Key Highlights of the Law on the Specialised Court at the International Financial Centre of Vietnam

At the 9^th session, the 15^th National Assembly adopted Resolution No. 222/2025/QH15 dated 27 June 2025, effective from 01 September 2025 (“Resolution 222/2025”), providing the legal framework for the establishment and operation of the International Financial Centre in Vietnam (the “IFC”). In order to create a dedicated and internationally aligned legal framework for dispute resolution bodies operating within the IFC, on 11 December 2025, at its 10^th session, the National Assembly officially passed the Law on the Specialized Court at the International Financial Centre (the “Law on Specialized Court”).

The Law on Specialized Court consists of 05 Chapters and 44 Articles, governing the organization, jurisdiction, and operational mechanisms of the Specialized Court in resolving disputes arising within the IFC. Notably, the Law on Specialized Court introduces several new and distinctive procedural features that depart from ordinary civil proceedings, as outlined below:

1. Jurisdiction of the Specialized Court over commercial and business disputes involving IFC members

Pursuant to Article 13.1 of the Law on Specialized Court, the Specialized Court at the IFC has jurisdiction over disputes relating to investment and business activities between IFC Members, as well as between IFC Members and organizations or individuals outside the IFC. The Court is also competent to hear applications for the recognition and enforcement of foreign court judgments or foreign arbitral awards relating to such Members.

In addition, the Specialized Court has jurisdiction over arbitration-related matters between IFC Members, or between Members and external parties, in accordance with the law on commercial arbitration. This model closely resembles that of the Singapore International Commercial Court (SICC), whose jurisdiction, as provided under the “Jurisdiction” provision (O. 2, r. 1) of the Singapore International Commercial Court Rules 2021, includes: (i) International commercial disputes by agreement of the parties; (ii) Domestic commercial disputes transferred from the High Court; (iii) Arbitration-related matters (including cancellation of arbitral awards and court assistance in arbitral proceedings); and (iv) cases involving corporate dissolution or restructuring.

2. Judges and lawyers could be of foreign nationals; English is the language of proceedings

One of the most groundbreaking features of the Law on Specialized Court is the expansion of the sources for judicial appointment. Pursuant to Article 10 of the Law on Specialized Court, in addition to Vietnamese nationals, foreign nationals may also be appointed as judges, provided that they fully satisfy the conditions prescribed by the Law and relevant regulations.

Accordingly, a foreign national appointed as a judge must: (i) have served or be serving as a foreign judge, a lawyer, or a reputable expert with good moral character, appropriate professional qualifications, and sound knowledge of investment and business matters; (ii) have at least 10 years of experience in adjudication or in resolving cases related to investment and business activities; (iii) possess the ability to use English in proceedings; and (iv) be under 75 years of age and in sufficient health to perform duties. This provision represents a significant opening of Vietnam’s judicial system, responding to the practical need for resolving increasingly complex and internationalized investment and commercial disputes, which are expected to grow substantially once the IFC becomes fully operational.

Beyond the judiciary, the Law on Specialized Court also allows for the participation of foreign lawyers in court proceedings. Under Article 19, foreign lawyers holding a valid practicing certificate issued by a competent foreign authority may represent parties before the Specialized Court. As a result, disputing parties gain access to high-quality legal resources with strong international experience and familiarity with global commercial and financial standards, thereby enhancing the overall effectiveness of dispute resolution.

In parallel with this internationalized human resources framework, the language of proceedings is also broadened. Article 14 provides that the spoken and written language used in proceedings is English, or English accompanied by a Vietnamese translation. The recognition of English as an official procedural language not only facilitates participation by foreign parties but also enhances the overall attractiveness of the IFC; at the same time, it underscores the urgent need to strengthen foreign language capacity among domestic lawyers and legal professionals.

3. The Court could issue default judgments or summary judgments

In contrast to ordinary court proceedings, and with a view to ensuring expedition, Article 23 of the Law on Specialized Court empowers the Specialized Court to issue two distinctive types of decisions including default judgments and summary judgments. In specific, the decisions shall be issued pursuant to the following scenarios:

• Default judgments may be issued where (i) the defendant has been duly served with the statement of claim but fails to submit a response within a reasonable period of time; and (ii) the claimant requests the issuance of such a judgment.
• Summary judgments may be issued where the Court determines that (i) the claimant has no real prospect of substantiating its claim, or the defendant has no real prospect of successfully defending against the claim, or there is no compelling reason for the case to proceed to a full hearing; and (ii) either party requests the issuance of such a judgment.

4. Appellate judgments are final and not subject to cassation or retrial procedures

Under Article 35.4 of the Law on Specialized Court at the IFC, Appellate Judgments and Decisions of the Specialized Court are final and are not subject to cassation or retrial procedures. As it can be seen, this provision reflects international trends, separating complex financial disputes from the ordinary court system and from substantive supervisory review by the Supreme People’s Court; by doing so, the framework promotes swift and high-quality adjudication by judges with specialized expertise and experience. Moreover, the removal of administrative and social aspects from consideration allows the Court to operate in accordance with the true nature of investment and commercial relationships, ensuring that judgments are based strictly on market principles and contractual agreements, rather than influenced by state management objectives or social policy considerations.

The above sets out DIMAC’s analysis of the key highlights of the Law on Specialized Court at the International Financial Centre in Vietnam. Should any advice on dispute resolution mechanisms, the selection of appropriate adjudicatory forums, or other legal issues relating to investment and business activities within the IFC is deem necessary, kindly find our website and other news sections for timely updates, in-depth legal insights, and practical experience discussion.

Dang Ba Tung – Associate

Duong Thi Bich Chi – Paralegal

Nguyen Nghiep Khai – Paralegal

DIMAC LAW FIRM