Key highlights of the Law on Specialized Court at the International Finacial Center in Vietnam

With the objective of establishing the International Financial Center (IFC) in Vietnam as a zone governed by a separate, superior, and distinctive policy and legal framework aimed at attracting investors to provide financial products and services as well as related non-financial services2, Resolution No. 222/2025/QH15 of the National Assembly of Vietnam (Resolution 222) introduces special dispute resolution mechanisms applicable within the IFC. One of the most notable features of Resolution 222 is the establishment of the Specialized Court (SC) under the IFC in Vietnam to adjudicate and resolve disputes arising within the IFC. To implement this dispute resolution mechanism, on 11 December 2025, the National Assembly of Vietnam officially passed the Law on the Specialized Court at the IFC (SC Law), which takes effect from 1 January 2026 and introduces a number of significant features. 

Applicable law 

Pursuant to Clause 1 Article 6 of the SC Law, procedural law applicable to the resolution of cases before the SC shall be governed by the provisions of the SC Law and the procedural rules ensuring flexibility and expedited proceedings. Accordingly, unlike the procedures prescribed under the Civil Procedure Code, disputes before the SC shall be resolved in accordance with the SC’s own Procedural Rules, which are currently being studied and promulgated by the Supreme People’s Court of Vietnam. In addition, proceedings before the SC shall not involve the participation of a Procurator. 

With respect to substantive law, in addition to Vietnamese law, the SC Law permits the SC to apply foreign law and international commercial customs in accordance with the agreement of the parties, provided that at least one party to the transaction is a foreign individual or organization. This does not apply to cases involving ownership rights or other rights in rem over real estate, lease of real estate, or the use of real estate as security, in which case the law of the country where the real estate is located shall apply. Furthermore, foreign law and international commercial customs shall not be applied where the consequences of such application are contrary to the public order of Vietnam. 

Judges 

In addition to Judges who are Vietnamese nationals, the SC Law allows for the appointment of foreign nationals as Judges to resolve disputes in accordance with the SC Law. Specifically, Clause 2 Article 10 of the SC Law provides that a foreign national may be appointed as an SC Judge if he or she satisfies the following criteria and conditions: 

a) Has served or is serving as a foreign Judge; or is a reputable lawyer or expert with good moral character,appropriate professionalqualifications, and expertise in investment and business law; 

b) Has at least 10 years of experience inadjudicatingor resolving cases related to investment and business activities; 

c) Has sufficient English languageproficiencyto adjudicate and resolve cases before the SC; 

d) Is not over 75 years of age and is in good health to fulfill assigned duties.

Jurisdiction of the SC 

Pursuant to Clause 1 Article 13 of the SC Law, the SC has jurisdiction to resolve the following cases, except for cases involving public interests or the interests of the State: 

a) Investment and business disputes between members of the IFC, or between IFC members and other organizations or individuals who are not IFCmembers;

b) Requests for recognition and enforcement in Vietnam of judgments or decisions of foreign courts, and awards of foreign arbitral tribunals resolving disputes between IFC members, or between IFC members and organizations or individuals who are not IFCmembers;

c) Requests relating to arbitration proceedings resolving disputes between IFC members, or between IFC members and organizations or individuals who are not IFC members,in accordance withthe law on commercial arbitration; 

d)Othercases related to investment and business activities within the IFC in which at least one party is an IFC member, as prescribed by the Supreme People’s Court of Vietnam. 

Language used in proceedings before the SC 

Article 14 of the SC Law clearly provides that the spoken and written language used in proceedings before the SC shall be English, or English accompanied by a Vietnamese translation. Judgments and decisions of the SC shall be issued in English, or in English accompanied by a Vietnamese translation.  

Statute of limitations for initiating actions and filing requests 

Article 18 of the SC Law provides that, unless otherwise stipulated by the law governing investment and business activities within the IFC or otherwise agreed by the parties, the statute of limitations for initiating actions and filing requests for case resolution shall be determined as follows: 

(i) The statute of limitations for initiating actions or filing requests shall be 06 years from the date on which the event giving rise to the proceedings occurs, applicable to: (i) investment and business disputes between IFC members, or between IFC members and organizations or individuals who are not IFC members; and (ii) requests for recognition and enforcement in Vietnam of judgments or decisions of foreign courts and awards of foreign arbitral tribunals resolving disputes between IFC members, or between IFC members and organizations or individuals who are not IFC members. 

(ii) The statute of limitations prescribed under the law on commercial arbitration shall apply to requests relating to arbitration proceedings resolving disputes between IFC members, or between IFC members and organizations or individuals who are not IFC members, in accordance with the law on commercial arbitration. 

Accordingly, in addition to providing for a fixed statute of limitations that differs from ordinary procedural regimes in Vietnam, one of the notable distinctions that parties to a dispute should be aware of is that the SC Law allows the parties to agree on the applicable statute of limitations. Therefore, depending on the legal relationship between the parties, they may agree on an appropriate statute of limitations. 

Decisions and enforcement of judgments and decisions of the SC 

Unlike judgments and decisions of the People’s Courts, which are enforced by civil judgment enforcement agencies, Article 37 of the SC Law provides that the SC is the competent authority to issue enforcement decisions and organize the enforcement of judgments and decisions that have taken legal effect and are issued by the SC. The issuance of enforcement decisions and the organization of enforcement shall be carried out by a Judge assigned by the Chief Judge of the SC to perform enforcement-related duties and powers (Enforcement Judge). 

Accordingly, within 06 years from the date a judgment or decision takes legal effect, the judgment creditor or the judgment debtor has the right to request the SC to issue an enforcement decision. Where the time limit for performance of an obligation is specified in the judgment or decision, the six-year period shall be calculated from the date the obligation becomes due. For judgments or decisions requiring periodic performance, the six-year period shall apply to each installment, calculated from the date each obligation becomes due. 

Conclusion 

In summary, given the distinctive nature of the IFC, the dispute resolution mechanism through the SC differs significantly from conventional procedural regimes in Vietnam. Nevertheless, these differences are designed to establish a court model that meets the needs of Vietnam’s development and international integration in a new era. 

^{(2) Hai Lien (2025), International Financial Center in Vietnam: Modern financial ecosystem, global competitiveness, and breakthrough institutions, Vietnam Government Portal, https://baochinhphu.vn/trung-tam-tai-chinh-quoc-te-tai-viet-nam-he-sinh-thai-tai-chinh-hien-dai-canh-tranh-toan-cau-the-che-dot-pha-102250611104457767.htm.}

Date Written: 18/01/2025

See more: Dispute resolution at international financial centers under resolution No. 222/2025/QH15

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