An arbitral award is a final decision of the Arbitral Tribunal that resolves all substantive issues of a commercial dispute and terminates an arbitral proceeding. So, what is the procedure for recognizing an arbitral award? NPLaw provides a detailed explanation below.

I. Overview of arbitral awards

1. Definition of an arbitral award

According to Clause 10, Article 3 of the Law on Commercial Arbitration 2010, an arbitral award is a decision of the Arbitral Tribunal resolving an entire dispute and terminating an arbitral proceeding.

Pursuant to Article 60 of the Law on Commercial Arbitration 2010, the principles for issuing an award are:

  • The Arbitral Tribunal makes its award by majority vote;
  • If no majority is reached, the award will be issued according to the opinion of the Chairperson of the Arbitral Tribunal.

2. Principles governing arbitral awards

Based on Article 60 of the Law on Commercial Arbitration 2010:

  • An award of the Arbitral Tribunal shall be decided by majority vote;
  • Failing such a majority, the Chairperson’s opinion shall prevail in determining the award.

Thus, the principle of majority voting according to Article 60 of the Law on Commercial Arbitration 2010 can also be understood that each arbitrator appointed by the parties will have 01 vote, and the Chairperson of the Arbitral Tribunal will have more than 1 vote in the voting process. In case the vote does not reach a majority, the award will be made according to the opinion of the Chairperson.

II. Procedures for recognition and enforcement of arbitral awards

Pursuant to Clause 1, Article 451 of the Civil Procedure Code 2015, the period for filing a petition for recognition and enforcement of a foreign arbitral award in Vietnam is three (3) years from the date the award becomes legally effective.

Within this 3-year period, the beneficiary, any party with related lawful rights and interests, or their lawful representatives of the award may file a petition to the Ministry of Justice of Vietnam under the relevant international treaties to which the Socialist Republic of Vietnam is a member, or directly to the competent Vietnamese court in cases where no treaty governs the matter for the purpose for recognizing and enforcing the award in Vietnam.

If the petitioner can demonstrate that force majeure or objective obstacles prevented timely filing, the duration of such events or obstacles will not be counted toward the statutory 3-year period.

III. Questions recognition and enforcement of arbitral awards

1. Which arbitral awards may be recognized in Vietnam?

Foreign arbitral awards eligible for recognition and enforcement in Vietnam are the following ones: 

  • Being final decisions of the foreign Arbitral Tribunal;
  • Resolving the dispute in full;
  • Terminating the arbitral proceedings; and
  • Being legally enforceable under the law of the jurisdiction where they were issued.

2. Who may request recognition of an arbitral award?

Under Point c, Clause 2, Article 35; Point b, Clause 1, Article 37; and Point a, Clause 3, Article 38 of the Civil Procedure Code 2015, the Economic Court of the Provincial People’s Court is the competent Court reviewing petitions for recognition and enforcement of foreign arbitral awards.

3. Can an arbitral award be annulled by a court?

Parties to the commercial dispute may petition the Court to annul an arbitral award. However, sufficient evidence must be provided to demonstrate legal grounds for annulment under Article 70 of the Law on Commercial Arbitration 2010.

4. Can a Vietnamese court hear the same dispute after a foreign arbitral award has been issued?

According to Article 469 of the Civil Procedure Code 2015, Vietnamese courts may exercise jurisdiction over commercial disputes with foreign elements in the following cases:

  • The respondent is an individual residing, working, or habitually living in Vietnam;
  • The respondent is an organization with its head office, branch, or representative office in Vietnam, particularly when the dispute relates to the activities of such a branch or office;
  • The respondent owns assets located in Vietnam;
  • Cases involving divorce where either spouse is a Vietnamese citizen or the parties are foreigners residing or working in Vietnam;
  • Civil relations established, modified, or terminated within Vietnam or involving property or obligations performed in Vietnam;
  • Civil relations formed outside Vietnam but involving rights and obligations of Vietnamese entities or individuals residing or headquartered in Vietnam.

Thus, depending on the specific issues, Vietnamese courts may or may not accept jurisdiction even when a foreign arbitral award is handled. 

IV. Legal consultation on recognition and enforcement of arbitral awards

Navigating the recognition and enforcement of arbitral awards, especially foreign awards, requires a thorough understanding of procedural rules, treaties, and domestic law. Professional legal services on the above issues are strongly recommended to ensure proper filing and avoid procedural mistakes that could delay or invalidate enforcement.