Procedure for Requesting Recognition and Enforcement of Foreign Arbitral Awards in Vietnam

1. Legal Basis and Enforcement Principles

1.1. Legal Basis in Vietnam and International Treaties

The recognition and enforcement of foreign arbitral awards in Vietnam are primarily governed by the 2015 Civil Procedure Code (Chapter XXXVII, Part VII) and the Law on Commercial Arbitration 2010. Vietnam is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Under Article 424 of the Civil Procedure Code 2015, Vietnamese courts may recognize and enforce foreign arbitral awards if:

• The country where the award was made is also a party to an international treaty with Vietnam (e.g., the 1958 New York Convention);

• In the absence of such a treaty, the principle of reciprocity shall apply.

The arbitral award must be final, resolve all disputes, terminate the proceedings, and be legally enforceable.

1.2. Who May Request and Which Court Has Jurisdiction

According to Article 425, the party entitled to enforce the award or their legal representative may request a Vietnamese court to recognize and enforce the award when:

• The individual required to comply resides or works in Vietnam;

• The organization or entity required to comply has its headquarters in Vietnam;

• The assets related to enforcement are located in Vietnam at the time of the request.

Regarding jurisdiction, the request may be submitted to:

• The Ministry of Justice of Vietnam, if required by an international treaty;

• Or the People’s Court of a competent province, as provided by the Code.

2. Step-by-Step Procedure for Recognition and Enforcement

Step 1: Preparing the Request Dossier
Required documents include:

• A request for recognition and enforcement in Vietnamese (or translated and notarized if in another language);

• A certified copy or original of the foreign arbitral award (duly legalized by consular authorities);

• A certified copy or original of the arbitration agreement between the parties;

• In cases not based on an international treaty, both of the above documents are mandatory.

The request must clearly state the names and addresses of both the enforcing party and the party subject to enforcement, along with the specific demand for recognition and enforcement.

Step 2: Submission and Acceptance of the Request

• The request is submitted to either the Ministry of Justice or the People’s Court of the competent province;

• The Ministry must forward the documents to the court within five working days; if it later receives information that the award has been annulled or suspended abroad, it must notify the court immediately;

• If the court finds it lacks jurisdiction, it shall transfer the file to the competent court and notify the relevant parties and the Procuracy at the same level.

Step 3: Review and Decision
A Review Council (three judges assigned by the presiding judge) will be established to process and evaluate the request. The court will:

• Assess the legality of the arbitral award based on the New York Convention and Vietnamese law;

• Determine whether the conditions for recognition and enforcement are met;

• If accepted, the court shall issue a decision to recognize and enforce the award in Vietnam. Otherwise, a rejection decision will be issued.

Step 4: Enforcement of the Award
Once recognized:

• If the obligated party fails to voluntarily comply, the Civil Judgment Enforcement Department will carry out coercive measures such as asset freezing, property seizure, bank account garnishment, etc.

3. Grounds for Refusal by the Court

Under Article 459 of the Civil Procedure Code 2015, the court may refuse recognition and enforcement upon legitimate objections raised by the party against whom enforcement is sought, including:

• The arbitration agreement is invalid due to lack of legal capacity;

• The award exceeds the scope of the arbitration agreement or addresses disputes not covered by the agreement;

• Improper notification or procedural violations in the arbitration process;

• The award is not final or has been annulled/suspended abroad;

• The dispute is not suitable for arbitration under Vietnamese law;

• Recognition and enforcement of the award would violate the fundamental principles of Vietnamese law.

In practice, some courts in Vietnam have been observed to re-evaluate the substantive content of awards—exceeding the recognition scope defined by the New York Convention and domestic law. This remains a point of reform for future improvement.

4. Conclusion

Requesting the recognition and enforcement of a foreign arbitral award in Vietnam is a critical international judicial process, ensuring the enforceability of awards across borders. This contributes to a favorable environment for foreign investors and international entities operating in Vietnam.

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