Online Litigation in Commercial Disputes

Background

The COVID-19 pandemic pushed judicial systems to move part of trial activity online — and the trend stayed. For FDI enterprises facing cross-border commercial disputes (e.g. a parent in China, a factory in Vietnam), online litigation in commercial disputes cuts travel costs and time — but raises new demands on electronic evidence and technical infrastructure. Many of these disputes can be prevented at the investment stage with an FDI project legal due diligence checklist. This article introduces the legal framework in Vietnam and China's experience.

Vietnam: virtual court hearings

Legal basis. Resolution 33/2021/QH15 of the National Assembly (effective 01/01/2022) allows courts to hold online hearings; the Supreme People's Court issued detailed regulations on conditions and procedures. Online hearings carry the same legal force as in-person trials: judgments and decisions are enforceable as usual.

Scope (principles):

• Applies to cases the court deems suitable for online hearing with the parties' consent.
• Certain sensitive cases (national security, state secrets, minors…) are excluded.
• Parties join from court premises or court-approved locations, ensuring identification and the public nature of the hearing.

How participation works in practice. The court notifies the parties of the online hearing schedule and the access method in advance; participants must verify their identity at the start of the session and remain reachable throughout. Documents and evidence presented during the hearing must already have been exchanged and included in the case file — a party cannot "surprise" the other side with new documents on screen mid-session. Technical support staff should be present at each endpoint, because the court will not pause the hearing for long to troubleshoot a participant's connection.

Language of proceedings. Online hearings in Vietnam are conducted in Vietnamese; a foreign party must arrange a qualified interpreter accepted by the court, and foreign-language documents submitted as evidence must be accompanied by a certified Vietnamese translation. Scheduling the interpreter and translation well before the hearing date is part of the preparation — not an afterthought on the morning of the session.

Relevance to commercial disputes: contract, payment and goods-quality disputes — largely document-based — suit the online format well. Overseas parties can participate without entry, significantly cutting costs. Before bringing a case to court, businesses should understand the limitation periods for commercial disputes to avoid missing the lawful window for filing suit.

China: Internet Courts (互联网法院)

China goes a step further with specialised Internet Courts established in Hangzhou, Beijing and Guangzhou. Features:

• Exclusive jurisdiction over disputes arising online: e-commerce, contracts concluded online, online IP infringement…
• Fully online process: filing, acceptance, evidence exchange, trial and judgment.
• Identity verification, digital signatures, and digital evidence preservation technologies.

This model is particularly relevant for Vietnamese enterprises in cross-border e-commerce with Chinese partners: disputes may be resolved entirely online before the competent Internet Court.

Note on jurisdiction: not every Vietnam–China dispute falls within an Internet Court's jurisdiction — the rules on subject-matter and value thresholds must be checked for each case. When contracting with Chinese partners, Vietnamese enterprises should specify the dispute-resolution forum (Internet Court, arbitration, or a Vietnamese court) directly in the contract, to avoid jurisdictional disputes once a conflict arises.

Quick comparison:

Electronic evidence: the deciding factor

Whether in-person or online, modern commercial disputes hinge on electronic evidence: emails, messages (WeChat, Zalo, WhatsApp), e-contracts, system logs, marketplace transaction data.

Principles for admissibility:

1. Integrity: proving data unaltered since creation (original files, metadata, system logs).
2. Verifiable origin: proving who sent/received and when (email headers, account authentication).
3. Lawful collection: unlawfully obtained evidence may be excluded.

Practice: businesses should keep originals (files, emails with headers, log backups), and when disputes loom, consider a notarised record (vi bằng) of the electronic data's state — a practically recognised way to bolster authenticity.

WeChat specifics: much Vietnam–China business is conducted on WeChat — WeChat messages are e-evidence but frequently challenged on integrity grounds (messages can be recalled, accounts can be suspended). Recommendations: (1) periodically export and archive important chat histories; (2) for high-value commitments, ask the counterparty to reconfirm by email; (3) once a dispute looms, have a vi bằng recorded of the chat content immediately — do not wait until trial to "retrieve" messages that have already been recalled.

A practical example: a dispute heard online

Consider a typical scenario of online litigation in commercial disputes: Company V (Vietnam) signs a VND 12 billion component purchase contract with Company S (China). Delivery runs four months late and part of the goods fail to meet specifications; Company S refuses compensation, invoking force majeure due to "supply chain disruption".

Instead of each side flying people to the other country, the case goes to arbitration (assuming the contract selects arbitration) with hearings conducted online:

• Online filing and evidence exchange: Company V uploads all negotiation emails, acceptance records and quality inspection reports. Original files are preserved with metadata to prove integrity.
• WeChat as key evidence: most delivery-schedule adjustments were discussed on WeChat between the two sales directors. Company V promptly had a bailiff's record (vi bằng) made of the entire chat history before the counterparty recalled several messages — a detail the tribunal later weighed heavily.
• Virtual hearing: Company V's representatives join from Ho Chi Minh City, Company S from Shenzhen, with counsel on both sides and the tribunal each at their own endpoints. A Vietnamese–Chinese interpreter participates online as required.
• Outcome: proceedings are not interrupted by geography; travel and accommodation costs are near zero; time from filing to award is significantly shorter than in traditional cross-border litigation.

Lessons for businesses: (1) preserve electronic evidence from the moment the transaction begins, not when the dispute arises; (2) agree in the contract on online dispute resolution mechanics (arbitration permitting virtual hearings, language of proceedings); (3) prepare infrastructure and technical personnel for a virtual hearing as carefully as for a real courtroom — because legally, that is exactly what it is. See also the case study on the investment deposit dispute with an industrial park authority — another practical example of how FDI enterprises handle disputes in Vietnam.

Online litigation in commercial disputes: preparation checklist for FDI enterprises

1. [ ] Digitise the entire case file: contracts, appendices, emails, minutes, payment documents.
2. [ ] Preserve e-evidence originals (files, email headers, logs) — not just printouts/screenshots.
3. [ ] Prepare infrastructure: stable connection, equipment, meeting room meeting court requirements.
4. [ ] Identify participants: legal representative/authorised person, counsel, interpreter if needed.
5. [ ] Backup plan for disconnections mid-hearing (spare connection, emergency contact number for the court clerk).
6. [ ] For China-related disputes: assess resolution before the competent Internet Court.
7. [ ] Rehearse beforehand: test audio, video, screen-sharing of evidence — a technical failure mid-hearing costs credibility.

FAQ

1. Do virtual hearings carry the same legal force as in-person trials? Yes. Held under Resolution 33/2021/QH15 and SPC regulations, judgments are enforceable as usual.

2. Which cases may be heard online? Cases the court deems suitable with parties' consent; certain sensitive cases excluded.

3. What are China's Internet Courts? Internet Courts (互联网法院) in Hangzhou, Beijing and Guangzhou hear online-arising disputes with fully online processes.

4. What does e-evidence require? Integrity, verifiable origin, lawful collection; keep originals, possibly notarised/forensic verification.

5. How should an FDI enterprise prepare for a virtual hearing? Technical infrastructure, digitised evidence, qualified representatives/interpreters, and a disconnection backup plan.

Legal bases

• Resolution 33/2021/QH15 (effective 01/01/2022) — organisation of online court hearings.
• Supreme People's Court regulations on online hearings — conditions and procedures.
• Chinese law on Internet Courts (互联网法院) — Hangzhou, Beijing, Guangzhou; online litigation.

Verification notes

Scope and detailed technical conditions follow SPC regulations in force at application — framework only. China's online litigation rules stated at introductory level; check specific instruments for actual cases.

When to work with a lawyer

Preparing for a virtual hearing, or facing a Vietnam–China cross-border commercial dispute that requires collecting and strengthening electronic evidence? FLAT Law Firm supports FDI enterprises through the entire process of online litigation in commercial disputes — from contract review and notarised preservation of electronic evidence to participation in virtual court or arbitration hearings. Hotline 0988424851.

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