Resolving Delivery Delay Disputes in International Logistics in Vietnam
As international logistics continues to expand, the issue of delayed deliveries is no longer uncommon. Such delays can cause significant damage to buyers, sellers, carriers, and even intermediaries. This article summarizes the latest legal regulations, practical experience, and resolution methods in Vietnam to help you effectively handle international contract disputes related to delayed delivery.
1. Legal Framework Governing International Delivery Delays in Vietnam
1.1. Delivery Obligations and Responsibilities of Carriers and Sellers
Under Vietnam’s Commercial Law, sellers are obligated to deliver goods on time and at the location agreed upon in the international sales contract. If the delivery time is not clearly stated, the obligation is still interpreted according to international trade practices and logistics industry standards.
In case of maritime transport, Vietnam’s Maritime Code stipulates the maximum period for the consignee to report goods as lost if not delivered within a certain timeframe—usually 60 days from the expected delivery date under the contract.
If the contract includes a penalty clause for breach (liquidated damages/penalty), the late-delivering party will be penalized according to the agreed terms. Articles 300 and 301 of the 2005 Commercial Law confirm that if a penalty is agreed upon, the violating party is obliged to pay.
1.2. Limitation Periods and Legal Restrictions
According to Vietnam’s Commercial Law 2005, the statute of limitations for filing commercial disputes is two years from the date the legal rights or interests are violated.
For maritime shipping, if goods are not delivered on time, the consignee must submit a notice of loss within 60 days from the expected delivery date. Failure to do so may exempt the carrier from liability.
Disputing parties may choose a resolution method—negotiation, mediation, arbitration, or court—depending on prior agreements in the contract.
2. How to Handle International Delivery Delay Disputes – Practical Solutions
2.1. Pre-Dispute: Contractual Clarity and Evidence Preparation
Clear contract terms: Specify delivery date, place, delivery conditions (Incoterms if applicable), penalties for delay, force majeure clauses, and delivery responsibilities, especially if multiple carriers/methods are involved. If the contract has international elements, include governing law and dispute resolution clauses (arbitration or court).
Set up tracking and notification systems: Monitor delivery progress via carriers, forwarders, or shipping lines. If delays are detected, notify the other party immediately. This limits damage and provides valuable evidence if a dispute arises.
Collect complete documentation: Contracts (with annexes/Incoterms), email correspondences, handover records, transport documents, invoices, customs reports, and damage reports (if applicable). These are essential for mediation, arbitration, or litigation.
2.2. When a Dispute Arises: Methods of Resolution
Negotiation: Often the fastest and most cost-effective option. If the parties maintain a good business relationship, they may resolve the issue by renegotiation (e.g., replacement delivery, discounts, penalties, or compensation).
Commercial Mediation: Under Decree 22/2017/ND-CP, parties can agree to mediation at any stage. A neutral mediator can assist parties in reaching a mutually acceptable resolution.
International or Domestic Arbitration: If the contract has an arbitration clause, this method offers confidentiality, flexibility, and expert resolution—especially suitable for large disputes, complex international matters, or when one party is a large enterprise with cross-border elements.
Lawsuit in Vietnamese Courts: If there’s no arbitration agreement or arbitration isn’t feasible, the injured party can file a lawsuit in a Vietnamese court with jurisdiction. Ensure proper identification of the competent court, especially in contracts with foreign elements (e.g., one party based overseas).
2.3. Assessing Damages, Penalties, and Compensation
Penalties for breach: If agreed in the contract, the delayed party must pay the specified penalty. Note that under Vietnam’s Commercial Law, penalties cannot exceed the value of the breached obligation (depending on the case).
Compensation for actual damage: The injured party may claim losses caused by the delay, including lost production, damaged goods, canceled orders, or additional costs. Evidence of damage is crucial.
Avoid loss of rights due to delays: For instance, if the law requires notice of delay (e.g., 60 days under Vietnam's Maritime Code), failing to notify in time may result in loss of the right to claim compensation.
3. Practical Insights from Vietnam and Key Considerations
Recent court rulings on transportation and logistics disputes emphasize the importance of written contracts and clearly defined “final delivery date” to assess whether there is a delay. Where contract terms are vague, courts/arbitrators rely on transport documents, customs records, and export-import certifications.
Timely notice of delay and complaints must be issued. Delay or failure to provide written notice as required may invalidate compensation claims.
When international elements are involved, parties usually apply Incoterms to allocate delivery responsibilities, transfer of risk, transport costs, taxes, and customs duties—vital for determining liability in disputes.
With new logistics-related laws—like the updated Transport Law and regulations on driving hours and delivery conditions—carriers may face higher risks if they fail to adapt, increasing the likelihood of contractual delays.
4. Conclusion
Delivery delays in international logistics are a real-world issue that can lead to substantial losses if not addressed proactively. Here are practical recommendations:
Before signing: Ensure clear terms for delivery, penalties, notice periods; apply Incoterms; choose governing law; and consider arbitration clauses for international contracts.
During execution: Closely monitor deliveries with an early warning system.
When disputes arise: Try negotiation/mediation early to limit losses; if unsuccessful, prepare full evidence for arbitration or litigation.
For logistics businesses: Stay updated on new laws—Transport Law, Commercial Law, Maritime Code, and relevant international treaties—to understand rights and obligations and reduce regulatory risks.
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