Carefully consider the provisions on the application of substantive law.

p1(1).jpg — Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Quang Khanh

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meetingVQK_1374 — Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Quang Khanh

Respond to requests to resolve arising incidents

The draft Law on Specialized Courts at the International Financial Center was presented by Chief Justice of the Supreme People's Court Nguyen Van Quang. Accordingly, the draft Law aims to build a Specialized Court at the International Financial Center according to a specific model of the People's Court system compatible with international standards and practices, with the function of resolving disputes and requirements on investment and business at the International Financial Center.

The specialized court at the International Financial Center has a suitable organizational structure; flexible, effective, transparent, and trustworthy litigation procedures; a team of professional, internationally prestigious judges to meet the requirements for resolving arising cases.

Chief Justice of the Supreme People's Court Nguyen Van Quang presents the Draft Law on Specialized Courts at the International Financial Center. Photo: Pham Thang

In addition, creating a superior, fair, effective and efficient dispute resolution mechanism in accordance with international practices to protect the legitimate rights and interests of investors and the interests of the nation, attracting disputes to be resolved at specialized courts...

The Draft Law consists of 5 Chapters and 43 articles, stipulating the duties and powers; organizational structure; jurisdiction, order and procedures; enforcement of judgments and decisions; judges, court clerks, representatives of the parties; and ensuring the operation of specialized courts at the International Financial Center.

This Draft Law applies to specialized courts, members of the International Financial Center, investors, agencies, organizations and individuals involved in the settlement of cases under the jurisdiction of specialized courts.

Delegates at the meetingVQK_1378 — Delegates attending the meeting. Photo: Quang Khanh

Regarding jurisdiction, the Specialized Court has the authority to resolve cases arising between members of the International Financial Center with each other or between members of the International Financial Center and other agencies, organizations and individuals who are not members of the International Financial Center, except for cases related to public interests and state interests: cases related to investment and business; requests for recognition and enforcement in Vietnam of judgments and decisions of foreign courts, foreign arbitration awards; requests related to arbitration according to the provisions of law on commercial arbitration...

For disputes related to public interests and State interests, if the investor files a lawsuit, it will be resolved at a competent People's Court according to the provisions of current Vietnamese procedural law.

There is no provision for the parties to choose to apply "international treaties of which Vietnam is not a member"

The review report was presented by Chairman of the Committee on Law and Justice Hoang Thanh Tung. Accordingly, the Committee on Law and Justice agreed on the necessity of promulgating the draft Law; agreed to submit the draft Law to the National Assembly for consideration and approval at the 10th Session according to the shortened procedures.

The draft Law contains a number of contents related to constitutional principles on the exercise of judicial power that need to be understood and applied flexibly in accordance with the specific requirements of the Special Court - a Court belonging to the people's court system but with a unique organizational and operational model to conform to international practices. Therefore, the Committee agrees with the relevant contents of the draft Law.

Chairman of the Committee on Law and Justice Hoang Thanh Tung presents the Verification Report. Photo: Pham Thang

Regarding the application of substantive law (Article 5.2), the Committee found that the core of common law and international commercial law is the principle of freedom of choice of law. Accordingly, the choice of the parties must, in principle, have absolute priority, coming first in all order of application.

However, the draft Law's separation of the choice of Vietnamese law from the general principle of choice of law agreement at Point a, Clause 2, Article 5 has fragmented this core principle, leading to a lack of logic in establishing the conflict of laws rule and confusion for international disputing parties.

Therefore, the Law and Justice Committee recommends that the Agency research and redesign the above provision. At the same time, amend point b, clause 2, Article 5 in the direction that in case the parties do not have an agreement on the choice of applicable law or the chosen law cannot be applied, the law of the country with the closest connection to the dispute shall be applied.

Delegates at the meetingVQK_1385 — Delegates attending the meeting. Photo: Quang Khanh

"If the closest connection cannot be determined, the law regulating investment and business activities in international financial centers will be applied. This provision creates transparency, clarity and is consistent with the widely accepted conflict of laws rule, in accordance with international practice," the Chairman of the Law and Justice Committee emphasized.

In addition, it is proposed not to stipulate that the parties choose to apply "international treaties of which Vietnam is not a member" because international treaties create, change or terminate the rights and obligations of the country, so Vietnam's acceptance of commitments under international treaties must go through strict signing and ratification procedures.

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