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Commercial Litigation Vietnam vs China: Time and Cost

5 min readFLAT LAW FIRM
Tượng đồng nữ thần công lý giương cao cán cân

Commercial Litigation Vietnam vs China: Comparing Time, Cost, and Forum Strategy

A Vietnamese business is owed money by a Chinese partner: sue in Vietnam or go to China? This seemingly simple question determines 50% of the realistic chance of recovery. Winning where the judgment cannot be enforced is as good as not suing.

Contents

1. The strategic question: where to sue

When a Vietnam–China commercial dispute arises, businesses usually think only about "where is convenient for me." Disputes lawyers think differently: sue where it can be enforced. Three deciding factors:

  1. Where the defendant holds assets — the place with seizable assets is the most effective forum.
  2. Whether the contract has a forum/jurisdiction clause — if valid, that is usually the answer.
  3. Cross-recognition prospects — winning in Vietnam while the defendant holds assets only in China means going through judgment-recognition proceedings.

Under the 2015 Civil Procedure Code, Vietnamese courts have jurisdiction over foreign-element civil cases where, e.g.: the defendant resides, does business long-term, or holds assets in Vietnam; obligations were performed in Vietnam; or parties agreed on Vietnamese courts (within legally permitted scope).

Conversely, if the contract chose Chinese courts or arbitration, a Vietnamese claimant must honor that — filing in Vietnam may be dismissed for lack of jurisdiction.

3. Comparing procedure: timelines and appeal levels

Vietnam: civil procedure comprises first-instance and appellate trials (re-trial on appeal/protest); cassation and retrial are special procedures. First-instance preparation time for ordinary civil cases runs in months, but foreign-element cases (service abroad, overseas evidence) often take significantly longer due to international judicial assistance.

China: the people's court system comprises basic, intermediate, higher courts and the Supreme People's Court; most cases follow "two trials as final." Foreign-related cases are heard at intermediate level and above, with timelines likewise affected by cross-border service and evidence procedures.

No absolute-number comparisons: actual duration depends on dispute value, evidentiary complexity, appeal levels needed, and the efficiency of judicial assistance in each case.

4. Costs: what to budget

Whether suing in Vietnam or China, budget for:

  • Court fees/advance fees: based on dispute value in both countries.
  • Counsel: counsel costs in China for Vietnamese businesses run higher due to language barriers and the need for local lawyers.
  • Translation, notarization, legalization: all evidence crossing between Vietnam and China must be translated, notarized, and consular-legalized — significant cost and time.
  • Travel and accommodation: if attending hearings abroad.
  • Enforcement: costs of recognition-and-enforcement proceedings in the other country.

5. Cross-border enforcement: the 1998 treaty

The Treaty on Judicial Assistance in Civil and Criminal Matters between Vietnam and China (1998) frames bilateral judicial cooperation. In civil matters it covers (Article 1): service of judicial documents, evidence collection, and recognition and enforcement of civil court decisions and arbitral awards.

Articles 15–17 set out: the scope of recognizable decisions; application files; and refusal grounds (e.g., non-final judgments, lack of jurisdiction under the treaty, violation of the requested state's public order…).

Practical note: civil-judgment recognition between the two countries remains limited and reciprocity-dependent — not every judgment is automatically recognized. Hence dispute clauses choosing international arbitration over national courts are usually the more practical option for Vietnam–China deals.

6. Three strategic scenarios

Scenario A — Chinese defendant holds assets in Vietnam: sue in Vietnamese courts, enforce directly in Vietnam. Most effective.

Scenario B — Defendant holds assets only in China, no forum clause: consider suing in China (via local counsel) for direct enforcement, or suing in Vietnam then seeking recognition in China under the 1998 treaty — the latter adds a procedural round with uncertain outcome.

Scenario C — Contract has an arbitration clause (VIAC/SIAC/HKIAC): arbitrate as agreed; awards are recognized and enforced in both countries under the 1958 New York Convention (both Vietnam and China are members) — usually the smoothest cross-border enforcement path.

Why arbitration usually beats litigation for Vietnam–China deals. Compare the enforcement math: a court judgment needs the 1998 treaty's recognition procedure with reciprocity uncertainty; an arbitral award rides the 1958 New York Convention, to which both states are parties, with a far deeper track record of enforcement. For new contracts, the single highest-value drafting decision is often the dispute clause itself — seat, institution, language, and governing law chosen for enforceability, not familiarity.

7. FAQs

Q: Can I sue a Chinese partner in a Vietnamese court?

A: Yes, if Vietnamese courts have jurisdiction under the 2015 Civil Procedure Code (e.g., the defendant holds assets in Vietnam, obligations were performed in Vietnam, or parties agreed on Vietnamese courts). But winning in Vietnam is only half the journey — enforcing in China depends on the 1998 judicial assistance treaty and reciprocity.

Q: What does the 1998 Vietnam–China judicial assistance treaty cover in civil matters?

A: It covers service of documents, evidence collection, and recognition and enforcement of civil court decisions and arbitral awards (Article 1). Articles 15–17 set out the recognition scope, application files, and grounds for refusing civil judgments.

Q: Is suing in China or Vietnam more expensive?

A: No universal answer. Costs depend on dispute value, appeal levels, counsel fees, translation, notarization, and travel. The practical rule: sue where the defendant holds enforceable assets rather than where convenient but unenforceable.

Q: Can a Vietnamese court judgment be enforced in China?

A: Possibly, through recognition and enforcement under the 1998 treaty if conditions are met (final judgment, no Article 17 refusal grounds). Recognition practice remains limited and reciprocity-dependent — assess case by case.

8. When to work with a lawyer

Work with a lawyer when: a dispute with a Chinese partner arises and you need to assess whether to sue in Vietnam, China, or arbitrate; recognition and enforcement of judgments/arbitral awards across borders is needed; or you are drafting a contract with a Chinese partner and need an optimal dispute clause (arbitration, governing law, seat). FLAT Law Firm handles Vietnam–China commercial disputes from negotiation to enforcement — hotline 0988424851.

References

  • Treaty on Judicial Assistance in Civil and Criminal Matters between Vietnam and China (1998).
  • 2015 Civil Procedure Code (No. 92/2015/QH13), effective 1/7/2016.
  • Cross-checked via thuvienphapluat.vn as of drafting (28/9/2026).

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