Measures of financial security for a request for arrest of ships in Vietnam

What is arrest of ships?

Pursuant to Article 129 of the Vietnam Maritime Code 2015, arrest of ships refers to detention or restriction on removal of a ship by order of a Court to secure a maritime claim, apply interim injunctions, enforce civil judgements and perform mutual legal assistance.

Measures of financial security for a request for arrest of ships in Vietnam (Internet image) 

Power to decide on arrest of ships in Vietnam

Power to decide on arrest of ships in Vietnam is specified in Article 130 of the Vietnam Maritime Code 2015 as follows:

- The People’s Court at the level of a province where the seaport at which a ship subject to a request for arrest of a ship is having marine operations is located shall be vested with authority to grant a decision to arrest that ship.

Where a seaport has different port terminals located within different centrally-affiliated cities and provinces, the People’s Court at the level of a province where the seaport at which a ship subject to an arrest request is having marine operations is located shall be vested with authority to grant a decision to arrest that ship.

- The People’s Court that is dealing with a civil case, or the People's Court at the level of a province where the Arbitration Council is resolving any dispute, shall be accorded authority to impose an arrest of a ship as an interim injunction.

Two copies of a judgement on arrest of a ship by a Court shall be delivered to the port authority in which one copy is used as the basis for implementation and the remaining other is given to the master of the arrested ship to serve the purpose of implementation.

- The Chief Justice of the People’s Supreme Court shall consider and decide whether the lower Court has been accorded authority to grant a decision on arrest of a ship in the event that there is any dispute over jurisdiction between the People's Courts at the provincial level.

Responsibility for requesting wrongful arrest of ships

Pursuant to Article 131 of the Vietnam Maritime Code 2015, responsibilities for requesting wrongful arrest of ships are prescribed as follows:

- The applicant for arrest of a ship must be held legally liable for his request. If the request for arrest of a ship is wrongful, which may lead to any loss, such applicant shall be responsible for compensating for any loss or damage possibly incurred.

- Any loss or damage that may be incurred from consequence of such request for wrongful arrest shall be dealt with as agreed upon between parties. Where there is any disagreement or dispute that may arise, the Court or Arbitration Tribunal shall be requested to settle this disagreement and dispute in accordance with laws.

- If the Court that grants a judgement on arrest of a ship which is not based on the reasons for a request for arrest or does not serve on the ship as the right subject matter of such request, which may cause any loss or damage, it shall be liable for any compensation in accordance with laws and regulations.

Measures of financial security for a request for arrest of ships in Vietnam

Pursuant to Article 132 of the Vietnam Maritime Code 2015, the person requesting arrest of ships must provide financial security in either or both of the following forms:

- Submitting asset-backed security documents issued by banks or other credit institutions, or individuals, agencies or organizations;

- Depositing a sum or valuable papers according to the Court’s judgement over execution of financial security in an escrow account opened at the bank within an area where the work office of the Court accorded authority to arrest a ship is located no later than 48 hours of receipt of such judgement.

Value of a financial security shall be decided by the Court and shall be proportionate to any loss or damage incurred due to consequences arising from request for wrongful arrest of a ship

Mai Thanh Loi

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