International Logistics Service Contract Disputes in Vietnam: Causes and Solutions

1. Why are “international logistics service contract disputes” becoming increasingly common?

Key Causes:

• Lack of documentation and shipping information checks
  Many businesses in Vietnam—such as Company C in Judgment No. 108/2017/KDTM-ST—fail to thoroughly verify the documents provided by partners or neglect to check shipping information, leading to disputes when goods are not delivered as agreed.

• Poorly drafted contracts lacking key clauses
  Most companies do not prioritize drafting detailed contracts. They often rely on online templates without understanding the legal implications, putting themselves at a disadvantage in the event of disputes.

• Unclear governing law and dispute resolution mechanisms
  When the contract does not specify which law applies, the parties are left in legal uncertainty during disputes—especially in cross-border transactions.

• Lack of legal framework for e-arbitration
  While online dispute resolution is a growing trend, Vietnam’s current legal system has not yet fully supported this method, leaving significant legal gaps.

2. What are effective solutions to prevent disputes for businesses?

A. Careful Contract Drafting – Building a Strong Legal Foundation

• Clearly specify governing law & dispute resolution venue
  Contracts should explicitly state: “The governing law is Vietnamese Law” or “Disputes shall be resolved at VIAC – the Vietnam International Arbitration Center” to minimize legal risk.

• Add clauses regarding responsibility for document and customs inspection
  It is advisable to incorporate lessons from VIAC experts who emphasize the importance of verifying documents and customs clearance procedures before signing the contract.

B. Leverage Arbitration Mechanisms – Especially Online Arbitration

• Choose arbitration instead of state courts
  VIAC is highly regarded for its expertise and neutrality. Arbitration typically offers faster, more efficient resolution and overcomes many limitations of state courts in international disputes.

• Implement online arbitration (e-arbitration)
  The VIAC eCase platform, launched in June 2024, allows businesses to submit cases online, monitor proceedings remotely, and save time and travel costs.

C. Carefully Evaluate Partners & Use Risk Prevention Measures

• Choose reputable partners with transparent legal status
  Before cooperation, request legal documentation from partners and conduct due diligence through commercial offices or embassies in the partner’s home country.

• Apply supplementary risk mitigation methods
  For example, designate a reputable international bank for payment collection or use Letters of Credit (L/C) to guarantee payment.

D. The State’s Legal Framework Must Be Updated to Keep Pace with Digitalization

• Amend the Law on Commercial Arbitration to include “E-Arbitration” chapters
  This will establish the legal validity of digital evidence, electronic signatures, and online arbitration awards—which are not yet clearly regulated.

• Improve legal frameworks on electronic signatures and e-contracts
  Although Vietnam has basic laws in place, more detailed regulations are needed to recognize arbitral awards in digital environments.

3. Conclusion

Are you facing an international logistics service contract dispute? Below are the CRITICAL STEPS you should take immediately:

• Clearly define legal terms: applicable law, dispute resolution method (arbitration or court), venue, and language.

• Rigorously control operational data—documents—customs—partner information before, during, and after contract execution.

• Include risk management clauses in the contract, such as letters of credit, documentation responsibilities, and cargo insurance.

• Choose arbitration (VIAC recommended) and prioritize online arbitration when available.

• If a dispute arises, contact DEDICA Law Firm for strategic advice, evidence preparation, and tailored arbitration solutions to protect your business’s legal rights efficiently and promptly.

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