27/05/2026
Negotiating hard on price, scope, and payment in Vietnam is not enough. A weak arbitration clause can strip away your control before the dispute even begins.
In Vietnam, an arbitration clause is a separate agreement, independent from the contract it sits inside. So a terminated or invalid contract does not automatically cancel your right to arbitrate.
Here are the 7 drafting mistakes that put foreign investors at risk:
-Failing to name the form of arbitration or the institution, which hands the choice to the other side.
-Naming one arbitration centre but citing another centre's rules, which can make the clause unenforceable.
-Relying on a verbal or undocumented agreement, when the law requires it to be in writing.
-A signer without authority or legal capacity, which can invalidate both the agreement and the award later.
-Assuming that a broken contract automatically cancels the arbitration clause.
-Ignoring multi-party realities. Vietnam does not recognise the group of companies doctrine, so an affiliate that did not sign is generally not bound.
-Drafting without thinking about enforcement. You can win the award and still face refusal of recognition and enforcement in Vietnam.
The safest time to fix an arbitration clause is before you sign, not after the dispute starts.
Protect your business interests in Vietnam.