In 2025, the Vietnam International Arbitration Centre (VIAC) handled 532 construction disputes, of which 48.5% involved FDI or foreign elements. These figures highlight the growing importance of contractual risk management and the selection of appropriate dispute resolution mechanisms in cross-border investment and business activities.
On September 16, 2026, as part of China Arbitration Week 2026, the event “Vietnam–China Arbitration Dialogue: Construction Disputes, Institutional Perspectives and Cross-Border Practice” was held in Beijing. The event brought together experts from Vietnam and China.
During the discussion session, Ms. Vu Thi Hang, Head of Division and Deputy Secretary General of the Procedural Secretariat of VIAC, addressed the international nature and flexibility of VIAC arbitration proceedings. This is reflected in the selection of arbitrators, applicable law, language, hearing venue, and methods of conducting hearings, tailored to each case.
Cross-Border Investment and the Risks of Disputes
According to Mr. Vu Anh Duong, Vice President and Secretary General of VIAC, investment, trade, construction, and infrastructure development activities between Vietnam and China are growing. This trend underscores the need for a sound understanding of applicable laws and contractual practices. Parties must also pay close attention to risk allocation. Choosing appropriate mechanisms for dispute prevention and resolution is equally important.
Construction projects are often large-scale, long-term, and complex, particularly cross-border projects. Differences in legal systems and contractual practices further increase potential risks. Construction disputes involve not only legal issues but also technical matters, project management, and contract administration.
At the in-depth discussion session, “Strategic Contract Management, Risk Mitigation, and the Prevention and Resolution of Disputes Arising from Construction Projects,” experts exchanged views on common disputes in cross-border construction and infrastructure projects. These included disputes over contract value, delays, technical documentation, evidence, and the application of standard contractual provisions, particularly FIDIC, in the context of Vietnamese law.
Asia Legal representative Lawyer Luu Xuan Vinh shared insights into the recognition and enforcement of foreign arbitral awards in Vietnam. He also highlighted important considerations for Chinese investors, particularly in conducting partner due diligence, reviewing dispute resolution clauses, and preparing for award enforcement.
Another topic of interest was the design of contractual provisions and dispute resolution mechanisms from the outset of a project, along with the effectiveness of Dispute Boards/DAABs. Experts also discussed key considerations when seeking recognition and enforcement of foreign arbitral awards in Vietnam.
The discussions highlighted effective approaches to dispute management. Businesses should focus on contract administration, evidence management, and risk allocation from the beginning, rather than waiting until a dispute proceeds to arbitration.
Strengthening Legal Cooperation in Cross-Border Dispute Resolution
From the perspective of construction dispute resolution, Mr. Nguyen Nam Trung, Chairman of the Society of Construction Law of Vietnam (SCLVN) and VIAC Arbitrator, encouraged efforts to strengthen the capacity of ADR professionals and improve the awareness and skills of parties using dispute resolution services. He also emphasized the importance of Vietnam–China cooperation in construction law and dispute resolution.
From China, Dr. Huang Zhenda, Chairman of Beijing DHH Law Firm, addressed the complexity of cross-border construction projects. Issues such as applicable law, allocation of responsibilities, assessment of damages, and the selection of dispute resolution mechanisms should be considered in line with the specific characteristics of each project.
The dialogue highlighted the important role of contract administration and evidence management. Businesses should also proactively prepare dispute resolution strategies. Through the forum, Asia Legal had the opportunity to exchange professional insights, stay updated on regional dispute resolution practices, and connect with the regional legal community.
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