RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRATOR’S AWARDS

In the context of the current global integration, relations of international commercial contracts become popular and more and more disputes arise from this type of contract. With the advantages of flexibility and high efficiency, the method of dispute resolution of Commercial Arbitration is regularly agreed upon for disputes settlement between parties. One of the important factors for the parties to choose this method is that the foreign Arbitral Tribunal’s award can be recognized and enforced in other countries, including Vietnam.

To be recognized and enforced in Viet Nam, an award issued by the foreign Arbitral Tribunal is required to pass four steps (i) Submitting a Request dossier for recognition and enforcement; (ii) Accepting the Request dossier; (iii) Considering the Request dossier; and (iv) Resolving the request letter.

Step 1: Submission of the Request dossier for recognition and enforcement of the foreign arbitrator’s award

Under Article 451 of the 2015 Civil Procedure Code, within 03 years from the day on which the foreign arbitrator’s award takes legal effect, the judgment creditors and persons with relevant legitimate rights and interests or their lawful representatives have the right to submit their Request dossier to (i) Vietnam’s Ministry of Justice under provisions of International treaty to which Vietnam is a signatory or (ii) a competent Vietnam’s Court specified in this Code, in case the International treaty to which Vietnam is a signatory does not provide for or there is no relevant International treaty provision, to request the Court to recognize and enforce such award. In cases where the applicant can prove that he/she cannot submit the Request dossier within the time limit due to a force majeure event or an objective obstruct, the period when such force majeure event or objective obstruct occurs shall not be included in the time limit for submission.

The Request dossier includes:

– In cases the International treaty to which Vietnam is a signatory provides for the Request dossier: (i) a request letter for recognition and enforcement in Vietnam; and (ii) documents specified in the international treaty;

– In cases where there is no international treaty or the treaty does not provide for the Request dossier: (i) a request letter for recognition and enforcement in Vietnam; (ii) the original or certified true copy of the foreign arbitrator’s award; and (iii) the original or certified true copy of the Arbitration agreement between the parties.

In particular, the request letter and the attached documents must be enclosed with their Vietnamese versions which are duly notarized or authenticated.

Step2: Acceptance of the Request dossier

In case the Request dossier is submitted to Vietnam’s Ministry of Justice, within 05 working days after receiving it, the Ministry of Justice must forward them to the competent Court. If the Ministry of Justice has forwarded the Request dossier to the Court and received notification from a competent authority of the foreign country informing that the case is being considered or the enforcement of the foreign arbitrator’s award has been canceled or terminated in such country, the Ministry of Justice must immediately notify in writing to the Court.

Within 05 working days from the day on which the Court receives the Request dossier from the Ministry of Justice or the applicant, the Court must consider and accept the Request dossier and notify in writing to the involved parties or their lawful representatives in Vietnam, the Procuracy of the same levels and the Ministry of Justice. If the Court deems that the settlement falls within the jurisdiction of another Court of Vietnam, the Court shall forward the Request dossier to the jurisdictional Court and immediately send the notice to the involved parties.

Step 3: Consideration of the Request dossier and issuance of a decision to recognize and enforce in Vietnam the foreign arbitrator’s award

After accepting the Request dossier, within 02 months (maximum 04 months in case the Court needs to clarify the Request dossier), the Court will issue one of the following decisions: (i) To suspend the consideration of the request letter; (ii) To terminate the consideration of the request letter; (iii) To open a meeting for considering the request letter on case-by-case under the 2015 Civil Procedure Code. In that, for the decision to suspend the consideration of the request letter, when the causes for the suspension no longer exist, the Judge will make a decision to continue processing the Request dossier.

Within 05 working days from the day on which the decision to suspend or terminate the resolution of the Request dossier is issued, the Court must send such decision to involved parties or their lawful representatives, the Ministry of Justice and the Procuracy of the same level.

Step 4: Meetings for considering the Request dossier

In case the Court decides to open a meeting to consider the request letter, it must open the meeting within 20 days after issuing the decision. When considering the request letter, the Panel will not conduct a re-trial over the dispute when the foreign arbitrator’s award has been issued, it will only check and compare the foreign arbitrator’s award and the Request dossier under the law, then listen to opinions of the summoned people and of the Procurator and discuss and make a decision under the majority rule. The decision of the Panel will result in two cases: (i) to recognize and enforce in Vietnam the foreign arbitrator’s award, or (ii) not recognize in Vietnam the foreign arbitrator’s award.

Within 15 days from the day on which the decision to recognize and enforce or to not recognize in Vietnam the foreign arbitrator’s award is issued, the Court will send such decision to involved parties or their lawful representatives, the Ministry of Justice and the Procuracy of the same level.

Above is our legal share of the procedures for recognition and enforcement of the foreign arbitrator’s award in Vietnam. We hope this article will help you in the process of dispute settlement at the foreign arbitration.

Best regards.

TNTP & Associates International Law Firm