July 9, 2018
The People’s Court of Ho Chi Minh City was recently requested to overturn an arbitral decision by the Vietnam International Arbitration Center (VIAC) relating to a non-competition clause. In the end, however, the court ruled that VIAC’s decision was correct, thus upholding a non-compete clause signed between a company and its employee. The decision represents one of the first times in Vietnam in which the enforcement of a non-compete clause was tested. Although it is not a legally binding precedent, it does show that non-compete clauses can potentially be upheld in Vietnam.