Aerial view of Ho Chi Minh City, Vietnam at night. Photo by Unsplash
Vietnam is moving to establish a Specialized Court in its planned international financial centers, and for the first time, foreign judges could be appointed to help resolve complex investment and business disputes.
A proposal presented to the National Assembly Standing Committee on Dec. 3 outlines how these courts would operate under international norms. The Supreme People’s Court said Vietnam’s planned financial hubs will use special rules on foreign exchange, banking, taxation and especially dispute resolution, mirroring global financial centers.
Officials argue that disputes arising in such hubs are often highly technical and require judges with deep expertise in investment and commercial law. Vietnam’s current court system, they said, is not yet equipped to meet international standards for these cases, making a dedicated court necessary to boost investor confidence and improve competitiveness against regional financial centers.
Under the draft, the Specialized Court would be based in Ho Chi Minh City, with jurisdiction over financial centers there and in Da Nang. Judges could be either Vietnamese or foreign, appointed by the President.
Foreign judges must have strong professional reputations, at least 10 years of experience handling investment- or business-related cases, English proficiency, and be under 75 years old. Vietnamese candidates, including lawyers, arbitrators, lecturers, experts or current judges, must meet the same criteria.
A review by the National Assembly’s Legal and Judicial Committee supports creating the new law but warns that the draft currently mishandles a core principle of international commercial law: parties’ freedom to choose the applicable law. The committee said separating Vietnamese law from that general principle creates inconsistencies and could confuse foreign investors, urging the drafting agency to revise the clause.
The committee also recommended removing a provision that would let parties choose international treaties that Vietnam has not yet joined, noting that treaty-based commitments require formal approval by the state.
The bill is set to be debated and could be approved during the National Assembly’s ongoing 10th session.
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