Key Takeaways
- The Specialised Court at the International Financial Center is the competent authority for resolving financial and investment disputes arising within the International Financial Centres in Ho Chi Minh City and Da Nang City.
- The Specialised Court is organised under a two-tier adjudication structure (first instance and appeal) and operates under flexible, specialised procedural rules aligned with international standards and practice, with a strong emphasis on party autonomy.
- Foreign judges, lawyers, and other reputable experts may be appointed as judges of the Specialised Court.
- The Specialised Court permits the application of foreign law and international commercial customs in dispute resolution. English is the language of proceedings, and electronic proceedings may be implemented on a comprehensive basis.
- Judges of the Specialised Court are empowered to issue decisions directly and oversee enforcement, thereby ensuring that judgments and decisions are enforced promptly and effectively.
Introduction
On 11 December 2025, the National Assembly of Viet Nam passed the Law on Specialised Courts at the International Financial Centre 2025 (the “IFC Specialised Courts Law”), which takes effect from 1 January 2026. The IFC Specialised Courts Law forms part of the legal framework applicable to the International Financial Centre (the “IFC”) in Ho Chi Minh City and Da Nang City.
The IFC Specialised Courts Law establishes the Specialised Court at the IFC (the “Specialised Court”), which has jurisdiction to resolve disputes involving IFC Members. The Specialised Court is designed to meet the specific requirements of dispute resolution mechanisms for international financial and investment transactions, thereby strengthening investors’ legal confidence. At the same time, the Law places particular emphasis on efficiency and the enforceability of the Specialised Court’s judgments and decisions.
Notable Developments
Legal Status and Organisational Structure of the Specialised Court
The Specialised Court forms part of the People’s Court system and has jurisdiction to adjudicate and resolve matters arising within the IFC. It is established and located in Ho Chi Minh City.
The Specialised Court is organised under a two-tier adjudication structure, comprising a Court of First Instance and an Appellate Court, together with supporting administrative functions. The Chief Judge and Deputy Chief Judge of the Specialised Court are appointed by the Chief Justice of the Supreme People’s Court, selected from among judges of the Specialised Court, for a five-year term.
The Chief Judge plays a central role in the organisation and operation of the Court, including overseeing case management, issuing procedural decisions, and proposing the appointment of foreign nationals or Vietnamese citizens as judges of the Specialised Court, together with other powers as prescribed by law.
In terms of its principles of organisation and operation, the IFC Specialised Courts Law recognises that proceedings before the Specialised Court are to be flexible and specialised, closely aligned with international standards and practice, whilst safeguarding the parties’ autonomy—a key principle in international commercial dispute resolution. Another noteworthy feature is the mechanism for resolving jurisdictional disputes. Specifically, where a jurisdictional dispute arises between the Specialised Court and a People’s Court, the authority to determine such dispute is vested in the Chief Judge of the Specialised Court.
Appointment of Foreign Judges
The IFC Specialised Courts Law permits the appointment of foreign nationals as judges of the Specialised Court, provided that they have at least ten (10) years of experience in adjudication and/or handling matters relating to investment and business activities. This provision not only ensures specialist expertise in adjudication, but also conveys a strong policy message regarding Viet Nam’s commitment to deeper integration and investor protection—particularly in the context of attracting international capital flows into the IFC.
Expanded and Flexible Jurisdiction over Disputes
Save for matters involving public interests or the interests of the State of Vietnam, the jurisdiction of the Specialised Court is designed to be both expanded and flexible. Accordingly, the Specialised Court may accept investment and business disputes arising within the IFC, as well as matters where at least one party is an IFC Member.
Matters falling within the jurisdiction of the Specialised Court are subject to a six-year limitation period from the date on which the relevant event occurred. This includes investment and business disputes, applications for recognition and enforcement in Viet Nam of foreign court judgments and decisions, and foreign arbitral awards. The regulated limitation period is comparatively longer than the limitation periods generally applicable to civil and commercial matters under current Vietnamese law, thereby providing a more robust mechanism for safeguarding the parties’ rights and interests in disputes.
In the arbitration context, the Specialised Court has the authority to hear and determine applications relating to arbitral proceedings, provided that at least one party is an IFC Member. Such applications include the recognition and enforcement in Viet Nam of foreign court judgments and decisions and foreign arbitral awards, as well as other requests arising in the course of arbitration proceedings in accordance with Vietnamese law on commercial arbitration.
Flexible, Digitalised Proceedings with a Strong Focus on Efficiency
Procedural Rules of the Specialised Court
The Specialised Court applies a dedicated set of Procedural Rules issued by the Supreme People’s Court. These Procedural Rules constitute the legal framework governing the parties’ procedural conduct throughout the dispute resolution process, including both first-instance and appellate proceedings. They cover key matters such as the commencement of proceedings, counterclaims, appeals, and the issuance of procedural decisions during the course of the case. This framework enables the Specialised Court to operate in a more autonomous manner and to better accommodate the particular features of international financial and investment disputes.
Choice of Foreign Law and International Commercial Customs
The IFC Specialised Courts Law permits the parties to agree on the application of foreign law and international commercial customs, provided that at least one party is a foreign individual or organisation. However, the application of such sources remains subject to Viet Nam’s public policy constraints.
English as the Language of Proceedings
Proceedings before the Specialised Court are conducted in English. Accordingly, judgments and decisions of the Specialised Court may be issued in bilingual English–Vietnamese form, with both versions having equal legal validity. The designation of English as the procedural language is consistent with the international nature of transactions and disputes arising within the IFC, where English remains the prevailing language of commerce. This approach is expected to reduce translation costs, mitigate interpretative risks, and provide material convenience for foreign investors involved in disputes.
E-Proceedings
The IFC Specialised Courts Law adopts an open approach to the comprehensive implementation of electronic proceedings before the Specialised Court. This may encompass the entire process—from the filing and processing of claims, service and notification of procedural documents, and payment of court fees, to the submission of evidence, the organisation of hearings and trials, and other procedural steps. Further details are expected to be clarified in the Procedural Rules. This approach reflects the practical need for swift and effective resolution of commercial, investment, and financial disputes within the IFC, where time is a significant opportunity cost and digital platforms are integral to market participants’ operations.
Enforcement of the Specialised Court’s Judgments and Decisions
Unlike the enforcement mechanism under the current Law on Civil Judgment Enforcement, judges of the Specialised Court are empowered to issue enforcement decisions directly and organise enforcement, including the application of enforcement measures and interim relief, without the involvement of the civil judgment enforcement authorities at the enforcement stage.
This is a key feature intended to ensure the prompt enforceability of the Specialised Court’s judgments and decisions—an issue of particular importance to international investors.
Epilogue
The IFC Specialised Courts Law demonstrates Vietnam’s efforts to develop a coherent judicial infrastructure to serve investors operating within the IFC, rather than implementing isolated procedural reforms. The establishment of the Specialised Court, coupled with flexible dispute resolution procedures and an efficiency-driven approach, is expected to strengthen foreign investors’ confidence and attract global financial capital flows into the International Financial Centres in Ho Chi Minh City and Da Nang City.
Indochine Counsel (IC) stands ready to support investors and enterprises in assessing dispute resolution strategies, drafting jurisdiction and governing law clauses compliant with Vietnamese law, and representing and advising clients in proceedings before the courts and commercial arbitration tribunals.
