Brian Jeffrey
During a session of the National Assembly yesterday, members engaged in discussions regarding proposed changes to various laws including the Civil Procedure Code, Administrative Procedure Law, Juvenile Justice Law, Bankruptcy Law, and Law on Mediation and Dialogue at Court. One significant topic addressed was the establishment of specialized courts in international financial centers.
In the discussion, Permanent Deputy Prime Minister Nguyen Hoa Binh emphasized the importance of creating specialized courts within these financial centers, which are planned for Ho Chi Minh City and Da Nang, to effectively manage disputes and conflicts arising in international settings.
“These centers will accommodate both Vietnamese and international financial institutions, with a predominant focus on global entities. The aim of these centers is to attract foreign investment and resources to boost national economic growth,” Deputy Prime Minister Binh elaborated.
“A primary concern for foreign investors is the legal safeguarding of their assets and property rights. Specialized courts are meant to address disputes in these hubs. However, the existing legal framework might not fully resolve the complexities if it focuses solely on organizational matters,” Binh pointed out.
He also raised a significant concern: current Vietnamese law requires that court proceedings be conducted in the Vietnamese language. “In financial centers involving international players, conducting trials in Vietnamese will pose challenges,” he stressed.
“Various nations tackle this issue by employing foreign judges. Hence, the nationality of judges in these financial centers is a critical aspect to consider,” Binh remarked.
In reaction, National Assembly Deputy Truong Trong Nghia from Ho Chi Minh City underlined that the legal framework must facilitate smooth economic integration. He highlighted alternative dispute resolution (ADR) methods like arbitration and mediation, which are commonly used worldwide alongside traditional court processes.
“Some issues must be resolved by courts, yet many can be effectively dealt with through arbitration and mediation. This is why numerous countries have enacted commercial arbitration legislation,” Nghia asserted.
Chief Justice of the Supreme People’s Court, Le Minh Tri, responded to the debate by indicating that while the current draft touches on the structure of specialized courts in financial centers, it lacks detailed provisions as this topic is still relatively new and under examination.
“In early June, I will be visiting China along with other countries. Additional delegations will be dispatched to explore the structures, models, functions, and applicable legal frameworks necessary for the establishment of these specialized courts,” shared Tri.
He emphasized that the court system will prioritize improving English language proficiency and training officials in international law to better manage disputes within these globalized environments.
“This is a significant initiative, but the Supreme People’s Court will carry it out as per directives from higher authorities and in alignment with the nation’s development goals, especially with plans to create two international financial centers in Ho Chi Minh City and Da Nang,” he underscored.
Tri affirmed that the establishment of specialized courts will adhere to a roadmap set by the Government and the guidance of the Politburo.
“At this stage, our main focus is on enhancing human resources for regional courts, while also improving decentralization and delegation in accordance with a three-tier court structure: supreme, provincial, and regional,” he concluded.
On the topic of administrative litigation processes, Chief Justice Tri recognized the necessity for legal reforms. “Without amending the law, the process may seem trivial. However, strict enforcement can render it impractical,” he remarked.
He provided the example of provincial and municipal chairpersons, who have demanding responsibilities in rapidly evolving regions.
“Expecting them to participate in around 500 mediation or trial sessions each year would hinder their ability to govern effectively,” he explained. Consequently, Tri stated that his office will continue to study and propose appropriate procedural adjustments based on feedback from lawmakers.
