently, FEED optimizes the design, facilitates the selection of optimal technical solutions, minimizes errors from the outset, and enhances synchronization across various project components, ultimately unlocking the potential for savings in construction and operational costs that can reach up to 30%.

Furthermore, a detailed FEED documentation lays a solid groundwork for contractors to plan construction efficiently, shorten execution timelines, and improve workplace safety. Notably, a comprehensive FEED package significantly boosts the project’s appeal to potential investors, opening doors for more effective capital acquisition.

Nonetheless, implementing FEED also presents certain challenges. The initial costs for this phase can be considerable, and the execution process might extend, potentially affecting the overall project schedule. The FEED phase necessitates a team of highly skilled engineers, which can increase personnel expenses. Moreover, altering the design after FEED completion can lead to substantial cost increases, and price fluctuations during this stage also require careful attention. Effective management of FEED projects demands close collaboration and professional expertise. However, these limitations can be effectively handled and lessened through meticulous planning and selecting reputable FEED consultants, thereby maximizing the benefits this crucial design phase offers, especially its significant cost-saving potential.

2. Implementing the FEED Process: The Steps Involved:

The FEED process is not a singular step but rather a sequence of interconnected and progressive activities aimed at defining the project in detail before embarking on the costly construction phase. The three main steps typically referenced are:

  • Conceptual Design: This is the initial phase of FEED, focusing on defining the overall picture of the project. For railway projects, this includes outlining the route (alignment, length, terrain factors), the location and scale of stations, the depot (train maintenance and management facility), core technical systems such as power (energy supply for trains and systems), signaling and communication (ensuring safety and operational control), along with auxiliary works (internal access roads, drainage systems, etc.).

The crucial point of this phase is to evaluate feasible technical options. For example, there might be multiple choices for the route alignment, different electrification technologies, or various signaling and communication solutions. Selecting the optimal option requires careful consideration of technical factors (feasibility, efficiency), economic factors (investment, operation, and maintenance costs), and social factors (impact on the community and environment). This phase lays the foundation for the entire project, and incorrect decisions at this stage can lead to serious consequences later on.

  • Detailed Engineering Design Basis: Following the selection of the optimal solution, this phase elaborates on specifying the detailed technical requirements for each component of the project. This includes defining the materials to be used (types, quality standards), the applicable technical standards (e.g., railway industry standards, international standards), the anticipated construction procedures (methods, quality assurance measures), and the quality and safety requirements (inspection criteria, safety supervision procedures).

This phase establishes a detailed “rulebook” for the subsequent phases, especially the construction phase. The more detailed and clear the technical specifications are, the more ambiguity, disputes, and errors during implementation can be minimized. This serves as the foundation to ensure that all stakeholders have a clear understanding of what needs to be achieved.

  • Technical and Economic Feasibility Study: This phase is comprehensive and evaluative in nature. Technical feasibility assesses whether the chosen design solutions are truly viable from a technological standpoint and can be implemented under real-world conditions. Detailed and accurate estimations of investment and operational costs are carried out based on the defined technical specifications. Finally, the economic and financial efficiency analysis of the project (e.g., payback period, internal rate of return) will facilitate the investor and potential stakeholders in evaluating the attractiveness and sustainability of the project.

The outcome of this phase is a comprehensive report, providing a solid foundation for making the final decision on whether or not to proceed with the project implementation. If the feasibility study indicates that the project is not technically viable or economically inefficient, stopping at this stage will help save significant costs in the future.

2. The Role of FEED in the Following Phases:

FEED is not limited to design, it also plays a pivotal role in leading and directing the subsequent project phases:

  • EPC Contractor Selection: The FEED dossier serves as the guiding principle for the tendering process. It provides the scope of work (what the contractor must execute) and detailed technical requirements (standards, quality). The FEED dossier provides EPC contractors with a clear insight into the project’s scale and complexity, thereby developing competitive and accurate bids. A complete and clear FEED dossier will help the investor compare bids effectively and select the most suitable contractor in terms of capability and price.
  • Drafting the EPC Contract: The FEED dossier becomes an integral part of the EPC contract. It clearly stipulates the responsibilities of the respective parties (the investor and the contractor), the technical standards to be adhered to, and the payment terms based on the progress and quality of work. Integrating the FEED into the contract helps avoid potential misunderstandings and disputes during project execution, ensuring the commitment and accountability of involved parties.
  • Project Management and Change Management: FEED provides a crucial reference basis throughout the project implementation process. Any deviations from the original FEED design (e.g., changes in materials, construction methods, or even the scope of work) must be thoroughly evaluated for their impact on the project cost, schedule, and quality. Having a detailed FEED design gives the investor a basis to assess the reasonableness of changes proposed by the contractor and make effective management decisions, avoiding unnecessary changes that lead to cost overruns and prolonged construction timelines.

3. Insights into Contractor Selection Based on FEED:

Beyond being a technical document, FEED serves as a vital instrument for assessing and choosing the right contractor:

  • Evaluating Capability and Experience: The investor needs to utilize the FEED dossier to thoroughly assess the technical capabilities of potential contractors. This includes reviewing their experience in executing similar projects in terms of scale and complexity, as well as their project management capabilities (experience managing large projects, personnel team, quality management system). The FEED dossier enables the investor to establish specific and objective evaluation criteria.
  • Analyzing Technical and Financial Bid Proposals: Contractor bid proposals are not only evaluated based on economic value but also on their adherence to the technical requirements stipulated in the FEED dossier. A contractor with a bid proposal with a low price who does not meet the technical standards can pose significant risks to the project. Therefore, a balance is needed between financial competitiveness and the contractor’s ability to meet the technical requirements.
  • Contract Negotiation: The FEED dossier is the foundational document for the contract negotiation process. It helps ensure that both the investor and the contractor have a unified understanding of the scope of work, technical requirements, execution schedule, and other contract terms. Referencing the FEED during negotiation helps avoid future conflicts and misunderstandings, ensuring a clear and transparent contract.

4FEED and Managing Changes: A Key to Success for High-Speed Railway Projects:

The Implementation of FEED for large-scale projects such as the North-South high-speed railway, while offering numerous benefits, inevitably faces inevitable modifications. To maximize the potential of FEED and effectively control changes, establishing a robust contractual framework and a transparent change management process is absolutely essential.

Specifically, the implementation of FEED in the North-South high-speed railway project needs to be reinforced by contractual clauses that bind the involved parties to strictly adhere to the outcomes and processes of FEED. The scope of work, technical requirements, quality standards, and timelines defined in FEED will become a solid legal basis for the implementation process.

However, high-speed railways frequently encounter unforeseen factors such as geological variations, new technical requirements, fluctuations in material prices, or force majeure events. The contract needs to clearly stipulate that any deviations from the original FEED dossier must undergo a thorough review, a comprehensive impact assessment (on cost, schedule, and technical aspects), and be approved according to the agreed-upon change management process. This process should clearly define the authority to propose changes, the detailed evaluation and approval steps, as well as the methods for recording and managing approved changes.

To ensure the accuracy of technical information, EPC contractors need to be responsible for reviewing and reconfirming the entire content of the FEED dossier before commencing construction. This helps them fully understand the scope of work, clearly comprehend the specific technical requirements, and identify potential risks, thereby developing appropriate technical proposals and bids, while also minimizing disputes arising from differences in the interpretation of FEED information.

In conclusion, the application of FEED for the North-South high-speed railway project is not just about conducting a thorough initial design phase. To achieve maximum effectiveness and minimize risks, it is necessary to build a robust contractual system that binds adherence to FEED outcomes, while also establishing a transparent and effective change management process, along with requiring EPC contractors to proactively confirm FEED information before implementation. These are key factors to ensure the project stays on track and achieves its objectives.


1, Clause 11, Article 3 of Decree No. 15/2021/ND-CP: “Front-End Engineering Design (FEED) is a design phase carried out according to international practice for projects with technological design after the construction investment project is approved to specify the requirements for the technological process, technical parameters of the main equipment and materials used, and construction solutions. The results of FEED are used to prepare bidding documents under EPC contracts or to meet specific requirements for the implementation of subsequent design phases

Source: Insights from feed and recommendations for the north-south high-speed railway project – Lexology

Discourse: stay of proceedings in arbitration: practical applications in Vietnam and international experiences

April 9 2025 | Dr. Nguyen Trung Nam (Tony) | Lexology

ABSTRACT

Adjournment or stays of arbitral proceedings is a significant aspect of flexibility in arbitration. However, as of now, Vietnam’s legal framework lacks specific regulations governing this procedure, leading to numerous challenges in practical dispute resolution. This article focuses on analysing the legal ground related to the adjournment mechanism in arbitration proceedings, examining the application of adjournment measures in Vietnam and internationally. Furthermore, it shares some tips for the disputing parties and proposes recommendations for amending legislation related to adjournment of arbitral proceedings.

1. Introduction

It’s not unusual to find one or more parties to arbitration asking whether the whole arbitral proceedings could be stayed from a few weeks to a few months, for settlement discussions or various other reasons. Though the question is not always easy to be answered, the availability of such stay (and the consideration of granting it) allows flexibility and procedural fairness in dispute resolution.

The decision to grant a stay or arbitral proceedings may be based on various grounds, including the insufficiency of evidence, the absence of a necessary party, or the occurrence of force majeure events. Most preferrably, adjournment should be granted on the basis.

Granting improper or excessive stays of proceedings in arbitration proceedings may cause undue delays to the resolution process and undermine procedural efficiency and obstructing the parties’s right to access justice. Notably, Vietnam’s legal framework governing adjournment in arbitration remains underdeveloped, lacking explicit criteria and procedures to ensure objectivity and consistency in considering and accepting adjournment requests. These legal gaps present significant challenges in safeguarding the rights and interests of disputing parties while also affecting the overall effectiveness and predictability of arbitration.

2. Legal ground for the adjournment of dispute resolution in arbitration proceedings

 2.1. Vietnamese legal regulations

Currently, Vietnamese law is silent on stay of arbitral proceedings. While certain provisions of the Law on Commercial Arbitration 2010 (“LCA 2010”) mentioned some aspects which are relevant to stay of proceedings:

  • Article 38 of the Law on Commercial Arbitration 2010 (“LCA 2010”) governs negotiations in arbitral proceedings. The parties are entitled to engage in negotiations and reach a mutual agreement to terminate the arbitral proceedings from the lime of commencing arbitral proceedings. In the event that the parties successfully negotiate a settlement and agree to discontinue the proceedings, they may submit a request to the chairman of the arbitration center for the issuance of a decision suspending the dispute settlement. Though the provisions do not deal with the stay of proceedings, there may be a natural need that the parties are given some reasonable time, without the pressure of submissions and deadlines under the procedural orders, to enter into negotiations for settlement. In these situations, a joint submission for stay of arbitral proceedings would be ideal and the Tribunal should grant such stay on the basis of the parties’ agreement. Unfortunately, the LCA 2010 did not provide any further regulations to accommodate such an enquiry.
  • Unless otherwise agreed by the parties or provided by the arbitration center’s rules of proceedings, Article 54 of the LCA 2010 stipulates that the determination of the time and venue of the dispute settlement meetings shall be at the discretion of the arbitral council. While this does not particularly deal with stay of proceedings, it gives the parties the opportunity to seek from the Tribunal (and for the Tribunal, the authority to grant) delay a scheduled hearing, so that the parties could have more time to prepare for submissions and evidence, or in fact, to initiate their settlement discussions. This is of great importance if circumstance arises that only one party wishes to delay the hearing date(s) and the other [party] objects to it. The Tribunal is then put to decide whether to grant (and if yes, to what extent) such delayed hearing.

It is evident that Vietnam’s arbitration framework has yet to incorporate regulations governing stay of proceedings, instead providing only provisions in some specific situations. The existing legal framework on arbitral proceedings lacks specific guidance concerning the procedural requirements, time limitations, and additional conditions for the issuance of a stay order. This regulatory gap may be fulfiled by the arbitral rules of the arbitration institutions.

However, arbitration centres in Vietnam don’t either provide any guidance on the above issues. VIAC Rules for example, only provides that “A party or the parties may, if there is a legitimate reason, request the Arbitral Tribunal to postpone a hearing. […] Where necessary, the Arbitral Tribunal may postpone a hearing and notify the parties” . There is no supervisory framework and complaint procedure, as there are no explicit provisions guiding the process of challenging If, for example, a party request an unreasonably long period of time for stay of proceedings and the Tribunal accepts the same, there is nothing the other party can do except waiting for the arbitral proceedings to ressume. On the other extreme case, if the parties mutually agree to stay of proceedings for an excessively long period of time (e.g. one or two years), under current laws and arbitral institutional rules, the Tribunal must follow the parties joint instructions without any reservation (e.g. on its own availability when the proceedings are ressumed).

2.2.  International practice

For the resolution of disputes through international commercial arbitration, Article 19 of the UNCITRAL Model Law on International Commercial Arbitration affirms the parties’ freedom to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings. In the absence of such an agreement, the arbitral tribunal is vested with the authority to conduct the proceedings in the manner it considers appropriate. A corresponding provision is also enshrined in Article 17 of the UNCITRAL Arbitration Rules on international commercial arbitration.[1]

Thus, in accordance with the principle of respecting the parties’ freedom to agree in dispute resolution, the parties may reach an agreement to request the arbitral tribunal to issue a decision on the stay of proceedings. Alternatively, in cases where no other agreement exists between the parties, the arbitral tribunal may make a decision regarding stay of proceedings, provided there are reasonable grounds and fairness in treatment for all parties. These are important international legal foundations for granting stay of proceedings in arbitration.

One of the situations that usually arise is that a party may request stay of arbitral proceedings even before the tribunal has been established. In that circumstance, institutional arbitral proceedings will have clear advantages, where the arbitral institutional rules usully allow the request to be decided by the (chairperson of) the arbitral institution, or by accepting an emergency arbitrator to be appointed and deal with the request. Article 29 of the Arbitration Rules of the International Chamber of Commerce (ICC) allows a party to request interim measures before the arbitral tribunal is constituted. The President of the ICC may appoint an emergency arbitrator to consider this request.

3. International and Vietnamese Practices

In the international context, the prevailing approach to dispute resolution emphasizes respect for the parties’ autonomy in arbitration proceedings, including agreements pertaining to stay of proceedings. The arbitral tribunal plays a supervisory role, making decisions within its jurisdiction to ensure the fairness and efficiency of the arbitration process. Arbitrators are obligated to assess and compare the potential damages to both parties when deciding whether to approve or reject a request for the stay of proceedings.

One illustrative case involves a child support dispute in Canada (Lockman v. Rancourt (2017) ONSC 2274)[2].. In this instance, the respondent (the party obligated to provide financial support) dismissed their legal counsel due to a loss of confidence and sought to retain new representative. Consequently, the respondent submitted a request for stay of proceedings. However, the arbitrator rejected the request, leading the respondent to petition the Ontario Superior Court of Justice, claiming that they were treated unfairly under these circumstances.

The court identified deficiencies in the arbitrator’s reasoning, particularly the failure to thoroughly evaluate pertinent factors when denying the respondent’s request. Specifically, the arbitrator neglected to consider the potential damages to the respondent if the hearing were to proceed without legal counsel, as compared to the respondent that might be incurred by the claimant if the hearing were adjourned. The judge underscored the absence of evidence suggesting that the claimant would suffer significant harm due to the stay of proceedings. Based on this analysis, the court concluded that the arbitrator had violated the principles of fair and equal treatment of the disputing parties. Consequently, the Ontario Superior Court of Justice annulled the arbitral award and appointed a replacement arbitrator to reconsider the dispute.

This situation also highlights the crucial role of the court in cases where the arbitral tribunal issues an unreasonable decision regarding the approval or rejection of a party’s stay of proceedings request. In comparison with Vietnamese legal provisions, Article 71 of LCA 2010 allows court intervention during the enforcement phase of an arbitral award.

In Vietnam, requests for stay of proceedings based on mutual agreement between disputing parties are typically accepted, reflecting the principle of freedom of contract within commercial activities. For example, in 2018, Company A (India), specialising in the production of electric turbines, entered into a contract with Company B (Vietnam) for the supply of electromechanical equipment and technical services for a hydropower project in Vietnam. Despite Company A fulfilling its contractual obligations and delivering the project, Company B failed to settle outstanding debts owed to Company A.

On 26 December 2023, Company A filed a request for arbitration with the Vietnam International Arbitration Centre (“VIAC”) pursuant to Article 27 of the General Conditions of the Contract signed by both parties. VIAC initiated arbitration procedures accordingly. On 15 April 2024, Company A submitted a notification to VIAC requesting a one-month stay of the proceedings, citing ongoing settlement negotiations between the parties. VIAC subsequently informed Company B that the dispute resolution process would be adjourned until 15 May 2024, per Company A’s request.

Due to the lack of specific regulations, arbitration centres in Vietnam are compelled to handle stay of proceedings requests in a flexible manner, consistent with the fundamental principles of arbitration proceedings. Where there is no mutual agreement between the parties regarding an stay of proceedings request, arbitral tribunals will base their decisions on a careful consideration of multiple factors to ensure fairness and efficiency in dispute resolution.

4. Tips for disputing parties when there’s a need for stay of arbitral proceedings

Based on practical application, the procedure for stay of proceedings can be categorised into two common scenarios: (i) stay of proceedings by mutual agreement of the parties; and (ii) stay of proceedings requested unilaterally by one party but opposed by the other.

4.1. Stay of proceedings by Mutual Agreement

Stay of proceedings by mutual agreement of the parties can help minimize litigation costs and facilitate a more flexible approach to dispute resolution. However, in many cases mediation or settlement negotiations may simply be the debtor’s tactics to delay the arbitral proceedings. For small claims, this could be very frustrating, because procedural delays always come with additional legal costs.

From the risks identified above, the following tips may be helpful to the counsels considering stay of proceedings on the basis of mutual agreement:

  • Establishment of clear and specific plans: When parties agree to adjourn proceedings for mediation or negotiation, a detailed roadmap with clear timelines and conditions should be established to avoid unnecessary delays.
  • Preparing options for negotiation conditions: Before requesting stay of proceedings for negotiations, parties should carefully define concession strategies and core demands to enhance the likelihood of reaching a final agreement.
  • Utilising opportunities prudently: Certain disputes can be resolved more quickly and cost-effectively through mediation and the counsels should support the process with dilligence and sufficient resources. However, if the mediation process does not show clear progress or if the dispute is improper for mediaiton, the parties should proactively resume arbitration to prevent unnecessary delays and waste of time and resources.

4.2. Stay of proceedings requested unilaterally by one party but opposed by the other

Where one party unilaterally requests for stay of proceedings without the consent of the opposing party, the arbitral tribunal’s decision on whether to grant the stay plays a critical role in shaping the course and effectiveness of the dispute. Legally, the arbitral tribunal has the authority to grant a stay if there are valid justifications. However, if the decision to adjourn is not grounded on reasonable grounds, it may lead to unfairness for the opposing party, particularly when there are urging needs to resolve the disputes in a timely manner.

In practice, the applicant for stay usually cites reasons such as the need for additional time to gather evidence or to await a ruling from another competent authority to request stay of proceedings. Many has exploited the external circumstances as an opportunity to prolong proceedings, causing significant prejudice to the opposing party.  A sensible Tribunal has to be able to balance the need for the parties’ fair opportunity to present/defend their case, and the need for effective and timely resolution of the dispute.

In the case of Lockman v. Rancourt analysed above, the Ontario Superior Court of Justice set aside the arbitral award on the grounds that the arbitrator had violated the principles of fair and equal treatment of the parties[3]. The risks of “fairness” challenges in Vietnam is even higher, gven the Court practices in favour of scrutinising the content of the award and arbitral procedures. Therefore, if the arbitral tribunal issues a stay decision or denies a stay request without explanation on its consideration of fairness and impartiality in the proceedings, or breaches the fundamental principles of Vietnamese law, this could serve as a key basis for the losing party to later request the Vietnamese courts to set aside the arbitral award pursuant to Article 68 of LCA 2010[4]..

To safeguard their interests in such cases, parties should devise appropriate legal strategies to respond effectively, including:

  • Assessing the motives of the requesting party: If opposing the stay of proceedings request, parties should thoroughly analyse whether the request genuinely serves a legitimate purpose or is merely a tactic to intentionally delay the resolution of the dispute.
  • Proactively protecting one’s interests: When contesting a stay of proceedings request, the opposing party should prepare robust arguments to demonstrate that the stay sought would result in prejudice to it andprocedural delays would result in significant and/or imparable harm to the opposing party.
  • Developing alternative plans: Even when opposing the request, the oposing party should anticipate scenarios in which the arbitral tribunal may approve the stay of proceedings. It is not abnormal for the Tribunal to take a middle-approach, to allow the stay of proceedings for a shorter period than what requested. When this becomes more obvious, the opposing party should suggest the allowance of a shorter stay of proceeding which could justify the reassons for delays. In any event, the stay of proceedings period can also be utilised to strengthen case files and gather additional critical evidence to support the proceedings.
  • Closely monitoring the process: If the stay of proceedings request is granted or partially granted, the parties should closely monitor the timeframe and stated reasons to prevent further delays that could hinder the progress of dispute resolution.

In summary, stay of arbitration proceedings is an essential legal tool that provides parties with an opportunity to negotiate and reach reasonable solutions without incuring further costs and time. However, the misuse of this mechanism can lead to negative consequences, such as delaying dispute resolution, increasing costs, and creating unfairness for one of the parties involved. Therefore, disputing parties should carefully evaluate before agreeing to or opposing an stay of proceedings request.

To effectively implement the stay of proceedings mechanism, parties need to develop appropriate legal strategies to closely manage the timing, conditions, and objectives of the stay of proceedings. Moreover, monitoring the progress and preparing contingency plans in all circumstances will help parties optimally protect their interests.

5. Policy-making recomendations

To enhance the effectiveness of dispute resolution through arbitration, the author recommends legislative amendments and additions in two main directions as follows:

Incorporate Article 19 of the Model Law regarding the Tribunal’s power in arbitral proceedings into LCA 2010: Currently, Vietnamese law lacks provisions on stay of arbitration proceedings and the genenral power of the Tribunal in handling the conduct of arbitration. This has reduced the flexibility and efficiency of dispute resolution through arbitration. Therefore, introducing an article akin to Article 19 of the Model Law will provide essential power for the arbitral tribunal in making fair and context-appropriate decisions.

Incorporating provisions on stay of proceedings into the procedural rules of VIAC: The current procedural rules of VIAC do not include specific provisions for stay of arbitral proceedings, especially where the Tribunal has not been established. It is necessary to provide a clear guidance for stay of proceedings, including the circumstances under which stay of proceedings is permitted, the conditions, the time frame, and the determination when the Tribunal has not been in place.

CONCLUSION

The absence of regulations on the stay of arbitration proceedings has led to unstability for disputing parties as well as the arbitral tribunal. While stay of proceedings serve as a useful tool, they also pose risks of abuse, causing unnecessary delays and affecting the fairness of dispute resolution. Therefore, it is essential to establish a transparent mechanism regarding stay of proceedings within the laws and procedural rules. These amendments and supplements will contribute to promoting a fair dispute resolution system that aligns with global trends and practical needs in Vietnam, ensuring the rights and interests of the litigating parties.


  1. “Article 17.
    Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, provided that the parties are treated with equality and that at an appropriate stage of the proceedings each party is given a reasonable opportunity of presenting its case. The arbitral tribunal, in exercising its discretion, shall conduct the proceedings so as to avoid unnecessary delay and expense and to provide a fair and efficient process for resolving the parties’ dispute.”
  2. Andrew Feldstein (2017), “Arbitration and Requests for Adjournments – Treating Parties Fairly and Equally, and the Importance of Weighing Prejudice”, Feldstein Family Law Group, https://www.separation.ca/blog/2017/november/arbitration-and-requests-for-adjournments-treati/ (truy cập lần cuối ngày 26/3/2025).
  3. Andrew Feldstein (2017), “Arbitration and Requests for Adjournments – Treating Parties Fairly and Equally, and the Importance of Weighing Prejudice”, Feldstein Family Law Group, https://www.separation.ca/blog/2017/november/arbitration-and-requests-for-adjournments-treati/ (truy cập lần cuối ngày 26/3/2025).
  4. “Article 68. Grounds for cancellation of arbitral awards
    The court shall consider the cancellation of an arbitral award at the request of one of the parties.
    An arbitral award shall be cancelled in any of the following cases:
    a/ There is no arbitration agreement or the arbitration agreement is invalid;
    b/ The arbitration council’s composition or procedures of arbitral proceedings is/arc incompliant with the parties’ agreement or this Law;
    c/ The dispute falls beyond the arbitration council’s jurisdiction: when an arbitral award contains the details falling beyond the arbitration council’s jurisdiction, such details shall be cancelled;
    d/ The evidence provided by the parties on which the arbitration council bases to issue the award is counterfeit: an arbitrator receives money, assets or other material benefits from one disputing party, thus affecting the objectivity and impartiality of the award;
    dd/ The award contravenes the fundamental principles of Vietnamese law.”

Source: Discourse: stay of proceedings in arbitration: practical applications in Vietnam and international experiences – Lexology

Commercial mediation in Vietnam: legal framework and practice

March 17 2025 | Nguyen Trung Nam (Tony) & Dat Phan (2025) – Commercial Mediation in Vietnam:
Legal Framework and Practice, Asian Dispute Review, p.48 – 54. | Lexology

The Article is about “Commercial Mediation in Vietnam: Legal Framework and Practice”. This article provides an overview of the regulation and conduct of international commercial mediation in Vietnam. In particular, it compares salient provisions of Vietnam’s Decree No 22/2017/ND-CP of 24 February 2017 on Commercial Mediation with the UNCITRAL Model Law on International Commercial Mediation and International Settlement Agreements Resulting from Mediation 2018 (which has not been adopted in Vietnam). It also notes steps aimed at the eventual accession of Vietnam to the United Nations (Singapore) Convention on International Settlement Agreements Resulting from Mediation 2018.

Introduction

Mediation is a preferred commercial dispute resolution method in Vietnam, owing its popularity to a number of advantages that include reasonable cost, speed and confidentiality[1]. This is demonstrated by the practice of the Vietnam International Arbitration Centre (VIAC)[2] between 2007 and 2018 and the Vietnam International Commercial Mediation Center (VMC, or VICMC) since 2018[3]. According to, respectively, the schedules of costs of the VIAC and the VMC, arbitration costs in a dispute worth US$10,000,000 are approximately US$94,000, while the mediation costs of same are US$34,000. Depending on the actual circumstances of each case, the time taken to resolve disputes by mediation, is usually significantly shorter than that for arbitration and court litigation. Commercial mediation is based on the principle of confidentiality [4], in respect of which mediators in Vietnam have a strict duty[5].

The legal framework

The history of commercial mediation’s development in Vietnam dates back to 15 April 2017, when Decree No 22/2017/ND-CP of 24 February 2017 on Commercial Mediation (the 2017 Decree) came into effect.6 This Decree comprehensively governs the applicable scope, principles, procedures and processes for resolving disputes through commercial mediation and makes provision as to commercial mediators, commercial mediation institutions, Vietnam-based foreign commercial mediation institutions and State management of commercial mediation activities. The State has clearly expressed its view thus on the promotion of commercial mediation:

“Encouraging disputing parties to use commercial mediation to resolve disputes in the field of commerce and other disputes that are allowed to be settled through commercial mediation.”[7]

The legal framework for commercial mediation in Vietnam is also influenced by a number of other laws. These include the Civil Code 2015[8], the Code of Civil Procedure 2015 (CPC)[9], the Commercial Law 2005[10], the Law on Investment 2020[11], the Law on Protection of Consumer Rights 2023[12] and the Construction Law 2014, as amended and supplemented in 2020.[13] In addition to independent commercial mediation, Vietnamese law also recognises court-annexed mediation,[14] mediation during litigation proceedings[15] and mediation during arbitral proceedings.[16] Consistent with international practice, Vietnam has both institutional and ad hoc mediation. Mediation centres may be established by arbitration centres[17] or by qualified mediators[18]. According to statistics from the Ministry of Justice, the country currently has 17 commercial mediation centres, 8 arbitration centres conducting mediation activities and over 100 ad hoc commercial mediators[19].

Divergence from the UNCITRAL Model Law on International Commercial Mediation

While Vietnam has not adopted the UNCITRAL Model Law on International Commercial Mediation and International Settlement Agreements Resulting from Mediation 2018[20] (the Model Law), Vietnamese laws on mediation are generally consistent with it. Thus, there are, understandably, a number of differences between these two systems.

Firstly, the Model Law is clearly intended and designed to govern only “international commercial mediation,”[21] while the 2017 Decree makes no such provision, being applicable only to “commercial mediation” per se. The Decree applies to commercial mediation activities (ad hoc or institutional) carried out by commercial mediation organizations, commercial mediators, foreign mediation organizations in Vietnam, State management authorities responsible for commercial mediation, and any other organizations and individuals engaged in commercial mediation[22]. Conversely, therefore, the Decree does not apply to mediation organizations, mediators, etc., engaged in non-commercial mediation activities.

Secondly, in terms of formalities for enforcing mediated settlement agreements (MSAs), the Model Law allows an enforcing party to rely on an MSA by supplying a copy signed by the parties, together with any evidence that is acceptable to the competent authority of the enforcing State showing that the agreement resulted from mediation[23]. Under the 2017 Decree[24], the parties and the mediator must sign the MSA; the MSA may be granted recognition pursuant to the Civil Procedure Code (CPC)[25].

Thirdly, there are no specific standards for qualifying as a mediator under the Model Law. Under the 2017 Decree, a mediator must have full civil legal capacity under the Civil Code and be of good character and reputation[26]. He or she must also have, as a minimum, a bachelor’s degree and two years’ experience in the discipline(s) in which he or she has trained, along with mediation skills, knowledge of the law and commerce, and related areas[27]. As to the conduct of mediations, the Model Law requires a mediator to treat the parties fairly[28] and to disclose any circumstances that likely to give rise to justifiable doubts as to his or her impartiality or independence[29]. The 2017 Decree requires a mediator to be impartial and independent[30].

Fourthly, a mediator under the Model Law may not act as arbitrator for the same dispute (or another dispute that has arisen from the same contract or legal relationship or any related contract or legal relationship), unless the parties otherwise agree[31]. In Vietnam, a mediator may not, in principle, act as an arbitrator in the same dispute[32]. It is, however, common practice in arbitral proceedings in Vietnam that the tribunal will, wearing the hat of a mediator, organise a mediation session at the beginning of one of the hearings.

Fifthly, under the Model Law, where parties agree to mediate and commit not to start arbitration or court proceedings for a certain period or until a specific event occurs, this commitment must be honoured by the arbitral tribunal or a court[33]. This holds good until the agreed terms are met, unless a party needs to act to protect its rights. Vietnamese laws do not have an equivalent provision.

Sixthly, in terms of enforcement, the Model Law does not address the enforcement of non-international MSAs. In other words, a domestic MSA will be treated and enforced in the same manner as any other binding contracts that have been breached. However, under both the 2017 Decree[34] and the CPC[35], an MSA may be recognised and enforced in summary court proceedings with expedited deadlines[36] and without the need for a full trial (by contrast with cases of ordinary breach of contract).

Finally, recognition and enforcement of an MSA under the Model Law[37] may be refused on a number of grounds: (1) incapacity of a party; (2) that the MSA is null and void, inoperative or incapable of being

performed, or is not final or binding, or has been subsequently modified; (3) that the obligations in the MSA

(i) have been performed, or (ii) are not clear or comprehensible; (4) that granting relief would be contrary to the terms of the MSA; (5) that there was a serious breach by the mediator of applicable standards, without which breach that party would not have entered into the settlement agreement; or (6) that the mediator failed to disclose to the parties circumstances that would have raised justifiable doubts as to his or her impartiality or independence, having a material impact or undue influence upon a party so that, without such failure, a party would not have entered into the settlement agreement; (7) that the MSA is contrary to public policy; and (8) that the subject-matter of the dispute was incapable of settlement by mediation.

In Vietnam, by contrast, the CPC38 provides that enforcement of a MSA may be refused where: (1) either party lacks civil legal capacity; (2) (i) either party does not have rights and/or obligations as stipulated in the MSA, or (ii) the content of the MSA relates to the rights and/or obligations of a third party which did not consent to it; and (3) the content of the MSA (i) is not based on party freedom to contract (party autonomy), or (ii) is prohibited by law, or (iii) violates moral ethics, or (iv) is intended to avoid obligations towards the government or third parties. As may be seen from the above, a number of grounds for refusal of enforcement of a MSA under the Model Law (viz, grounds (3), (4) and (5) above) do not exist under the CPC. Conversely, several grounds under the CPC do not exist under the Model Law (viz, grounds (2) and (3)(iv)).

The current use of commercial mediation

The number of disputes referred to international commercial medation is currently somewhat low. This is partly because commercial mediation is still relatively new in Vietnam[39]. The top two influences on party choice are contractual obligations and external counsel’s advice[40]. There are, however, very few enforecable mediation clauses in contracts, while there is also no significant sign of counsel advocating mediation as a matter of course. As a result, mediation is not a mandatory precondition to litigation or arbitration under current Vietnamese law and practice. A party may therefore omit compliance with a contractual mediation requirement if it so wishes, without fear of any sanction.

Commercial mediators

In addition to general qualification requirements to act as commercial mediators, art 7 of the 2017 Decree requires that candidates must be either (1) qualified by the relevant Department of Justice as an ad hoc mediator, or (2) appointed as an empanelled mediator of a commercial mediation institution regulated by the 2017 Decree, or both[41]. A mediation institution is permitted to (and often does) raise these conditions when accepting mediators in its panel of mediators. A number of mediation institutions have foreign mediators on their panels[42]. With regard to Vietnamese mediators, around 80 people have been accredited by CEDR or other organisations (such as, the CIArb and JAMS), creating the first community of experts professionally trained in commercial mediation in Vietnam. In light of the current case load, it is believed that there are more qualified meditators (both Vietnamese and foreign) than the market demands.

The 2017 Decree provides for a general code of conduct for mediators[43]; detailed codes may be found in the rules of each mediation institution (that of the VMC is a typical example)[44]. The training of mediators and courses in mediation skills are conducted by mediation insititutions, the Judicial Academy and Bar federations, providing basic knowledge for participants.

Recognition of mediated settlement agreements

Recognition of MSAs is regulated by both the 2017 Decree[45] and the CPC[46]. Conditions for the court to consider a request for recognition of a MSA are simple and easily met by parties[47]. The time limit for such a request is six months from the date of signature of the MSA (inclusive of the required signature of the

mediator). Once the MSA is recoginised, it is enforceable in accordance with civil enforcement laws, unless voluntarily executed by the parties[48].

Vietnam is currently not a Contracting State to the Singapore Convention on Mediation, though accession to it is actively under consideration[49]. There is, therefore, no regulation of enforcement of an international MSA in Vietnam or of a Vietnamese MSA overseas, save in the courts of a State that has acceded to the Convention. One possible pro tem solution is to ultilise an Arb-Med Arb Protocol (for example, that of the VIAC-VMC 2020[50]), whereby an international MSA may acquire the status of an arbitral award and thus be enforceable under the New York Convention 1958[51].

Conclusion

International commercial mediation is still a rather new dispute resolution process in Vietnam, but its use is gradually increasing with growing awareness on the part of the business and legal counsel communities. Once Vietnam has acceded to the Singapore Convention and acquired a greater role in the global economy, the authors believe that mediation will be used much more greatly, in a similar fashion to the history of commercial arbitration’s development in Vietnam.


[1] Singapore International Dispute Resolution Academy (SIDRA) of Singapore Management University, SIDRA International Dispute Resolution Survey, 2024 Final Report, p 35, Exhibit 6.2 (SIDRA Final Report). Editorial note: See the ‘News’ section, infra at p 66.
[2] Vietnam International Arbitration Centre: https://www.viac.vn/en. Established pursuant to Decision No 279/QD-VIAC of 27 April 2018 of the President of VIAC.
[3] Vietnam Mediation Centre, a division of VIAC: https://vmc.org.vn/en. Established pursuant to Government Decree No 22/2017/ND-CP of 24 February 2017 on Commercial Mediation; unofficial English translation available at https://www.academia.edu/63043423/The_Governmental_Decree_no_22_on_commercial_mediation_in_2017 and licensed by the Ministry of Justice on 20 December 2018. Its mediations are governed by the VMC Mediation Rules 2019, which took effect on 6 July 2019, available at https://vicmc.vn/wp-content/uploads/2021/04/vicmc_quytachogia_intoline_vn_en_publication-1.pdf.
[4] Article 4(2) of the 2017 Decree.
[5] Ibid, arts 9(1)(b) and 9(2)(c).
[6] Prior to this, the VIAC had provided mediation services and had handled five commercial mediation cases.
[7] 2017 Decree, art 5.
[8] No 91/2015/QH13 of 24 November 2015.
[9] No 91/2015/QH13 of 24 November 2015.
[10] Law No 36/2005/QH11 of 14 June 2005.
[11] Law No 61/2020/QH14 of 17 June 2020, art 14(1).
[12] Law No 19/2023/QH15 of 20 June 2023, art 54.
[13] Law No 50/2014/QH13 of 18 June 2014, art 146.
[14] Law No 58/2020/QH14 of 16 June 2020 on Mediation and Dialogue at Court.
[15] CCP, art 10.
[16] Law No 54/2010/QH12 of 17 June 2010 on Commercial Arbitration, arts 9 and 58.
[17] 2017 Decree, art 23, as in the case of VIAC and the VMC.
[18] Ibid, art 21.
[19] https://bttp.moj.gov.vn/Pages/hoa-giai-thuong-mai.aspx.
[20] Available at https://uncitral.un.org/sites/uncitral.un.org/files/mediacuments/uncitral/en/2201363_mediation_guide_e_ebook_rev.pdf.
[21] Model Law, arts 1.1 and 3.1. Article 3.2 defines what is meant by ‘international’.
[22] 2017 Decree, art 1.
[23] Model Law, art 18.1, in particular at sub-paras 1(a) and (b)(i).
[24] 2017 Decree, art 15.3.
[25] Ibid, art 16. See ‘Recognition of mediated settlement agreements’, infra.
[26] Ibid, art 7.1(a).
[27] Ibid, art 7.1(b) and (c).
[28] Model Law, art 7.3, fairness embracing impartiality and independence: ibid, art 6.4.
[29] Model Law, art 6.5.
[30] 2017 Decree, art 7.1(a).
[31] Model Law, art 13.
[32] VIAC Rules of Arbitration 2018, art 16(3)(d). Editorial note: Under statute law, by contrast, there is no equivalent provision in art 20(2) of the Law on Commercial Arbitration 2010 excluding mediators from acting as arbitrators.
[33] Model Law, art 14.
[34] 2017 Decree, art 16.
[35] Chapter XXXIII of the CPC deals with the procedure for recognition and enforcement of a MSA.
[36] For example, under art 419.2 of the CPC the court must review the application within 15 days. The application must then be listed for hearing within 10 days from expiry of the 15-day period.
[37] Model Law, art 19.
[38] CPC, art 417.
[39] VMC, Annual Report 2022 (2023), available in English at https://vmc.org.vn/en/annual-report.html.
[40] SIDRA Final Report (supra, note 1), p 35.
[41] Article 7 of the 2017 Decree provides (in the authors’ free English translation):
“Article 7. Qualifications of commercial mediators:
1, A person can fully satisfy the following criteria may act as a commercial mediator:
A. Having full civil act capacity as prescribed by the Civil Code; having good moral qualities and prestige, and working in an independent, impartial and objective manner;
B. Possessing a university or higher degree and having at least 2 years’ working experience in the discipline he/she has studied;
C. Having mediation skills and knowledge about law, business and commercial practices and relevant issues.
2, A commercial mediator may conduct commercial mediation in the capacity as [sic] an ad hoc commercial mediator or a commercial mediator of a commercial mediation institution in accordance with this Decree.
3, A commercial mediation institution may set criteria for its commercial mediators which are higher than those prescribed in Clause 1 of this Article.
4, The accused or defendants or those who are serving criminal sentences or have not had their criminal records expunged or are serving the administrative measure of sending to a compulsory education institution or compulsory detoxification establishment may not act as commercial mediators.”
[42] Available at https://vmc.org.vn/en/list-of-mediators.
[43] 2017 Decree, art 10.1.
[44] VMC, Code of Professional conduct and ethics for mediators (2020), available at https://vmc.org.vn/en/code-of-conduct-for-mediators.
[45] 2017 Decree, arts 13(2)(b) and 16.
[46] CPC, Chapter XXXIII (in official English translation).
[47] Article 417 of the CPC provides:
“Conditions for recognition of successful out-of-Court mediation result
1, Parties of [sic] the mediation agreement have sufficient civil act capacity.
2, Parties of [sic] the mediation agreement are persons who have rights and obligations towards the mediation contents. If the successful mediation contents are related to rights and obligations of a third party, such mediation must be agreed by such party.
3, Either or both parties file application to the Court for recognition of the mediation.
4, Contents of the successful mediation are totally voluntary and are not contrary to law, not contrary to social ethics nor for evasion of obligations towards the State or the third party.”
[48] CPC, art 419(9).
[49] United Nations (Singapore) Convention on International Settlement Agreements Resulting from Mediation 2018 (2020 UNTS 3360), available at https://uncitral.un.org/sites/uncitral.un.org/files/singapore_convention_eng.pdf. Editorial note: MSAs concluded between Vietnamese and foreign parties on or after 12 September 2020 (the date on which the Convention came into force) are, therefore, currently enforceable under the Convention only in the courts of foreign parties’ home States that have acceded to it. Vietnam is currently considering whether to accede to the Convention; pursuant to recommendations made to the Vietnamese government by a panel of independent experts: see Report on Viet Nam’s Possibility to [sic] Accede to the United Nations Convention on International Settlement Agreements Resulting from Mediation (Hanoi, 2021), available at https://moj.gov.vn/tttp/ttntuc/Lists/NghienCuuTraoDoi/Attachments/68/Report%20on%20the%20Possibility%20of%20Acceding%20to%20the%20Singapore%20Convention.pdf.
[50] VIAC/VMC, Arb-Med-Arb Protocol 2020, available at https://www.viac.vn/en/arb-med-arb-protocol.
[51] United Nations (New York) Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (1959 330 UNTS 3).

    Source: Commercial mediation in Vietnam: legal framework and practice – Lexology

    Vietnamese Court Sets Aside Arbitral Award for Failure to Legalize POA: An Abuse of Due Process Requirements

    July 26, 2023 | Tony Nguyen, Manh Pham (EPLegal) for Vietnam International Arbitration Centre (VIAC Vietnam) | Kluwer Arbitration Blog

    Under the Law on Commercial Arbitration 2010 (“LCA”), both domestic and international arbitral awards can be set aside on the basis that the arbitral award contravenes the “fundamental principles of Vietnamese law.” This concept, however, is undefined and broad, causing much uncertainty, especially in light of decisions of the Vietnamese courts.

    In 2020, the People’s Court of Ho Chi Minh City (“HCMC Court”) set aside a Vietnam-seated arbitral award on the basis that a power of attorney issued by a foreign company to its Vietnamese lawyers to represent it in the arbitration was not legalized by the consulate of Vietnam in Cambodia. The HCMC Court held that the arbitral tribunal’s acceptance of the power of attorney that was not legalized contravenes the fundamental principles of Vietnamese law and therefore the award was liable to be set aside. This controversial decision has invited much criticism from the legal profession in Vietnam as the wide and uncertain grounds under which a party may challenge an award under the LCA continue to hinder Vietnam’s popularity as a seat for international arbitration.

    Summary of Decision 1768/QĐ-PQTT Dated 10 June 2020 (“Decision 1768”)

    On 25 September 2016, Tai Seng Bavet Sez Co., Ltd (“Tai Seng”) (a Cambodian company) and Chunghwa Telecom Vietnam Co., Ltd (“Chunghwa”) (a Vietnamese company) signed a service contract (“Contract”). Article 22 stipulated that if resolution through negotiation and conciliation cannot be reached, “the arbitration body of Vietnam, Cambodia or a third party will conduct arbitration” and that “[the] undisputed parts must still be performed.”

    A dispute subsequently arose between the parties, whereby Tai Seng alleged that Chunghwa did not fulfil its obligations under the Contract. Tai Seng commenced an arbitration against Chunghwa with the Vietnam International Arbitration Center (“VIAC”). In accordance with the VIAC Rules, a tribunal consisting of three arbitrators was appointed. On 5 June 2019, the tribunal issued its final arbitral award, Award No. 44/18 HCM, wherein the tribunal upheld some of Tai Seng’s claims and awarded to Tai Seng damages of USD 61,290, legal costs of USD 7,279, arbitration costs of USD 75,107, and other reasonable expenses in the sum of USD 3,178.52.

    Chunghwa challenged the award before the HCMC Court on the grounds that the power of attorney issued by Tai Seng to its Vietnamese lawyers to represent it in the arbitration (the “POA”) was not legalized by the consulate of Vietnam in Cambodia and therefore was non-compliant with the provisions of Article 4 of Decree No. 111/2011/ND-CP (“Decree 111/2011”).1 Consequently, the arbitral tribunal should not have accepted the POA. According to Chunghwa, the arbitral tribunal’s acceptance of the POA therefore contravenes the fundamental principles of Vietnamese law and the award should be set aside.

    The Procuracy’s Opinion

    Commenting on this case, the Procuracy2 opined that the POA was not legalized in accordance with Article 2.2 of Decree 111/2011 and was therefore not valid under Article 4.2 Decree 111/2011 for use in Vietnam. Pursuant to Article 68.2.(dd) of the LCA (which provides that an arbitral award shall be set aside if it contravenes the “fundamental principle of Vietnamese law”), the Procuracy advised the competent court to set aside Award No. 44/18 HCM.

    The Court’s Decision and Reasoning

    The HCMC Court agreed with the Procuracy’s opinion and added that the POA is not a type of document that is exempted from legalization under Article 9 of Decree 111/2011. Additionally, the HCMC Court held that the arbitration clause did neither specify a form of arbitration (i.e.ad hoc or institutional arbitration) nor which arbitration institution should administer the arbitration. Therefore, it was wrongful for VIAC to have accepted Tai Seng’s notice of arbitration and to have administered the arbitration between the parties.

    On these grounds, the Court issued Decision 1768 to set aside Award No. 44/18 HCM.

    The Problems with Decision 1768

    According to Decision 1768, a failure by a foreign party to legalize a power of attorney in Vietnamese arbitral proceedings would amount to a contravention of “the fundamental principles of Vietnamese Law.” Yet, the HCMC Court did not explain how a non-legalized power of attorney could result in a breach of the fundamental principles of Vietnamese law, for example because it threatens the justice and impartiality of the Vietnamese legal system, nor did it identify the types of documents that must be legalized for use in arbitration in Vietnam. In fact, it is absurd and irreconcilable with other Vietnamese laws and regulations on arbitration.

    Firstly, Article 9(4) of the Decree 111/2011 provides that papers and documents need not be legalized if not required by the receiving Vietnamese or foreign organization under the relevant Vietnamese or foreign laws. The receiving organization in this case would be VIAC. Nothing in the Rules of VIAC or Vietnamese legislation requires that a POA issued by a party to an arbitration must be legalized. There was therefore no legal basis for the HCMC Court to find that a non-legalized POA in arbitration proceedings would violate any law or regulation of Vietnam, much less “the fundamental principles of Vietnamese law.” The Procuracy and the HCMC Court may have confused arbitration with Vietnamese court proceedings, where a represented party must obtain a POA that is apostilled and legalized.

    Secondly, Article 14(2)(dd) of Resolution 01/2014 issued by the Supreme People’s Court of Vietnam clarifies that the fundamental principles of Vietnamese law means “the fundamental rules of conduct having overall effect over formulation and implementation of Vietnamese Law.” It is unclear how the issue of legalization of a POA could violate the fundamental rules of conduct having overall formulation and implementation of law. The form of a POA granted by a party to its counsel has no impact on the fairness or impartiality of an arbitration.

    Thirdly, Article 13 of the LCA provides that if a party, having been aware of an (alleged) violation of the Law or the arbitration agreement, continued with the arbitral proceeding without objecting to it within the regulated timeline, it will lose the right of objection in arbitration and in court. The HCMC Court did not take into account the fact that Chunghwa never objected to the non-legalized POA until the arbitral award was issued.

    Decision 1768 is therefore arguably wrong and places foreign parties arbitrating in Vietnam at a significant disadvantage. A construction arbitration like the case at hand usually involves copious amounts of documents and evidence. If a foreign Claimant is required to legalize all of its “foreign” documents to be used in arbitration in Vietnam, that would place a huge burden on the foreign party and would create an unfair advantage for domestic counter-parties because they can point to any non-legalized document used in the arbitration as a ground to apply for the setting aside of the arbitral award.

    Decision 1768 is also irreconcilable with the best practices in international arbitration. None of the popular arbitration seats (e.g., New York, England & Wales, Hong Kong, and Singapore) impose any legalization requirements on documents to be used in arbitration (which matter is for the tribunal to determine). For example, SIAC Rules 2016, Article 19.2 provides: “The Tribunal shall determine the relevance, materiality and admissibility of all evidence. The Tribunal is not required to apply the rules of evidence of any applicable law in making such determination.”3 Similarly, the UNCITRAL Arbitration Rules 2021, Article 27.4 provides: “The arbitral tribunal shall determine the admissibility, relevance, materiality and weight of the evidence offered.”

    In relation to the failure of the arbitration agreement to specify an arbitral institution to administer the arbitration, the HCMC Court did not make it clear whether such failure rendered the arbitration clause invalid, or whether such failure merely meant that any arbitration commenced under the Contract would be an ad hoc arbitration. The Court’s reasoning is inconsistent with Article 43(5) of the LCA, which states that if the arbitration clause fails to indicate the form of arbitration or cannot identify a specific arbitration institution, and the parties could not reach agreement on the same, then the form of arbitration or the arbitration institution to settle the dispute shall be selected at the claimant’s discretion.

    Mitigating the Risks Arising from Decision 1768

    The VIAC Rules are so far silent on the issue of legalized POAs. To avoid uncertainty, parties are advised to obtain a legalized POA when they authorize their counsel representing them in arbitration proceedings in Vietnam.

    From the VIAC’s perspective, it should formally issue guidance to the disputing parties in relation to whether a POA has to be legalized under its Rules. Such guidance must set out the formality requirements applicable to each category of documents/evidence. Alternatively, VIAC may specify in its Rules that where a party provides a POA in writing, certification and legalization of the POA is not required unless requested by the opposing party(ies) giving notice within a certain period.

    As for potential law reform, the LCA should be amended to clarify that the strict procedural rules of court proceedings shall not apply to arbitration; instead, procedural requirements under the LCA should be simplified to allow arbitral institutions to define their own requirements in relation to procedural matters. More importantly, the concept of contravention of the “fundamental principles of Vietnamese law” must be redefined in the LCA to include only very serious defects or breaches in the award or in the conduct of the arbitral proceedings that contravene the public policy of Vietnam of maintaining the fair and orderly administration of justice.

    Conclusion

    Decision 1768 is a controversial decision which has invited much criticism from the legal profession in Vietnam and has caused ripples of uncertainty in Vietnamese arbitration practice. It highlights the significant hurdles to Vietnam establishing itself as a safe seat for arbitration, especially for foreign parties.


    1, Article 4.2 of Decree 111/2011 dated 5 December 2011 (which regulates the consular certification and legalization process in Vietnam) provides that: “To be recognized and used in Vietnam, papers and documents of foreign countries must be consularly legalized, except the cases specified in Article 9 of this Decree.”
    2, Under Vietnamese law, hearings for all civil cases are attended by the People’s Procuracy of Ho Chi Minh City (“Procuracy”) (i.e., the public prosecutor of Vietnam), who will express its independent opinion on the case. The Procuracy’s opinions are not binding on a judge but will have advisory value.
    3, LCIA Arbitration Rules 2020, Article 22.1.(iv) also allows the Arbitral Tribunal to order any party to make documents available for inspection by the Arbitral Tribunal, other party or expert.

    Source: Vietnamese Court Sets Aside Arbitral Award for Failure to Legalize POA: An Abuse of Due Process Requirements | Kluwer Arbitration Blog

    Preparing businesses for turbulence during conflicts

    March 24, 2022 | Nguyen Trung Nam | Vietnam Investment Review (VIR)

    The Russia-Ukraine conflict has caused chaos on all transactions with Russian contracting parties, mainly because of unprecedented comprehensive sanctions by other countries and blocs. Nguyen Trung Nam, founder and senior partner at law firm EPLegal, analyses the impact of these sanctions on ongoing international trading contracts between Vietnamese enterprises and their overseas business partners.

    This year marks 72 years of the Vietnam-Russia diplomatic relationship and the 10-year anniversary of a comprehensive strategic partnership. The trade turnover between the two countries in 2020 reached nearly $4.85 billion, an increase of nearly 9 per cent compared to 2019. Last year, total export-import turnover between Vietnam and Russia reached $7.3 billion, including $4.5 billion earned by Vietnam’s exports.

    However, on March 2, the United Nations General Assembly passed a historic resolution condemning the situation in Ukraine and demanding an immediate end to the conflict.

    Subsequent sanctions on Russia from the United Nations, the European Union, the United States, and the United Kingdom have been the most influential measures with a widespread impact on international trade activities.

    The EU uses sanctions or an embargo to enforce its foreign and security policy goals, often related to human rights, democracy and principles of international law. On February 25, the European Commission, together with the UK, the US, and Canada, pledged to remove Russia from SWIFT, a global messaging service that connects financial systems, as a measure to paralyse Russia’s central bank assets and freeze its transactions, making it impossible for Russian companies to transfer payments through their Russian bank accounts.

    States with powerful economies that use it for their foreign policy purposes, typically the US and the UK, have used sanctions to enforce foreign policies and ensure national security and economy through the promulgation of laws and regulations. The United States has traditionally imposed comprehensive measures against specific businesses, organisations or individuals, or an entire country/territory, such as in 1993 against Cuba.

    Levels of sanctions

    After the US alleged that Russia occupied Ukraine’s Crimea region in 2014, President Obama issued an embargo against Russia’s actions in Ukraine. The Ukraine Freedom Support Act of 2014 created a framework for secondary sanctions that can be imposed on non-US individuals/organisations investing in offshore projects in the Arctic, as well as crude oil shale and special crude oil projects located in Russia.

    On March 3, the US president signed a new executive order prohibiting certain imports and new investments. The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued, at the same time, newly added FAQs, which clarified the prohibited imports of Russian origin include “goods produced, manufactured, extracted, or processed in the Russian Federation, excluding any Russian Federation good that has been incorporated or substantially transformed into a foreign-made product.”

    In the past, the United Kingdom almost always imposed collective sanctions, whether as a member of the UN or the EU. The Sanctions and Money Laundering Act 2018 allows the UK to enact financial and trade sanctions on its own now that is has left the European Union.

    It is important for businesses to distinguish the two concepts of primary and secondary sanctions. Primary sanction is applied to transactions between US entities and entities from the country or organisation that is the target of the sanction. A secondary sanction, on the other hand, applies to the organisations which transact with the sanctioned country or entities – for example, the executive order authorised by the US to impose sanctions on non-US entities dealing with Petroleos de Venezuela S.A.

    Accordingly, the US may freeze assets and interests in assets in the US of individuals and organisations determined by the Secretary of the Treasury to have provided material support to subjects listed by OFAC as specially designated nationals and blocked persons (SDN). This has caused threats to all commercial entities, including Vietnamese businesses, who may be transacting with Russian or other entities subject to the US sanctions.

    The immediate impact of the above sanctions is that many international contracts with Russian and other parties which are subject to those sanctions will be unable to be carried out. Payments could not be made from the Russian parties (because they could not make transactions through the SWIFT system), and counterparties concerned by the risk of imposed sanctions will suspend or terminate the performance of the contracts. What then will happen with the disposal of these contracts?

    Most of the parties will, firstly, think about force majeure as an excuse for non-performing their obligations, and thus, will not be liable for damages as a result of their breach. However, relying on force majeure is not easy. Under common law jurisdictions such as England, there is no such legal concept.

    A party could only state that a contract has been frustrated based on the grounds of an unforeseen event that occurs after a contract is entered into which is outside the control of the parties, and makes the contract either physically or commercially impossible or illegal to perform; or transforms the performance of the contract into something so radically different from the intended purpose that it would be unfair to hold the parties to their obligations.

    Grounds for frustration

    Should Vietnamese laws be chosen by the parties to govern the contract, a party may only rely on force majeure if three conditions are satisfied as per the Civil Code 2015: objectivity, unforeseeability, and impossibility to overcome despite taking all necessary and possible measures.

    Despite the differences, conditions for frustration and force majeure have one condition in common, which is that the event must be outside the suffering party’s control. Though the determination of this condition depends on the contextual circumstances, it is a high threshold and is generally very difficult to meet.

    For example, sanctions will not be accepted as a ground for frustration if the non-performing party had somehow committed action(s) that contributed to causing the sanction to happen. This is the case for a number of companies with a close connection to the Russian government, which procured and/or sold goods and services in support of Russian activities in Ukraine.

    If these actions caused them to be sanctioned by the OFAC’s SDN List, it is very unlikely that they will be able to rely on either a frustration doctrine or force majeure event when a sanction is imposed on them stopping them from carrying out the contracts.

    Without a legitimate excuse for non-performance of the contract, breaches will give rise to the counter-parties the right to claim damages and, if the breach is fundamental, to void the contract and seek new business partners to continue their transactions.

    To avoid the risk of sanctions and contracts being breached due to sanctions against their partners, Vietnamese businesses should be prepared for their crisis avoidance and management in various ways.

    Firstly, it can constantly update and improve knowledge of global sanctions, especially measures and entities subject to those sanctions, so that Vietnamese businesses can plan better in the selection of markets and partners. It can obtain proper consultation to prepare the contract terms and conditions, including delivery, payment terms, and methods that could take into account sanctions against its contracting partners.

    The country can also choose international banks with experience in anti-money laundering and sanctions. Choosing banks with rich experience in international payment, high quality in sanctions checking, and good advice will minimise risks for customers.

    Finally, those enterprises which frequently deal with international trade of oil and gas, and other commodities that are sensitive to global sanctions, should establish a specialised team and action plan to deal with the situation.

    Source: Preparing businesses for turbulence during conflicts

    Can COVID-19 serve as force majeure?

    October 19, 2021 | EPLegal | Vietnam Investment Review (VIR)

    Global difficulties have forced businesses in Vietnam to delay implementation of export contracts with overseas partners. Tony Nguyen, senior partner, and Son Nguyen, associate of legal consultancy firm EPLegal write about the dilemma for local exporters, with contract delays inducing damages or waiver liabilities.

    Tony Nguyen, senior partner, and Son Nguyen, associate of legal consultancy firm EPLegal

    Due to the ongoing pandemic, import-export enterprises are facing damages and order cancellations due to failure to perform their obligations. Most of them have been seeking a good reason – for example, the impact of COVID-19 as a force majeure (FM) event – to excuse themselves from their liability.

    The pandemic impacts on foreign trade activities may vary: agricultural products may not be harvested and processed on time; factories playing a vital role in the supply chain are shut down because workers are not allowed to go to work. Specifically, in this summer’s outbreak, the coronavirus penetrated large industrial zones and the frequent shortage of workers moving back to their hometowns is one of the biggest problems causing critical delays in carrying out agreed orders.

    In a good number of international sales contracts, the parties agree to apply Vietnamese law. Additionally, Vietnam is also a member of the UN Convention on Contracts for the International Sale of Goods. Thus, this convention would apply if the parties are members or they choose Vietnamese law as applicable law.

    The convention does not define “force majeure”, but it has an article with similar legal consequences: “A party is not liable for a failure to perform any of his obligations if he proves that the failure was due to an impediment beyond his control and that he could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it, or its consequences.”

    When determining whether or not an event amounts to FM, the party in breach must give a notice indicating FM and detailing its effect within a reasonable time to the other party. The burden of proof falls on the party citing FM and such a party shall adduce the existence of FM in its notice. Accordingly, it shall establish whether such an event satisfies the conditions.

    Common mistakes

    There are several missteps made in trying to rely on FM. A party may cite FM as a reason for non-performance of an obligation, but such obligation is unaffected by FM. For example, Company A could allege that it was unable to make a deposit as scheduled, and request Company B to suspend delivery of goods. But Company A’s payment obligation was not influenced by FM as banks still operated and payment could be made via internet banking.

    A party applying FM might be misconceived when suspending the whole of its obligations, as only impeded obligations by FM are suspended and exempt from liabilities and its other obligations shall be performed as agreed. For instance, Company A obliged to deliver goods to Company B’s two locations (Place X and Y) but place X is locked down, which constitutes an FM event. In this case, Company A is only relieved from remedies for delivering to Place X only, not Place Y.

    A party may cause an impediment through its own conduct and therefore does not satisfy an objectivity test. If a party fails to implement measures for prevention and control of COVID-19, which results in an outbreak and halt of company operations, such a party could not apply this impediment as FM.

    A party seeking waiver of liability may cite an indirect event constituting FM. For instance, the prime minister issued Directives 15, 16, and 19 in order to restrict several activities and request local authorities to provide their appropriate directives. Authority X issues a decision to halt Company A’s operations due to infected cases. As a result, there are four objective hindrances: COVID-19, the prime minister’s directions, local directions, and the local decision. The party in breach should mention which impediment directly influences its obligations.

    Improving protection

    As a general principle, parties should actively implement measures and prevent COVID-19 as per the guidelines, while continuing to perform their unaffected obligation in good faith. They are also expected to mitigate the losses caused by the pandemic-related event – for example selling goods to, or purchasing goods from, another company regardless of whether or not it constitutes an FM event.

    If an impediment causes the victim to not achieve commercial purposes, an export enterprise should try to rely on the hardship principle to renegotiate the contract, because FM most likely fails here. It should carefully assess the impediment to its obligations and effects, and inform the other parties of the alleged FM event as soon as practical, even without the full details. In addition, these export enterprises need to make their best efforts to overcome the impediment, and also record all evidence of such efforts.

    Last but not least, exporters should take into account the COVID-19 situation cautiously when negotiating new contracts. There should be specific terms in the contract dealing with these types of scenarios, while not simply relying on situations stemming from the current pandemic.

    How to deal with Suez contractual claims

    April 14, 2021 | Tony Nguyen | Vietnam Investment Review (VIR)

    After the Suez Canal incident last month causing wide disruption to global trade, attention has been turned to the legal implications surrounding the issue. Tony Nguyen,  founder and senior partner of legal consultancy firm EPLegal, discusses the varying laws and contracts that could come into play.

    The Ever Given container ship, wedged in the Suez Canal for almost one week before it was finally freed from the shoreline, had an adverse impact on about 12 per cent of global trade. Around one million barrels of oil and roughly 8 per cent of liquefied natural gas passes through the canal each day, and it was estimated by Lloyd’s List that the crisis cost $400 million per hour in delayed goods. It was also projected that the canal’s revenues were taking a $14-15 million hit for each day of the blockage.

    This was not the first time the Suez Canal was blocked, causing huge damages to one of the world’s most vital shipping routes. The closing of the Suez Canal for five months in November 1956 due to war triggered a number of British and American decisions involving claims of frustration of contract.

    In 1967, the canal turned into a battleground between Israel and Egypt during national conflicts and was blocked for eight years. In three other circumstances (2004, 2006, and 2017) a large tanker and two cargo/container vessels got lodged in the waterway and caused the canal to be blocked for respectively three days, eight hours, and three hours.

    All these accidents would invite a wave of claims due to the delays or cancellation of shipments via the canal. These claims generally arise between the buyers and sellers of goods being transported; the contract of carriage between the charterers and the ship owners/carriers; and parties in service and construction contracts utilising goods being transported. Would these claims be easily rejected by the fact that the accidents are by nature force majeure (FM) events and the parties in breach should be exempted from liability?

    We can analyse the legal issue in the context of (i) English laws, being the most frequently applied laws to international trade contracts, (ii) the UN Convention on the Contracts for International Sales of Goods (CISG) – the substantive provisions applied to the buyers and sellers of goods which have their places of business in member states, and (iii) Vietnamese laws. The common element in these three jurisdictions is that they all require the event to be ‘unexpected’ to the party in breach. It is without doubt that the Suez events are qualified for this condition. But there are other conditions to be met.

    English laws

    Under English law, contractual performance will be excused due to unexpected circumstances only if they fall within the doctrine of frustration; or where the parties agree otherwise (most likely a ‘FM clause’) in their contract. The test of frustration is a very high threshold: it only applies where the events make the performance of the contract impossible, illegal, or radically different from that originally envisioned by the parties.

    In the first Suez event waive of cases, the buyer and seller disputed over the alleged breach of failure to ship the goods via Suez Canal under a sales contract which applied Form No.38 of the Incorporated Oil Seed Association Forms of Contract.

    It was found that closure of the canal increased the length of the voyage necessary for delivery from 2,300 to 10,500 miles (to go through the alternative Cape of Good Hope). The cost of shipment was raised from about £6 ($8.2) per tonne to between £27-29 ($37-39.8) per tonne.

    The court held that “in the present case an unexpected event occurred, namely, the closure of the Suez Canal, and no doubt it may be said to have involved both inconvenience and material loss. But I am not satisfied that there was also such a change in the significance of the obligation as would call the principle of frustration into play.”

    Thus, the fact that the alternative route for shipment of goods via Cape of Good Hope would incur huge additional costs to the obligor will not excuse them from liability. Similar results are expected for a contract of carriage between a charterer and a carrier, except that if the contract specifies that cargo should be shipped via the Suez, then the blockage would have frustrated the contract.

    The CISG

    Article 79.1 of the CISG provides a more specific description of the conditions for an “impediment” which stop a party from performing a contract: “A party is not liable for a failure to perform any of his obligations if he proves that the failure was due to an impediment beyond his control and that he could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences.”

    According to Professor John Honnold, the term “impediment” must be interpreted to read that the event actually prevents performance. This also implies that an event that makes performance commercially impracticable does not satisfy the test.

    The other conditions of an “impediment” under the CISG are (i) beyond a party’s control; (ii) the affected party could not reasonably anticipate the impediment at the time of signing the contract; and (iii) the affected party could not reasonably avoid or overcome it or its consequences. “Reasonably” means what a normal person in such circumstances knew or should have known at the time of signing the contract.

    In addition, the affected party must inform the other party of the impediment and its effect on his ability to perform within a reasonable time, otherwise he will be held liable for damages resulting from such non-receipt (Article 79.4).

    Putting the Suez events in context, it seems that a seller or carrier would face the same problem if he tries to avoid liability based on Article 79 of the CISG. It is theoretically possible (though commercially impractical) to have shipments via alternative routes and the very first condition of impediment is not met.

    Notably, the affected party may seek to amend the contract using another doctrine under the CISG and the UNIDROIT (International Institute for the Unification of Private Law) Principles: hardship. It has been widely established by the academics that Article 79 of the CISG applies to hardship situations, and the UNIDROIT Principles may be applied to fill in the gap of Article 79 while determining the consequence of hardship.

    Accordingly, if a hardship situation is established under Article 79, the affected party may request renegotiation of prices and/or terms (but he may not withhold performance). Upon failure to reach agreement within a reasonable time, either party may resort to the court, who will then terminate, or adapt the contract with a view to restoring its equilibrium.

    Vietnamese laws

    Vietnam has recognised FM since 1995 and the definition of FM is currently stipulated in the Civil Code 2015. Accordingly, an event is an FM if it satisfies the following three conditions: being objective; being unforeseeable; and cannot be overcome despite taking all necessary and possible measures.

    The last condition means that the event must be an impediment that could not be overcome despite the affected party’s attempt to implement all solutions. The Suez events therefore shall not give rise to an exemption of the obligor despite the impact of these events.

    In terms of hardship, Article 420.1 of the Civil Code 2015 renders the concept of “a fundamental change in circumstance” to describe hardship, and provides a solution to hardship situations which is similar to the UNIDROIT Principles.

    Given the situation of the recent Suez Canal incident, applying English laws, the CISG, or Vietnamese laws will result in the same consequence: contractual claims against the party affected by the blockage will likely succeed. However, the party in breach may declare a hardship situation in a timely manner and request renegotiation of the contract prices and/or other terms with a view to restore the economic balance of the contract.

    Source: How to deal with Suez contractual claims