Steps to enforce arbitration awards in Vietnam

To enforce arbitration awards is the implementation of the contents of a legally effective commercial arbitration award. This procedure ensures the practical effect of decisions issued by the arbitration body. Thereby contributing to maintaining legal order in the business environment. Long Phan will analyze in detail the process of implementing arbitration awards, helping you understand and apply them effectively in practice.

Legal effect of arbitration award

The arbitration award has binding legal effect on the disputing parties. Article 61 of Law on Commercial Arbitration 2010 stipulates that arbitration awards take effect from the date of issuance. The parties are obliged to implement the award immediately upon receipt, except in the case of requesting the Court to cancel the award as prescribed in Articles 68 and 69 of the Law on Commercial Arbitration 2010.

The arbitration award is as valid as the legally effective award of the Court. The recognition and enforcement of foreign arbitration awards in Vietnam is carried out in accordance with the provisions of the Civil Procedure Code.

Vietnamese law recognizes the validity of foreign arbitral awards in accordance with international treaties to which Vietnam is a member, especially the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards .

Legal provisions on enforcement of arbitral awards

Time limit for requesting award enforcement

Article 30 of the Law on Enforcement of Civil Judgements 2008 stipulates that the statute of limitations for requesting award enforcement is 5 years from the date the award or decision takes legal effect. For arbitration awards, the 5-year statute of limitations is calculated from the effective date of the award. After this period, the award will not be enforced, unless the award debtor agrees to execute it.

In case the statute of limitations for requesting award enforcement is postponed or temporarily suspended according to the provisions of the Civil Code, the period of postponement or suspension is not included in the statute of limitations for requesting award enforcement. The executing party should pay attention to this deadline to promptly request enforcement, avoiding losing the right to enforce the award.

The competent authorities enforce arbitration awards

According to Article 35 of the Law on Enforcement of Civil Judgements 2008, the provincial-level civil award enforcement agency where the Arbitral Council issued the award has the authority to enforce the arbitration award. This agency is responsible for organizing the enforcement of awards according to the provisions of law on enforcement of civil awards.

In case the award is related to property in another locality, the award enforcement agency may entrust the award enforcement agency where the property is located to execute the award. The entrustment of award enforcement is carried out in accordance with the provisions of Article 55 and Article 56 of the Law on Enforcement of Civil Judgements 2008, amended and supplemented in 2014.

Specific steps in the process to enforce arbitration awards

Step 1: File a request to enforce arbitration awards

The party against whom the award is executed submits a request for enforcement to the competent award enforcement agency. The application must clearly state the information of the parties, the content of the award to be executed, information about the assets and execution conditions of the award debtor (if any). Attached to the application is a copy of the arbitration award and documents proving the conditions for implementation.

According to Article 31 of the Law on Enforcement of Civil Judgements 2008 (amended by Clause 13, Article 1 of the Law on Enforcement of Civil awards Amended 2014), a petition for enforcement of awards must have the following main contents:

• Name and address of the person requesting award enforcement;
• Name of the civil award enforcement agency with authority to execute the award;
• Name and address of the person on whom the award is executed and the person who must execute the award;
• Content of request for award enforcement;
• Information about assets or execution conditions of the award debtor (if any).

Step 2: Review and make an implementation decision

Within 5 working days from the date of receipt of a valid application, the head of the award enforcement agency shall issue a decision to execute the award according to the provisions of Article 36 of the Law on Enforcement of Civil Judgements 2008 (amended by Clause 15, Article 1 Law on Enforcement of Civil Judgements Amended 2014). The decision to execute the award must clearly state:

• Basis for decision making;
• Name and address of the person on whom the award is executed and the person who must execute the award;
• Amount of money and exhibits to be executed;
• Time limit for voluntary execution of sentence;
• Right to request enforcement of award, obligation to execute award and other related contents.

The decision is sent to relevant parties and the Procuracy at the same level. The executor is assigned to organize the implementation of this decision within 2 working days from the date of decision.

Step 3: Organize the enforcement of the award

Executors carry out measures to ensure and enforce award enforcement according to the provisions of the Law on Enforcement of Civil Judgements. Measures may include:

• Deduction of money from the award debtor’s account;
• Distraint and handle assets of award debtors;
• Deducted from the income of the award debtor;
• Forced transfer of objects, transfer of property rights and documents;
• Forced to perform or not perform certain tasks.

The implementation process must comply with the legal order and procedures. The executor has the right to request relevant agencies, organizations and individuals to coordinate and support the award execution process.

Step 4: Monitor and report implementation results

award enforcement agencies regularly inspect and supervise the process of organizing award enforcement. The executor reports the results and difficulties and problems during the implementation process. The execution of a award is considered finished in the following cases:

• The entire content of the award or decision has been implemented;
• The statute of limitations for executing the award has expired;
• The award creditor has filed a request not to continue executing the award;
• There is a decision to suspend the execution of the award by a competent person.

When the execution is completed, the award enforcement agency issues a decision to end the award execution. award execution records are archived according to the provisions of law on archives.

Support services for enforcement of arbitration awards

Consulting on the process to enforce arbitration awards

With a team of experienced and dedicated experts, Long Phan provides consulting services on the process of enforcing arbitration awards.

Consulting services include:

• Analyze the content of the award and determine the scope of enforcement;
• Instructions on procedures for requesting enforcement at competent authorities;
• Consulting on statute of limitations and conditions for execution of awards;
• Evaluate implementation capabilities and propose effective implementation plans.

Representing clients in the procedure to enforce arbitration awards

Long Phan can represent the customer under authorization during the request process and organize the enforcement of the award. We work with enforcement agencies on behalf of our clients and monitor enforcement progress. Representative activities include:

• Submit application and documents to request award enforcement;
• Participate in working sessions with enforcement agencies;
• Monitor the implementation process and report to customers;
• Implement necessary procedures to protect customers’ interests.

Support in resolving disputes arising during the implementation process

During the implementation process, disputes may arise between the parties. Long Phan supports negotiations and negotiations to resolve disagreements. If necessary, we represent customers to sue in court to protect their rights.

Dispute resolution support services include:

• Consulting on dispute resolution options;
• Representation in the negotiation and mediation process;
• Prepare documents and represent lawsuits in court when necessary;
• Consulting on measures to ensure award enforcement.

Professional consulting services help promptly handle problems, ensure the enforcement of arbitration awards is carried out in accordance with the law, and protect the legitimate rights and interests of the parties.

To enforce arbitration awards plays an important role in ensuring the legal effect of the commercial dispute resolution process. This process requires strict compliance with legal regulations and enforcement deadlines. To ensure your rights in enforcing the arbitration award, please contact Long Phan today via hotline 0906.735.386. We are committed to providing professional, effective support in every step of the implementation process.