In 2024, the National Assembly of Vietnam enacted the new Law on Organization of the People’s Court (Law on Courts), which implemented significant reforms to the structure of the People’s Court system in comparison to the 2014 Law on Courts. Shortly after the promulgation of the 2024 Law on Courts, Vietnam initiated a substantial reorganisation of its administrative divisions, transitioning from a three-tier (province, district, commune) model to a two-tier (province, commune) model. Consequently, in 2025, the National Assembly approved an amendment to the 2024 Law on Courts to align the court system with the updated two-tier administrative division model (2024-2025 Law on Courts). Below are our discussions on the key changes under the 2024-2025 Law on Courts when compared to the 2014 Law on Courts.

1) Complete Restructuring of the Court Hierarchy

The court system is majorly reformed with the removal of the High People's Courts (Tòa án nhân dân cấp cao) and replacement of District Courts with Regional Court (Tòa án nhân dân khu vực).

2014 Law on Courts

2024-2025 Law on Courts

1.1. Supreme People's Court.

1.2. High People's Courts.

1.3. Provincial People's Courts.

1.4. District People's Courts.

1.5. Supreme People's Court.

1.6. Provincial People's Courts.

1.7. Regional People's Courts.

2) Change to Appellate Jurisdiction

With the removal of the High Courts (who were the primary appellate bodies, reviewing first-instance decisions from Provincial and District Courts), appellate functions are reassigned:

(1) The Supreme People's Court now has Appellate Divisions (Tòa Phúc thẩm) to hear appeals from Provincial Courts. Previously, the Supreme People's Court mainly handle cassation/review (giám đốc thẩm, tái thẩm); and

(2) The Provincial People's Courts now hear appeals from the new Regional People's Courts.

3) Change to First-Instance Jurisdiction

The Regional People's Courts replace the District Courts, who served as the primary first-instance courts. Their jurisdiction is no longer tied to a single district but covers a broader region as defined by the National Assembly's Standing Committee. This might allow for more flexible organisation based on caseload and geography.

4) Introduction of specialized court designated for the International Financial Centre

The 2024-2025 Law on Courts introduces the concept of a Specialized Court in International Financial Centre as a distinct entity designated for the International Financial Centres to be established in Vietnam. Currently, the Government is set to open two financial centres, one in Ho Chi Minh city and one in Da Nang city. However, the organisation and operation of these specialized courts are not yet clearly defined under the 2024-2025 Law on Courts but left to the National Assembly’s discretion.

5) Simplified judicial ranks

Judicial ranks (ngạch thẩm phán) are simplified to two main ranks being:

a) Supreme Court Judge; and

b) People's Court Judge.

The "People's Court Judge" rank is further divided into different levels (bậc), which is not clarified under the 2024-2025 Law on Courts but left under the discretion of the National Assembly's Standing Committee.

6) Extended judicial tenure

Previously, the first term for all judges is 5 years, and subsequent reappointments are for 10-year terms. Now,

a) Supreme Court Judge would be appointed for a continuous term until retirement or transfer;

b) People’s Court Judge’s first term is 5 years, and reappointment are for a continuous term until retirement or transfer.

7) Possible overreaching extension of power to handle conflicting legal documents

a) Under the 2014 Law on Courts, when a court discovers a legal document (văn bản pháp luật) conflicts with the Constitution, law, resolution of the National Assembly, the ordinance or resolution of the Standing Committee of the National Assembly, it can only propose (kiến nghị) that the competent authority amend or annul it.

b) Under the 2024-2025 Law on Courts:

(1) The court has the right to propose that the competent authority amend or annul legislation (văn bản quy phạm pháp luật) relevant to the trial (the Conflicting Legislation) showing signs of conflict with the Constitution, law, resolution of the National Assembly, the ordinance or resolution of the Standing Committee of the National Assembly, or legislation of superior state authority (collectively, the Constitution and Higher Laws); and

(2) With regards to Conflicting Legislation being legislation guiding the implementation of the Constitution and Higher Laws, the court is now granted with the power to directly apply the Constitution and Higher Laws to the trial if the competent authority failed to response within the time frame regulated by law. This essentially means that the court is allowed to dismiss the legal validity of a legislation for a specific case, even though such Conflicting Legislation is still legally valid under the 2025 Law on Promulgation of Legislation. This might create unnecessary uncertainty regarding the applicability of said Conflicting Legislation for the general public and other state authorities. It is also unclear if the authority competent of reviewing the Conflicting Legislation can have a different view from the court, and in such case, whether the court’s decision could be overturned.

8) Clearer separation of power to initiate criminal cases

a) The 2024-2025 Law on Courts removed the authority of the court to initiate a criminal case if it discovered a crime had been overlooked (bỏ lọt tội phạm) during a trial. The court can now only request or propose that the Procuracy initiate a criminal case in such situations, reinforcing the separation of power between the court and the Procuracy.

This post is written by Le Thanh Nhat.

Vietnam Business Law