A respondent that will not cooperate — it does not appoint an arbitrator, files no defence, skips the hearing and then ignores the award — is a familiar scenario in disputes at the Vietnam International Arbitration Centre (VIAC). The good news is that Vietnamese arbitration law is designed to keep the proceedings moving. This article explains how, and what the claimant must get right so that the award holds up afterwards.
Legal framework
VIAC arbitration is governed by the Law on Commercial Arbitration 2010 (Law No. 54/2010/QH12) and Resolution 01/2014/NQ-HDTP of the Council of Judges of the Supreme People's Court, together with the VIAC Rules of Arbitration in force when the proceedings are commenced. The VIAC Rules 2026 took effect on 1 July 2026 and apply to cases commenced on or after that date unless the parties agree otherwise; earlier cases generally remain under the 2017 Rules.
Everything starts with the arbitration agreement. If it is valid and designates VIAC, the other party's silence or objection does not deprive the tribunal of jurisdiction. A party wishing to challenge jurisdiction must do so before submitting its statement of defence; the tribunal rules on the objection, and within five working days of receiving that ruling a dissatisfied party may ask the competent court to review it (Articles 43 and 44 of the Law) — while the court reviews, the tribunal continues with the case.
How the proceedings continue without the other side
No arbitrator appointed
Under Article 40 of the Law, the respondent must appoint its arbitrator within 30 days of receiving the request for arbitration, unless the centre's rules or the parties provide otherwise. If it fails to do so, the President of the Centre appoints an arbitrator on its behalf. A respondent cannot stall the constitution of the tribunal simply by staying silent.
No statement of defence
If the respondent files no defence, the proceedings continue and the tribunal decides on the record. The claimant must still prove its claims — silence is not an admission.
No-show at the hearing
Article 56 provides that where a respondent that has been duly summoned fails to attend without a valid reason, or leaves the hearing without the tribunal's consent, the tribunal continues to resolve the dispute on the basis of the existing documents and evidence. Conversely, a claimant that fails to attend without a valid reason is deemed to have withdrawn its claim — so the claimant cannot afford to be careless either.
Unpaid advance on costs
Arbitration fees are calculated under VIAC's fee schedule by reference to the amount in dispute. According to VIAC's guidance, where one party does not pay its share of the advance, the other party may advance it at VIAC's request so that the proceedings can continue — an option, not an obligation. If the advance is not paid in full, the tribunal may suspend the proceedings, and a respondent that fails to pay the fee for its counterclaim within the time set by VIAC is deemed to have withdrawn the counterclaim. The tribunal allocates the costs in the award, so an amount paid on the other side's behalf is normally recovered through that allocation. Check the article numbers in the version of the Rules that applies to your case (2017 or 2026).
Protecting the award: procedure comes first
A non-participating party often reappears at the end with an application to set aside the award, arguing that it was not properly notified or had no opportunity to present its case. The grounds for setting aside under Article 68 of the Law are: no arbitration agreement or an invalid one; a tribunal composition or procedure inconsistent with the parties' agreement or contrary to the Law; a dispute outside the tribunal's jurisdiction; forged evidence or a bribed arbitrator; and an award contrary to the fundamental principles of Vietnamese law.
When the other side is uncooperative, the claimant should therefore:
- Send every notice and document to the correct address stated in the contract or in the company's registration, and keep proof of dispatch and delivery;
- Double-check the validity of the arbitration agreement — the signatory's authority, the correct name of the centre;
- Never shorten time limits that the Law or Rules give the other party, even when it is obvious it will not respond;
- Prove each claim fully with evidence, including points that seem self-evident.
Interim measures
Where there are signs that the respondent is dissipating assets, the claimant may ask the tribunal, or the competent court, for interim measures such as attachment of assets, freezing of accounts or a prohibition on transferring assets (Articles 48 to 53 of the Law). A request made to one forum generally cannot be repeated before the other for the same measure. Security is usually required.
The award, setting aside and enforcement
An arbitral award is final and takes effect on the date it is issued (Article 61). There is no appeal on the merits. Within 30 days of receiving the award, a dissatisfied party may apply to the court to set it aside — but only on the limited grounds in Article 68 (Article 69).
Since 1 July 2025, following the reorganisation of the courts into three levels, set-aside applications fall within the concentrated jurisdiction of the People's Courts of Hanoi, Da Nang and Ho Chi Minh City, each covering the territory assigned by the Standing Committee of the National Assembly (Resolution 81/2025/UBTVQH15). The application is heard by a panel of three judges and the court's decision is final.
Once the set-aside period has expired (or the court has rejected the application) and the losing party still does not comply voluntarily, the winning party may request the competent civil judgment enforcement agency to enforce the award (Article 66). A VIAC award is an institutional award, so it does not need to be registered with the court as an ad hoc award does.
Practical advice
- Keep a dedicated log of every notice, submission and letter: date, method and proof of receipt. It is your shield against a set-aside application.
- Investigate the respondent's assets early; a winning award with nothing to enforce against has little practical value.
- In cross-border disputes, think about the seat, the language of the proceedings and where the award will need to be enforced.
- When drafting new contracts, use VIAC's model arbitration clause to avoid arguments over the validity of the agreement.
Quick Q&A
Does the case stall if the respondent does not appoint an arbitrator?
No. Once the 30-day period (or the period under the Rules) expires without an appointment, the President of VIAC appoints an arbitrator on the respondent's behalf under Article 40 of the Law on Commercial Arbitration 2010.
What happens if the respondent does not attend the hearing?
If it was duly summoned and is absent without a valid reason, the tribunal continues on the basis of the existing documents and evidence (Article 56). The claimant must still prove its case.
Can the losing party appeal the award?
No. An arbitral award is final. A dissatisfied party may only apply to the court within 30 days to set it aside on the limited grounds in Article 68; the court does not re-examine the merits.
Which court hears set-aside applications?
Since 1 July 2025, jurisdiction is concentrated in the People's Courts of Hanoi, Da Nang and Ho Chi Minh City, each for the territory assigned by the Standing Committee of the National Assembly.
What if the losing party simply does not pay?
After the set-aside period expires without voluntary compliance, the winning party asks the competent civil judgment enforcement agency to enforce the award.
Note: This article summarises rules in force at the time of publication and is for general reference only; it is not a legal opinion on any specific matter. Legislation may be amended — please check the latest text or consult a lawyer before acting.