A 3-level dispute resolution system — from direct dialogue, through Huayue Mediation under Decree 22/2017, to international arbitration at VIAC Hanoi according to the New York Convention 1958. Vietnamese buyers are protected by law, not promises. Most cases end favorably for the buyer with sufficient evidence.
This is the period during which the buyer has the right to inspect and file a free complaint via Transaction Assurance. After 7 days, the escrow account is automatically released to the supplier, and the complaint rights shift to a higher evidence mode (hidden defect 30 days, or arbitration under the Commercial Law 2005 — statute of limitations 6 months).
Win rate, resolution time, and required evidence vary by type. Choosing the correct category when opening a dispute speeds up processing by 30-40%.
Delivered goods not matching the spec signed in PI/Contract — wrong size, color, material, certification (CE, FCC, RoHS missing or fake).
Major+minor defect rate exceeds agreed AQL 2.5. Defects not within tolerance of signed pre-production sample.
Actual count less than PO — no prior notice. Usual allowed tolerance ±2% (per Incoterms 2020).
Supplier fails to deliver by the deadline stated in the PO without valid force majeure notice. Standard tolerance is 14 days.
Damage due to supplier's incorrect packaging — wet cartons, no pallet, no corner protectors for fragile goods, no bubble wrap...
Loss during transit due to natural disasters, collision, fire, or sinking — NOT the supplier's fault. Handled via marine insurance, not through Transaction Guarantee.
Supplier receives payment but does not produce, disappears, or delivers fake branded goods. Most severe case — escalate immediately.
Delivered goods infringe third-party trademark, design patent, copyright — buyer faces legal risk if imported. High priority handling.
Every case starts at Tier 1 (direct dialogue). Only escalate higher if no agreement is reached. Principle: fast — cheap — voluntary first, formal later.
Buyer opens dispute on dashboard, NCC receives notification within 1 hour. Both parties negotiate directly via CSR chat (with translator), seeking voluntary resolution. ~62% of cases end at this tier — NCC admits fault and proposes solution (discount, replacement shipment, partial refund).
If tier 1 fails to reach agreement within 5 days, dispute is escalated to tier 2 — Huayue Dispute Officer (certified in commercial mediation under Decree 22/2017) takes over. Officer reviews evidence, organizes tripartite call Buyer-NCC-CSR, issues binding ruling per terms of service.
If a party does not accept the tier 2 ruling, they have the right to bring the case to formal arbitration — VIAC (Vietnam International Arbitration Centre) for Vietnamese law, or CIETAC (China International Economic and Trade Arbitration Commission) for Chinese law, according to the terms chosen in the PI. The arbitration award is internationally enforceable (New York Convention 1958).
The entire process averages 3.2 days for simple cases, 11-21 days for complex cases requiring Tier 2 mediation.
Buyer inspects goods at their own warehouse (not at the port — must be after unloading and setup). Inspection period of 7 days is the standard disclosed in the Trade Assurance terms — after that the system auto-confirms and the escrow account disburses.
The more detailed the evidence, the faster the dispute is processed in your favor. Investing 2-4 hours in good evidence typically increases win rate from ~60% to 90%+.
Log in to /buyer-center/orders, select the order → 'Open Dispute' → upload all evidence. The system automatically locks the escrow account immediately — supplier cannot receive funds until resolved.
Supplier receives notification (email + WeChat/DingTalk) and must respond within 48 business hours. No response = forfeits right to defend, dispute auto-escalates to tier 2 with presumption of supplier fault.
Both parties negotiate via CSR chat with a dispatcher monitoring. ~62% of cases reach an agreement here. Common solutions: refund 15-50% + keep goods, refund 100% + return, free replacement shipment, credit for next order.
If tier 1 fails, Huayue's Dispute Officer (certified mediator under Decree 22/2017) takes over. Reviews evidence in 2-3 days, holds a 60-90 minute 3-way call, issues a ruling based on evidence + service terms. The ruling is binding on both parties per signed terms.
Ruling is enforced: refund via escrow back to buyer's account, replacement shipped free with QC priority, or credit recorded in CSR Wallet for next order. Non-compliant supplier gets rating deduction and reserved fund forfeiture.
Data from resolved disputes at Huayue — most are favorable for the buyer with sufficient evidence in various forms.
Full order value refunded via escrow. Applies to fraud, severe spec mismatch, or supplier non-delivery.
Refund 15-70% depending on severity. Buyer keeps goods, applies to non-critical defects but goods can be sold at a discount.
Supplier ships free replacement with QC priority. Applies when buyer needs correct spec goods to sell to end customers.
Credit recorded in CSR Wallet for next order, typically 100-150% of loss value to retain buyer.
Refer to VIAC / CIETAC for large disputes with no agreement. Internationally binding ruling.
Selected from closed disputes — representing the 4 most common situations for Vietnamese buyers.
Hanoi buyer ordered 220 cabinets. Foshan supplier delivered correct size but 'walnut dark' wood grain was lighter than signed sample. Buyer filed dispute with 24 photos + Pantone comparison table. Supplier initially rejected ('natural wood grain has variation'). Tier 2 mediation reviewed retained sample at CSR — determined color deviation exceeded tolerance. Ruling: 35% refund, buyer keeps goods for resale at lower price to tier-2 dealers.
HCM buyer ordered 1,200 LED panel lights. Random inspection of 100 units found 12% non-working (defect rate exceeded AQL 2.5). SGS report confirmed circuit fault. Tier 1: Supplier immediately accepted, shipped 150 free replacement lights via express + $500 voucher for next order. Dispute closed in 7 days — no need for tier 2.
Haiphong buyer ordered 380 toilets from Foshan. After receiving 30% deposit, supplier stopped responding for 14 days. Tianyancha showed supplier was flagged for bankruptcy risk. CSR escalated immediately, froze escrow account. Tier 2 mediation auto-triggered after 5 days of no supplier response. 100% refund within 14 business days via Vietnamese partner bank. Supplier permanently suspended from CSR.
Da Nang buyer ordered 5,000 shirts. When goods arrived at Tien Sa port, customs detained the shipment due to a logo resembling a Madrid Protocol registered brand. Supplier initially denied, but tier 3 VIAC arbitration ruled within 28 days, ordering full refund + $14K compensation for customs storage and legal fees. Ruling enforced via New York Convention in China.
For fraud, serious IP violations, customs holds, supplier disappearance — don't wait for the automated process, call/chat 24/7 to have a Senior Dispute Officer handle with priority.
For fraud, IP infringement, customs detention — call now, response within 30 minutes
Click 'Open Dispute' on the order — chat directly with Dispute Officer
Submit complex cases with evidence — response <2 hours during work hours
For buyers in remote areas with unstable internet, escalation manager in charge
Log in to the buyer dashboard, select the order to dispute, click 'Open dispute'. The system automatically locks the escrow account and activates the 7-step process. Or call the 24/7 emergency hotline for serious cases.
