Introduction
On December 18, 2025, the Government issued Decree No. 323/2025/ND-CP (“Decree 323”), effective the same day, on establishment of an international financial center (“IFC”). Briefly, the IFC is a unified legal entity operating in two locations–Ho Chi Minh City and Da Nang City–aimed at concentrating financial institutions, banks, investment funds, and financial technology (Fintech) services. It adopts specific and flexible mechanisms and policies to attract foreign capital flows, promote global financial integration, and enhance national competitiveness.
Pivotal to the success of the IFC is the Specialized Court to resolve disputes that arise within the IFC. On December 11, 2025, the National Assembly enacted Law No. 150/2025/QH15 which actually created the Specialized Court within the IFC (“Specialized Court Law”) but with effect from January 1, 2026. We discuss the jurisdiction, organizational structure, and operational points of the Specialized Court.
Position of the Specialized Court within Vietnam’s Judicial System
The Specialized Court is intended to adjudicate and resolve disputes, including disputes among IFC’s members and between a member and a non-member.
The Specialized Court will operate within Vietnam’s existing judicial system. As such, it is under the Supreme People’s Court. This is intended to ensure its consistency with Vietnam’s existing judicial mechanism.[1]
This design reflects an intended balance between two objectives. The Specialized Court maintains both judicial power and its place within the existing Vietnam’s court system. At the same time, it establishes a dispute resolution mechanism that is specialized, independent and consistent with international practice.
Overall, the Specialized Court is a cautious legislative approach to the establishment of a new court model: introducing innovations in functions and operational methods while still operating within the existing judicial framework, thereby providing a stable foundation for the operation of the IFC and minimizing legal risks of enforcement.
Organizational Structure of the Specialized Court
The organizational structure of the Specialized Court consists of: (i) a Court of First Instance; (ii) an Appellate Court; and (iii) supporting administrative units. The Specialized Court will have a Chief Justice, Deputy Chief Justices, Heads of Sub-Courts, Deputy Heads of Sub-Courts, Judges, Court Clerks, other civil servants, and employees. It will be self-contained within the IFC framework.
An important feature of the Specialized Court is that a Judge may be a foreigner who satisfies the following qualifications and conditions:
- Has been or is currently serving as a foreign judge, or is a reputable lawyer or expert with a good moral character, appropriate professional expertise, and a sound understanding of laws relating to investment and business activities;
- Has at least 10 years of experience adjudicating or resolving investment and business cases;
- Has sufficient English proficiency to adjudicate and resolve cases before the Specialized Court; and
- Is no more than 75 years of age and is in good health.
A Court Clerk[2] of the Specialized Court may also be a foreigner. S/he must satisfy the following qualifications and conditions:
- Has a good moral character and appropriate professional knowledge;
- Has at least 3 years of experience in the field of investment and business law;
- Has English proficiency sufficient to perform his/her duties; and
- Is no more than 60 years of age and is in good health.
Allowing Judges and Court Clerks of the Specialized Court to be foreigners is a notable step for Vietnam, reflecting a high degree of openness and internationalization in the dispute resolution mechanism. This approach is consistent with the distinctive nature of the IFC, in which most transactions and disputes are expected to involve foreign persons and entities and to be strongly influenced by international commercial and financial practices. The participation of foreign legal professionals, particularly those with experience in adjudication and international dispute resolution, is expected to raise the level of confidence in the Specialized Court and contribute to the quality of adjudication, and application of international legal standards.
The appointment of foreigners as Judges and Court Clerks of the Specialized Court does raise a number of issues that will require careful consideration and implementation. First, it is necessary to ensure a proper balance between the international experience of foreign experts and compliance with fundamental principles of Vietnamese law. That is, even when a foreign law is applied, such application must not lead to a conclusion that is contrary to fundamental principles of Vietnamese law. In addition, matters relating to the appointment mechanism, professional responsibilities, competence, remuneration, as well as safeguarding independence and impartiality in adjudication by foreign judges should be clear and transparent.
Overall, allowing foreigners to participate in adjudicatory and supporting functions of the Specialized Court represents an important step toward establishing an internationally oriented judicial institution. If effectively implemented, this mechanism can enable the Specialized Court to equal the models of financial courts and international commercial courts in other countries, thereby enhancing the attractiveness and competitiveness of the IFC.
Functions and Jurisdiction of the Specialized Court
The Specialized Court is a dispute resolution body within the IFC. Its primary and most important function is to adjudicate and resolve cases arising within the IFC, excluding matters involving “public interest” or “interests of the State”. The Specialized Court will focus on:
- Investment and business disputes among members of the IFC or between members and non-members of the IFC;
- Requests for recognition and enforcement in Vietnam of judgments or decisions of foreign courts or awards of foreign arbitral tribunals which resolve disputes between members of the IFC or between a member and a non-member of the IFC;
- Requests in connection with arbitration to resolve disputes among members of the IFC, or between a member and a non-member of the IFC; and
- Investment and business cases in which at least one party is a member of the IFC.
The Specialized Court is vested with broad jurisdiction within the dispute resolution framework. Determining jurisdiction based on the fact that at least one party is an IFC member helps ensure that most disputes that arise from IFC’s activities will be resolved by a judicial body with deep understanding of international investment and financial transactions. This approach will contribute to greater consistency in the application of the law, consistency with international practice and will enhance the stability of the legal environment.
In addition to its adjudicatory function, the Specialized Court will handle complaints and denunciations that relate to the organization and operation of the Court, and that will apply Vietnamese precedents. Importantly, it will enforce judgments. That is, the Specialized Court is designed as a relatively comprehensive judicial institution with a high degree of autonomy. The authority to enforce judgments will shorten the time required for execution, and will enhance the protection of disputing parties. All of this is expected to increase the credibility of IFC’s dispute resolution mechanism.
That is, the Specialized Court is not merely an adjudicatory body but is also a central judicial institution that ensures the effective operation of the IFC. This fact is intended to contribute to development of a professional, efficient, and internationally recognized dispute resolution ecosystem.
Procedural Rules of the Specialized Court
Similar to procedures applied to Vietnam’s existing People’s Court system, resolution of a case before the Specialized Court is first addressed through the Court’s first-instance proceedings–that is, there is a proper hearing of the parties before the Specialized Court. If the unsuccessful party files an appeal, the case will be brought to the stand-alone appellate level of the Specialized Court. There is only one level of appeal.
The procedural framework of the Specialized Court is notable:
- The language used will be English or English accompanied by a Vietnamese translation. This includes judgments and decisions of the Specialized Court. This follows the designation of English–or English accompanied by a Vietnamese translation–as the official language of the IFC.
- The statute of limitations to file a claim involving a dispute is six (6) years from the date when the cause of action arises. This contrasts with two (2) years in the case of commercial disputes under the Commercial Law.
- Foreign lawyers holding valid practicing certificates issued by competent foreign authorities or organizations may represent parties in proceedings before the Specialized Court. The Specialized Court Law does not specify whether foreign lawyers are required somehow to qualify under Vietnamese law–qualification under Vietnamese law would seem to be inconsistent with the IFC objectives.
- Judgments and decisions at the appellate level are final and may not be reopened. The clear purpose is to expedite resolution of cases by the IFC, and to avoid situations where cases are brought under cassation or reopening procedures and subsequently returned to restart the first-instance proceedings.
- The Specialized Court has the authority to enforce judgments without having to go through separate civil judgment enforcement authorities. That is, and to repeat, the Specialized Court will have its own enforcement mechanisms. Details will be guided by the Supreme Court.
- While not clearly provided in the Specialized Court Law, according to Conclusion No. 223-KL/TW dated December 2, 2025 of the Politburo, the People’s Procuracy will not supervise the activities of the Specialized Court. This will enhance the autonomy of the Specialized Court.
Conclusion
The Specialized Court is critical to support the legal framework for internationally oriented investment and business. With a flexible organizational structure, relatively broad jurisdiction, and separate procedural rules–such as the use of English, participation of foreign judges and lawyers, and a streamlined appellate structure–the Specialized Court is expected to enhance the transparency, efficiency, and predictability of the dispute resolution process.
Several legal issues do need to be addressed–consistency between the Specialized Court Law and existing legislation such as the Law on Lawyers. Care must be taken to be sure that laws surrounding the Specialized Court and existing Vietnamese law operate together and in a way to eliminate confusion.
Effective implementation of the law will play an important role to ensure the consistency of the legal system and so strengthen the confidence of both domestic and foreign investors.
The expectation is that the Specialized Court will be recognized as an effective and accepted dispute resolution mechanism for the IFC.
[1] Pursuant to Resolution 222, Decree 323, and Law No. 81/2025/QH15 dated June 24, 2025 amending and supplementing a number of provisions of the Law on Organization of the People’s Courts.
[2] The task of a Court Clerk is generally to serve at a secretary during proceedings before the Specialized Court.
