Additionally, the articles update readers on new trends in this field, helping businesses and individuals stay informed and flexibly apply legal regulations, thereby enhancing adaptability in the context of continuously evolving laws.
We believe these articles will serve as a valuable practical reference, not only equipping readers with in-depth legal knowledge but also offering practical advisory solutions to help clients and readers resolve legal issues and optimize their dispute resolution capabilities within Vietnam’s legal framework.
Vietnam's civil court system is organised into a four-tier structure to provide hierarchical dispute resolution and consistent application of law. The organisation and operation of the Vietnamese courts is currently regulated by the Law on Organisation of People's Courts 2024 and the Civil Procedure Code 2015. Below is some additional information on the organisation and operation of the system.
Hierarchy of courts
District people's courts: these courts serve as the first instance courts for civil cases, handling disputes related to contracts, property, inheritance and compensation for damages, marriage and family, business and commerce, and labour. Most civil cases are resolved at first instance by the district people's courts.
Provincial people's courts: these courts hear appeals from district people's courts and conduct first instance trials for more complex cases, including those involving foreign individuals, entities or assets abroad. They also supervise the adjudication of the district people's courts within their territorial jurisdiction.
High people’s courts: there are three high courts in Vietnam (located in Hanoi, Danang and Ho Chi Minh City), which act as appellate courts for cases from provincial people's courts within their jurisdiction. These courts handle cassation and reopening of civil cases resolved by lower courts within their jurisdiction.
Supreme people’s court: Vietnam's highest court that oversees the judicial system. It ensures consistent law application, handles cassation and reopening procedures, issues judicial interpretations, guides lower courts and unifies precedents for legal certainty.
Subdivisions by subject matter
The Law on Organisation of People's Courts 2024, effective from 1 January 2025, mandated the creation of specialised first instance courts for intellectual property and bankruptcy. However, six months later, these courts have yet to be established.
In addition to the aforementioned independent specialised civil courts of first instance, each court within the judicial system is internally divided into specialised divisions as determined by the National Assembly Standing Committee or the Chief Justice of the Supreme People's Court, depending on the specific court level. The specialised divisions within the civil field include:
Hierarchy and mechanisms of appeal
Vietnam’s civil court system follows a defined appellate framework:
District people’s courts' first instance decisions and judgments can be appealed to provincial people’s courts.
Provincial people’s courts' first instance decisions and judgments are appealable to the relevant high people’s court. Appellate decisions and judgments of the provincial people's courts may be reviewed by the Supreme people’s court.
High people’s courts' decisions and judgments may be reviewed by the Supreme people’s court through cassation or reopening procedures.
Composition of trial panels
First instance trial: the panel consists of one judge and two people's assessors, or one judge in cases of a simplified procedure. In special cases, it may include two judges and three people's assessors.
Appellate trial: the panel consists of three judges or one judge in cases of simplified procedure.
Cassation and reopening by the High People's Court: the panel consists of three judges or all members of the Judges' Committee.
Cassation and reopening by the Judges’ Council of the Supreme People's Court: the panel consists of five judges or all judges of the Supreme People's Court.
Judges and juries
Vietnam employs an inquisitorial system in civil proceedings, wherein judges and people’s assessors are actively involved in questioning the parties and scrutinising evidence.
Judges are required to ensure the lawful, objective and thorough resolution of disputes. This includes making efforts to uncover the material truth and safeguard the rights and obligations of the involved parties. In doing so, judges also ensure that proceedings are fair and conducted in accordance with legal norms.
Judge’s role
Judges question witnesses and parties to clarify facts and evaluate evidence and ensure legal procedures are followed. Courts do not actively collect evidence; however, judges supervise its presentation by the parties and may request clarification or supplementation where necessary.
Jury involvement
Vietnam does not have a jury system in civil cases.
However, people’s assessors – being non-professional adjudicators – participate fully in first instance trials alongside professional judges, including evaluating evidence and deliberating on the outcome. Their role is to provide a community perspective on cases. They share equal voting rights with judges during panel decisions on the merits of a case.
Selection process for judges
Judges must be Vietnamese citizens aged at least 28 years with a minimum of five years' legal experience.
They must hold a law degree, undergo professional training in adjudication and successfully pass a judge selection examination.
Judges are appointed for an initial five-year term. If re-appointed, their term of office continues until retirement or reassignment.
Judges are appointed by the President of Vietnam at the request of the Chief Justice of the Supreme people’s court.
Selection for people’s assessors
To be a people's assessor a candidate must:
Be a Vietnamese citizen, aged from 28 to 70 years, have a reputation in the community, possess legal knowledge and have social awareness; and
Not currently be under the enforcement of disciplinary decisions in the form of reprimand, warning, salary reduction or demotion; not subject to disciplinary action in the form of dismissal, removal from office or forced resignation; not be under criminal prosecution or have been convicted by a court with a legally effective judgment.
A people's assessor's term aligns with that of the electing People’s Council. Upon the Council's term end, the people's assessor continues until a new-term Council elects a new people's assessor.
People's assessors can be elected by the local People’s Council after being introduced and recommended by the Vietnam Fatherland Front.
Diversity on the bench
Vietnamese law does not impose restrictions based on ethnicity, gender, religion or socioeconomic background in judicial appointments. This legal framework permits candidates from diverse backgrounds to be considered for judicial office, provided they meet the formal qualifications.
Limitation issues
Under Vietnamese law, the time limits for bringing civil claims are governed primarily by the Civil Code 2015.
General rule for commencement of the statute of limitations
In accordance with the Civil Code, the statute of limitations for filing a civil claim is calculated from the date on which the plaintiff knew or should have known that their legitimate rights or interests were infringed. This subjective and objective standard places an obligation on the rights-holder to act within a reasonable time once they become aware – or are deemed to have been able to become aware – of a violation.
Time limits for specific types of civil claims
The statute of limitations varies depending on the nature of the civil matter in dispute. Notable examples include:
Inheritance-related claims:
For real estate: 30 years from the date the inheritance is opened.
For movable property: 10 years from the date the inheritance is opened.
Breach of contract or non-contractual claims: three years from the date on which the plaintiff knew or should have known of the damage and the responsible party.
Requests to declare a civil transaction invalid:
Typically: two years from the date the person with the right to request knew or should have known of the grounds rendering the transaction invalid.
It is important to note that these limitation periods are not uniform across all claims and specific legislation may provide otherwise depending on the subject matter.
Civil matters not subject to time limits
Vietnamese law also sets out certain matters for which no statute of limitations applies. These include, but are not limited to:
Suspension of the statute of limitations
While parties are not permitted to agree to suspend the statute of limitations contractually, Vietnamese law does recognise certain objective circumstances that lead to a suspension of the limitation period. As per article 156 of the Civil Code 2015, these include:
Force majeure events or objective obstacles, which prevent the plaintiff from filing a lawsuit or request within the limitation period.
A force majeure event is one that occurs objectively, is unforeseeable, and insurmountable despite all necessary and possible measures.
An objective obstacle is a condition that prevents a person from knowing that their rights have been violated or from exercising their rights.
Lack of legal representation for vulnerable persons, including:
Minors;
Persons who have lost civil act capacity;
Persons with cognitive or behavioural difficulties; and
Persons with limited civil act capacity.
The limitation period is also suspended in cases where these persons have no substitute representative due to:
Agreement to suspend statute of limitations
Vietnamese law does not permit the parties to contractually suspend or modify the statute of limitations for civil claims. The only valid basis for suspension lies in the statutory exceptions expressly enumerated in the law.
Pre-action behaviour
In Vietnam, starting a civil lawsuit requires more than just filing a petition. The Civil Procedure Code 2015 mandates substantive and procedural steps to ensure claims are well structured, fit for jurisdiction and compliant with procedures.
Conditions for initiating a lawsuit
Article 186 of the Civil Procedure Code 2015 allows individuals and organisations to file a civil lawsuit if their legitimate rights and interests are infringed. Plaintiffs must have full civil procedural capacity and a direct interest in the dispute. This prevents misuse of judicial resources.
Furthermore, claims must meet conditions under Vietnamese civil law, such as qualifying as a civil matter, being previously adjudicated and falling within the court’s competence.
Jurisdictional requirements
Before filing suit, it is crucial to determine the correct jurisdiction. According to articles 26, 28 and 32 of the Civil Procedure Code 2015, jurisdiction is based on:
Choosing the wrong jurisdiction can lead to case dismissal or transfer, causing delays and inefficiencies.
Statute of limitations
The limitation period differs based on the nature of the claim. Plaintiffs should ensure their claim remains valid under the relevant statute of limitations. Generally, failing to commence proceedings within the designated time frame results in the claim's dismissal.
Mediation before filing a lawsuit
The Vietnamese legal system encourages the use of voluntary mediation before initiating court proceedings. Pre-litigation mediation serves multiple purposes:
Although not mandatory for every type of dispute, pre-action mediation is increasingly recommended, particularly in civil and commercial matters where ongoing relationships may be at stake.
Preparation of documents and evidence
Before submitting a claim, parties are expected to prepare and organise all necessary documents and evidence to substantiate their claims. This typically includes:
A well-supported claim increases the likelihood that the court will accept jurisdiction and proceed with the matter efficiently.
Pre-action disclosure and evidence requests
Although Vietnam does not have a comprehensive regime for pre-action disclosure as seen in certain common law jurisdictions, the Civil Procedure Code allows for limited pre-litigation evidentiary support. In certain cases, a party may request the court to issue a decision requiring the disclosure or submission of documents or evidence held by the other party. This is typically done to ensure that the plaintiff can present a complete case upon filing.
Such requests must be substantiated and are granted at the discretion of the court. The requesting party must demonstrate the relevance and necessity of the documents for the intended claim.
Starting proceedings
According to article 186 of the Civil Procedure Code 2015, civil proceedings commence when an individual, agency or organisation (the plaintiff) submits a lawsuit petition to a court with competent jurisdiction. The lawsuit petition must contain the following key components:
The petition must be submitted in writing, either directly or through postal service, and must comply with the formal and substantive requirements set forth in article 189 of the Civil Procedure Code 2015.
Once the court receives the petition, it performs a preliminary review of the case file to determine whether the conditions for accepting the case have been satisfied. These include verification of jurisdiction, compliance with statutory requirements and the timely payment of court fees (where applicable). If the lawsuit meets the legal conditions, the court issues a decision to accept the case and inform the plaintiff to pay the court fee advance within the statutory timeframe. Failure to do so may result in the petition being returned (article 191).
Notification to the parties
Upon acceptance of the case, the court is responsible for notifying the parties about the initiation of the proceedings. This includes:
The notification is conducted through formal service, typically via registered mail, court officers or other legally recognised means as stipulated under articles 170 to 175 of the Civil Procedure Code 2015. The law provides specific timelines and mechanisms to ensure that all parties are given adequate notice and opportunity to participate in the proceedings.
Court capacity and case management
Vietnam’s judicial system has made significant strides in expanding access to civil justice; however, court capacity remains a pressing challenge. With a growing number of disputes being filed across civil, commercial and administrative domains, courts – particularly at the district and provincial levels – often face:
Recognising these challenges, the judicial system has pursued several institutional reforms, including:
Despite these efforts, backlogs in some courts may still affect the speed at which disputes are listed and adjudicated. Further institutional strengthening and technological investment remain key priorities for easing capacity pressures.
Filing fees and court charges
The filing of a civil lawsuit in Vietnam is subject to court fees and charges, which are governed by Resolution No. 326/2016/UBTVQH14 of the Standing Committee of the National Assembly. The resolution provides for:
Examples include:
Court fees are payable at the time of case acceptance. Failure to pay the prescribed fee within the stipulated time frame may result in the petition being returned . In certain limited circumstances – such as where the plaintiff is financially disadvantaged or entitled to legal aid – fee exemptions or reductions may be granted, subject to statutory procedures and verification.
Timetable
The procedure and timetable for adjudicating civil claims in Vietnam is governed by the Civil Procedure Code 2015, which outlines clear stages and statutory time limits for each phase of a civil case. From the filing of the initial claim to the final court decision, parties must comply with a range of procedural requirements and deadlines that ensure the orderly and efficient resolution of disputes.
Filing of lawsuit
Civil proceedings are commenced when the plaintiff submits a lawsuit petition to the competent people’s court under article 186 of the Civil Procedure Code. The petition must contain essential details such as:
Within five working days of receipt, the court will review the petition and determine whether it satisfies the formal conditions for acceptance (article 191).
Notification of acceptance and service of documents
If the case is accepted, the court will issue a decision to accept the case and send it to the parties involved. According to article 196, the court must:
The notification must generally be completed within three working days from the date the court issues its decision to accept the case.
Submission of defence and counterclaims
Upon receiving the court’s notification, the defendant is entitled to file a statement of defence, which must be submitted within 15 working days of receipt of the case acceptance notice (article 199). The defence must respond to the claims made and may include legal arguments, factual rebuttals and supporting documents.
If the defendant wishes to assert a counterclaim, it must be submitted:
Counterclaims must comply with the same formal requirements as the initial lawsuit and must relate directly to the dispute or be admissible under the law on related claims.
Exchange of evidence and preparatory proceedings
Following receipt of all primary pleadings, the court may convene a meeting for checking the handover, access and disclosure of evidence, and for mediation purposes, as required under articles 208 to 211. This stage allows parties to clarify claims and defences, identify disputed issues and potentially reach a settlement.
If mediation is unsuccessful or deemed inappropriate, the court will proceed to schedule the first instance trial.
Time frame for first instance proceedings
The Civil Procedure Code sets out the maximum duration for handling cases:
These periods may be extended by up to two months in exceptional circumstances, subject to approval by the Chief Justice of the court handling the case.
Court judgment and issuance of decision
Once the trial concludes, the court must issue a written judgment within 15 working days from the date of the conclusion of the trial hearing (article 266). The judgment must be reasoned, based on the facts established during the proceedings and the applicable law.
Challenging the court’s jurisdiction
Under article 41 and article 192 of the Civil Procedure Code, the jurisdiction of a court to hear a civil matter is determined based on both subject-matter jurisdiction (which court level has the authority to resolve the dispute) and territorial jurisdiction (which geographic court is competent).
If a party believes that the case has been filed with a court lacking proper jurisdiction, it has the right to raise a challenge to jurisdiction. This must be done at the earliest stage of proceedings, typically within the period for filing the statement of defence.
The challenge may be based on various grounds, including :
The court will review the jurisdictional objection before proceeding further with the case. If the objection is upheld, the court shall issue a decision to return the petition or transfer the case to the appropriate court, or terminate the proceedings if no competent authority exists under Vietnamese law.
Forum selection and arbitration clauses
Vietnamese courts respect forum selection clauses and arbitration agreements where they are valid and properly drafted. Under article 2(2) of Resolution No. 01/2014/NQ-HDTP, a court must return a lawsuit petition if the dispute falls under the jurisdiction of an arbitral tribunal due to a valid arbitration agreement.
If a party files a lawsuit despite an existing arbitration clause, the opposing party must raise this objection before the first hearing. Failure to do so may result in a waiver of the right to object, and the court may proceed with the trial.
Anti-suit injunctions (anti-suit orders)
The concept of anti-suit injunctions – orders preventing a party from initiating or continuing proceedings in a foreign jurisdiction – is not recognised under Vietnamese civil procedure. Vietnamese courts do not have statutory authority to issue such orders, nor do they entertain applications seeking to restrain foreign proceedings.
In practice, if a dispute is already pending before a foreign court or arbitral tribunal, and a related proceeding is filed in Vietnam, the Vietnamese court will:
However, there is no mechanism to seek injunctive relief in Vietnam to stop a party from pursuing proceedings in another jurisdiction.
Case management
Under the Vietnamese legal system, civil proceedings are primarily governed by the Civil Procedure Code 2015. While the court maintains the primary responsibility for managing the litigation process, parties to a civil dispute are entitled to participate actively in procedural matters and, to a certain extent, influence the timetable of proceedings. However, such influence is subject to strict judicial oversight.
Party involvement in case management
Pursuant to articles 48, 71, 72 and other relevant provisions of the Civil Procedure Code, the parties are granted the right to:
Nevertheless, the court has exclusive authority to organise and manage the litigation, including setting procedural milestones, hearing schedules and deadlines. The judge plays a central role in ensuring the efficiency, fairness and legality of the proceedings, and any procedural proposal made by the parties must be considered and approved by the court.
Extension of procedural deadlines
The ability to extend time limits is regulated under article 203 of the Civil Procedure Code. Specifically:
Time limits for procedural steps (such as filing responses, presenting evidence or submitting counterclaims) may be extended if a party provides a legitimate reason (eg, force majeure, illness, difficulties in gathering evidence); and
The extension must be requested in writing and approved by the court prior to the expiry of the deadline.
The court will assess the reasonableness of the request based on the complexity of the case, the conduct of the parties and the interests of judicial economy and fairness. If no valid reason is provided or the request is untimely, the court may refuse the extension and the party may lose certain procedural rights.
Agreements between the parties
Vietnamese law allows for limited procedural flexibility through mutual agreement between the parties. For example:
The parties may agree on certain deadlines for submission of documents or participation in mediation sessions; and
Any such agreement must not conflict with statutory rules and must receive judicial approval to be effective.
The court will only uphold procedural agreements that do not prejudice the rights of other parties or undermine procedural order.
Judicial discretion and safeguards
If a party believes that a court-imposed timetable is unrealistic or prejudicial, they may file a motion requesting adjustment. The court has discretion to review and, if appropriate, revise the timetable to ensure sufficient preparation time and a fair trial.
In practice, while the court strives to ensure procedural fairness, strict case management and increasing caseloads can result in limited flexibility, especially in busy jurisdictions.
Evidence – documents
Vietnamese law requires the preservation of evidence. Article 107 of the Civil Procedure Code 2015 mandates that evidence must be submitted to the court promptly. The court preserves all submitted or collected evidence. If evidence cannot be submitted immediately, the possessor must preserve it.
Parties are not compelled to voluntarily disclose documents that may be unhelpful or detrimental to their own case. Each party is obligated only to provide evidence that supports their claims or counterclaims, as stipulated in article 91 of the Civil Procedure Code 2015. However, if the court issues a request, the parties or relevant third parties must submit any documents or evidence in their possession, including those that may be unfavourable, pursuant to article 106 of the same Code.
Evidence – privilege
In Vietnamese civil proceedings, the concept of legal professional privilege – while not fully developed in the same manner as in common law jurisdictions – is not expressly codified but is partially reflected under the Civil Procedure Code 2015 through provisions related to confidentiality and the protection of certain categories of documents and information.
Absence of general legal privilege
Vietnamese law does not provide a general privilege that would exempt legal advice or communications between a lawyer and their client from disclosure in civil proceedings. Under article 94 of the Civil Procedure Code, parties are obligated to submit documents and evidence supporting their claims or defences, and article 109 requires that evidence be made publicly available during the trial, except where otherwise provided by law.
Recognised exceptions – confidential documents
However, clause 2 of article 109 identifies specific exceptions, allowing for the non-disclosure of documents that fall into the following categories:
In such cases, documents may be kept confidential if a party requests non-disclosure and the court deems the request legitimate. If confidentiality is granted, both the court and the parties are obligated to protect the sensitive nature of those documents.
Advice from in-house and foreign lawyers
Currently, Vietnamese law does not expressly grant privilege to legal advice provided by in-house counsel, whether local or foreign. Communications between a company and its in-house legal department are not automatically protected from disclosure. However:
If such advice involves trade secrets, strategic business information or internal communications that qualify as business secrets, it may be protected under article 109; and
Advice from foreign lawyers is not specifically addressed in privilege terms and would be treated in accordance with the general evidentiary and confidentiality rules under the Civil Procedure Code.
It should be noted that under Vietnamese Bar regulations, lawyers are under a professional obligation to maintain the confidentiality of client information. Nonetheless, this duty of confidentiality does not necessarily equate to evidentiary privilege in court proceedings.
Practical application and court discretion
In practice, parties may request the court to treat certain documents as confidential, especially where disclosure could:
The court has discretion to assess the necessity and legitimacy of such requests and may limit access or restrict public disclosure, but rarely will it fully exempt such documents from consideration in the case.
Evidence – pretrial
Vietnamese civil procedure law allows, and sometimes requires, written evidence from witnesses and experts before a trial. Articles 95, 102 and 106 of the Civil Procedure Code 2015 state that valid evidence includes written statements, expert conclusions and other documents. Such evidence must be submitted to the court during the preparatory stage for review and, under the principles of adversariality and equality, is typically disclosed to the opposing party. The court can order an official expert examination, which must be disclosed to all parties.
Evidence – trial
In the Vietnamese legal system, the presentation of evidence at trial plays a central role in ensuring that civil cases are resolved fairly and in accordance with the law. The Civil Procedure Code 2015 sets out specific regulations on how evidence is introduced, and how witnesses and experts may participate in the trial process.
Forms of evidence
According to article 94 of the Civil Procedure Code, evidence may take various forms, including:
Parties are entitled to present such evidence at trial, and the court is responsible for examining and evaluating its relevance and probative value when issuing a judgment.
Witness testimony
Witnesses play an important role in clarifying facts during the trial. As provided in article 91, the court may summon witnesses to testify orally at the hearing. Witnesses must truthfully state what they know about the case and may be subject to questioning by the court, the procuracy (if participating) and the involved parties.
The testimony of witnesses is recorded in the minutes of the trial and becomes part of the case file. If a witness is absent without a valid reason, the court may decide whether to proceed in their absence or postpone the trial depending on the importance of the testimony.
Expert evidence
In cases involving technical or specialised issues, expert witnesses may be invited or appointed by the court under article 92 to give their professional opinions. Experts are expected to prepare written reports and may also be summoned to appear in court to explain or clarify their conclusions.
Experts, like witnesses, may be questioned by the court and the parties. Their opinions are considered a form of evidence and are evaluated together with other case materials. The court is not bound by expert opinions but may rely on them where appropriate.
Trial procedure
During the hearing, the court facilitates the presentation of all relevant evidence. The parties are given equal opportunities to present, examine and respond to evidence, including questioning witnesses and experts. This adversarial structure ensures that the court can make decisions based on a comprehensive and balanced understanding of the case.
Transparency and fairness
Civil trials in Vietnam are generally conducted publicly, in accordance with article 15 of the Civil Procedure Code. The open nature of the trial ensures that evidence is reviewed transparently, and the rights of all parties are protected.
Interim remedies
Interim remedies in Vietnamese civil litigation
In the Vietnamese legal system, interim remedies (referred to as 'provisional urgent measures' under Vietnamese law)are legal tools that allow courts to temporarily preserve the status quo, protect the legitimate rights and interests of the parties, or prevent irreparable harm before a final judgment is issued. The Civil Procedure Code 2015 contains detailed provisions on the types of interim remedies available, their conditions and their procedures.
Types of interim remedies
Under article 114 of the Civil Procedure Code, the court may apply one or more provisional urgent measures at the request of a party or on its own initiative. Some of the most common interim remedies include:
Asset freezing: blocking or seizing bank accounts, movable or immovable assets of the opposing party to ensure enforcement of a future judgment.
Prohibiting certain acts: temporarily prohibiting the defendant or related parties from performing certain acts that may affect the outcome of the case.
Compelling performance: ordering the temporary performance of certain actions such as the preservation of property or evidence.
Temporary custody of disputed property: assigning custody of disputed assets to a neutral party.
Suspending enforcement of an administrative decision: in cases where the legality of such a decision is being challenged.
Availability of freezing and search orders
Freezing orders: Vietnamese law allows for freezing or attachment of assets under article 114 and related provisions, which serve a similar function to freezing injunctions in common law systems. These measures aim to prevent the dissipation of assets before a final judgment is issued.
Search orders: Vietnamese civil procedure does not explicitly recognise the equivalent of 'search orders' as known in common law systems (eg, Anton Piller orders). However, courts may allow on-site inspections and evidence preservation under articles 102 and 106, especially when there is a risk of evidence being lost or destroyed.
Interim remedies in support of foreign proceedings
Vietnamese law currently does not have specific provisions that allow courts to grant interim remedies solely in support of foreign proceedings. Provisional urgent measures are generally limited to cases filed and accepted within the Vietnamese judicial system. However, under international treaties or mutual legal assistance agreements to which Vietnam is a party, such cooperation may be possible in limited circumstances.
Application procedure
To request interim remedies, a party must submit a written application, accompanied by reasons and relevant evidence showing that the measure is necessary and urgent. According to article 133, the court must decide on the application within three working days. In urgent cases, the court may issue a decision immediately and allow the applicant to supplement documents later.
The applicant may also be required to provide security (eg, deposit a sum of money or assets) to cover any damages caused if the remedy was wrongfully applied.
Remedies
Vietnamese law provides several substantive remedies in civil cases, but it does not recognise punitive damages in the same way as some common law jurisdictions.
Available remedies
There are the following substantive remedies in civil cases:
Compensatory damages: courts award damages based on actual losses suffered by the injured party.
Penalty: a pre-agreed sum of money that the party violating the obligation must pay the injured party. The penalty level is agreed upon by both parties, while in commercial and construction contracts, it is based on the value of the breached contractual obligation, which may not exceed 8 per cent or 12 per cent.
Specific performance: courts may order a party to fulfil contractual obligations instead of awarding monetary damages.
Rescission: contracts can be cancelled if there is fraud, duress or fundamental breach.
Punitive damages
Vietnam does not award punitive damages. Courts focus on actual compensation rather than punishment.
Interest on money judgments
Interest is payable on money judgments. The statutory interest rate is determined by the Civil Code and varies depending on the nature of the claim.
Settlement
In the Vietnamese legal system, the settlement process through negotiation and mediation is not only permitted but also encouraged, as it aligns with the principle of promoting amicable resolution of disputes. The Civil Procedure Code of 2015 and Law on Grassroots Mediation 2013 establishes clear rules governing mediation, including the confidentiality of settlement discussions.
Court-encouraged mediation
Pursuant to article 10 of the Civil Procedure Code 2015, the court has an obligation to create conditions for the involved parties to conduct mediation and reach an agreement. This applies to most civil cases, except where the law prohibits mediation (eg, cases involving violations of public interest or rights that cannot be waived).
The court may organise mediation before opening the first instance trial, and in practice, many civil cases are resolved through court-facilitated mediation without proceeding to a full trial. Mediation can also take place outside the court, conducted by professional commercial mediators or through community-based mechanisms, subject to the parties’ agreement.
Confidentiality of settlement discussions
Confidentiality is a cornerstone of the mediation process. Under article 4 of the Law on Grassroots Mediation, and articles 15 and 267 of the Civil Procedure Code, all discussions and content exchanged during mediation are strictly confidential. Neither the court nor any third party may disclose the content of mediation discussions without the consent of the parties involved. This confidentiality applies whether mediation is conducted by the court or by an external mediator.
Furthermore, this provision ensures that statements or proposals made during mediation cannot be used as evidence against a party if the mediation fails and the case proceeds to trial. This legal protection allows the parties to negotiate freely and openly without fear of prejudicing their legal position.
Recognition of settlement agreements
If the parties reach a successful agreement through mediation, the outcome must be recorded in writing and recognised by the court as per article 212 of the Civil Procedure Code. Once recognised, the settlement agreement carries the same legal effect as a court judgment and is enforceable through civil enforcement procedures.
The court will verify that the agreement is voluntary, not in violation of the law or social ethics and does not affect the legitimate rights of third parties. Upon approval, the court will issue a decision to recognise the agreement and terminate the litigation proceedings.
Encouragement of alternative dispute resolution
In addition to court-based mediation, the Vietnamese legal system also encourages out-of-court settlement mechanisms including commercial mediation under the Decree on Commercial Mediation 22/2017/ND-CP. These mechanisms are particularly popular in business and contractual disputes, and confidentiality is equally protected under these frameworks.
Enforcement
Means of enforcement
Under articles 9 and 10 of the Law on Enforcement of Civil Judgments, civil judgments are enforced by specialised enforcement agencies. Available enforcement measures include:
Voluntary compliance is encouraged initially, but if the party fails to comply within the legal time limit, coercive enforcement measures may be taken.
The enforcement process is typically initiated upon the request of the judgment creditor by filing an application with the competent civil judgment enforcement agency, accompanied by a legally valid judgment or decision.
Sanctions for non-compliance
If a party disobeys a court order or judgment, various sanctions can be imposed, depending on the level and nature of the violation.
Administrative sanctions
According to Decree No. 144/2021/ND-CP, individuals or organisations that intentionally fail to comply with court decisions may face administrative fines. The fine levels vary depending on the specific behaviour, such as obstruction of enforcement or failure to provide required information about assets.
Compulsory enforcement measures
The civil enforcement agency is authorised to take coercive measures to enforce the judgment. These may include:
Such measures are taken after the deadline for voluntary compliance expires, and after the judgment enforcement officer completes the necessary procedural steps.
Criminal liability
In cases of serious or intentional obstruction of enforcement, criminal sanctions may be applied. Under article 380 of the Criminal Code 2015 (amended 2017), a person who fails to execute a legally effective court judgment may be prosecuted and face penalties, including fines, non-custodial reform or imprisonment, depending on the severity of the offence.
Enforcement procedure
To initiate enforcement, the judgment creditor must submit a written request to the competent Judgment Enforcement Department, together with the enforceable judgment or decision. Upon acceptance, the enforcement agency will issue a decision to enforce and carry out necessary procedures such as asset verification, notice to the debtor and application of enforcement measures.
Public access
Under article 15 of the Civil Procedure Code 2015, court hearings in civil cases are generally held in public. This ensures openness, transparency and the public's right to oversee judicial activities. Any individual may attend a public hearing, subject to the court’s logistical capacity.
However, hearings may be restricted or closed to the public in the following circumstances:
Even in private hearings, the judgment must still be publicly pronounced, unless doing so would disclose protected information.
Access to court documents
While Vietnamese law supports the principle of publicity in court activities, access to court documents is restricted to certain parties as listed below:
Therefore, while the hearing may be public, access to case documents is typically limited to ensure the protection of lawful rights and interests of the involved parties.
Private hearings are allowed and regulated under article 15, which enables the court to close hearings in specific sensitive contexts, particularly when public disclosure could:
The court will notify the parties if a case will be heard in private and record such determination in the trial minutes.
Preservation of sensitive documents
While the Vietnamese legal framework does not explicitly recognise a mechanism akin to 'confidentiality clubs', parties may request the court to apply protective measures for documents and evidence containing sensitive information.
Pursuant to clause 2, article 109 of the Civil Procedure Code, the court is responsible for ensuring that undisclosed information remains confidential and is only accessible to authorised individuals. Judges, court staff and other participants in the proceedings are required to maintain the confidentiality of non-public documents. Violations may result in disciplinary, administrative or even criminal penalties depending on the severity.
Costs
Pursuant to article 147 of the Civil Procedure Code 2015, the court has the power to order the payment of litigation costs, regardless of whether the case is resolved through trial or settlement, which include:
The court will allocate these costs depending on the outcome of the case, typically requiring the losing party to bear the relevant expenses, unless otherwise agreed by the parties or stipulated by law.
Assessment of costs
The assessment of court fees and litigation costs follows the provisions of Resolution No. 326/2016/UBTVQH14 of the National Assembly Standing Committee. The fees are calculated based on the nature and value of the dispute, with the following classifications:
The court may consider documented expenses submitted by the parties to determine additional litigation-related costs beyond court fees.
Vietnamese law does not require plaintiffs to provide security for the defendant’s costs in civil cases. However, in arbitration proceedings, security for costs may be considered depending on the rules of the arbitration institution.
There have been no major recent changes in how courts rule on costs in civil claims. Costs rules apply uniformly across civil claims, though specific procedural rules may vary depending on the nature of the dispute.
Before the proceedings, the parties can negotiate cost-sharing agreements or opt for alternative dispute resolution (ADR) to minimise litigation expenses. During the proceedings, a party can request the court to limit unnecessary expenses or challenge excessive cost claims by the opposing party.
Funding arrangements
Vietnamese law does not expressly prohibit contingency fee arrangements, known as 'no win, no fee' agreements, but they are not formally recognised or regulated. Lawyers follow the Law on Lawyers 2006 (amended 2012) and guidance from the Vietnam Bar Federation, requiring legal fees to be agreed in writing based on workload, complexity, time spent and result achieved.
Result-based components can be included in a lawyer−client agreement, but the total fee must be reasonable and lawful. Charging lawyers a percentage of the award as compensation may not comply with professional ethics rules.
Third-party litigation funding is not expressly regulated nor prohibited under Vietnamese law. However, there is no clear legal basis for third parties (eg, commercial funders) to invest in lawsuits and recover a share of the proceeds. Such arrangements may raise issues under civil, commercial or legal ethics laws, particularly in relation to:
Accordingly, litigation risk-sharing mechanisms, such as selling a portion of expected recovery or outsourcing litigation liability to third parties, remains a legally uncertain and uncommon in practice in Vietnam.
Insurance
The use of insurance to cover legal costs − whether for a party’s own expenses or its potential liability for an opponent’s costs − is not clearly regulated under current laws of Vietnam. However, there are certain considerations and developing practices relevant to this issue.
Availability of legal cost insurance
Currently, Vietnamese law does not expressly recognise or regulate legal expenses insurance (LEI). The Law on Insurance Business No. 08/2022/QH15 and guiding regulations issued by the Ministry of Finance primarily govern traditional insurance products, including life insurance, health insurance, property insurance and civil liability insurance. Specific insurance coverage for litigation costs − such as lawyers' fees, court fees or adverse costs − is not commonly available in the domestic insurance market.
Existing forms of liability insurance
While direct legal cost insurance is not widespread, some forms of professional liability insurance or directors and officers (D&O) liability insurance may include partial coverage for legal expenses incurred in defending claims. These policies, however, are not designed to cover litigation costs in civil or commercial disputes between private parties.
In practice, some multinational corporations operating in Vietnam may obtain LEI coverage through foreign insurers or group-level policies, but such arrangements are not governed by Vietnamese law and are typically structured offshore.
Insurance for opponent’s costs
Vietnamese procedural law, particularly article 147 of the Civil Procedure Code 2015, allows the winning party to recover court fees and certain litigation costs from the losing party. However, there is no legal requirement or standard mechanism for a party to insure against the risk of being ordered to pay the opponent’s costs. Nor is there a recognised insurance product in Vietnam that offers such coverage.
Contractual cost-sharing provisions
In commercial practice, parties may include contractual clauses allocating responsibility for legal costs in the event of a dispute. For example, a contract may specify that one party bears all legal costs arising from litigation. While this is not insurance per se, such cost-allocation clauses can provide a limited level of financial protection. However, their enforceability remains subject to judicial discretion and public policy considerations.
Prospects for development
As Vietnam continues to integrate into global legal and financial systems, and as the volume and complexity of commercial disputes increase, there may be future developments in LEI. Regulatory reform and market demand may lead to the emergence of domestic LEI products, especially for corporate clients and cross-border transactions.
Class action
In the Vietnamese legal system, while there is no formal class action regime akin to those in common law jurisdictions, the Civil Procedure Code 2015 provides certain procedural mechanisms that allow for a form of collective redress when multiple litigants bring similar claims against the same defendant.
Joinder of claims and parties
According to article 42 of the Civil Procedure Code 2015, the court may join multiple cases or consolidate similar claims into a single proceeding under specific conditions:
This procedural mechanism, often referred to as 'joinder of cases', serves as the closest equivalent to collective redress in Vietnam.
Limitations on class actions
While the joinder mechanism provides efficiency and consistency in adjudicating similar claims, it is fundamentally different from class actions as understood in jurisdictions like the United States. Key differences include the following:
Developments and practical use
To date, Vietnam has not introduced any legislative reforms aimed at establishing a formal class action regime. However, the use of joined proceedings has been seen in consumer disputes, labour-related claims and environmental matters, particularly where multiple plaintiffs are affected by the same underlying issue or conduct.
One notable example includes joined litigation involving multiple employees against an employer in labour disputes. Courts have also allowed joint actions in certain consumer protection cases, such as claims against manufacturers of defective goods or service providers with standard-form contracts.
Future prospects
Given the increasing complexity and scale of mass harm events – such as environmental incidents, data breaches or securities violations – there is a growing call among legal professionals and academics in Vietnam to consider a more structured collective redress mechanism. However, any legislative development in this area would require comprehensive procedural safeguards and policy consensus, which have not yet materialised.
Appeal
In Vietnam, the right to appeal in civil litigation is provided for in the Civil Procedure Code 2015, which outlines a multi-tiered judicial review system designed to ensure fairness and correct potential judicial errors. The procedure encompasses both first-level (appellate) and higher-level (cassation or reopening) reviews.
Grounds and circumstances for appeal
Under article 271 of the Civil Procedure Code 2015, litigants may appeal a first instance judgment or decision issued by a court of first instance if they believe that the judgment is unlawful or unjust. Specific grounds include:
The time limit for filing an appeal is generally 15 days from the date the party receives the judgment or decision (or seven days in the case of interlocutory rulings), pursuant to article 273 of the Civil Procedure Code.
Appellate procedure
Appeals are filed directly with the court that issued the first instance decision, which will then forward the case file to the court of appeal. The appellate court has the power:
Appeals are generally limited to issues raised by the appealing party, though the appellate court retains discretion to consider other legal or procedural issues if necessary to ensure lawful adjudication.
Right to further appeal (cassation and reopening)
A party dissatisfied with an appellate court’s decision may initiate a further appeal under the cassation or reopening procedures, regulated by articles 326 to 345 of the Civil Procedure Code. These extraordinary remedies do not operate as a third level of appeal, but rather as a means to address serious judicial errors.
Cassation review may be triggered in the following circumstances:
A reopening procedure may be initiated under article 352 in cases where new facts or evidence emerge that were not previously available and could significantly affect the result of the case.
Cassation and reopening procedures are initiated by a petition to the Chief Justice of the Supreme people’s court or the Chief Justice of the relevant high people’scCourt, who may forward the case for review if deemed appropriate.
Foreign judgments
In Vietnam, the recognition and enforcement of foreign civil judgments and decisions are governed by the Civil Procedure Code 2015 and relevant international treaties to which Vietnam is a signatory. This legal framework is designed to ensure both respect for international legal cooperation and the protection of national legal principles.
Legal basis
The key provisions regulating the recognition and enforcement of foreign judgments are found in articles 423 to 429 of the Civil Procedure Code. These provisions establish the procedural steps, requirements and legal conditions for recognising judgments and decisions issued by foreign courts.
Recognition based on international treaties and reciprocity
According to article 425.1 of the Civil Procedure Code, the Vietnamese courts shall consider recognition and enforcement of a foreign court's judgment or decision in one of the following scenarios:
Vietnam and the foreign country are parties to an international treaty on mutual legal assistance in civil matters that includes provisions on the recognition and enforcement of judgments; or
There exists reciprocity in the recognition and enforcement of judgments between Vietnam and the foreign country, even if no formal treaty is in place.
In practice, Vietnam has entered into several bilateral treaties with countries such as France, China, Laos, Russia and others. These treaties typically set out conditions and procedures for recognition and enforcement, and Vietnamese courts will apply the terms accordingly.
Recognition in the absence of a treaty
If there is no international treaty or established reciprocity, Vietnamese courts may still consider recognition and enforcement under the Civil Procedure Code. In such cases, the requesting party must:
The court will examine the judgment to ensure that it does not violate the basic principles of Vietnamese law, public policy or the rights and interests of relevant parties, as required under article 424 of the Civil Procedure Code.
Conditions for recognition and enforcement
To be recognised and enforced in Vietnam, a foreign judgment must generally meet the following criteria:
Procedural steps
The process for recognition and enforcement is as follows:
Then the court may conduct a hearing to assess the petition. If the court grants recognition, the foreign judgment can be enforced through Vietnamese enforcement authorities.
Right to appeal
As stipulated under article 429, the parties involved have the right to appeal the court’s decision on recognition and enforcement, following the procedures applicable to civil judgments under Vietnamese law.
Foreign proceedings
In the Vietnamese legal system, the procedures for obtaining oral or documentary evidence for use in civil proceedings in other jurisdictions are governed by the Civil Procedure Code of 2015 and are further shaped by international treaties on judicial assistance to which Vietnam is a party. While Vietnam does not have a specific statutory procedure for voluntary discovery as seen in common law jurisdictions, cooperation in cross-border evidence collection is possible under certain legal frameworks.
Legal framework
The key provisions applicable to judicial assistance in civil matters, including the collection of evidence for use abroad, are set out in Part 7 (articles 341 to 351) of the Civil Procedure Code 2015. These provisions govern how Vietnamese courts respond to requests from foreign courts or competent authorities regarding the collection, preservation and transmission of evidence.
International treaties and bilateral agreements
Vietnam is a party to various bilateral and multilateral treaties on mutual legal assistance in civil and commercial matters. These agreements commonly include provisions allowing for:
If a mutual legal assistance treaty exists between Vietnam and the requesting country, the procedures and requirements outlined in that treaty will take precedence.
Procedures in the absence of a treaty
In the absence of a treaty or agreement, foreign requests for evidence must still comply with Vietnamese law and sovereignty principles. Under article 342, foreign courts or authorities must send their request for judicial assistance through diplomatic or consular channels, or via other lawful means as provided by law or international practice.
The request should include:
The Supreme people’s court of Vietnam or the Ministry of Justice, depending on the nature of the request and applicable treaties, will forward the request to the appropriate people’s court for execution.
Limitations and public policy considerations
Requests for the taking of evidence in Vietnam may be refused if they:
Vietnamese courts are also not obliged to compel production of documents or witness testimony beyond what is permitted under domestic procedural law.
