Vietnam court system commercial cases: a plain guide

Vietnam court system commercial cases are heard by the People's Courts, and most business disputes start at the district or provincial court. This guide shows which court takes your case, the steps it follows, and what a claim costs. It is general information, not legal advice.

The four levels of court

The Law on Organization of People's Courts, Law 62/2014/QH13, lists the court levels. They are the Supreme People's Court, the superior people's courts, the courts of provinces and centrally run cities, and the courts of districts, towns and provincial cities. Military courts sit alongside them but do not hear business disputes.

Each level has a job. District and provincial courts hear cases for the first time. Provincial courts also hear appeals from district courts. The superior courts hear appeals from provincial courts and can review judgments that have already taken effect. The Supreme People's Court sits at the top and manages the courts on organization.

Source: Law on Organization of People's Courts, Law 62/2014/QH13, Articles 3, 18, 29 and 37 (English translation, economica.vn).

What counts as a commercial dispute

Article 30 of the Civil Procedure Code, Law 92/2015/QH13, sets the list. The main item is a dispute from business or trade activity between people or organizations that both have a business registration and act for profit. The list also covers intellectual property and technology transfer disputes between profit-making parties. It covers disputes inside a company, such as those between a company and its members, or between a limited liability company and its manager.

A catch-all item covers other civil disputes tied to business activity, unless another body is given them by law. Parties may also choose arbitration through a contract clause. A court must refuse a case when a valid arbitration agreement exists, so read the contract before you file.

Source: Civil Procedure Code, Law 92/2015/QH13, Article 30 (English translation, economica.vn); Law on Commercial Arbitration, Law 54/2010/QH12, Articles 5 and 6.

Which court hears your case

Article 35 gives the district court the basic business disputes, which are those under clause 1 of Article 30: two registered, profit-seeking parties in a trade dispute. Article 37 gives the provincial court the rest of the business and trade disputes. That includes intellectual property, company disputes and disputes with a foreign element. A case with a party or property abroad, or one that needs help from a foreign court, does not go to a district court.

The provincial court can also take over a district case when it sees a need, or when the district court asks. After that, the place matters too. In general the case goes to the court where the defendant lives or is based, though the Code lets parties agree on another court in some cases.

Source: Civil Procedure Code, Law 92/2015/QH13, Articles 35, 37 and 39 to 40 (English translation, economica.vn).

The steps and time limits

A case runs in set steps. You file a claim and the court accepts it. The judge then prepares the file. For business and commercial cases, the Code sets two months for this step, with up to one more month for a complex case. These limits do not apply to simplified cases or cases with a foreign element. Next the court issues a decision to bring the case to trial. The hearing must open within one month of that decision, or within two months if there is good reason.

Mediation is part of the process, and the court encourages it before the trial. The first-instance judgment can be appealed within 15 days of it being read out. Parties who were absent count from the day the judgment is handed to them or posted. The appeal court must decide whether to hear the appeal within two months, and then open its session within one month, or two with good reason.

A judgment that has taken effect can still be challenged. Cassation or reopening is not a normal third appeal. It applies when a judgment broke the law in a way that seriously harmed the rights of the parties or the public interest. The appeal under this route can be lodged within three years of the judgment taking effect.

Source: Civil Procedure Code, Law 92/2015/QH13, Articles 203, 273, 286 and 334 (English translation, economica.vn).

What a claim costs

Court fees are set by Resolution 326/2016/UBTVQH14. For a business dispute with no money value, the first-instance fee is VND 3,000,000. For a money claim of VND 60,000,000 or less, it is also VND 3,000,000. Above that, the fee is 5 percent of the disputed value up to VND 400,000,000. Above VND 400,000,000, the rate steps down in bands. For example, a claim between VND 800,000,000 and VND 2,000,000,000 pays VND 36,000,000 plus 3 percent of the amount over VND 800,000,000.

The plaintiff pays an advance up front. For a money claim the advance is 50 percent of the fee the court estimates. For a business case run under the simplified procedure, the advance is cut to half of that. An appeal in a business case carries a fee of VND 2,000,000.

Limits on time also matter. The Code says the statute of limitations follows the Civil Code, and the court applies it only if a party asks before the first-instance judgment. Check the deadline for your type of claim before you wait.

Source: Resolution 326/2016/UBTVQH14, Article 7 and the fee tables (English translation, english.luatvietnam.vn); Civil Procedure Code, Law 92/2015/QH13, Article 184 (economica.vn).

Practical points for business owners

Keep contracts, invoices and emails, because the court decides on the evidence in the file. Check the dispute clause for an arbitration agreement or a chosen court. Confirm whether both sides are registered businesses, since that decides if the district or the provincial court hears the case. Count the days after each judgment, as the 15 day appeal window is short.

Foreign companies should note that a foreign element sends the case to the provincial court. Local counsel can confirm the right court for your facts. Fee levels and court rules can change, so confirm them with the court or a lawyer before filing.

Sources: Civil Procedure Code, Law 92/2015/QH13, and Law on Organization of People's Courts, Law 62/2014/QH13, English translations at economica.vn; Resolution 326/2016/UBTVQH14, english.luatvietnam.vn.