German–Vietnamese disputes: DIS arbitration in Berlin or VIAC in Vietnam? DIS is the Germans’ “home ground” — fast, disciplined, reasonably priced. VIAC is the Vietnamese “home ground” — close, cheap, Vietnamese-speaking. Each choice has its price.
What DIS is
DIS (Deutsche Institution für Schiedsgerichtsbarkeit — German Arbitration Institute), based in Berlin, administers arbitrations under the DIS Arbitration Rules 2018. DIS is known for: efficiency (tight deadline management), German discipline (lean, punctual proceedings), reasonable costs (far cheaper than the ICC), and a high-quality arbitrator roster (top German lawyers and professors). Germany’s arbitration law (ZPO — Code of Civil Procedure, Book 10) is friendly, courts support arbitration.
What VIAC is
VIAC (Vietnam International Arbitration Centre), alongside VCCI, is Vietnam’s leading arbitral institution — handling domestic and international disputes. Advantages: lowest costs (among international institutions), proximity (hearings in Hanoi/HCMC), Vietnamese (or bilingual), understanding Vietnamese business context. Limits: international prestige below DIS/ICC; German parties may fear “away ground”.
DIS vs VIAC compared
- Costs: VIAC the cheapest; DIS far cheaper than the ICC but pricier than VIAC.
- Speed: DIS tight deadline management (German discipline); VIAC fast for small-to-mid disputes.
- Neutrality: DIS is neutral with a Berlin seat (though Germans know DIS); VIAC is neutral if both parties are non-Vietnamese — for German–Vietnamese disputes, DIS looks more neutral to German eyes.
- Award execution: DIS awards (Berlin seat) enforce in Vietnam via New York 1958; VIAC awards enforce in Germany easily (arbitration-friendly Germany).
- Language: DIS — English/German; VIAC — Vietnamese/English.
Model arbitration clauses
Choosing DIS: “All disputes arising out of or in connection with this contract shall be finally settled under the DIS Arbitration Rules by [one/three] arbitrator(s). Seat: Berlin, Germany. Language: English. Governing law: [Vietnamese/German/English law].”
Choosing VIAC: “…under the VIAC Arbitration Rules. Seat: [Hanoi/HCMC], Vietnam. Language: [Vietnamese/English].”
Note: never write “DIS arbitration in HCMC” — seat and venue differ (see EXP-3545).
Clause-negotiation strategy
- Strong Vietnamese side: propose VIAC, Hanoi/HCMC seat — close, cheap, Vietnamese-speaking.
- Strong German side: they will demand DIS, Berlin seat — prepare counters: accept DIS but require English language + Asian arbitrators on the list.
- Compromise: SIAC/HKIAC (Singapore/Hong Kong) — genuinely neutral, both sides “away” (see EXP-3938 for more comparison).
- Governing law: never leave blank — German–Vietnamese disputes often pick English law (neutral) or Vietnamese law (if performed in Vietnam).
Risks and notes
‘Home-ground’ risk: picking VIAC while Germans suspect bias — trust lost upfront; picking DIS while Vietnamese fear costs/German language — balance with English language. Cost risk: DIS costs far more than VIAC — small disputes (<USD 200,000) merit VIAC or negotiation. Defective-clause risk: misnaming the institution (“DIS” as “DIS Berlin Arbitration”) can spark jurisdiction fights — use official names.
Frequently asked questions
What is DIS?
The Deutsche Institution für Schiedsgerichtsbarkeit (German Arbitration Institute, Berlin) — Germany’s leading arbitral institution under the 2018 Rules: efficient, disciplined, cheaper than the ICC, high-quality arbitrator roster.
DIS or VIAC for German–Vietnamese disputes?
VIAC is cheapest, close, Vietnamese-speaking — but Germans may fear ‘away ground’; DIS looks more neutral to Germans and is disciplined, but pricier. Compromise: SIAC/HKIAC (Singapore/Hong Kong), genuinely neutral.
What must arbitration clauses state?
The institution’s official name (DIS/VIAC), number of arbitrators, seat (deciding procedural law), language, and governing law — never leave governing law blank.
Are DIS awards enforceable in Vietnam?
Yes — via the 1958 New York Convention (both Germany and Vietnam are members): petition the People’s Court under the Civil Procedure Code and Arbitration Law 54/2010.
Contact FLAT Law Firm
FLAT Law Firm advises on arbitration clauses for German–Vietnamese contracts: DIS, VIAC, comparisons and representation. Contact us before signing.
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