COMMERCIAL ARBITRATION IN THE FIELD OF EDUCATION AND TRAINING

January 29, 2026

I. Common Types of Disputes in the Field of Education

In practice, disputes in the field of education and training mainly arise from contractual relationships and educational service relationships, including:

1. Training Contract Disputes

This is the most common type of dispute, usually occurring between:

Students, pupils, or parents and educational institutions;
Training centers, international schools, and private educational institutions.

Disputes typically involve:

Training quality that does not comply with contractual commitments;
Unilateral changes to curricula, lecturers, or training duration;
Conditions for granting degrees or certificates;
Refund of tuition fees upon early termination of studies.

2. Disputes Over Tuition Fees and Other Charges

This group of disputes is common and sensitive, often arising from:

Increases in tuition fees not in accordance with the agreed roadmap or without clear prior notice;
Additional fees collected outside the scope of the training contract;
Application of penalty clauses unfavorable to students;
Refunds of tuition fees in cases where students suspend or are dismissed from their studies.

3. Disputes in Cooperation and Training Linkage

Educational institutions may encounter disputes arising from:

Domestic and international training cooperation agreements;
Franchise or licensing agreements for training programs;
Profit-sharing arrangements and rights to use brands and certificates.

4. Labor Disputes in the Education Sector

These include disputes between:

Educational institutions and lecturers or teachers;
Training centers and employees.

Such disputes typically relate to labor contracts, salaries, teaching hours, and intellectual property rights over lectures and teaching materials.

II. The Role of Arbitration in Resolving Educational Disputes

1. Flexibility and Confidentiality

Unlike court proceedings, commercial arbitration allows parties to:

Freely select arbitrators with expertise in education;
Agree on the venue, language, and procedural rules;
Ensure confidentiality of dispute-related information, which is particularly important for maintaining the reputation and brand of educational institutions.

2. Fast and Efficient Dispute Resolution

Arbitration procedures are generally simpler and faster than court proceedings, enabling parties to quickly stabilize teaching and learning activities.

3. Final and Binding Awards

Arbitral awards are final and binding, not subject to appeal or review, ensuring legal certainty and stability in educational legal relationships.

4. Suitability for the Commercial Nature of Modern Education

For private educational institutions, international schools, and skills-training centers, education is essentially a service-providing commercial activity. Therefore, commercial arbitration is an appropriate and effective dispute resolution mechanism.

III. Legal Framework Governing Education and Training

Educational activities and dispute resolution in this field are governed by various legal instruments, notably:

Law on Education 2019;
Law on Higher Education (as amended and supplemented);
Law on Commercial Arbitration 2010;
Civil Code 2015;
Relevant decrees and circulars guiding tuition fees, training cooperation, and foreign-invested education.

Under Vietnamese law, disputes arising from training contracts and educational service contracts may be resolved by arbitration provided that the parties have entered into a valid arbitration agreement.

IV. Notable Educational Disputes

In practice, a number of prominent educational disputes have arisen, such as:

Disputes between students and international schools concerning unilateral changes to training programs or non-recognition of awarded degrees;
Disputes over tuition fee refunds following changes in training modalities;
Disputes between educational institutions arising from training cooperation agreements and program franchising.

These cases highlight the urgent need for an effective, professional, and education-specific dispute resolution mechanism.

V. Protection of the Rights and Interests of Students and Educational Institutions

1. Protection of Students’ Rights

Commercial arbitration enables students to:

Have their right to education protected in accordance with contractual commitments;
Claim tuition refunds and compensation for damages when their rights are infringed;
Resolve disputes efficiently with minimal disruption to their studies.

2. Protection of Educational Institutions’ Rights

For educational institutions, arbitration helps to:

Minimize prolonged legal risks;
Protect institutional reputation and brand image;
Establish a stable legal environment for educational operations and investment.

VI. Dispute Resolution Through the BIGBOSS International Commercial Arbitration Center (BBIAC)

To resolve disputes by commercial arbitration at BBIAC, parties may include one of the following clauses in their contracts:

1. Standard Arbitration Clause

“Any dispute arising out of or in connection with this contract shall be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with its Arbitration Rules.”

The parties may additionally specify:

(a) the number of arbitrators: [one or three].
(b) the place of arbitration: [city and/or country].
(c) the governing law of the contract: [ ].
(d) the language of arbitration: [ ].

Notes:

Applicable only to disputes involving foreign elements;
Applicable to disputes involving foreign elements or at least one party being a foreign-invested enterprise.

2. Arbitration Clause Under Expedited Procedure

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

The parties may additionally specify:

(a) the place of arbitration: [city and/or country].
(b) the governing law of the contract: [ ].
(c) the language of arbitration: [ ].

Notes:

Applicable only to disputes involving foreign elements;
Applicable to disputes involving foreign elements or disputes where at least one party is a foreign-invested enterprise.

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