Procedures for termination of operation of Vietnam-based branches of foreign arbitration institutions

According to Article 25 of Decree No. 63/2011/NĐ-CP of Vietnam’s Government, the termination of operation of Vietnam-based branches or representative offices of foreign arbitration institutions shall be carried out as follows:

1. Cases of termination of operation:

A Vietnam-based branch or representative office of a foreign arbitration institution shall terminate its operation in the following cases:

- It is forced to terminate its operation under a decision of the foreign arbitration institution;

- The foreign arbitration institution that has established the branch or representative office in Vietnam terminates its operation;

- It has its establishment license revoked under Article 24 of this Decree.

2. Time limit:

- In case of termination of operation of a branch or representative office under Points a and b, Clause 1 of this Article, at least 30 days before the date of operation termination, the branch or representative office shall notify in writing the operation termination to the Ministry of Justice and the provincial-level Justice Department of the locality in which it is located; and announce the operation termination under Clause 1, Article 16 of this Decree.

- Within 15 working days after receiving a notice of termination of operation of a Vietnam-based branch or representative office of a foreign arbitration institution, the Ministry of Justice shall issue a decision on termination of operation of this branch or representative office.

- Before operation termination, Vietnam-based branches or representative offices of foreign arbitration institutions shall fully pay their debts, liquidate labor contracts, completely settle cases they have accepted (for branches), unless otherwise agreed upon, and return their licenses to the Ministry of Justice, their operation registration papers to provincial-level Justice Departments and their seals to agencies competent to grant and register the use of these seals.

3. Announcement:

In case a branch or representative office has its establishment license revoked, it shall announce the operation termination under Clause 1, Article 16 of this Decree, fully pay its debts, liquidate labor contracts, and completely settle cases it has accepted (for branches), unless otherwise agreed upon.

Within 60 days after a decision of the Ministry of Justice on operation termination or a decision on sanctioning of an administrative violation subject to license revocation takes effect, a branch or representative office shall complete the above procedures and send a written report on its operation termination to the Ministry of Justice and the provincial-level Justice Department of the locality in which it is located, and return its seal to the competent agency that has granted it.

View more details at Decree No. 63/2011/NĐ-CP of Vietnam’s Government, effective from September 20, 2011.

Thuy Tram

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