The Concept of Consent Award : Enforceability Under International Legal Instruments and Vietnamese Laws

By nature, consent award is also a form of arbitral award, yet it differs in the sense that in rendering a consent award, the arbitral tribunal does not entertain the dispute on its merits, but only records the settlement agreement of both parties for the purpose of formality. The legal status of a consent award as well as the arbitral tribunal’s power to render such award is still subject to varying opinions, yet the prevailing view has been that arbitral tribunal should have the power to render a consent award that is in line with the spirit of arbitration as a means of dispute settlement, and the consent award should have the same legal status with any arbitral awards and be subject to the same set of rules governing its enforceability. It is interesting to note that while some legally developed jurisdictions such as France still remain silent on the regulations of consent awards, Vietnam has recognized consent awards as permissible in an explicit manner. However, Vietnamese laws on the enforcement of arbitral awards in general show incompatibility with international standards and thus, still pose great challenges to any foreign parties seeking enforcement of a consent award in Vietnam. To tackle this issue, Vietnam should endeavor to conform with the internationally accepted standard, including providing sufficient guideline instruments for the authorities in charge of dealing with parties’ requests to enforce the foreign arbitral awards. Particularly in the context of enforcing consent awards, it is highly advised that Vietnam adopt the regulations under the ICC Arbitration Rules into its own regulations on arbitration procedures which would allow the arbitral tribunal to scrutinize for any illegality in the foreign consent awards in the first place, so that there no longer exists grounds for refusal of enforcement.This thesis includes three chapters. Chapter 1 provides baseline guidance on the concept of consent award (also known as award on agreed terms). Understanding of this “abnormal” arbitral award should be undertaken by defining both settlement agreement and consent award, knowing the responsibility of the arbitral tribunal in making a consent award, as well as both the limitations and benefits of holding a consent award.Chapter 2 unfolds the international regulations governing enforcement of consent awards. Particular focus is made on the regulations under the New York Convention and ICSID Convention. Both relevant provisions and jurisprudence will be analyzed to depict the application of such laws as well as problems pertaining to it.Chapter 3 refers to Vietnamese laws on consent awards. Inconsistencies between Vietnamese and international regulations will be discussed in order to alert the foreign parties of the enforcement practice in Vietnam