The direct answer: when signing contracts with foreign elements in Vietnam, the arbitration clause is often skimmed over — until a dispute erupts and parties realise they picked the wrong “forum”. The two names heard most are SIAC (Singapore International Arbitration Centre) and VIAC (Vietnam International Arbitration Centre). SIAC stands out with its ambitious 2025 Rules (7th edition): a streamlined procedure for disputes up to SGD 10 million with awards in 6 months, emergency arbitration, preliminary determination in 90 days and early dismissal in 45 days. VIAC is Vietnam’s leading centre, far cheaper, with Vietnamese-language proceedings and awards smoothly enforced by Vietnamese courts under the 2010 Law on Commercial Arbitration. There is no one-size answer — the choice turns on dispute value, counterparty nationality, where the award must be enforced and the litigation budget.
SIAC Rules 2025: speed and “emergency” tools
The SIAC Arbitration Rules 2025 (7th edition) are built for an era of cross-border disputes needing fast resolution. Four highlights: (1) the Streamlined and Expedited Procedures — for disputes up to SGD 10 million, the tribunal must render its award within 6 months; (2) the Emergency Arbitrator — a party may seek emergency relief even BEFORE filing the Notice of Arbitration, with the Notice due within 7 days after; (3) Preliminary Determination — the tribunal may decide key legal issues early within 90 days, helping parties reassess and settle; (4) Early Dismissal — manifestly unmeritorious claims or defences thrown out within 45 days. Add Singapore’s arbitration-friendly courts and New York Convention membership, and SIAC is the default pick for many regional FDI contracts seeking a neutral “seat” with awards enforceable in 170+ Convention states.
VIAC: home-ground advantage and cost
VIAC (founded 1993, alongside the Vietnam Chamber of Commerce and Industry) is the most-chosen centre for Vietnam-related disputes. Its biggest edge is cost: VIAC-schedule arbitration fees and tribunal remuneration are typically a fraction of SIAC or ICC levels — for mid-value disputes the gap can reach tens of thousands of dollars. Second, language and law: proceedings can run entirely in Vietnamese under Vietnamese law, with no costly foreign-law experts. Third, enforcement in Vietnam: VIAC awards are recognised and enforced by Vietnamese courts under the 2010 Law on Commercial Arbitration through familiar procedures, with less annulment risk on procedural grounds than foreign awards needing recognition. The drawback: foreign counterparties sometimes view a Vietnamese “home ground” as less neutral; VIAC’s international arbitrator roster, though growing, is thinner than SIAC’s.
Drafting the arbitration clause: four choices to lock in
Whichever centre is chosen, the clause must lock in four elements. One, the institution and rules: state “disputes shall be resolved by arbitration at VIAC under the VIAC Rules” or the SIAC equivalent — avoid vague “arbitration in Singapore under Vietnamese law” formulations that invite jurisdictional fights. Two, the seat: it determines the lex arbitri and the supervisory courts — pick Singapore for Singapore-court support, Vietnam for fast domestic enforcement. Three, the language: English, Vietnamese or bilingual — directly affecting translation costs and arbitrator selection. Four, the governing law of the contract: Vietnamese, Singaporean or third-country law — distinct from the procedural law fixed by the seat. The most common FDI mistake: copying a model clause without filling in seat and language, leaving a “pathological clause” where merely establishing jurisdiction costs a round of satellite litigation.
Frequently asked questions
- What is the most important novelty of the SIAC Rules 2025?
- Four speed tools: streamlined/expedited procedure (disputes up to SGD 10 million, award in 6 months), emergency arbitrator (relief even before the Notice of Arbitration), preliminary determination in 90 days and early dismissal in 45 days.
- When should VIAC be chosen over SIAC?
- For mid-value disputes (major cost savings), Vietnamese-language proceedings, Vietnamese governing law, and awards to be enforced mainly in Vietnam.
- Are SIAC awards enforceable in Vietnam?
- Yes — Singapore and Vietnam are both 1958 New York Convention members; foreign arbitral awards are recognised and enforced in Vietnam under Civil Procedure Code procedures.
- What must an arbitration clause contain?
- Four elements: the institution and applicable rules; the seat; the procedural language; the governing law of the contract — never leave blanks that create a “pathological clause”.
This article has been quality-reviewed by the FLAW AI Legal Council