How Decree 219 Transforms Employing Foreign Workers in Vietnam in 7 Strategic Ways?

  

Three Things

If your business is employing foreign workers in Vietnam, there are three important points we could draw from Decree 219//2025/ND-CP (Decree 219) dated August 7th, 2025 on employing foreign workers in Vietnam:

1. One integrated procedure, clearer deadlines
2. More flexible for short term work and priority sectors
3. Higher expectations on who really counts as an expert

Why This New Decree, and Why Now

For years, investors and business groups have said the same thing about Vietnam’s work permit rule which are too many steps, too much paper, not friendly enough to high skill and fast moving industries. The previous regulations on foreign workers were written in an earlier stage of Vietnam’s development. They worked, but not any more.

Decree 219 employing foreign workers in Vietnam arrives in a new context. Vietnam is trying to move up the value chain, attract foreign experts in emerging industries like semiconductors, artificial intelligence and digital transformation, and at the same time cut red tape and modernise its administration.

This Decree 219 aims to support:

• visa and foreign labour reforms that aim to boost competitiveness and address skilled labour shortages
• wider administrative reforms and online public services that support a digital economy and more efficient state management

In that bigger picture, Decree 219 is one more building block in Vietnam’s long term strategy in digital transformation. For companies employing foreign workers in Vietnam, it is meant to make the system faster, more flexible and more predictable, especially for genuine experts and short term project work.

Employing Foreign Workers in Vietnam

What Changed at a Glance

One integrated procedure

The explanation of why you need foreign staff and the work permit application are now handled in a single dossier, instead of two separate procedures under the previous regulations.

In practice, this cuts duplication and makes it easier to coordinate timing when you are employing foreign workers in Vietnam.

Shorter and clearer timeline

Once the dossier is complete, the authority has ten working days to decide and must give reasons if it refuses.

That gives HR and line managers a much firmer basis for planning onboarding and project schedules.

Exemptions that match real business models

Exemption categories increase and now clearly cover some foreign workers in finance, science, technology, innovation, digital transformation and other priority sectors, when confirmed by the right authorities.

Managers, executives, experts and technicians working under ninety days per year in Vietnam can be exempt in defined situations, instead of following the old per-visit limit.

This gives consulting, commissioning and troubleshooting teams a framework that finally looks closer to how they actually operate.

Softer but sharper rules for experts and technicians

In many cases, required experience is reduced, especially in priority sectors, but Decree 219 employing foreign workers in Vietnam explains more clearly what documents and evidence authorities expect.

That combination opens the door for younger high-skill talent, while making it harder to rely on inflated job titles without substance.

More digital, less queuing

Decree 219 employing foreign workers in Vietnam is launched together with plans for integrated databases and online platforms for labour administration.

Over time, this should mean fewer trips to counters and more use of online tools for employers employing foreign workers in Vietnam.

Vietnam’s Bigger Shift

If we look into big picture, Vietnam is doing three things at the same time:

• competing harder for foreign direct investment and global supply chains, not only in traditional manufacturing but in higher-value activities
• pushing administrative reform, merging overlapping procedures and trying to create a more efficient state apparatus
• driving national digital transformation, including digital identity, online public services and integrated data systems

Decree 219 employing foreign workers in Vietnam is part of a wider reform path and sends three clear signals:

• Vietnam still controls foreign labour and expects serious compliance
• Vietnam welcomes the right kind of foreign talent, especially in priority sectors
• Vietnam wants procedures that support a modern, digital economy

For businesses employing foreign workers in Vietnam, this means the legal framework is gradually becoming more aligned with the way international companies actually operate.

Faster and Simpler

How does this change day to day work for HR and legal teams?

First, the approval of foreign labour needs and the work permit itself are now combined. Under the previous regulations, you had to prepare one set of documents to prove the need, wait, and only then submit a separate work permit file. Now you present a single, integrated story, i.e. who this person is, why the role must be foreign, and how they fit the legal category.

Second, there is one main decision window. Once the dossier is complete, the authority has ten working days to respond, and if it refuses, it must explain why. This is very different from the earlier practice where businesses often felt in the dark about timing and reasons for delays.

Third, the move toward online systems and integrated databases means less scattered paperwork. Plans for a national job exchange and unified work permit databases fit into the same logic i.e. connect immigration data, labour data and administrative records in a more coherent way.

If you improve front end preparation, the law now gives you a realistic chance of a smoother, quicker process for employing foreign workers in Vietnam. The main bottleneck becomes the quality of your own dossier, not just the speed of the authorities.

More Flexible

Short term projects are the most obvious winner. The new rule for managers, executives, experts and technicians working under ninety days per year in Vietnam creates a practical exemption route. Instead of constantly calculating per-visit limits, you can manage one annual day-counter per worker, within the legal conditions. This aligns much better with how consulting firms, engineering teams and regional specialists actually work.

Priority sectors are another area of flexibility. Decree 219 employing foreign workers in Vietnam explicitly refers to foreign workers invited or confirmed to work in finance, science and technology, innovation, digital transformation and similar areas. Together with new visa policies, this shows that Vietnam wants to become a hub for higher-value activities and advanced services, not only low cost manufacturing.

There is also more clarity for multi province work. Many companies employ one foreign expert who supports several factories or branches. Under Decree 219 employing foreign workers in Vietnam, this pattern is recognised, with one permit and a notification mechanism, instead of forcing you to duplicate effort.

If you design roles with these tools in mind, employing foreign workers in Vietnam can better reflect your actual operations, especially for project based work and cross province support.

More Disciplined

What is expected from employers in return?

The trade off for more flexibility is stronger discipline. The law is more generous to genuine experts but more precise about what evidence is required. Job titles alone are not enough. Authorities now have clearer criteria to check degrees, experience and job content against the legal definitions of manager, executive, expert or technician.

This means that creative use of titles to justify foreign hires is more likely to be challenged. For employers employing foreign workers in Vietnam, it pushes you to align HR reality with legal categories.  If someone is truly an expert, it should show in their education, their experience and their responsibilities.

Sanctions also become more focused. The system is designed to target serious misconduct and repeated non compliance, while supporting compliant businesses with clearer, faster procedures.

Decree 219 supports employers who can prove their case and organise their documents. It makes things easier for real experts and harder for weak or improvised arrangements.

Step by Step on What Employers Should Do Now

Step 1: Check your foreign workforce

List every foreign worker with entity, province, role, legal category, permit or exemption, expiry date and estimated days in Vietnam this year. This gives you a clear picture of how you are employing foreign workers in Vietnam right now.

Step 2: Re-check exemptions

For each person, consider whether they could now fall under an exemption, especially:

• genuine short term work under ninety days a year
• priority sectors with proper invitations or confirmations

Where there is a good fit, redesign the structure and documentation carefully. Do not rely on assumptions; keep written justification and internal approvals for every exemption.

Step 3: Update job design and evidence

Update job descriptions and reporting lines so they match the legal categories you use. Create standard evidence packs with degrees, experience letters and other documents for each type of role. This is your main shield if an application is questioned by the authorities.

Step 4: Build a simple internal approval flow

Before any offer to a foreign candidate:

• the business unit explains why a local hire is not suitable
• HR and legal decide between exemption and work permit
• the legal category and document list are agreed

This keeps your dossiers consistent and makes the ten day timeline achievable when employing foreign workers in Vietnam.

FAQ: Decree 219 and Employing Foreign Workers in Vietnam

Do old work permits stay valid?

Yes. Permits and exemption letters issued under previous regulations remain valid until they expire. When you renew, Decree 219 applies, so that is the moment to review and correct weak structures and documentation.

Is the ten day deadline guaranteed?

It applies once the dossier is complete and consistent. If information is missing or confusing, authorities will request additions or refuse. The law gives a better framework, but your internal preparation decides how close you get to that timeline.

Does every short visit avoid work permits now?

No. The ninety day rule applies only to certain types of foreign workers and still requires proper notifications and documentation. You need a reliable way to count days, or you risk crossing the threshold without noticing.

Is it easier to upgrade staff into experts?

It is easier to qualify real experts, including younger ones in key sectors. It is not easier to disguise non-experts as experts. Documentation and consistency matter more than before.

The Right Way Forward for Employers

For companies employing foreign workers in Vietnam, the direction is straightforward:

• align your headcount planning with Vietnam’s shift toward higher value and priority sectors
• design foreign roles that genuinely require international expertise and support that with clear evidence
• use the new exemptions and timelines only when your documents and internal systems can stand up to scrutiny
• modernise your internal procedures so they fit a more digital and integrated public administration

Decree 219 becomes a practical tool that supports your growth, strengthens compliance and helps you attract the foreign talent that Vietnam is actively trying to bring in.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/219-employing-foreign-workers-in-vietnam.html

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Decree 239/2025/ND-CP Guiding Investment Law, A Vietnam’s Strategic Positioning in Asia

  

Background

Decree 239/2025/ND-CP is issued to amend parts of Decree 31/2021/ND-CP which provide instructions for implementing Vietnam’s Investment Law. It took effect on September 3rd, 2025. 

The Decree 239/2025/ND-CP is expected to streamline licensing, especially by recognizing electronic dossiers with digital signatures, and to tidy up incentives and procedures after Vietnam’s recent administrative restructuring after moving to a two-tier local government model where many communes were merged or reclassified.

This Decree 239/2025/ND-CP will set clearer rules on which areas qualify for investment incentives, plus faster timelines in a few steps. 

Foreign and domestic investors seeking Investment Registration Certificates (IRC), investors adjusting projects, and companies locating in industrial parks, export processing zones, high-tech zones, digital-technology zones, or economic zones.

For projects that do not need investment policy approval, the time to issue an IRC is shortened from 15 to 10 working days after the authority receives a valid application. 

Decree 239/2025/ND-CP Guiding Investment Law, A Vietnam’s Strategic Positioning in Asia

Vietnam’s Shifting Competitive Position

Vietnam’s investment framework has evolved rapidly over the past decade, driven by both internal reforms and intense external competition. When the Law on Investment 2020 was introduced, Decree 31/2021/NĐ-CP played a central role in translating the law into practice. It provided a structured mechanism for foreign investor access, clarified conditional business lines, and established the foundation for issuing investment registration certificates (IRC), M&A approval, and incentive policies.

At that time, Decree 31 met Vietnam’s needs: the country was recovering after the pandemic, global supply chains were shifting, and foreign-invested enterprises continued to anchor Vietnam as an export manufacturing hub.

However, by 2023–2025, Vietnam’s competitive landscape changed dramatically. Neighboring countries implemented investment reforms, making licensing faster, digital, and more predictable.

Investors began comparing jurisdictions not by incentives alone, but by administrative speed, transparency, and technological readiness. As a result, the limitations of Decree 31 became more visible i.e. long processing times, paper based procedures, outdated rules on machinery imports, and inconsistencies caused by administrative restructuring at the provincial level.

At the same time, Vietnam’s own economic strategy evolved.

The government signaled a shift away from being merely a low cost manufacturing destination toward becoming a high-tech, digital, and green economy.

This required a modern investment regime aligned with global standards, capable of supporting high-quality FDI in semiconductors, renewable energy, logistics, and advanced manufacturing.

To keep pace with these changes, Vietnam needed a new regulatory instrument, one that would accelerate licensing, remove outdated technical barriers, and allow investors to operate seamlessly in an increasingly digital environment.

Decree 239/2025/NĐ-CP emerged as that reform.

It reflects the government’s recognition that the next phase of economic competition will not be won by cheap labor or broad incentives, but by administrative efficiency, predictable rules, transparent digital procedures, and alignment with global technological trends.

By allowing full electronic dossiers, reducing IRC timelines, removing rigid rules on machinery age, and updating incentive zones after administrative mergers, Decree 239/2025/ND-CP positions Vietnam more effectively against regional competitors.

Decree 239/2025/ND-CP is is part of a broader strategic shift that Vietnam is transitioning from a cost driven economy to a capability driven one, where investment attraction depends on the quality, speed, and modernity of its legal and administrative systems.

The Five Most Practical Changes in the Decree 239/2025/ND-CP

Electronic dossiers now is valid as paper

The electronic dossier, digitally signed per Vietnam’s e-transaction rules, has the same legal validity as the paper set. Authorities must publicly announce how they receive e-dossiers on the National Investment Information Portal and their own portals. Company may submit in person, online, or via public post depending on the procedure. 

It is important that the application prepare one paper set and one matching e-set. Make sure the e-set is signed with a recognized digital signature. If there is any inconsistency, the paper dossier will be treated as the final legally binding version, so double-check that both sets match before filing.

Faster IRC issuance

The investment registration authority now issues the IRC within 10 working days for projects that do not require investment policy approval, reducing from 15 working days. If the project does require policy approval, related downstream timelines are also tightened in several steps. 

This mean the company can expect a a shorter statutory processing window for the IRC. Delays can still happen because of the procedures of consultations with other authorities, translation, legalization gaps, or system slowdowns, but the baseline rule is now 10 working days after a valid application. 

Incentives mapped down to the commune level 

Vietnam now clarifies out how to determine incentive areas at the commune level, including what happens when communes are merged or reclassified. In short, the new commune generally inherits the status of the majority of the old communes; when there’s a tie, rules explain which higher incentive level applies. Provincial People’s Committees publish the incentive map and report to the Ministry of Finance. 

Zones and incentives: continuity and upgrades

Projects in industrial parks, export processing zones, high-tech zones, concentrated digital-technology zones, and economic zones continue to enjoy incentives even if zoning is later adjusted or the zone is re-purposed, subject to legal conditions. Decree 239/2025/ND-CP also adds a new line in recognizing economic zones, high-tech zones, and concentrated digital-technology zones as areas with “extremely difficult” conditions, and industrial parks/export-processing zones/industrial clusters as “difficult” areas for incentive purposes. 

No more over 10 years old restriction

The previous rule that effectively blocked extensions for projects using machinery older than 10 years is removed. Instead, eligibility focuses on technical standards and performance, such as meeting national technical regulations (or international standards if none exist), operating at more than 85% of design efficiency, and not exceeding 15% of design consumption for inputs and energy. 

Step-by-step: Getting your IRC Under Decree 239/2025/ND-CP

Step 1. Decide if your project needs investment policy approval

Check the project against the Investment Law thresholds. If approval is not required, you’re on the faster 10-day track for the IRC once your dossier is valid. 

Step 2. Assemble one paper dossier and one matching e-dossier

Mirror contents, ensure translations and legalizations are complete, and apply a recognized digital signature to the e-dossier. Inconsistencies between paper and e-files are a common cause of delay

Step 3. File via the method the authority publishes

Submit in person, online, or by public post according to the published method. Keep your submission receipts and the system tracking codes. 

Step 4. Track the 10-day statutory window

For non-policy-approval projects, the investment registration authority issues the IRC within 10 working days after receiving a valid application. If the authority asks for clarification, respond promptly. 

Step 5. If you are in a zone or a newly merged commune, confirm incentives early

Use the new commune-level rules to confirm whether your location is treated as “difficult” or “extremely difficult” for incentive purposes. This affects deposits/guarantee reductions and other benefits. 

Step 6. If your project relies on used machinery, prepare performance evidence

Compile test reports showing compliance with applicable Vietnam or international standards, efficiency more than 85% of design, and inputs/energy consumption less than 15% of design.

FAQ

Does Decree 239/2025/ND-CP really shorten the IRC timeline to 10 days?

Yes for projects that do not require investment policy approval from 15 days to 10 working days after a valid application is received. 

Are electronic dossiers fully valid?

Yes. With a compliant digital signature, the e-dossier has the same legal validity as the paper one, and authorities must publish how they receive e-files. 

What about used machinery over 10 years old?

Age alone is no longer the issue. What matters is compliance with technical standards and performance thresholds (efficiency and consumption). 

Which locations get “top-tier” incentives now?

Economic zones, high-tech zones, and concentrated digital-technology zones are treated as areas with extremely difficult conditions; industrial parks/export zones/industrial clusters are treated as difficult areas, for incentive purposes. 

Final Take

Decree 239/2025/ND-CP nudges Vietnam’s investment procedures into a more digital, more predictable era: fewer dossier redundancies, faster issuance for many IRCs, incentive clarity down to the commune, modernized zone treatment, and performance-based equipment rules. If you align your filing strategy with these updates especially the e-dossier standards and the 10-day clock you reduce friction, de-risk your timeline, and capture the incentives you’re entitled to.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/decree-239-2025-nd-cp-what-changed.html

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How to Answer Anti-Circumvention Investigation Questionnaire: 6 Step Guide for Exporters

  

Introduction

As global trade becomes increasingly regulated, exporters and producers face growing scrutiny under Vietnam’s trade remedy framework. One of the most complex and sensitive areas is the anti-circumvention investigation, which examines whether companies are intentionally altering production processes, supply chains, or export routes to evade existing anti-dumping or countervailing duties.

When the Trade Remedies Authority of Vietnam (TRAV) issues an anti-circumvention investigation questionnaire, the way exporters respond determines much of the case outcome. A timely, accurate, and comprehensive response demonstrates good faith, compliance, and transparency, factors that can significantly affect whether duties will be extended or lifted.

How to Answer Anti-Circumvention Investigation Questionnaire

In here, we discuss a practical overview of who must respond to anti-circumvention investigation questionnaire, how to prepare, and what to expect, helping exporters navigate Vietnam’s anti-circumvention procedures effectively and confidently.

Who Must Respond and When

Once TRAV initiates an anti-circumvention investigation, it notifies exporters, producers, and other related parties through official communication and its online portal. The notice includes instructions for accessing the anti-circumvention investigation questionnaire, the submission format, and the response deadline.

• Sampled exporters and producers (selected by TRAV) are required to submit full anti-circumvention investigation questionnaire responses within the timeframe indicated in the questionnaire notice.
• Voluntary respondents may apply to participate if they believe their exports are affected. TRAV will consider these requests on a case-by-case basis, depending on available time and resources.
• Non-cooperative exporters, those who fail to respond to anti-circumvention investigation questionnaire, submit incomplete data, or provide misleading information, risk adverse inferences. TRAV may use the “available facts” rule, often resulting in the highest applicable duty rate or the automatic extension of existing measures to their goods.

Because each investigation is unique, exporters should carefully check the official notice for the exact deadline to respond to anti-circumvention investigation questionnaire. Typically, the response period ranges between 30 and 45 days from the date of the questionnaire, but extensions may be granted for valid reasons if requested promptly.

How to Answer the Anti-Circumvention Investigation Questionnaire

The anti-circumvention investigation questionnaire issued by TRAV is comprehensive. It requires exporters to provide detailed information covering company structure, production flow, sourcing, and export patterns. Each answer must be factual, verifiable, and consistent across different sections.

Key Requirements

1. Separate submissions for each entity

Each exporter, producer, or related company involved in the manufacture or sale of investigated goods must prepare its own anti-circumvention investigation questionnaire response.

2. Comprehensive data coverage

The anti-circumvention investigation questionnaire typically requests:

• General company and contact information
• Description of manufacturing processes
• Sourcing of inputs and suppliers’ details
• Export and domestic sales data
• Cost of production and financial statements
• Evidence of transformation and origin of materials

3. Verification and certification:

Each response must be signed by a company representative and may be subject to on-site verification by TRAV to confirm accuracy.

4. Confidentiality and translation

Submissions must be provided in Vietnamese, accompanied by both confidential and non-confidential versions. The public version must contain meaningful summaries to allow public review without disclosing business secrets.

This multi-layered process requires coordination among production teams, accounting departments, suppliers, and legal counsel, both in Vietnam and the exporting country, to ensure consistency and compliance.

Step-by-Step Guide for Preparing and Submitting Answers

Step 1:  Access and Review the Questionnaire

Get the official anti-circumvention investigation questionnaire from the TRAV. Read all instructions carefully, especially those related to deadlines, format, and submission procedures.

Step 2: Prepare Electronic Responses

Complete all sections digitally in the anti-circumvention investigation questionnaire using the provided format. Ensure that all data tables and explanations correspond to your internal accounting and export records.

Step 3: Submit via TRAV Portal and Confirm Submission

TRAV typically requires electronic submission of anti-circumvention investigation questionnaire through its online portal or via designated email addresses. Exporters are often asked to confirm submission by sending a signed cover letter and soft copies of files. Some cases may still require physical or USB submissions as confirmation, depending on TRAV’s instructions.

Step 4:  Provide Both Confidential and Non-Confidential Versions

Mark each page clearly as “Confidential” or “Non-Confidential.” Ensure the public version contains reasonable summaries of confidential information to comply with procedural fairness.

Step 5 : Translate and Certify Documents

All responses must be in Vietnamese. Any documents originally in other languages must be translated and certified. Translation accuracy is essential, TRAV may reject poorly translated data or treat it as incomplete.

Step 6: Retain Supporting Records for Verification

Keep all relevant invoices, purchase orders, production records, and accounting statements. TRAV may conduct verification visits to check whether the submitted information matches reality.

What Happens After Submission

Once TRAV receives responses, the investigation proceeds through several stages:

1. Preliminary review: TRAV evaluates whether responses are complete and consistent. Clarifications may be requested.

2. Verification: TRAV conducts on-site visits to verify production processes, supplier details, and export documentation.

3. Preliminary determination: Based on findings, TRAV may recommend temporary extension of duties to prevent ongoing harm.

4. Final determination: After considering all data and arguments, TRAV issues a final conclusion confirming or rejecting circumvention.

The entire process generally lasts between 6 and 18 months, depending on complexity and the number of parties involved. Exporters should maintain close communication with TRAV and respond promptly to any follow-up requests.

Practical Tips for Exporters

• Be proactive early: Do not wait until the last week before submission. Allocate time to gather and translate documents.
• Ensure internal consistency: Information in financial, production, and customs records must align. Discrepancies are red flags during verification.
• Engage local counsel: Vietnamese trade remedy procedures have strict language and format requirements. Local lawyers ensure submissions meet procedural standards and deadlines.
• Protect confidentiality properly: Label sensitive documents accurately to prevent public disclosure while complying with TRAV’s transparency requirements.
• Respond fully, even if data is limited: Partial or incomplete responses are treated as non-cooperation. If data is unavailable, provide a clear explanation and supporting evidence.

Key Q&A for Exporters

Q1: What is the purpose of an anti-circumvention investigation?

To determine whether exporters or producers are avoiding existing anti-dumping or countervailing duties by changing production methods, supply routes, or product classification.

Q2: Can a company join the investigation voluntarily?

Yes. TRAV may accept voluntary respondents who submit applications within the stated timeframe. However, acceptance depends on administrative feasibility and case complexity.

Q3: What happens if a company fails to respond?

Non-cooperative parties face adverse inferences. TRAV may apply the highest duty rate or extend existing trade remedies to their products.

Q4: What documents are typically required?

Export and domestic sales records, production and cost statements, financial reports, and evidence of input origin or transformation.

Q5: Why is translation accuracy critical?

TRAV only accepts Vietnamese submissions. Errors or inconsistent translations can lead to rejection or misinterpretation of data.

Q6: How long does an investigation usually take?

Typically between 6 and 18 months, depending on the case scope and level of cooperation from parties.

Q7: Why should exporters engage local counsel?

Local lawyers help:

• Prepare compliant Vietnamese submissions
• Liaise with TRAV officials during verification
• Handle confidentiality treatment
• Protect exporters’ procedural rights throughout the process

Conclusion

Answering an anti-circumvention investigation questionnaire in Vietnam is not a routine administrative task, it is a decisive phase of a trade remedy proceeding. How exporters respond can determine whether their products remain competitive in the Vietnamese market or become subject to extended duties.

By ensuring accuracy, timeliness, and transparency, exporters can demonstrate good faith, build trust with regulators, and maintain long-term access to Vietnam’s growing market. The key is preparation, cooperate early, document thoroughly, translate carefully, and seek professional legal guidance at every stage.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
Source: https://antlawyers.vn/update/anti-circumvention-investigation-questionnaire.html

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8 Essential Lessons Arbitration Counsel Helps Companies to Build Effective Dispute Strategies

  

Why Arbitration Matters More Than Ever

When business relationships collapse, companies often discover too late that their contract’s dispute resolution clause is important. Arbitration, trusted for neutrality, speed, and cross border enforceability has become a core part of global commerce.

As a practising arbitration counsel advising clients before domestic and international tribunals, we have seen how a clause can protect and one can lead to procedural delay.

In here, we draw on eight lessons every company and every team of arbitration counsel should know before a dispute begins.

8 Essential Lessons Arbitration Counsel Helps Companies to Build Effective Dispute Strategies

It draws from Vietnam’s Law on Commercial Arbitration, the Civil Procedure Code (CPC), the UNCITRAL Model Law, and the New York Convention, aligning Vietnamese practice with international standards.

The Clause Defines the Framework

Every arbitration begins with a clause and that clause defines the framework. The clause is limited to only a few sentences in length but play significant important roles.

Arbitration counsel in Vietnam frequently encounter clauses that look professional but contain flaws, for example:

• The institution is misnamed, creating jurisdictional confusion.
• The seat of arbitration is omitted, leaving no supervisory court.
• The law governing the arbitration agreement is missing, causing conflict between substantive and procedural rules.

These errors violate core doctrines:

• Separability, which said the arbitration clause remains valid even if the main contract is invalid.
• Competence-competence, which said the tribunal has the first right to determine its own jurisdiction.

This clause is not boilerplate; it defines enforceability.

Procedure Is Also Strategy

Once a tribunal is constituted, procedure becomes strategy.

The lex arbitri, the law of the seat controls how the arbitration proceeds.

Under the competence-competence doctrine, the tribunal decides jurisdiction first, though courts can later review.

In domestic arbitration, Vietnam’s VIAC Rules and the Law on Commercial Arbitration govern timelines.

In international cases, institutional rules and the chosen seat dictate procedure.

The lawyers practicing arbitration understand that timing, evidence, and professional tone shape the tribunal’s perception more than rhetoric.

Enforcement Is Where Reality Begins

Winning an arbitral award is only half the victory. Enforcement gives it value.

In domestic arbitration, awards have the same force as court judgments unless annulled as regulated in the Law on Commercial Arbitration.

In international arbitration, enforcement follows the New York Convention, which Vietnam joined in 1995.

Vietnam’s Civil Procedure Code governs recognition and enforcement of foreign arbitral awards.

Key points include:

1. Authority to Sign: The person signing the arbitration agreement must have legal authority; otherwise, enforcement fails.

2. Proper Notice: Mis-delivery between a company’s branch and head office can invalidate proceedings.

3. Tribunal Formation & Due Process: The tribunal must act impartially and within its mandate.

4. Fundamental Principles of Vietnamese Law: Awards violating Vietnam’s core legal principles may be refused recognition as regulated under the Law on Commercial Arbitration.

Arbitration counsel preparing enforcement applications translate international obligations into local procedures, ensuring filings meet CPC’s deadline and citing the New York Convention appropriately.

Setting Aside Is Not a Second Trial

Sometimes, losing parties seek to try their case through setting aside proceedings.

In Vietnam, grounds for annulment are limited to:

• Invalid arbitration agreement.
• Improper notice or lack of opportunity to present the case.
• Tribunal exceeding its authority.
• Procedural irregularities.
• Violation of fundamental principles of Vietnamese law.

Under Resolution 81/2025/UBTVQH15, effective July 1st, 2025, only the People’s Courts of Hanoi, Da Nang, and Ho Chi Minh City instead of local provincial courts may hear annulment or enforcement cases. This changes would help improve uniformity.

For foreign awards, Vietnamese courts cannot annul them but may refuse recognition under CPC.

Arbitration counsel ensure clients understand that “setting aside” and “refusal of enforcement” are different processes governed by different laws.

The Three Roles of Arbitration Counsel

Modern arbitration counsel in Vietnam perform three essential roles:

1. Advocates before Tribunals: presenting legal arguments, cross-examining witnesses, and coordinating expert testimony in both domestic and international arbitrations.

2. Legal Representatives: managing petitions to enforce or set aside awards, ensuring harmony between Vietnamese law, the UNCITRAL Model Law, and the New York Convention.

3. Advisers to Businesses: designing enforceable clauses, choosing the correct seat, and preparing companies for dispute readiness.

By balancing these roles, arbitration counsel bridge arbitral autonomy and judicial oversight, helping Vietnam maintain investor confidence.

Technology Changes The Arbitration

Arbitration now operates in a digital environment. 

Virtual hearings are getting popular. In Vietnam, there is no law or guidance on artificial intelligence assisting in document review but Ciarb’s guidelines on the use of AI could be a good reference.

The UNCITRAL Arbitration Rules and ICC Rules already allow online procedures.

However, technology imposes new duties, ensuring data security, confidentiality, and authenticity of evidence.

Competent arbitration counsel combine legal skill with digital literacy, guaranteeing that virtual hearings remain fair under the lex arbitri and institutional standards.

Mediation Still Matters

Even with sophisticated arbitration systems, early settlement remains best.

The Med-Arb model, recognized in Vietnam and promoted by UNCITRAL, blends mediation and arbitration for efficiency.

Arbitration counsel trained in both methods guide clients to resolve disputes early while safeguarding enforceability.

This pragmatic approach saves cost, preserves relationships, and supports business continuity.

Vietnam’s Progress and Direction

Vietnam’s arbitration framework is young but advancing rapidly.

Since 2010, the Vietnam International Arbitration Centre (VIAC) has adopted modern rules, and courts increasingly apply doctrines such as separability and competence-competence.

Recent judgments published by the Supreme People’s Court show greater consistency in enforcement decisions.

Each recognition of a foreign award, and each principled refusal under CPC, brings Vietnam closer to global standards under the UNCITRAL Model Law.

Arbitration lawyers in Vietnam play a decisive role in this transformation, case by case, award by award, leveling up Vietnam to get closer to a trusted arbitration jurisdiction in Asia.

Step-by-Step Guide: How to Build an Effective Arbitration Strategy

Designing an arbitration strategy is proactive, not reactive.

The following framework could be used by arbitration counsel to help companies prepare for disputes long before they happen.

Step 1: Draft the Right Arbitration Clause

• Choose a recognized institution and define the seat.
• State governing and procedural laws clearly.
• Maintain separability.
• Seek early review by arbitration counsel.

Step 2: Preserve Evidence and Communication

• Keep all correspondence and contracts organized.
• Send clear written notices when issues arise.
• Document negotiation efforts.

Step 3: Assess the Forum and the Law

• Determine whether the case is domestic or international.
• Identify the seat, applicable law, and enforceability options.
• Consult arbitration counsel for comparative analysis.

Step 4: Select the Tribunal Wisely

• Research arbitrators’ independence and expertise.
• Evaluate diversity and balance.
• Consider the level of the potential conflict for appropriate institutions.

Step 5: Manage the Procedure Professionally

• Respect deadlines and tribunal orders.
• Maintain professional tone and compliance.
• Use the party’s autonomy principle responsibly.

Step 6: Control Costs and Expectations

• Budget early for arbitrators’ fees, translations, experts, and travel.
• Use transparent, phase based billing with arbitration counsel.

Step 7: Anticipate Enforcement Early

• Ensure signatories have authority.
• Confirm assets in New York Convention jurisdictions.
• Keep all procedures clean to resist annulment challenges.

Step 8: Plan for Settlement and Med-Arb Options

• Include mediation clauses where appropriate.
• Allow arbitration counsel to coordinate between mediation and arbitration phases.

Step 9: Prepare for Post Award Action

• Gather certified copies and translations.
• File recognition or defense petitions with one of the three competent courts.
• Rely on arbitration counsel familiar with Vietnamese court practice.

Step 10: Learn and Improve

• After each case, review performance and refine internal policies.
• Treat every dispute as a lesson in risk prevention.

Frequently Asked Questions (FAQ)

Q1: What makes arbitration counsel different from litigation lawyers?

They blend cross border advocacy with procedural strategy, mastering the New York Convention and multiple institutional rules. Language skills are also important to ensure smooth communication.

Q2: What is the difference between domestic and international arbitration in Vietnam?

Domestic involves Vietnamese parties only; international includes a foreign element, affecting procedure and enforcement.

Q3: What if the arbitration clause is unclear?

An unclear clause may cause delay or court intervention. Arbitration counsel can redraft it before signing.

Q4: What are “fundamental principles of Vietnamese law”?

They refer to fairness, equality, good faith, and lawful protection, the Vietnam’s version of “public policy”.

Q5: How long does an arbitration usually take?

Typically 6–12 months at VIAC; complex cross border cases may last longer.

Q6: Can a court decide the merits of an arbitral award?

No in principle. Courts review only procedure, not substance. But this might be interpreted differently in Vietnam sometimes, which is considered procedure and which is not.

Q7: Is online arbitration recognised in Vietnam?

Yes. Virtual hearings are permitted if confidentiality and fairness are ensured and parties agree.

Q8: How can businesses reduce arbitration costs?

By focusing issues, limiting witnesses, and collaborating closely with arbitration counsel.

Q9: Which arbitration institutions are most common in Vietnam?

Domestically, VIAC; regionally, SIAC for international contracts.

Q10: What is the biggest mistake companies make?

Waiting until a dispute begins before seeking advice from arbitration counsel. Early consultation prevents future risks.

Building Trust Through Fairness

Every arbitration starts long before a notice of dispute.

The procedure parties design decides the justice they receive.

Doctrines such as separability, competence-competence, and lex arbitri, together with the UNCITRAL Model Law and New York Convention, make arbitration predictable and respected worldwide.

In Vietnam, these principles are now daily practice, applied by institutions, and arbitration counsel who translate international standards into local law.

Arbitration is not just an alternative to litigation, it is a symbol of business trust and legal maturity.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/arb/8-essential-lessons-from-arbitration-counsel.html

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