As of July 1, 2025, Vietnam’s court system will implement a significant reform in the allocation of judicial jurisdiction, particularly concerning disputes in business, commerce, intellectual property, and bankruptcy. This reform is an important step toward standardizing dispute resolution mechanisms, ensuring greater transparency and consistency in the application of the law.
New Jurisdiction of Regional Courts
Under the new rules, all enterprises doing business in Vietnam and commercial disputes – including cases with foreign elements – will fall under the jurisdiction of the Regional Courts. For intellectual property disputes and bankruptcy proceedings, jurisdiction will be centralized at the Intellectual Property and Bankruptcy Court under Regional Court No. 2 in Hanoi. This centralization addresses the previous issues of fragmentation and overlap, while also ensuring a higher degree of specialization in adjudication.
For disputes related to domestic commercial arbitration, jurisdiction remains with provincial-level People’s Courts. Meanwhile, cases concerning the recognition and enforcement of foreign court judgments or foreign arbitral awards in Vietnam will be handled by the Regional Court with jurisdiction over the defendant’s residence or assets.
Unified Adjudication of Complex Disputes
A notable change involves disputes over joint spousal assets in businesses – such as shares and stocks – which were previously divided between provincial and district-level courts. Under the new framework, all such disputes, including shareholder/member disputes within companies, will be resolved exclusively by the Regional Courts under a unified adjudication mechanism. This approach allows for the combined application of both the Law on Enterprises and the Law on Marriage and Family, reducing the risk of fragmented or inconsistent judgments.
In the field of intellectual property, prior to July 1, 2025, adjudication practices lacked consistency between civil and commercial cases. Once the new regulations take effect, all intellectual property disputes will be resolved by the Intellectual Property Court under Regional Court No. 2 in Hanoi, regardless of whether the dispute is civil or commercial in nature. This marks a major advancement in the specialization of intellectual property services adjudication in Vietnam.
Issues Concerning Arbitration and Corporate Resolutions
According to the Law on Enterprises 2020, petitions for annulment of resolutions of the Board of Directors will fall under the jurisdiction of the Regional Courts as commercial business cases. Conversely, disputes where the parties have agreed to arbitration in their contracts will not be accepted by the courts. Instead, the claimant must initiate proceedings before arbitration institutions in accordance with the Law on Commercial Arbitration 2010 and the guidance of the Supreme People’s Court Judicial Council.
Other matters concerning arbitration, such as the recognition or annulment of domestic arbitral awards, will remain under the jurisdiction of provincial-level People’s Courts, not the Regional Courts.
Implications for Businesses and Investors
From a business and investment perspective, these jurisdictional changes provide a clearer litigation framework. Concentrating the resolution of disputes at the Regional Courts – particularly for intellectual property and bankruptcy matters – shortens the time needed to determine jurisdiction and reduces the risk of conflicting appeals. Moreover, higher specialization in adjudication is expected to enhance the quality of judgments and strengthen trust in the judicial system.
However, businesses should be mindful of changes in litigation procedures. From July 1, 2025, all petitions relating to intellectual property and bankruptcy must be filed directly with Regional Court No. 2 in Hanoi, regardless of where the dispute arose. This is a critical consideration for companies, especially those with foreign elements or operations spanning multiple provinces.
Conclusion
The new jurisdictional regulations represent a major judicial reform in Vietnam, aimed at standardizing and harmonizing dispute resolution procedures. For businesses, early awareness and timely adjustment of legal strategies will be essential to mitigate risks and safeguard interests in business, commercial, intellectual property, and bankruptcy matters.
Businesses should consider contacting Vietnam Intellectual Property Law Firm for detail support on a case-by-case basis.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Intellectual Property Services. If you need any advice, please contact us for further information or collaboration.
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