Is It Hard for Chinese Companies to Sue in Vietnam?

16/01/2026

Table of Contents

As trade and investment between China and Vietnam continue to grow, disputes between Chinese enterprises and Vietnamese partners are becoming increasingly common. When negotiation fails, many Chinese companies ask the same question:

Is it difficult for a Chinese company to file a lawsuit in Vietnam?

The short answer is: it is possible, but it is not simple without proper legal preparation and local strategy. The difficulty does not lie in nationality itself, but in procedure, evidence, language, enforcement, and timing.

Understanding these factors early can make the difference between a recoverable claim and a costly dead end.

Chinese Companies Have the Legal Right to Sue in Vietnam

Under Vietnamese law, foreign companies—including Chinese enterprises—have the right to:

  • Initiate civil and commercial lawsuits

  • Participate in arbitration proceedings

  • Enforce judgments and arbitral awards (subject to legal procedures)

There is no legal prohibition preventing Chinese companies from suing Vietnamese entities. However, legal rights on paper do not always translate into smooth outcomes in practice.

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The Real Challenges Are Procedural, Not Political

Many Chinese companies worry about fairness or bias. In reality, most difficulties arise from procedural and practical issues, such as:

  • Strict filing requirements

  • Evidence standards

  • Language barriers

  • Enforcement complexity

Vietnamese courts and arbitration institutions focus heavily on documentation and procedural compliance. Even strong claims can fail if procedures are not followed correctly.

Language Is One of the Biggest Barriers

Court proceedings in Vietnam are conducted in Vietnamese.

For Chinese companies, this creates several challenges:

  • Contracts may be in Chinese or English

  • Evidence exists in multiple languages

  • Certified Vietnamese translations are required

  • Legal meaning may change during translation

In disputes, the Vietnamese version of documents often prevails. Misinterpretation or inaccurate translation can significantly weaken a claim.

This is one of the most underestimated risks for Chinese plaintiffs.

Contract Structure Often Determines the Difficulty Level

Whether a lawsuit is difficult often depends on how the contract was drafted.

Common problems include:

  • Generic templates used without adapting to Vietnamese law

  • Ambiguous dispute resolution clauses

  • Missing governing law or jurisdiction provisions

  • Poorly defined payment, delivery, or acceptance terms

Vietnamese courts rely heavily on the written contract. Commercial practices or verbal understandings common in China may carry little legal weight if not properly documented.

Evidence Standards Are Strict and Formal

Chinese companies often face challenges with evidence because:

  • Transactions rely on informal confirmations

  • Approvals are given through messaging apps

  • Internal records are not centralized

Vietnamese courts require clear, consistent, and legally acceptable evidence. Missing or inconsistent documentation can delay proceedings or weaken claims.

Early legal guidance helps companies organize and preserve evidence properly.

Choosing Court or Arbitration Makes a Big Difference

Many Chinese companies assume that going to court is the default option. In reality, the contract may:

  • Require commercial arbitration

  • Limit court jurisdiction

  • Specify foreign arbitration institutions

Filing a lawsuit in the wrong forum can lead to dismissal and wasted time.

In some cases, arbitration may be faster and more enforceable, especially for cross-border disputes. In others, Vietnamese courts may be the only viable option.

Choosing the correct mechanism requires legal assessment before filing, not after.

Enforcement Is Often Harder Than Winning the Case

One of the biggest misconceptions is that winning a lawsuit automatically leads to recovery.

Chinese companies often struggle with:

  • Locating assets of Vietnamese defendants

  • Delays in enforcement procedures

  • Defendants restructuring or dissolving entities

  • Limited leverage after judgment

A favorable judgment without enforceability offers little commercial value.

This is why enforcement strategy must be considered before initiating legal action.

Timing Strongly Affects Outcomes

Many Chinese companies wait too long before seeking legal advice.

By the time lawyers are involved:

  • Evidence may be incomplete

  • Informal concessions may have weakened claims

  • Limitation periods may be approaching

Early legal involvement significantly improves outcomes by preserving leverage and options.

Why Many Chinese Companies Find Litigation “Difficult”

In practice, Chinese companies find litigation in Vietnam difficult because:

  • Legal advice is sought too late

  • Contracts were not drafted for Vietnamese enforcement

  • Language risks were underestimated

  • Strategy focused on winning, not enforcing

These issues are not unique to Chinese companies—but they appear frequently in cross-border disputes.

Why Case-by-Case Legal Support Is Often Not Enough

Many companies engage lawyers only when disputes escalate.

This reactive approach leads to:

  • Higher legal costs

  • Limited strategic options

  • Repeated disputes across transactions

Disputes with Vietnamese partners are rarely isolated events.

How Ongoing Legal Consultancy Makes Litigation Easier

Ongoing legal consultancy allows Chinese companies to:

  • Structure contracts properly from the start

  • Monitor performance and risk early

  • Receive legal input before disputes escalate

  • Prepare evidence continuously

  • Choose dispute resolution mechanisms strategically

Instead of reacting to crises, companies manage risk proactively.

Especially Important for Manufacturing, Trading, and Logistics Companies

Chinese companies operating factories, sourcing goods, or trading in Vietnam face cumulative legal risk.

Without continuous legal oversight:

  • Small issues turn into major disputes

  • Recovery becomes harder over time

  • Legal exposure increases unnoticed

Preventive legal management is essential for long-term operations in Vietnam.

How DEDICA Law Firm Supports Chinese Companies in Vietnam

DEDICA provides ongoing legal consultancy services and dispute support for Chinese enterprises operating in or trading with Vietnam.

DEDICA assists clients by:

  • Reviewing and drafting enforceable contracts

  • Advising on dispute resolution strategy

  • Supporting negotiation and pre-dispute stages

  • Representing clients in Vietnamese courts and arbitration

  • Managing enforcement and asset recovery strategy

DEDICA’s approach focuses on practical enforceability, local insight, and long-term risk control, not just litigation.

Conclusion

It is not legally difficult for Chinese companies to file lawsuits in Vietnam—but it can be practically challenging without proper preparation and local legal strategy.

Most difficulties arise from language issues, contract weaknesses, evidence gaps, enforcement planning, and late legal involvement.

By engaging ongoing legal consultancy, Chinese companies can reduce these risks, improve enforcement prospects, and approach disputes in Vietnam with clarity and confidence.

Contact DEDICA Law Firm for Professional Legal Support

📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)

🕒 Working Hours: Monday – Friday (8:30 – 18:00)

Contact us today for a free initial consultation with our experienced lawyers!

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