Solutions for Resolving Disputes in International Maritime Transportation Contracts in Vietnam

Part 1: Why are disputes over maritime transportation contracts common in Vietnam?

Transporting goods by sea—whether containers, machinery, raw materials, or specialized items—has always involved significant risks. Delays, damage, loss of goods, or mismatched obligations between carriers and charterers are not uncommon, often leading to prolonged disputes.

According to the 2015 Maritime Code of Vietnam (Article 145), a sea carriage contract is an agreement between the carrier and the charterer, clearly defining their rights, obligations, and liability limits. However, Vietnam has yet to accede to major international conventions such as Hague‑Visby, Hamburg, or Rotterdam, making the application of law in disputes sometimes ambiguous and inconsistent.

Common causes of disputes:

Disputes are not limited to freight charges or responsibilities; they also stem from issues like incorrect cargo declarations, bills of lading, statute of limitations, parties executing the transportation, and insurance matters.

In some cases, even if the contract lacks some signed or stamped pages (e.g., missing templates), the court may still recognize its validity as long as the essential content is coherent and clearly stated.

Part 2: Effective solutions for resolving disputes

1. Negotiation and Mediation: A quick escape route to preserve business relationships

This is always a wise option to prioritize. When both parties act in good faith, sitting down with a maritime lawyer is often an effective way to untangle the problem. In mediation, a neutral third party may be invited to balance interests and reduce costs compared to litigation.

2. Commercial Arbitration: Flexible, confidential, and fast enforcement

If negotiation fails, dispute resolution can be “pre-designed” in the contract—provided there is an arbitration clause. Under the 2010 Law on Commercial Arbitration, parties are free to choose arbitration centers (such as VIAC, VCCI, or international centers like SCMA Singapore or LMAA London). Arbitration offers speed, confidentiality, and final, binding decisions.

3. Competent Court: When arbitration is invalid or unsuitable

If the contract lacks a valid arbitration clause or one party refuses arbitration, the court becomes the only recourse. According to the 2015 Civil Procedure Code, commercial disputes between businesses can be brought to court, especially in cases involving clear damages and compensation claims.
Real-world example: The Ho Chi Minh City Appellate Court upheld the validity of a contract even though a part of the template was missing, as long as the core section was signed, stamped, and there was clear evidence of cargo receipt.

Part 3: Practical experience and advice from notable cases

• Prepare clear and complete evidence: Do not overlook the sea protest (issued by the ship's master), which is a crucial piece of evidence in maritime incidents.

• Assert the loss of the carrier’s limited liability right: If the carrier acts deliberately or with gross negligence, causing damage or delays with foreseeable consequences, the charterer may legally claim compensation beyond the standard liability limits.

• Always define the applicable law and statute of limitations: International cargo transport contracts typically require parties to specify the governing law or customary practices. Monitoring the time limit for initiating a claim is also essential to avoid losing the right to legal protection.

Conclusion

Disputes over international maritime transport contracts often arise from vague contractual terms, legal inadequacies, or unclear evidence during incidents. Effective solutions include:

• Negotiation and mediation — to maintain business relationships

• Commercial arbitration — fast, confidential, and enforceable

• Court litigation — a last resort when arbitration is not feasible

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