Specialized court at the International financial center: Major issues "placed on the table"

Unprecedented institution requires a "tailor-made" legal framework

According to Resolution No. 222/2025/QH15 of the National Assembly on the International Financial Center in Viet Nam, the specialized court is one of the key institutions, aimed at ensuring a transparent and rapid dispute resolution mechanism, capable of competing with financial centers in the region and worldwide. The international financial center is planned to be located in Ho Chi Minh City and Da Nang, but the specialized court model is designed to be concentrated in Ho Chi Minh City, with jurisdiction to resolve disputes arising in both locations.

At the seminar “Major Issues of the Draft Law on the Specialized Court at the International Financial Center” organized by the Standing Committee on Law and Justice on the afternoon of 22 November at the National Assembly Headquarters, Chairman of the Committee Hoang Thanh Tung emphasized that this draft law is “very difficult, very new, and highly specialized,” unprecedented in the Viet Nam legal system, but strategically significant for attracting investment, connecting with global financial markets, and enhancing national standing.

This approach closely follows practices in major financial centers such as Hong Kong, Singapore, Dubai…, where courts or specialized adjudication institutions often allow the application of foreign laws and international commercial practices to create familiarity and confidence for global investors. However, the challenge for Viet Nam is how to ensure flexibility and attractiveness to investors while maintaining the “main axis” of the Constitution and Viet Nam’s laws, avoiding legal conflicts, and ensuring public order.

Regarding proceedings, the draft law only stipulates basic principles; specific procedures will be detailed by the Supreme People’s Court in the Rules of Procedure of the Specialized Court, which may allow the conduct of multiple procedures electronically. This is an open design approach, enabling dispute resolution processes to be flexibly adjusted according to practical requirements and international standards, but it also places very high demands on the capacity to develop detailed, consistent, and feasible procedural rules.

Personnel of the specialized court is a major point of debate. According to the Drafting Committee’s report, judges of the specialized court will be appointed by the President, in accordance with the 2013 Constitution. The issue lies in whether the source of judges should be limited to Vietnamese citizens or expanded to include foreign judges as well.

One viewpoint holds that national jurisdiction should only be exercised by Vietnamese citizens; therefore, judges of the specialized court must be Vietnamese. The other viewpoint proposes allowing the appointment of foreign judges as well, particularly experts with prestige and experience in adjudicating international financial and commercial disputes, in order to create a professional and reputational advantage for the court, thereby increasing competitiveness and confidence among foreign investors.

The Standing Drafting Committee leans toward the second option, emphasizing the need for a “breakthrough, open legal mindset,” considering this as a superior policy to attract investors and elevate the status of the specialized court. However, inviting foreign judges to participate in adjudication within Viet Nam’s judicial system also requires clarifying mechanisms of responsibility, ensuring compliance with the Constitution, Viet Nam’s laws, and the principle of judicial independence.

Scope of jurisdiction: concentrated or expanded?

The jurisdiction of the specialized court is also an issue that has been thoroughly examined. One opinion proposes that, in the initial phase, the jurisdiction should be concentrated: the specialized court would only resolve disputes and claims related to investment and business within the scope of the International Financial Center, while administrative, labor, bankruptcy, and other disputes would continue to be handled by regional courts according to current procedural law.

Another opinion suggests designing a court model with broader jurisdiction, not only handling disputes between entities that are members of the International Financial Center but also accepting cases where the parties agree to select the specialized court as the adjudicating body, including administrative and labor disputes related to investment and business activities.

The Standing Drafting Committee currently agrees with the option of concentrating jurisdiction on the “core” of investment and business disputes, to ensure depth, specialization, and suitability with the phased establishment of the apparatus and special procedural processes. However, through discussions, many opinions also noted that the law should be designed openly to allow for gradual expansion of jurisdiction once the specialized court operates stably and the team of judges and digital infrastructure meet the requirements.

Not only limited to debates on legislative techniques, the economists, lawyers, and scientists attending the seminar emphasized the pivotal role of the specialized court in shaping the “institutional health” of the International Financial Center in Viet Nam. A dispute resolution mechanism that is rapid, fair, predictable; investor-friendly procedural rules; decisions that are authoritative, respected, and highly enforceable… are decisive factors enabling Viet Nam to compete with financial centers in the region.

Based on the opinions expressed at the seminar, the Standing Committee on Law and Justice will continue to coordinate with the Supreme People’s Court to finalize the Draft Law on the Specialized Court at the International Financial Center, and submit it to the National Assembly for consideration and adoption at the 10th Session with the highest quality. The expectation is that once the law is enacted and implemented, the specialized court will truly become an “institutional pillar,” contributing to the realization of the goal of building an International Financial Center in Viet Nam that is attractive, competitive, and reputable at the regional and international levels.