Vietnam: Compensation for non-contractual damages involving foreign elements under Decree 138

Vietnam: Compensation for non-contractual damages involving foreign elements under Decree 138 (Illustrative image)

Under Decree 138/2006/ND-CP, the application of laws on compensation for non-contractual civil damages involving foreign elements in Vietnam shall comply with the provisions of Article 773 of the Civil Code:

- Compensation for non-contractual damages is determined according to the law of the country where the act causing the damage occurred or where the actual consequences of the act causing the damage arose.

- Compensation for damages caused by aircraft or sea-going ships in international airspace or on the high seas is determined according to the law of the country where the aircraft or sea-going ship is registered, except where the civil aviation law and maritime law of the Socialist Republic of Vietnam stipulate otherwise.

- Where the act causing damage occurs outside the territory of the Socialist Republic of Vietnam and both the person causing the damage and the person suffering the damage are Vietnamese citizens or legal entities, the law of the Socialist Republic of Vietnam shall apply.

Furthermore, when applying the law of the Socialist Republic of Vietnam for compensation for non-contractual civil damages involving foreign elements, the provisions in Chapter XXI, Part Three of the Civil Code, and other related legal documents shall be followed.

More details may be found in Decree 138/2006/ND-CP effective December 13, 2006.

Ty Na

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