Methods and Procedures for the Enforcement of Arbitral Awards

October 21, 2025

1. Provisions on Arbitral Awards

Pursuant to the provisions of the Law on Commercial Arbitration, Clause 10, Article 3 of this Law stipulates as follows:

“An arbitral award is the decision of the Arbitral Tribunal that resolves the entire content of the dispute and terminates the arbitral proceedings.”

And as provided in Clause 5, Article 4 of this Law:

“The arbitral award is final and binding.”

From these provisions, it can be inferred that an arbitral award embodies two fundamental characteristics: it constitutes a decision resolving all substantive matters of the dispute – thereby terminating the arbitral proceedings – and it is final and binding. This ensures the conclusiveness of the decision, leaving no claims unaddressed and providing a comprehensive resolution to the conflict. The finality of the award signifies that it represents the ultimate outcome, immediately binding upon the parties and not subject to retrial. These features highlight the distinctive advantages of commercial arbitration – namely, efficiency, enforceability, and procedural fairness – by delivering prompt resolutions, minimizing costs, and reducing the risks associated with prolonged litigation. Consequently, the use of commercial arbitration may also be regarded as a strategic risk management mechanism, fostering stability and maximizing operational efficiency for enterprises in the event of disputes.

2. On the Enforcement of Arbitral Awards

2.1. Definition of Enforcement of Arbitral Awards

The enforcement of an arbitral award refers to the stage in which the arbitral decision is executed in practice, whereby the party obliged to comply – the individual or organization against whom the award is rendered – must fulfill the obligations imposed by the Arbitral Tribunal.

In essence, the enforcement of an arbitral award is an act of judicial execution rather than a continuation of arbitral proceedings. The purpose of this stage is to implement and give effect to the outcome of the award, ensuring that the parties’ obligations, as determined in the arbitration, are performed in reality. Pursuant to Article 67 of the Law on Commercial Arbitration and Article 3 of the Consolidated Document No. 10/VBHN-VPQH (2025) on the Law on Civil Judgment Enforcement, an arbitral award carries the same legal effect as a court judgment or decision that has taken legal force and shall be enforced in accordance with the procedures prescribed for civil judgment enforcement.

2.2. Principles of Enforcement of Arbitral Awards

First, the principle of ensuring the effectiveness of enforcement of arbitral awards. As arbitral awards are final and binding, their legal effect is considered equivalent to that of court judgments or decisions. Therefore, the conduct of the parties during the enforcement process must be aimed at fully complying with the obligations set out in the award. This principle does not permit any opposition or obstruction to the enforcement of court judgments, decisions, or commercial arbitral awards.

Second, if the party obligated to comply with the arbitral award fails to voluntarily execute it, only the civil judgment enforcement authority has the competence to enforce the award. This authority is recognized as the sole state power body authorized to intervene and apply coercive measures to ensure the enforcement of arbitral awards.

Third, the principle of combining persuasive and coercive methods applies. Priority is given to educating and persuading the obligated party to voluntarily comply with the arbitral award, which is a humane approach that encourages cooperation, saves costs and time, and preserves relationships. Coercive measures are applied only if the obligated party resists or obstructs enforcement, in accordance with the law.

Fourth, the principle of timely, accurate, and procedurally compliant enforcement. Once the award takes effect, the competent enforcement authority must execute it promptly and is strictly prohibited from arbitrarily altering the content of the award. This ensures the integrity and legal value of the decision rendered by the Arbitral Tribunal.

3. Methods of Enforcement of Arbitral Awards

The provisions on the enforcement of arbitral awards are set forth in Article 65 of the 2010 Law on Commercial Arbitration:

“The State encourages the parties to voluntarily comply with the arbitral award.”

Thus, in the enforcement of an arbitral award, the State primarily encourages the parties to voluntarily fulfill their obligations. This includes obligations owed to the party entitled to enforcement as well as obligations owed to the State.

Article 67 of this Law also provides as follows:

“An arbitral award shall be enforced in accordance with the provisions of the law on civil judgment enforcement.”

Thus, in conjunction with the provision that the civil judgment enforcement authority has the competence to enforce arbitral awards under the law on civil judgment enforcement, the parties may voluntarily fulfill their obligations. However, once the period for voluntary compliance expires and the parties still fail to perform, the competent authority shall implement coercive measures. The specific measures are listed in Article 9 of Consolidated Document No. 10/VBHN-VPQH 2025 on Civil Judgment Enforcement as follows:

“1. The State encourages the parties to voluntarily comply with the judgment.
2. If a judgment debtor has the capacity to perform but fails to voluntarily comply, coercive enforcement shall be applied in accordance with the provisions of this Law.”

4. Procedural Order for the Enforcement of Arbitral Awards

Once the period for voluntary compliance with the arbitral award has expired and the obligated party has not voluntarily performed, and no application to set aside the award has been submitted to the court, the party entitled to enforcement has the right to submit a request to the competent provincial Civil Judgment Enforcement Authority to carry out coercive enforcement. At this point, the arbitral award is generally treated as a “civil judgment” and the parties are referred to as the “parties concerned” The procedural order for enforcing the arbitral award shall be fully conducted in accordance with the provisions of the law on civil judgment enforcement, with the specific steps carried out as follows:

Step 1: Submission of an Application for Enforcement. After the expiration of the period for voluntary compliance, the party entitled to enforcement has the right to submit an application to the competent Civil Judgment Enforcement Authority. The application must clearly state the main contents, including the full names and addresses of the parties, the subject matter of the enforcement request, and information regarding the enforcement capacity of the party obligated to comply.
Step 2: Acceptance or Refusal of the Application. Upon receiving the application, the enforcement authority will examine its validity along with the attached documents. If the application is valid and does not fall under any grounds for refusal under the law, the authority shall accept it; otherwise, if the application is incomplete, the parties will be notified to provide supplementary information. If there are grounds for refusal, the enforcement authority must notify the applicant in writing.
Step 3: Issuance of the Enforcement Decision. Within five working days from the date of receiving a valid application, the Head of the Civil Judgment Enforcement Authority shall issue the Enforcement Decision. This decision serves as the legal basis for the bailiff to organize enforcement, and it must be notified to the People’s Procuracy of the same level as well as to the relevant parties.
Step 4: Organization of Enforcement of the Decision. The Enforcement Decision takes effect from the date of signing. Within two working days thereafter, the Head of the enforcement authority must assign a bailiff to implement the enforcement measures in accordance with the law.
Step 5: Completion of Enforcement. The enforcement process is considered complete when the parties have fully performed all their rights and obligations; or when there is a decision to suspend enforcement; or when there is a decision to reject the enforcement application in accordance with the law.

5. Mechanisms for Resolving Disputes through the Bigboss International Arbitration Center (BBIAC)

To resolve a dispute through commercial arbitration at BBIAC, clients may insert one of the following two clauses into their contracts:

5.1. Model Arbitration Clause

Additionally, the parties may supplement the clause with:

(a) The number of arbitrators shall be [one or three].

(b) The seat of arbitration shall be [city and/or country].

(c) The governing law of the contract shall be [ ].*

(d) The language of the arbitration shall be [ ].**

Notes:

* Applicable only to disputes involving a foreign element.

** Applicable only to disputes involving a foreign element or disputes where at least one party is an enterprise with foreign invested capital.

5.2. Model Arbitration Clause Applicable to Expedited Procedure

“Any dispute arising out of or in connection with this contract shall be settled by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with the Arbitration Rules of Procedure of this Center. The Parties agree that the arbitration proceedings shall be conducted under the Expedited Procedure stipulated in Article 37 of the BBIAC Arbitration Rules of Procedure.”

Additionally, the parties may supplement the clause with:

(a) The seat of arbitration shall be [city and/or country].

(b) The governing law of the contract shall be [ ].*

(c) The language of the arbitration shall be [ ].**

Notes:

* Applicable only to disputes involving a foreign element.

** Applicable only to disputes involving a foreign element or disputes where at least one party is an enterprise with foreign invested capital.

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