Arbitration Procedure in Vietnam: 7 Stages Foreign Companies Should Prepare For

Arbitration procedure in Vietnam can affect your time, your cost, your evidence position, and your control of the dispute long before the final award. Many foreign companies lose control because they misunderstand what happens after arbitration starts, and they react too late, which damages the result.

Here we explain the arbitration procedure in Vietnam that matters once a dispute has begun. Before that, the most important thing you can control is the arbitration clause itself. For the full framework on clauses, evidence, court support, and enforcement, it also helps to understand arbitration in Vietnam in general first.

Procedure is not only a legal sequence, it is also a business-risk sequence which one needs to control. At each stage of the arbitration procedure in Vietnam, a company can lose time, lose leverage, weaken its evidence, or reduce the practical value of a later award. That is why the process should be understood early, not only after a notice arrives.

Key Stages of Arbitration Procedure in Vietnam

The Case Starts Earlier Than Many Companies Think

In some situations, companies can even lose the claim completely by waiting too long. Unless a specialised law says otherwise, the limitation period to begin arbitration is two years from the time your lawful rights and interests were harmed.

Many companies lose time at the very start, simply because they misunderstand when the case officially begins. The start date depends on the type of arbitration. If the dispute goes to an arbitration centre, and the parties have not agreed otherwise, proceedings start when the centre receives the statement of claim. In ad hoc arbitration, again unless agreed otherwise, they start when the respondent receives the statement of claim.

This means the dispute can become legally active before senior management even feels the case has truly started. Waiting for commercial talks to improve can be expensive if the clock is already running.

How to reduce the risk: treat the first formal filing or receipt of claim as a real legal trigger, and check the limitation period immediately.

Notice and Response Shape the First Balance of Power

A slow or casual response can weaken a company very early. The other side may push ahead while your team is still deciding who should handle the matter internally.

A respondent’s failure to take part does not stop the arbitration. If the respondent files no statement of defence, the proceedings can still continue. If a respondent is properly summoned to the hearing but stays away without a valid reason, or leaves without the tribunal’s approval, the tribunal can carry on and decide the dispute on the documents and evidence already on file. In practice, tribunals will usually confirm that the respondent was properly notified and had a fair chance to be heard before moving ahead without that party.

For foreign companies, the warning is practical. A notice of arbitration is not just another demand letter to ignore while people wait for the relationship to recover. At this stage, delay can cost you leverage before the facts are even argued.

How to reduce the risk: set up a response team quickly, and treat notice, defence timing, and hearing summons as priority items.

Tribunal Appointment Can Become the First Real Delay

A case can lose momentum at the appointment stage of the arbitration procedure in Vietnam, which means more time, more cost, and more uncertainty before anyone reaches the substance.

The default path depends on whether the arbitration is institutional or ad hoc. In institutional arbitration, unless the parties or the rules say otherwise, the president of the arbitration centre can appoint the arbitrator in default situations, including for a defaulting party, multiple respondents, the presiding arbitrator, or a sole arbitrator. In ad hoc arbitration, unless agreed otherwise, if the parties or the co-arbitrators fail to appoint, a competent court can appoint the arbitrator at a party’s request.

If the arbitration clause is unclear, or if the team reacts slowly, the appointment stage often becomes the first serious source of delay, while the case waits for a tribunal to be formed. Many of these delays trace straight back to how the arbitration clause was drafted in the first place.

How to reduce the risk: check the appointment mechanism early, and make sure your internal team can act fast once the process begins.

Procedural Discipline Matters Even Before the Hearing

Many companies think the real case begins at the hearing. In practice, they often lose control much earlier, during day-to-day procedural discipline.

The basic principles are clear. Arbitrators must respect the parties’ agreement, as long as it does not breach prohibitions of law. They must be independent, impartial, and follow the law. The parties are equal in rights and obligations, and the tribunal must help them exercise those rights. Proceedings are private unless the parties agree otherwise, and the award is final and binding.

If you are slow with instructions, document collection, or strategic decisions, you can fall behind before the hearing date is even fixed.

How to reduce the risk: organise your internal decision chain early, so the company can respond to each procedural step without delay.

Evidence and Document Control Become Central

A strong commercial position can still turn into a weak arbitration case if the records are incomplete, disorganised, or hard to obtain.

Evidence can include documents, factual witnesses, expert witnesses, and other forms of proof. Each party has the right and the duty to submit evidence proving the facts it relies on. The tribunal can ask witnesses for information and documents, order an expert examination or asset valuation, and consult experts. If the tribunal or the parties have taken the necessary steps and still cannot obtain evidence, they can ask a competent court to help collect it. One point that surprises many foreign companies is that Vietnamese arbitration law does not expressly give one party the right to force the other to produce documents, and in practice document production is generally governed by what the parties agreed.

Many foreign companies expect document production to work the way it does in their home jurisdiction. That assumption can be unsafe in Vietnam. If the evidence file is weak, or key documents are not preserved early, the case becomes harder to prove.

How to reduce the risk: build the document file early, and do not assume later procedure will fix missing evidence for you.

The Hearing and the Award Require Discipline

The law appears to expect that a hearing will take place, but it also allows the tribunal, at the parties’ request, to decide on the case file without the parties being present. If Vietnam is the seat of arbitration, hearings and procedural meetings can still be held elsewhere. The tribunal decides by majority, and if there is no majority, the award follows the presiding arbitrator’s opinion.

The award must be in writing and contain the contents required by law, including the date and place of issue, party and arbitrator details, a summary of the dispute, the grounds for the decision unless the parties agreed otherwise, the decision itself, the time limit for enforcement, the allocation of costs, and signatures. It must be issued at the hearing or, at the latest, within 30 days of the final hearing.

The end of the hearing is not the end of procedural risk. Timing, and award form still matter.

How to reduce the risk: stay attentive through the hearing, and review the final award carefully and quickly.

Post-Award Steps Can Still Affect the Value of the Result

A company may think the dispute is over once the award is issued. In practice, a few limited post-award steps can still affect the commercial value of the result.

Unless the parties agree otherwise, within 30 days of receiving the award a party can ask the tribunal to correct obvious spelling, numerical, or calculation errors, to interpret a specific point in the award, or to issue an additional award for a claim that was raised but left out. If the request is justified, the tribunal should make the correction or interpretation within 30 days, or issue an additional award within 45 days, with an extension where necessary.

Awards are final and cannot be appealed, but they can be set aside on limited statutory grounds. The next practical concern is usually whether the award can be collected, which is where the enforcement of foreign arbitral awards in Vietnam becomes the real test.

How to reduce the risk: review the award immediately, and decide quickly whether to request a correction, an interpretation, or an additional award.

How to Prepare for Arbitration Procedure in Vietnam Before the First Filing

1. Identify when the arbitration will legally begin under your chosen process.
2. Check whether the limitation period is still open.
3. Gather the contract, amendments, notices, and key business records early.
4. Decide who inside the company will manage instructions and response timing.
5. Check the tribunal appointment path so the process does not stall at the first stage.
6. Review what evidence you already have and what may need court assistance.
7. Plan for the award stage and the short post-award deadlines before the hearing even begins.

Frequently Asked Questions About Arbitration Procedure in Vietnam

Q1: When does arbitration procedure in Vietnam officially begin?

The arbitration procedure in Vietnam generally begins when the arbitration centre receives the statement of claim in institutional arbitration, or when the respondent receives it in ad hoc arbitration, unless the parties agree otherwise. That start date matters because it affects your timing and legal position immediately.

Q2: What happens if the respondent does not reply?

The arbitration can still continue. A failure to submit a statement of defence does not stop the proceedings from moving forward.

Q3: Can arbitration continue if one party does not attend?

Yes. If a party is properly summoned and stays away without a valid reason, or leaves without the tribunal’s approval, the tribunal can continue and decide the case on the existing documents and evidence.

Q4: Can Vietnamese courts help obtain evidence?

Yes. If the tribunal or the parties have taken the necessary steps and still cannot obtain the evidence, they can ask a competent court to help collect it.

Q5: Is a hearing always required?

The law appears to expect that a hearing will take place, but it also lets the tribunal decide on the case file alone if the parties request it.

Q6: How long do parties have to ask for correction or interpretation of an award?

Normally 30 days from receiving the award, unless the parties agree otherwise, to request correction of obvious errors, interpretation of a specific point, or an additional award for an omitted claim.

Conclusion

Arbitration procedure in Vietnam is structured from the very start. Foreign companies often lose time and control when they treat formal procedure like informal business communication. The safer approach is to prepare early, respond on time, and treat each stage as part of business strategy, not only legal process. If the choice of dispute forum is still open, it is worth comparing arbitration and litigation in Vietnam before the contract is signed or the dispute escalates.

In local practice, Vietnamese arbitration is supported within the framework of law and procedure, but that framework still expects discipline from the parties. For the broader picture around clauses, evidence, and enforcement, return to our guide on arbitration in Vietnam.

About the Authors

Written by Tuan Nguyen and Thuong Nguyen, lawyers at ANT Lawyers and contributors to the Vietnam chapter of GAR Know-How: Commercial Arbitration. Their work focuses on arbitration, enforcement, and cross-border dispute strategy for foreign companies doing business in Vietnam.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. ANT Lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

General Disclamer

This article is for general informational purposes only and does not constitute legal advice for any specific situation. Laws and practice may change, and the position is stated as of the publication date. For advice on your matter, please consult qualified counsel.