Vietnam Court System Reform in 2025: Laying the Foundation for International Disputes?

On July 1, 2025, Vietnam took a decisive step toward reshaping not just its domestic judiciary, but potentially its role in global dispute resolution. The Vietnam court system reform introduced legal mechanisms that allow for the formation of international style specialized courts.

While less visible than the structural overhaul of district and high courts, this new power may be the most transformative part of the reform for foreign legal professionals.

This snapshot explores what changed, why it matters, and how Vietnam may be laying the groundwork for a future international commercial court.

A Path Toward Global Judicial Integration

One of the most notable provisions in the Vietnam court system reform is the legal authorization to establish specialized courts in Vietnam’s financial centers.

These courts may hear cross-border disputes, apply foreign laws, and even conduct proceedings in non-Vietnamese language, if approved by the National Assembly.

This is a deliberate step toward a more globally accessible dispute resolution forum. The Vietnam court system reform signals Vietnam’s growing interest in becoming a trusted venue for international litigation, especially in commercial, financial, and investment matters.

While these courts have not launched yet, the legal foundation now exists. For in-house counsel, arbitration practitioners, and foreign law firms, this opens a new chapter in how to plan for litigation risk in Vietnam.

Structural Vietnam Court System Reform: From Four Levels to Three

The other major component of the Vietnam court system reform is structural consolidation.

Prior to July 2025, the system had four levels:

• District-level courts
• Provincial courts
• High People’s Courts
• The Supreme People’s Court

This was seen as overly fragmented and often inconsistent, especially in complex or foreign-related cases.

Now, the Vietnam court system reform replaces this with a three-tier structure:

• Supreme People’s Court (top level)
• Provincial Courts (now with more appellate authority)
• Regional Courts – newly created to replace district courts

The goal? A leaner, more consistent system. The new Vietnam court system consolidates caseloads, reduces appeal steps, and allows greater specialization at the trial and appellate levels.

What Foreign Professionals Need to Know

Here’s what legal practitioners working with Vietnam should pay attention to:

Jurisdiction Shift

With district courts abolished, first-instance jurisdiction now lies with Regional Courts. These courts will handle most civil, commercial, and criminal disputes, including those involving foreign parties. Appeals will go to Provincial Courts, which also absorb the functions of the now-defunct High People’s Courts. The implication is to realign case strategies based on new geographic and hierarchical court boundaries.

Specialization and Efficiency

Both Regional and Provincial Courts now have specialized divisions, including commercial, administrative, and intellectual property panels. This should lead to better handling of complex and foreign-related matters, which something the old system struggled with. The implication is the improved predictability and case quality in Vietnam’s legal landscape.

International Commercial Courts

With the Vietnam court system now legally allowed to create special financial and cross-border courts, foreign investors should begin considering how this may reshape enforcement strategy, forum selection, and language planning in contracts. The implication is that Vietnam may soon wish to be on the way to slowly compete with regional jurisdictions in high-value international litigation.

Legal Basis of the Vietnam Court System Reform

The reform is grounded in Law No. 81/2025/QH15, which took effect on July 1. Supporting it is Resolution 01/2025/NQ-HĐTP, which details the reassignment of caseloads, court functions, and pending proceedings from now-abolished district and high courts to their replacements.

Cases already filed before July 1 are automatically transferred to the appropriate Regional Courts under the new system.

Why This Isn’t Just Internal Reform

For foreign legal professionals, this is more than procedural changes. The Vietnam court system reform reflects a regional momentum toward judicial modernization and international dispute readiness. It is part of a larger effort to position Vietnam as a more reliable and competent legal venue for cross-border business and enforcement of rights.

It is now the time to revisit your Vietnam litigation strategy!

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.