Dispute Boards (DAB/DAAB) in Vietnam: Toward International Standards
Vietnam’s public infrastructure program is entering a pivotal phase, marked by a gradual alignment with international standards in alternative dispute resolution practices. This second article in a series on recent developments in Vietnamese construction law1 explores the growing role of Dispute Boards (“DBs”) in large-scale infrastructure projects.
In recent years, the widespread adoption of FIDIC based contracts, particularly in projects financed through Official Development Assistance (“ODA”), has introduced DB mechanisms into Vietnam’s construction practices.
Designed to proactively manage and resolve disputes during project execution, DBs offer a structured approach to dispute avoidance and adjudication.
However, the lack of a dedicated legal framework has led to significant challenges. The draft law intended to replace Construction Law No. 50/2014/QH13 dated 18 June 2014 (the “Draft Law”) marks a turning point. It proposes to formally recognize DBs, Dispute Adjudication Boards (“DABs”), and Dispute Avoidance/ Adjudication Boards (“DAABs”), particularly in publicly funded projects. By embedding these mechanisms into the contractual and regulatory framework, the draft law aims to enhance dispute prevention, improve legal certainty, and support timely and enforceable dispute resolution.
This article examines the legal basis, enforceability, and practical implications of integrating DB/DAB/DAAB mechanisms within Vietnam’s evolving construction law landscape.
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