Mediation In
Vietnam

Legal Framework

Mediation in Vietnam follows multiple laws including the Law on Commercial Arbitration 2010, Civil Procedure Code 2015, and Decree 22/2017/ND-CP on commercial mediation. The Civil Procedure Code 2015 added a new chapter regarding recognition of out-of-court mediated settlement agreements. One or both parties can apply to courts for recognition of their agreement, which after recognition is enforceable as a full and final court judgment. The Law on Commercial Arbitration 2010 allows parties to negotiate and reach agreement during arbitration proceedings and request the arbitration tribunal to mediate. If parties reach settlement through mediation by the arbitration tribunal, the tribunal issues a decision recognising the agreement with same value as arbitral award. Decree 22/2017/ND-CP, effective 15 April 2017, is the first legislation specifically governing commercial mediation, creating legal framework for development of commercial mediation in Vietnam. Vietnamese laws highly emphasise the role of mediation, which is a mandatory part of certain litigation procedures such as civil, labour, and marriage and family litigations.

Court System

Courts in Vietnam encourage mediation at various stages of litigation. Mediation is mandatory in certain litigation procedures including civil, labour, and marriage and family litigations. The State encourages resolution of civil and family disputes and violations of law not amounting to criminal offences by means of mediation. At local community level, groups of non-professional mediators are set up to carry out mediation mandate. Courts have jurisdiction to recognise out-of-court mediated settlement agreements under Civil Procedure Code 2015. Once recognised, the mediated settlement agreement is enforceable as a full and final court judgment in compliance with Vietnamese Law on Enforcement of Civil Judgments. The legal system is evolving fast with significant improvements in legislation work. Courts encourage parties to resolve disputes through mediation before or during litigation.

Mediator Regulations

Decree 22/2017/ND-CP provides principles, conditions, and procedures of commercial mediation, creating conditions for establishment of mediation centres. Commercial mediators conduct mediation as they find appropriate to content of dispute and in best interest of parties when parties have no agreement on procedures. Parties can choose mediation rules of commercial mediation institution or agree on their own mediation procedures. Choosing procedures from onset is critical as it determines mediator appointment, mediation steps, fees, enforcement, and other matters. Local community groups of non-professional mediators operate at community level for mandated mediation. Professional mediators work through institutions like VIAC. There is no comprehensive national accreditation system but commercial mediation centres establish their own standards.

Cultural Approach

Vietnam is culturally not a litigious society. A large number of disputes are resolved outside of court. Vietnamese culture emphasises harmony, consensus-building, and community-based dispute resolution, which aligns well with mediation principles. The State encourages resolution of civil and family disputes through mediation. Local community groups of non-professional mediators reflect traditional Vietnamese approaches to conflict resolution emphasising community involvement and restoration of relationships. The cultural preference for avoiding litigation and maintaining harmonious relationships supports mediation adoption. However, foreign investors tend to refer to foreign arbitration due to lack of confidence in capability and transparency of Vietnamese courts. The combination of traditional community-based practices with modern legal frameworks provides strong foundation for mediation development.

Typical Costs

Commercial mediation fees determined by procedures chosen by parties or commercial mediation institution rules. Parties can choose mediation rules of commercial mediation institution or agree on own procedures, which determines mediation fees. Professional mediator fees generally range from VND 2,000,000-8,000,000 per hour for commercial mediation. VIAC provides cost of arbitration and mediation schedules. Local community mediation by non-professional mediators operates at minimal cost.