Building a Specialized Court for the International Financial Center: New Legal Basis Submitted to the National Assembly

(Chinhphu.vn) - The submission to the National Assembly of the draft Law on Specialized Courts at the International Financial Center (IFC) is considered a strategic step, aiming to create a modern, transparent and competitive judicial institution in the global financial environment. Breakthrough regulations on jurisdiction, proceedings, law enforcement and personnel mechanisms show Vietnam's determination to build an international financial center on par with international standards.

On the afternoon of December 4, at the National Assembly House, delegates listened to Chief Justice of the Supreme People's Court Nguyen Van Quang present the Proposal and Chairman of the Law and Justice Committee Hoang Thanh Tung report on the review of the draft Law on Specialized Courts at the International Financial Center. Both the drafting agency and the review agency agreed that this is a special law, playing a strategic role in building a modern, transparent and competitive judicial institution in the international financial environment.

Chief Justice of the Supreme People's Court Nguyen Van Quang emphasized that the formation of the International Commercial Arbitration Center comes with a dispute resolution system that is commensurate with standards, speed and transparency - Photo: VGP/Nhat Bac

Establishing a judicial mechanism in accordance with international standards

Presenting the Report, Chief Justice of the Supreme People's Court (SPC) Nguyen Van Quang emphasized that the formation of the International Financial Center requires a dispute resolution system that is consistent with standards, speed and transparency. Disputes at financial centers often have international elements, related to complex and high-value investment and business transactions, so a court model operating according to international practices is needed.

Specialized courts are designed to be within the People's Court system but have a more flexible organizational and operational mechanism, granting procedural autonomy and applying advanced rules to meet the requirements of the domestic and foreign investor community.

The draft Law consists of 5 chapters and 43 articles, fully regulating the duties, powers, organizational structure, jurisdiction, litigation procedures, enforcement of judgments, standards for judges and secretaries, and necessary guarantees for the court to operate effectively. A specialized court will be located in Ho Chi Minh City, with the authority to resolve disputes arising at the International Commercial Court in Ho Chi Minh City and Da Nang , with a structure including the Court of First Instance, the Court of Appeal and supporting apparatus.

Notably, the draft expands the source of judge appointments from three groups: People's Court judges; lawyers, experts, arbitrators, law lecturers; and foreigners. Diversifying human resources is expected to help the Specialized Court have the ability to access and effectively handle international disputes.

Applying modern and flexible procedural principles to ensure investor confidence

According to the Proposal, this court model operates according to key principles: Judges are independent; ensuring transparent and fair litigation; flexible procedures, focusing on efficiency and speed; and maximum respect for the parties' right to self-determination.

The language used in the proceedings is English or English with Vietnamese. A breakthrough is that the parties can choose to apply foreign law, international commercial practices or international treaties when the dispute has foreign elements. The appellate judgment is the final decision, without review or retrial, in accordance with the model of international commercial courts.

Presenting the Review Report, Chairman of the Law and Justice Committee Hoang Thanh Tung affirmed the necessity of promulgating the Law, stating that the project dossier was seriously prepared, closely following the policy and consistent with the goal of building a judicial institution that meets international standards. The Committee agreed to put the Law project into the program for approval under the shortened procedure at the 10th Session to meet the progress of implementing the International Financial Transactions.

Regarding the content of the bill, the Law and Justice Committee basically agreed with the organization plan, authority and operating principles of the Specialized Court. The Committee highly appreciated the orientation of applying the principles of the common law system in litigation, considering this a key factor in enhancing the international competitiveness of the court.

Perfecting regulations on law enforcement, public order and procedural matters

According to the examining body, Clause 2 of Article 5 on the application of law needs to be revised to ensure the fundamental principle of international trade is the freedom to agree on the choice of law. Separating the provisions on the application of Vietnamese law as in the current draft may cause fragmentation and is not consistent with international practice. The Committee recommends adding clear provisions for cases where the applicable law cannot be determined, thereby switching to the law of the country with the closest connection.

Regarding the provision excluding the application of foreign law when it is contrary to Vietnam's public order, the Committee agrees in principle but believes that the term "public order" needs to be explained to ensure transparency in application. At the same time, the Committee recommends removing the provision allowing parties to choose international treaties to which Vietnam is not a member, in order to ensure the principle of sovereignty in the field of treaties.

Regarding procedural matters, the Committee agrees with the streamlined and flexible model but recommends further clarification of the provisions on decisions on case settlement, submission and disclosure of evidence, expert evidence, provisional emergency measures, appeal procedures and enforcement of judgments. These proposals aim to ensure that the court is both modern in its model and standard in its operation.

In the issues with different opinions, the Law and Justice Committee agreed with the first option presented by the Supreme People's Court. Accordingly, the first instance trial is conducted by one judge, in complicated cases a panel of three judges can be established; the appeal trial is conducted by a panel of three judges.

Regarding personnel, the Committee supports the appointment of the Chief Justice of the Supreme People's Court to the Chief Justice of a specialized court, in order to ensure consistency in the management and operation of the court system.

The promulgation of the Law on Specialized Courts is considered an important step in the process of building an international financial market in Vietnam - a place that requires not only a favorable financial mechanism and modern infrastructure but also a strong, transparent and internationally standardized judiciary. The Law is expected to take effect from January 1, 2026.

Hai Lien

Source: https://baochinhphu.vn/xay-dung-toa-an-chuyen-biet-cho-trung-tam-tai-chinh-quoc-te-co-so-phap-ly-moi-duoc-trinh-quoc-hoi-10225120416363896.htm