Decree No. 25/2004/ND-CP detailing the implementation of certain provisions of the Commercial Arbitration Ordinance

DECREE

Detailed Implementation of Certain Provisions of the Commercial Arbitration Ordinance

________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Based on the Commercial Arbitration Ordinance dated February 25, 2003;
At the proposal of the Minister of Justice,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree provides detailed implementation of certain provisions of the Commercial Arbitration Ordinance (hereinafter referred to as the Ordinance) regarding the jurisdiction of commercial arbitration; procedures and formalities for establishment, registration of operations, termination of operations, setting up branches, and representative offices of arbitration centers; court fees related to arbitration; handling violations and state management of arbitration.

Article 2. Jurisdiction of Commercial Arbitration

Commercial arbitration has jurisdiction to resolve disputes arising from commercial activities as stipulated in Clause 3, Article 2 of the Ordinance where the disputing parties are individuals engaged in business or organizations engaged in business.

Disputes shall be resolved through arbitration if the parties agree to arbitration before or after the dispute arises.

Article 3. Encouragement of Resolution of Disputes Through Arbitration

The State encourages resolution of disputes through arbitration as prescribed in the Ordinance and this Decree, creating conditions for the development of commercial arbitration activities in accordance with the economic and social development situation and requirements of the country.

Chapter II

ESTABLISHMENT, REGISTRATION AND TERMINATION OF OPERATIONS OF ARBITRATION CENTERS, BRANCHES, AND REPRESENTATIVE OFFICES OF ARBITRATION CENTERS

REPRESENTATIVE OFFICES OF ARBITRATION CENTERS

Article 4. Establishment of Arbitration Centers

1. Arbitration centers may be established in Hanoi City, Da Nang City, and Ho Chi Minh City.

Arbitration centers that have been established in accordance with the law prior to the effective date of the Ordinance shall continue their operations in accordance with the Ordinance and this Decree.

2. The establishment of arbitration centers not covered by Clause 1 of this Article must be based on the economic and social development situation of the locality and ensure the conditions for establishing arbitration centers as prescribed in Clause 2, Article 14 of the Ordinance.

3. The provisions of this Article do not affect the establishment of arbitral tribunals by the disputing parties as provided for in Article 26 of the Ordinance.

Article 5. Procedures and Formalities for Establishing Arbitration Centers

1. Founders who meet the conditions to be arbitrators as stipulated in Article 12 of the Ordinance submit two sets of application documents for the establishment of an arbitration center to the Ministry of Justice.

The documents include the following papers:

a) An application for permission to establish an arbitration center containing the contents prescribed in Clause 4, Article 14 of the Ordinance, including an agreement on appointing one founder as the Chairman of the Center, and signed by all founders;

b) Curriculum vitae, certified true copies of university graduation certificates, and certificates from competent authorities confirming at least five years of practical work experience in the relevant field of the founders;

c) Bylaws of the arbitration center;

d) A letter of introduction from the Vietnam Bar Association.

2. Within forty-five days from the date of receipt of complete and valid documents, the Minister of Justice issues a permit for establishment and approves the bylaws of the arbitration center; simultaneously sends a notification letter along with a copy of the permit for establishment of the arbitration center to the Department of Justice of the province or centrally governed city (hereinafter collectively referred to as the Department of Justice) where the arbitration center is located. In case of refusal, the Ministry of Justice must respond in writing and specify the reasons.

3. The form of the permit for establishment of an arbitration center is issued by the Ministry of Justice.

Article 6. Name of the Arbitration Center

1. The name of the Arbitration Center shall be agreed upon by the founders, but must include the phrase "Arbitration Center" and ensure that it does not duplicate or cause confusion with the name of an Arbitration Center that has been granted a License for Establishment, and does not violate historical traditions, culture, ethics, and local customs and practices.

2. The Arbitration Center may have a trading name. The Arbitration Center may have a logo, but it may not use the National Flag, Party Flag, State Emblem, images of leaders, or images of Vietnamese currency as its logo.

Article 7. Registration of Activities of the Arbitration Center

1. Within thirty days from the date of receipt of the License for Establishment, the Arbitration Center shall register its activities at the Department of Justice where the Arbitration Center is headquartered.

2. The registration dossier includes the following documents:

a) A registration application form, clearly stating the intended location for the Arbitration Center's headquarters;

b) A certified copy of the License for Establishment of the Arbitration Center;

c) A list of arbitrators of the Arbitration Center.

3. Within seven days from the date of receipt of a valid registration dossier, the Department of Justice shall issue a Registration Certificate for the Arbitration Center.

4. After receiving the Registration Certificate, the Arbitration Center shall publish a notice in accordance with Article 15 of the Ordinance, and complete procedures to open bank accounts and engrave seals in accordance with the law.

The Arbitration Center may only operate from the date it receives the Registration Certificate.

5. The model of the Registration Certificate for the Arbitration Center is issued by the Ministry of Justice.

Article 8. Amendment of the Content of the License for Establishment and the Registration Certificate of the Arbitration Center

1. If the Arbitration Center changes any of the following contents of the License for Establishment, it must submit an application to the Ministry of Justice:

a) Name;

b) Scope of operations.

2. Within fifteen days from the date of receipt of the application for amendment of the License for Establishment, the Ministry of Justice must issue a written response approving or disapproving the requested change; if disapproved, the reasons must be communicated.

3. Within fifteen days from the date the approval for the amendment of the License becomes effective, the Arbitration Center must register the change with the Department of Justice where the Arbitration Center registered its activities.

4. If the Arbitration Center changes the Chairman, the location of the headquarters, or the list of arbitrators, within seven days from the date of such change, the Arbitration Center must notify the Ministry of Justice and the Department of Justice in writing.

Article 9. Branches of the Arbitration Center

1. The Arbitration Center may establish branches within and outside the province or centrally-administered city where the Arbitration Center is headquartered.

A branch is a dependent unit of the Arbitration Center responsible for performing all or part of the functions of the Arbitration Center, including representing the Arbitration Center through delegation. The activities of the branch must comply with the scope of operations recorded in the License for Establishment and the Registration Certificate of the Arbitration Center.

2. The Arbitration Center is responsible for the activities of its branches. The Arbitration Center appoints an arbitrator as the Head of the Branch.

3. The Arbitration Center must register the activities of its branches with the Department of Justice where the branch is located.

The registration dossier for the branch includes the following documents:

a) A registration application form, clearly stating the intended location for the branch's headquarters;

b) A certified copy of the License for Establishment and the Registration Certificate of the Arbitration Center;

c) The decision of the Arbitration Center appointing the Head of the Branch;

d) A list of arbitrators of the branch.

Within seven days from the date of receipt of a valid registration dossier, the Department of Justice shall issue a Registration Certificate for the branch.

The branch of the Arbitration Center may operate from the date it receives the Registration Certificate.

The model of the Registration Certificate for the branch of the Arbitration Center is issued by the Ministry of Justice.

4. Within seven days from the date the branch receives the Registration Certificate, the Arbitration Center must notify the Ministry of Justice in writing about the establishment of the branch.

In case the Arbitration Center establishes a branch outside the province or centrally-administered city where the Arbitration Center is headquartered, within seven days from the date the branch receives the Registration Certificate, the Arbitration Center must notify the Department of Justice in writing about the establishment of the branch.

5. The branch of the Arbitration Center may use a seal in accordance with the law.

6. Within thirty days from the date the branch receives the Registration Certificate, the Arbitration Center must publish a daily newspaper of the central government or the locality where the branch is registered for three consecutive issues regarding the establishment of the branch.

7. The branch of the Arbitration Center ceases operations in the following cases:

a) By decision of the Arbitration Center;

b) The Arbitration Center decides to cease operations of the branch;

c) The Registration Certificate is revoked due to serious violations of this Ordinance and Decree.

The Arbitration Center must notify the Ministry of Justice, the Department of Justice where the Arbitration Center is headquartered, and the Department of Justice where the branch is located in writing about the cessation of operations of the branch; return the Registration Certificate of the branch to the Department of Justice where the branch is registered; return the seal to the competent authority; publish a daily newspaper of the central government or the locality where the branch is registered for three consecutive issues regarding the cessation of operations of the branch.

Article 10. Representative Office of the Arbitration Center

1. The Arbitration Center may establish a representative office within and outside the province or centrally-administered city where the Arbitration Center is headquartered.

The representative office is a dependent unit of the Arbitration Center, authorized to represent the Arbitration Center in transactions on behalf of the Arbitration Center. The representative office has a Head of the Representative Office.

2. The Arbitration Center shall be responsible for the activities of its representative office.

3. Within seven days from the date of establishing the representative office, the Arbitration Center must notify in writing the establishment of the representative office to the Department of Justice where the Arbitration Center is headquartered and the Department of Justice where the representative office is located.

4. The representative office ceases operations pursuant to a decision of the Arbitration Center. At least seven days before the anticipated cessation date of the representative office, the Arbitration Center must notify in writing the cessation of operations of the representative office to the Department of Justice where the Arbitration Center is headquartered and the Department of Justice where the representative office is located.

Article 11. The procedures and formalities for ceasing operations of the Arbitration Center are governed by the Charter of the Arbitration Center.

1. In the case of cessation of operations as provided for in the Charter of the Arbitration Center, at least thirty days prior to the anticipated cessation date, the Arbitration Center must notify in writing the cessation of operations to the Ministry of Justice, the Vietnam Bar Federation, and the Department of Justice where the Arbitration Center is registered; publish in three consecutive issues of a central daily newspaper or a local newspaper where it is registered about the cessation of operations of the Arbitration Center.

2. Prior to the cessation of operations, the Arbitration Center must settle all debts and complete all accepted cases, except in cases of other agreements.

3. Within seven days from the completion of the procedures stipulated in Clause 2 of this Article, the Arbitration Center must report in writing to the Ministry of Justice on the completion of such procedures.

Within seven days from receiving the report of the Arbitration Center, the Ministry of Justice issues a Decision regarding the cessation of operations of the Arbitration Center. The Arbitration Center returns the Certificate of Establishment to the Ministry of Justice, the Registration Certificate to the Department of Justice where it is registered, and returns the seal to the competent authority.

Article 12. Procedures and formalities for ceasing operations of the Arbitration Center in the event of revocation of the Certificate of Establishment

1. In the case where the Arbitration Center's Certificate of Establishment is revoked according to Clause 2 of Article 18 of this Decree, within sixty days from the date of the Decision on the revocation of the Certificate of Establishment, the Arbitration Center must settle all debts and complete all accepted cases, except in cases of other agreements.

2. Within ten days from the date of the Decision on the revocation of the Certificate of Establishment according to Clause 2 of Article 18 of this Decree, the Arbitration Center must publish in three consecutive issues of a central daily newspaper or a local newspaper where it is registered about the cessation of operations of the Arbitration Center.

3. Within seven days from the completion of the procedures stipulated in Clause 1 of this Article, the Arbitration Center must report in writing on the completion of these procedures to the Ministry of Justice, the Vietnam Bar Federation, and the Department of Justice where it is registered; return the Certificate of Establishment to the Ministry of Justice; return the Registration Certificate to the Department of Justice where it is registered, and return the seal to the competent authority.

Article 13. Fees for issuance, amendment of contents of the Certificate of Establishment, registration of operations, and registration of branch operations of the Arbitration Center

When submitting applications for establishment, amendment of contents of the Certificate of Establishment, registration of operations of the Arbitration Center, and registration of branch operations of the Arbitration Center, the applicant must pay fees as follows:

1. Fee for issuance of the Certificate of Establishment of the Arbitration Center: 500,000 dong;

2. Fee for amendment of contents of the Certificate of Establishment: 100,000 dong;

3. Fee for registration of operations of the Arbitration Center: 200,000 dong;

4. Fee for registration of branch operations: 100,000 dong.

Article 14. Court fees related to arbitration

1. When submitting a petition requesting the Court to appoint an arbitrator, change an arbitrator, review the decision of the Arbitration Tribunal on the arbitration agreement, on the jurisdiction of the Arbitration Tribunal to resolve disputes, apply, change, or revoke interim emergency measures, annul an arbitral award, appeal a Court decision, the petitioner must pay a fee.

The amount of the fee is specified as follows:

a) For requesting the Court to appoint an arbitrator, change an arbitrator: 100,000 dong;

b) For requesting the Court to review the decision of the Arbitration Tribunal on the arbitration agreement, on the jurisdiction of the Arbitration Tribunal to resolve disputes: 300,000 dong;

c) For requesting the Court to apply, change, or revoke interim emergency measures: 500,000 dong;

d) For requesting the Court to annul an arbitral award: 500,000 dong;

e) For appealing a Court decision: 300,000 dong.

2. The fee must be paid in full together with the petition at the Court that receives the petition.

Article 15. Management and use of fees

The management and use of fees for issuance, amendment of contents of the Certificate of Establishment, registration of operations of the Arbitration Center, and registration of branch operations of the Arbitration Center, and court fees related to arbitration shall be carried out in accordance with the guidelines of the Ministry of Finance.

Chapter III

STATE MANAGEMENT OF ARBITRATION

Article 16. Tasks and Authorities of the Ministry of Justice

1. The Ministry of Justice assists the Government in implementing state management of arbitration and has the following tasks and powers:

a) Drafting, submitting to the Government and the Prime Minister for promulgation of legal normative documents on organization and operation of arbitration; guiding the implementation of legal normative documents on arbitration;

b) Issuing Certificates of Establishment for Arbitration Centers; approving amendments to the contents of Certificates of Establishment for Arbitration Centers as prescribed in Article 8 of this Decree; approving the Charter of Arbitration Centers, and approving amendments and supplements to the Charter of Arbitration Centers.

c) Organizing and guiding training, capacity building, and development of a team of arbitrators;

d) Inspecting the organization and operation of Arbitration Centers;

e) Implementing international cooperation in the field of arbitration;

f) Revoking Certificates of Establishment of Arbitration Centers as prescribed in Clause 6 of Article 14 of the Ordinance and Clause 2 of Article 18 of this Decree upon the proposal of the Department of Justice.

g) Handling complaints, accusations, and dealing with violations of arbitration laws in accordance with the provisions of the law.

ư2. The Ministry of Justice shall take the lead and coordinate with the Vietnam Bar Federation in performing the tasks and powers stipulated in points a, b, c, and đ of Clause 1 of this Article.

Article 17. Tasks and Powers of the Department of Justice

1. Registering activities, registering changes to the content of the License for establishing Arbitration Centers; registering activities, revoking the Operating Registration Certificate of Arbitration Center branches.

2. Providing information on registration activities, establishment of branches, representative offices of Arbitration Centers to state agencies, organizations, and individuals upon request in accordance with the law.

3. Inspecting the organization and operation of Arbitration Centers.

4. Handling complaints, accusations, and dealing with violations of arbitration laws in accordance with the provisions of the law.

5. Reporting on the organization and operation of Arbitration Centers at the request of the Ministry of Justice, People's Committees of provinces and centrally governed cities.

Article 18. Handling Violations by Arbitration Centers and their Branches

1. If Arbitration Centers and their branches violate the provisions of the Ordinance and Decree, they will be subject to administrative penalties such as warnings or fines according to the level and nature of the violation as prescribed by the law on handling administrative violations.

2. In cases of repeated offenses or serious violations, in addition to being penalized with warnings or fines, Arbitration Centers may also have their Licenses for Establishing Arbitration Centers revoked; branches may also have their Operating Registration Certificates revoked.

Chapter IV

IMPLEMENTING PROVISIONS

Article 19. Investment projects related to the provisions at Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular that have been approved before this Circular takes effect shall continue to be implemented according to the regulations at the time of approval; the investment decision maker has the right to choose to apply Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular.

Within twelve months from the date the Ordinance takes effect, Arbitration Centers established before the Ordinance takes effect must amend and supplement their Bylaws and Arbitration Rules to comply with the provisions of the Ordinance. Amended and supplemented Bylaws must be approved by the Ministry of Justice.

The application dossier for approval of amended and supplemented Bylaws includes the following documents:

a) Application for approval of amended and supplemented Bylaws;

b) Certified true copy of the License for Establishing Arbitration Center or Decision approving the Bylaws of the Arbitration Center;

c) Amended and supplemented Bylaws.

Within thirty days from the date of receiving a complete application dossier, the Ministry of Justice shall approve the amended and supplemented Bylaws of the Arbitration Center.

2. Arbitrator cards issued by the Ministry of Justice pursuant to Decree No. 116/CP dated September 5, 1994 of the Government on the organization and operation of Economic Arbitration shall cease to be valid from the date the Ordinance comes into force.

Article 20. Effectiveness

This Decree shall take effect fifteen days after its publication in the Official Gazette.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities within their respective functions, tasks, and powers shall be responsible for implementing this Decree.