Legal Updates for June 2024

Vietnam Supreme Court Upholds Recognition and Enforcement of ICC Arbitral Award in Landmark Decision

In its landmark decision in Decision 03/2023/KN-KDTM, the Supreme People's Court of Vietnam ("Supreme Court"), the country's apex court, recognised and enforced an arbitral award issued under the 2017 Rules of Arbitration of the International Chamber of Commerce ("ICC Rules").

The proceedings before the Supreme Court concerned interesting, and important, questions on the interaction between the ICC Rules and the 2010 Law on Commercial Arbitration ("LCA"), the relevant legislation governing arbitration in Vietnam. Article 61 of the LCA requires an arbitral award to be issued within 30 days after the end of the last hearing date. However, is this deadline mandatory or is it subject to modification by the timelines in the ICC Rules?

In a decision reflecting the pro-arbitration stance of the Vietnamese courts, the Supreme Court held that the ICC Rules takes precedence. This decision has provided much needed clarity and certainty on the recognition and enforcement of ICC awards in Vietnam.

The successful award creditor was represented in the ICC arbitration and the Vietnamese court proceedings by Dr Chau Huy Quang (Managing Partner), Logan Leung (Deputy Managing Partner), Quach Vu An Khoa (Senior Associate), Luong Hoang Quy (Associate), Nguyen Dang Ngoc (Associate) of Rajah & Tann LCT, and Sim Chee Siong (Head, Construction & Projects) of Rajah & Tann Singapore.

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Tax & Customs Alert – June 2024

In this Update, we highlight the following tax and customs development in Vietnam:

  • VAT Refund for Export
  • Personal Income Tax policy on benefits to employees
  • Personal Income Tax policy on overseas profit remittance