Arbitration council's competence to apply interim urgent measures in Vietnam

Arbitration council's competence to apply interim urgent measures in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Arbitration council's competence to apply interim urgent measures in Vietnam

The arbitration council's competence to apply interim urgent measures in Vietnam according to Article 49 of the Law on Commercial Arbitration 2010 is as follows:

- At the request of one of the parties, the arbitration council may apply one or more interim urgent measures to the disputing parties.

- Interim urgent measures include:

+ Prohibiting any change in the status of assets under dispute;

+ Prohibiting or forcing any disputing party to commit one or more certain acts to prevent acts which adversely affect the process of arbitral proceedings;

+/ Distraining assets under dispute;

+ Requesting preservation, storage, sale or disposal of any asset of one disputing party or all disputing parties;

+ Requesting temporary money payment between the parties;

+ Prohibiting transfer of the rights to assets under dispute.

- During the dispute settlement, if one party has requested a court to apply one or more interim urgent measures specified in Clause 2 of Article 49 of the Law on Commercial Arbitration 2010 but later requests the arbitration council to apply such measures, the arbitration council shall refuse such application.

- Before applying interim urgent measures, the arbitration council may force the party that requests such application to perform the financial security obligation.

- The arbitration council which applies other interim urgent measures or those in excess of the requester's request for application of interim urgent measures, thus causing damage to the requester, the party to which these measures are applied or a third person, the damage sufferer may sue for compensation under the civil procedure law.

2. Procedures for the arbitration council to apply interim urgent measures in Vietnam

Procedures for the arbitration council to apply interim urgent measures in Vietnam according to Article 50 of the Law on Commercial Arbitration 2010 are as follows:

- The requester for application of interim urgent measures shall send a written request to the arbitration council.

- A written request for application of interim urgent measures must contain:

+ Date of making:

+ Name and address of the requester;

+ Name and address of the party to whom/ which interim urgent measures are to be applied:

+ Summary of the circumstances of the dispute;

+ Reason for the application of interim urgent measures;

+ Interim urgent measures to be applied and specific requirements.

In addition to the request, the requester shall provide the arbitration council with evidence to prove the necessity to apply such interim urgent measures.

- As decided by the arbitration council, the requester shall deposit a sum of money, precious metal, gemstone or valuable papers of a value set by the arbitration council equivalent to the amount of the loss which could be caused by improper application of interim urgent measures in order to protect the requester's interests. Such a sum of money, precious metal, gemstone or valuable papers shall be deposited in a blocked account at a bank decided by the arbitration council.

- Within 3 working days after receiving a request, immediately after the requester has provided the security specified in Clause 3 of this Article, the arbitration council shall consider and decide to apply interim urgent measures. In case of refusal, the arbitration council shall issue a written notice clearly stating the reason to the requester.

- The enforcement of the arbitration council's decision to apply interim urgent measures complies with the law on enforcement of civil judgments.

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