Skip to main content


Showing posts from May 23, 2021


§ 2 LCA 2010 focuses on commercial arbitration, to settle commercial disputes, with at least one of the parties who is merchant and conducts commercial act. Additionally, the scope of arbitrable commercial disputes is determined by special law, such as Commercial Law 2005, Law on Investment 2014, and Law on PPP 2020. Example from practice: A and B are wife and husband in a pending divorce process. In dividing their joint property, they agree to divide the shares jointly owned in a company: 40% for A, and 60% for B. Disputes arise because A will remain as active shareholder with all voting rights, but B only agrees to compensate the market value of this 40% of these shares, estimated 1200 billion VND. A and B agree to settle this dispute by arbitration. Is this dispute arbitrable? Divorce is a civil procedure under jurisdiction of VN court ( § 28 Civil Procedure Code 2019). In the marriage, wife and husband are not merchants, the divorce is not a commercial act ( § 2 LCA). Theref

Arbitration Agreement: Intention to arbitrate

§§ 5, 16-19, 43 LCA 2010 are referred to Arbitration Agreement. In summary, Parties can agree on arbitration before or after the occurrence of disputes. The details of such agreement can depend on circumstances, but it must at least clearly show the parties’ intention to settle the disputes by means of arbitration. That is the crucially important test to verify whether there is an arbitration agreement or not. Example from my practice: Two close friends A and B jointly run an online business. At some time, A withdraw from the business, B was left as the sole owner. A requested B to pay part of the initial capital contribution, B refused. Per What-up messages, A notified that he would initiate a request for arbitration, if B continues refuse to pay. B responded: A will never receive any money  by doing so . The tribunal is of the view that there is a valid arbitration agreement. The party intention is documented in what-up messages, that is the written form as provided for by  § 1

Arbitration in Vietnam

In the next legislature 2021 to 2026, VN Parliament may consider to revise the Law on Commercial Arbitration (LCA 2010). Taking effect since 2011, LCA has created the legal foundation for arbitration service in VN. A growing number of legal professionals devoting their time and interest serving as arbitrator at   32 registered centers  (with 22 branch offices in HCM). In the upcoming posts I will update the current trends and discuss legal aspect of arbitration in Vietnam.