A 3-tier dispute resolution system โ from direct dialogue, through Huayue Mediation under Nฤ 22/2017, to international VIAC arbitration in Hanoi under the New York Convention 1958. Vietnamese buyers are protected by law, not by promises. Most cases close in the buyer's favor when the evidence is complete.
This is the window in which the buyer has the right to inspect and file a complaint for free through Trade Assurance. After 7 days, the escrow account auto-releases payment to the supplier, and the right to claim shifts to a higher-evidence mode (30-day hidden defect, or arbitration under the Commercial Law 2005 โ a 6-month limitation period).
Win rate, resolution time, and required evidence differ by type. Choosing the right category when you open a dispute speeds resolution by 30โ40%.
Goods delivered do not match the spec signed in the PI/contract โ wrong size, color, material, or missing/forged certification (CE, FCC, RoHS).
Major + minor defect rate exceeds the agreed AQL 2.5. Defects fall outside the tolerance of the signed pre-production sample.
Actual count is lower than the PO with no prior notice. The usual allowed tolerance is ยฑ2% (per Incoterms 2020).
The supplier failed to deliver by the deadline stated in the PO without a valid force majeure notice. Usual tolerance is 14 days.
Damage caused by the supplier packing below standard โ wet cartons, no pallet, no corner protectors for fragile goods, no bubble wrap, and so on.
Loss in transit due to natural disaster, collision, fire, or sinking โ NOT the supplier's fault. Handled via Marine Insurance, not Trade Assurance.
The supplier took payment but never produced, disappeared, or delivered counterfeit-brand goods. The most serious case โ escalate immediately.
Delivered goods infringe a third party's trademark, design patent, or copyright โ the buyer faces legal risk on import. Handled as high priority.
Every case begins at Tier 1 (direct dialogue). It escalates only when no agreement is reached. The principle: fast, cheap, and voluntary first; formal later.
The buyer opens a dispute on the dashboard, and the supplier receives notice within 1 hour. Both sides negotiate directly via CSR chat (with a translator) to reach a voluntary resolution. About 62% of cases close at this tier โ the supplier accepts fault and proposes a solution (discount, replacement shipment, partial refund).
If tier 1 reaches no agreement within 5 days, the dispute is escalated to tier 2 โ a Huayue Dispute Officer (certified in commercial mediation under Nฤ 22/2017) takes over. The officer reviews the evidence, organizes a three-way BuyerโSupplierโCSR call, and issues a binding ruling under the terms of service.
If either party rejects the tier 2 ruling, they may bring the matter to formal arbitration โ VIAC (Vietnam International Arbitration Centre) under Vietnamese law, or CIETAC (China International Economic and Trade Arbitration Commission) under Chinese law, per the clause chosen in the PI. An arbitral award is internationally enforceable (New York Convention 1958).
On average the full process wraps up in 3.2 days for simple cases, and 11โ21 days for complex cases that require tier 2 mediation.
The buyer inspects the goods at their own warehouse (not at the port โ only after unloading and setup). The 7-day inspection period is the standard published in the Trade Assurance terms โ after that, the system auto-confirms and the escrow account releases payment.
The more detailed the evidence, the faster the dispute is resolved in your favor. Investing 2โ4 hours in solid evidence typically raises the win rate from about 60% to 90%+.
Sign in at /buyer-center/orders, select the order โ 'Open a Complaint' โ upload all evidence. The system instantly locks the escrow account โ the supplier cannot receive payment until the matter is resolved.
The supplier receives notice (email + WeChat/DingTalk) and must respond within 48 business hours. No response = loss of the right to self-defense, and the dispute auto-escalates to tier 2 with a presumption of supplier fault.
Both sides negotiate via CSR chat with a dispatcher monitoring. About 62% of cases reach agreement here. Common solutions: 15โ50% refund + keep the goods, 100% refund + return, free replacement shipment, or credit toward a future order.
If tier 1 fails, a Huayue Dispute Officer (certified in mediation under Nฤ 22/2017) takes over. They review evidence for 2โ3 days, hold a three-way call of 60โ90 minutes, and issue a ruling based on evidence + the terms of service. The ruling is binding on both parties under the signed terms.
The ruling is enforced: a refund is returned from the escrow account to the buyer's account, a replacement is shipped free with priority QC, or a credit is recorded in the CSR Wallet for a future order. Suppliers in breach have their rating and reserved fund deducted.
Data from resolved disputes at Huayue โ most resolve in the buyer's favor, in various forms, when the evidence is complete.
Full refund of the order value via escrow account. Applies to fraud, severe spec mismatch, and supplier non-delivery.
A 15โ70% refund depending on severity. The buyer keeps the goods; applies to non-serious defects that can still be sold at a discount.
The supplier ships a free replacement with priority QC. Applies when the buyer needs goods that match spec to sell to end customers.
A credit recorded in the CSR Wallet for a future order, typically 100โ150% of the loss value to retain the buyer.
Brought to VIAC / CIETAC for large disputes with no agreement. Internationally binding award.
Selected from closed disputes โ representing the 4 most common situations Vietnamese buyers face.
A Hanoi buyer ordered 220 cabinets; the Foshan supplier delivered the correct size, but the 'walnut dark' grain was lighter than the signed sample. The buyer opened a dispute with 24 photos + a Pantone comparison chart. The supplier initially rejected it ('natural wood grain varies'). Tier 2 mediation reviewed the batch sample archived at CSR โ and found the color deviation exceeded tolerance. The ruling was a 35% refund, with the buyer keeping the goods to sell at a lower price to a tier-2 dealer.
A Ho Chi Minh City buyer ordered 1,200 LED panel lights; a random check of 100 units found 12% would not turn on (defect rate exceeding AQL 2.5). An SGS report confirmed a circuit fault. Tier 1: the supplier accepted immediately, shipped 150 replacement lights free by express + a $500 voucher for next time. The dispute closed in 7 days โ no need to reach tier 2.
A Hai Phong buyer ordered 380 toilets from Foshan. After receiving a 30% deposit, the supplier went silent for 14 days, and Tianyancha showed the supplier was flagged for bankruptcy risk. CSR escalated immediately, sealed the escrow account, and tier 2 mediation auto-triggered after 5 days of no supplier response. A 100% refund was issued within 14 business days through a Vietnamese partner bank. The supplier was permanently suspended from CSR.
A Da Nang buyer ordered 5,000 shirts. When the goods arrived at Tien Sa port, customs held the shipment after detecting a logo too similar to a brand registered under the Madrid Protocol. The supplier initially denied it, but tier 3 VIAC arbitration ruled within 28 days, ordering the supplier to refund 100% + pay $14K in customs storage fees + legal fees. The award was enforced via the New York Convention in China.
For fraud, serious IP infringement, customs holds, or a supplier that disappears โ do not wait for the automated process; call or chat 24/7 to have a Senior Dispute Officer handle it as a priority.
For fraud, IP infringement, or customs holds โ call now, response within 30 minutes
Click 'Open a Complaint' on the order โ chat directly with a Dispute Officer
Send complex cases with evidence attached โ response under 2 hours during business hours
For buyers in remote areas without stable internet, handled by an escalation manager
Sign in to your buyer dashboard, select the order to dispute, and click 'Open a Complaint'. The system automatically locks the escrow account and triggers the 7-step process. Or call the 24/7 emergency hotline for serious cases.
