In brief
On 11 December 2025, the National Assembly of Vietnam officially passed Law No. 150/2025/QH15 on Specialized Courts at International Financial Centers (IFCs) (“Law”). Effective from 1 January 2026, the Law marks a historic shift in Vietnam’s judicial landscape, creating a ring-fenced dispute resolution system for the financial centers in Ho Chi Minh City and Da Nang.
Key takeaways
1. Specialized jurisdiction
The IFC specialized court is located in Ho Chi Minh City under the people’s court system. Its organizational structure comprises the first-instance court, the appellate court and the supporting apparatus.
The IFC specialized court holds exclusive jurisdiction over the following key areas, provided the disputes do not involve public interests or the state’s interests:
- Investment and business disputes where at least one party is an IFC member
- The recognition and enforcement in Vietnam of foreign court judgments and foreign arbitral awards involving at least one IFC member
- Requests relating to commercial arbitration involving at least one IFC member
Appellate judgments issued by the IFC specialized court are final and not subject to cassation or retrial procedures, compared to the traditional court mechanism.
2. Participation of foreign judges
In a groundbreaking move, the Law permits foreign judges to sit on the bench.
- Composition: Tribunals can consist of a mix of Vietnamese and foreign judges.
- Expertise: All judges (both foreign and Vietnamese) must possess profound expertise, at least 10 years of experience in resolving investment and business disputes, and the English proficiency required to adjudicate cases effectively.
3. Procedural flexibility and language
- Language: English is recognized as a functional language of the court. Proceedings and judgments can be conducted and issued in English (or English accompanied by a Vietnamese translation).
- Expedited procedures: The Law introduces “Specialized Rules of Procedure” to be issued by the Supreme People’s Court, aimed at resolving disputes flexibly, swiftly and in accordance with international standards. A key innovation in the IFC specialized court’s procedures is that its proceedings will not involve the participation of the procuracy.
- Choice of law: In transactions involving foreign elements, parties have the autonomy to choose foreign law or international commercial customs to govern their contracts, provided the consequences of this application do not violate “Vietnam’s public order.” However, this autonomy does not extend to disputes involving ownership or other property rights concerning real estate, including real estate leasing or its use as collateral. In these scenarios, the applicable law is strictly that of the jurisdiction where the real estate is located.
4. Statute of limitations for specialized court proceedings
The Law provides that the statute of limitations for filing a lawsuit at the IFC specialized court may be up to six years from the date on which the event giving rise to the claim occurred. Notably, the Law permits parties to mutually agree on a statute of limitations that best suits their commercial relationship. However, the Law currently remains ambiguous regarding the exact scope and enforceability of these contractual agreements. We expect further clarity on this issue once the Supreme People’s Court issues the forthcoming “Specialized Rules of Procedure.”
5. Implementation and enforcement
The implementation of the Law is supported by the following robust mechanisms:
- E-court system: The Law provides for the development of a comprehensive e-court system for the digital submission of filings, evidence management and the execution of virtual hearings. This would allow global investors to manage litigation remotely.
- Direct enforcement: The Law also introduces an independent enforcement mechanism whereby the IFC specialized court has the authority to issue its own enforcement decisions. This may save time and costs for parties, compared to the traditional civil proceedings that require the enforcement agencies to implement civil judgments. These decisions are executed directly by a designated enforcement judge within the court who possesses broad powers to freeze assets, seize property and restrict the exit of obligors.
- Judicial immunity: To safeguard absolute judicial independence, all judges (both Vietnamese and foreign) are granted statutory immunity from liability regarding their professional decisions, except where there is a serious violation of the law committed intentionally.
In conclusion
While the Law introduces highly significant developments aimed at streamlining complex business litigation and bolstering foreign investors’ confidence in Vietnam’s dispute resolution ecosystem, practical application will depend on forthcoming guiding regulations. Key areas requiring further clarification include the specific interpretation of “Vietnam’s public order” and the highly anticipated “Specialized Rules of Procedure” to be promulgated by the Supreme People’s Court. We will continue to closely monitor these developments.
As the application of the Law extends to entities engaging with the IFC ecosystem, nonmember organizations entering into contracts with IFC-registered entities can now opt to use this specialized dispute resolution mechanism. This suggests that all businesses, including those that want to become IFC members or do business with IFC members, should consider reviewing their dispute resolution clauses to make the most of what the new mechanism offers.
Minh Tri Quach, Partner, Thuy Vy Vo, Associate, and Le Hanh Linh Nguyen, Senior Associate, have contributed to this legal update.
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