Under Article 14 of Law on Commercial Arbitration, applicable laws for dispute settlement by arbitration in Vietnam will be Vietnamese if the case involve no foreign element. If dispute involving foreign invested enterprise, parties need to agree on language. If parties do not have such language agreement for arbitration, the arbitration council will decide. In particular:
For a dispute involving no foreign element, the arbitration council shall apply Vietnamese law for settling the dispute.
For a dispute involving foreign elements. the arbitration council shall apply the law selected by the parties. If the parties have no agreement on the applicable law, the arbitration council shall decide to apply a law it sees the most appropriate.
When the Vietnamese law or law selected by the parties contains no specific provisions concerning the dispute, the arbitration council may apply international practices for settling the dispute, provided such application or consequence of such application does not contravene the fundamental principles of Vietnam law.
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