State liability for compensation in the development of vietnam proposals for further reform

ìTATE LIABILITY F O R CO M PEN SA TIO N ỈN TH E Đ E V E L O P M E N T
OF V IETNAM : PRO PO SA LS FOR FU R T H E R R E F O R M

By
Nguyen Minh Oanh

LL.B (Hanoi Law University, Vietnam)
LL.M (Lund University, Sweden)

Submitted in total fulfilment of the rcquirements for the degree o f
Doctor of Philosophy

TRUNG TÂM THÔNG TIN THƯVIỆN
TRƯỜNG DẠI HỌC LUẬT HÀ NỘI
PHỊNG ĐỌC

^ ỹ Í-Ịà

College o f Law and Justice
Victoria ưniversity
Australia

SEPTEMBER 2015


Abstraet
T h e Law on State C om pcnsation L iability 2009 (SCL) is a turning point in the
refo rm process in V ietnam vvith its aim s o f protecting hum an rights, boosting the
developm ent o f a State based on the rule o f law and a socialist-oriented m arkct
econom y. This thesis critically exam ines th is legislation and the rem edies provided

under it relating to w rongful decisions or actions by the executive and judicial branches
o f governm ent and

for speciíìc

w rongful

enforcem ent activities.

U sing m ixed

m ethodologies the aim s o f the sludy are to co n sid er appropriate rcíbrm s to im provc the
SCL and enhance its im plem entation. The thesis considers the effectiveness o f the SCL
and its enforcem ent. Ít revicvvs and analyses thcories and policics relating lo State
liability for vvrongíul actions. This establishes a platíorm for the evaluation oí' the SCL.
It critically investigates SC L ’s appropriateness. Ít argues that the SCL has m any
deíiciencies and needs íurther reíorm . The thesis review s and analyses the procedures
under and for the eníorcem ent of, the SCL. It points out that the procedures and
m echanism s for settlem ent o f com pensation claim s are com plex and inappropriate. The
eníorcem ent o f the SCL is poor and consideration is gi ven to its im provcm cnt. The
thesis also com pares thc C hinese SCL w ith that o f V ictnam . It cxam ines the sim ilaritics
and difl'ei‘ênces in order lo (iraw 011 C hinese experiences whicli m ay bc relevant to
V ietnam ’s legal retbrm s. Pinally, the thesis m akes recom m endations to im prove the
SCL and its eníịrccm ent in order to support the D o i m oi (innovation) in V ietnam .


Stuđenídeclaraíio n
I. N guyen M inh O anh, declare that the PhD thesis is no m ore than 100,000 vvords in
length including quotations and cxclusivc o f tables, iìgưrcs, appendiccs, bibliouraphy,
reíercnces and íbotnote. This exegesis contains no m aterial thai has bcen submiUcd

previously, in w hole 01' in part, for the aw ard o f any other academ ic degree or diplom a.
Except \vhere otherw ise indicated, this excgesis is my ow n w ork.
Signed: ...............
D a te :............ , Ẵ Ầ . Ị .3 J.

.

í

ii


Acknovvledgemcnts
To com plete this thesis, I ow e a grcat deal to m any peoplc and organisations.
1

w ould like to thank Hanoi Law U niversity, vvhcre I w ork, and the G overnm ent

o f V ietnam for providing m e with the opportunity to study in A ustralia. My spccial
ihanks go to the C ollcgc o f Lavv and Justice o f V ictoria U niversity 1'or thcir ỉìnancial
support for m y extra tuition fees. W ithout such kind support, I vvould not havc becn ablc
to undertake this thesis.
[ ow e a particular debt oi' gratitude to my prin cip lc supervisor, Proíessor Ncil
Andrev/S, for his kind acceptance in supervising my research; for spending a great dcal
o f tim e, energy and patience in helping me to clarilỳ issues, shape ideas, reading various
carlier draíts oi' my thesis, and giving me insightíul com m ents; i'or his sym pathy and
encouragem ent vvith my life and íìnanciai difficulties. I Ihank ray co-supervisors, Dr
Jam es M c Convill and M r B rendon Stew art -my íorm er co-supervisor- vvho kindly read
my dralts and gave m e useiiil advice. The thesis w ould never have been com pleted
w ithout their valuable support.

M y deep gratitude goes to my íầm ily: my íath er w ho always looked forw ard to
hearing from m e during m y four years o f study; m y husband N guyen M anh C uong who
has been patient and lonely in V ietnam while I w as in A ustralia ío r my PhD course; m y
ílrst child N gan G iang (R uby) who has given me the courage and m ade me proud o f
her; my second child C hau G iang (Sydney) - a baby b o m in A ustralia w ho has been
living far from me for tw o and a hulí' years, thereby g iving me a strong incentive to
íìnish m y challenging w ork; and m y brother and sisters w ho have constantly
encouraged m e vvith their interest in the progress o f m y studies.
M y thanks is due to the staff and my íriends at thc C ollege o f Law and .Ịustice íor
their recognition and íricndship. D eep thanks also go to colleagues in H anoi Law
U niversity, the oíTieials in D epartm ent o f State C om pensation, M OJ especially M r
Phuong, w ho supported m e by providing reports and docum ents, and gave me the
opportunity to attend several conicrences w hen I returned to V ietnam . Also, in w riting
this thesis, I beneílted from the support o f my íriencls and oíTicials írom SPC, SPP, NA,
M OJ, laxvyers and claim ants vvho participated in m y ficldw ork. I w ould likc to thank all
o f them for their contributions to this thesis, m aking it com prehensive and valuablc.


Special thanks to H oan, Quyen, U yen, my close ữ icn d s in M clbourne, w ho
supported me in editing the thesis dralt.
ỉ am grateíul to my ữ ien d s, colleagues and m any o ther peoplc in A u stralia and
V ietnam who in various w ays hclpcd me to com plete this thesis.
This thesis is a special gift to my m other in heaven vvho dcvoted her w holc lifc to
her íầm ily.

iv


Preĩacc
I

have been teaching Civil law including thc law o f obliiĩations and civil liability

at H anoi Law U niversity since 2000. The idea 1'or this ihesis em crgcd in 2003 aftcr the
prom ulgation o f Rcsolution 388. As 1 had to teach m y students about the liability o l'th e
State ib r vvrongíul convictions, I had to research and prcpare lectures on this issue.
Initially, I tbund that it was diHìcult lo understand evcn though 1 spent tim e and elTort
on it. Through that research and com parisons m ade w ith ordinary civil liability that I
w as teaching, 1 found this R esolution had m any shortcom ings and w as very challenging
to apply in practice.
The topic becamc m ore obvious aíter 1 had vvritten several papers íor the H anoi
Law U niversity Project w hich aim ed to strcngthen legal reíb rm processes in Vietnam .
The 1110re 1 w orked 011 the issues, the m ore background ỉ obtained and the m ore
interested J becam e. I have also attended several co n íeren ces on the draữ ing o f the lavv
on State liability for com pensation. I observed the process o f m aking the lavv and the
dcbatc betw een State oíĩicials. The draít lavv w as review ed by m any State agencies and
citizens beỉore being approved by the NA. A fter the enactm ent o f the SCL in 2009, I
saw that although there had been a relatively long and tidy process o f law-m aking, the
prcvious problcm s still rcm aincd in the ncvv lavv. A dditionally, the longer the lavv liad
bccn in force, the m ore dìciencies it showed. ỉ also realized that there had been a lack
o f background in the theories and nature o f State liability and the task to prom ulgate law
had im pacted on the quantity and quality o f law. M oreover, I w as interested in many
cases relaling to State liability for com pensation w hich appear every day in the
V ietnam ese media. I often asked m yscli' why claim ants have íbund it so difficult lo
claim for com pensation. I decided to exam ine this topic seriously, and com m enced m y
research for this thesis in 2010.
A t the beginning o f the research, 1 thought that the SCL had been established w ilh
little if any regard for any basic theories. I intended to exam ine a legal theory or
transplant research w hich w ould be expected to enrich the theory o f State liability and
transplantation o f law in V ietnam .

To begin with, I looked at the literature 011 legal theory and doctrine relating to
State liability íor com pensation as signiíìcant issues. It becam e clear that in legal
w ritings, m any w riters such as Harlow , Pcerenboom , M ilhaupt and Pistor conclude that

V


there is no one theory íbr the linked phenom ena and every governm ent prom oles
econom ic and lcgal grovvth in its own vvay based on its contcxt. I continucd to read
m aterial pertaining to (1) the relationship bctvvccn the developm cnt o i'th e econom y and
the law studicd by M arx, N orth and Pccrcnboom ; (2) the dcbale about the priority o f
developini’ the econom y or protecting hum an rights described by m any authors such as
Peerenboom , G illespie and Chen; (3) the three elem ents w hich are rcquired to build the
institutional capacity to support econom ic grow th reíerred by N orth; (4) the reíorm
process in V ietnam including legal refom is em phasising the im portance o f the SCL
investigated by Pham Quoc Anh, D uong Thanh M ai, D uong D ang Hue, N guyen Sy
Dung, Le Ha Vu. These suggested to me that I should place the SCL in the context o f
V ietnam and approach the topic by conđucting research on lavv rcíbrm rather than on
legal theories 01' theories oi’the transplantation o f laws.
The ỉaw reíorm aim o f the thesis iníbrm ed its design and the qualitative
m ethodology chosen. The first rcscarch question is about the quality o f SCL. T here is
also a larger question: why is it that in V ietnam it is difíìcult to cniorce not only the
SCL bui also ihe general law? W hat I read in the relevant literature on the V ietnam ese
legal system and institutions coníìrm ed m y rcsolve that the thesis should have a law
reform orientation.

!t also established the fram ew ork for a revievv o f the law.

The

literature review revealed vveak m cchanism s in the enforcem ent o f the general law in
V ietnam w hich em phasised the im portance o f context for the SCL. It is necessary to
investigate the less-than-satisíầctory eníbrcem ent o f the SCL in 01'der to discover its
causcs and eíYects and determ ine vvays to im prove it.
In m any ways, the thesis exam ines State liability írom three perspectives: legal,
political and social. It view s the SCL in term s o f its position w ithin thc legal system and
in the context o f the V ietnam ese governm ent’s desire for íurlher political and econom ic
developm ent.

By conducting the intervievvs, reading the relevant literature and

discussing the various em erging issues vvith my supervisor, my knovvledge has been
enriched and the structure o f the thesis toolí form. This included íocuses on the
shortcom ings o f the substantive law (C hapter 4). the procedural law (C hapter 5), and its
eníorcem ent (C hapter 6). T hese issưes w ere investigated w ith consideration givcn to the
developm ent oi' V ietnam (C hapter 1), the realities oí' its legal and political system ,
theories, and the distinctive nature ol'State liability (C hapter 3). They are consistcnt with
the aim s w hich vvcre stated at thc bcginning o f the rescarch.
vi


The research is signiiìcant because it contributes to a m ore com prehensive
understanding o f State liability; m oreover, it is hoped that the iìndings will hasten the
rbnn processes in V ietnani by lcading to a ranee o f appropriate recom m endations,
especially those given in Chapter 8.

vii


Table o í abbreviations

The follow ing abbreviations appear in the m ain text and/or ío o tnotes o f this thesis. M ost
are spelled out in íull 01' othervvise ex p lain ed w hen thcv arc lìrst m entioned.
States and Organisations
CCP: C hinese Com m unist Party
EA M : East A sian M odcl
EU: European U nion
H REC: H um an Research E thics C om m ittee
MO.I: M inistry o f Justice (Bộ Tư p h á p , V ietnam )
N A: N ational A ssem bly (O uốc hội, V ietnam )
SPC: Suprem c Pcople"s C ourt
SPP: Suprcm c Pcople’s Procuracy ( Viện K iểm sát nhân dân Toi cao, V ictnam )
V CCI: V ielnam ese C ham ber o f C om m crce and ỉndustry
VCP: V ietnam ese C om m unist P arty (Đ ủ n g C ộng sản Việt N um )
W TO: W orld Trade O rganisation
Lavvs
Decree 16: D ecree 16/2010/N D -C P giving guidance 011 im plem enting the law on State
liability for com pensation 2009 011 3/3/2010
Decree 47: D ecree N o 47/C P on D ealing w ith C om pensation for D am age C aused by
State OlYiciuls on 3/5/1997
ECJ: Law on E níbrcem ent o f C ivil Ju d g m en ts 2008 (Y ictnam )
ICCPR: International C ovenant on C ivil and Political R ights 1966
1CESCR: International C onvention on E conom ic, Social and C ultural R ights
IDHR: C onvention o f U niversal D eclaration o f H um an R ights 1948
Report 114: Report 114/B C -B T P o f M O J 011 P relim inary assessm ent o f 3-year
im plem entation o f the SCL on 31/5/2013
Report 300: Report 300/B C -C P o f G ov ern m en t 0 )1 State L iability AíYairs on 23/10/1012
viii


R esolution 388: R esolution 388 N Q / U B T V Q H on C om pcnsalion íbr ihe V ictim s o f

W rongful C onvictions 011 17/3/2003
Rcsolution

48:

R esolution

4 8-N Q /T W

on

the

Strategies

for

B uilding

and

C om prehending the L egal System until 2010, an oricnlation upw ard to 2020, adopted
on 24/5/2005
R esolution 49: R esolution 4 9-N Q /T W on strategy o f ju d iciarv reíbrm up to 2020,
adopted on 2/6/2005
SCL: Law on State C om pensation L iability

ix

Tabỉc of Appenclices
1-

lntcrview Schcdulc

2-

Iníbrm ation to Participants

3-

C onsent Form for P articipants

4-

F lo w chart oí'interview

5-

T ranslation o f Interview Schedule

6-

T ranslation o f Iníorm ation to P articipants

7-

T ranslation o f C onsent F orm ío r Participants

8-

L etter o f Invitation

9-

Iníorm ation for Lawyers.

10- Translation o f iníbrm ation to Law yers
11 - T ranslation o f the lettcr o f invitation for Lavvyers
12- C oniìrm ation o f supervision o f fieldw ork in V ietnam
13- D eclaration o f accurate tran slatio n
14- A nsw er sheet
15- Em ail explanation o f State o iììcial
16- Proposal
17- E thics Proposal

X


Some ỉnitial idcas in relatioii to tỉiis thesis vvere publishcd in
1. N guyễn M inh O anh, đồng tác giả, Phần I, Chương II "M ột sổ nội d ung cơ bủn trong
quy định cua p h á p luật Việt N am vù m ột số quốc gia khác vẻ trách nhiệm bồi thường do
lùi sàn gây thiệt h ạ i" , sách chuyên khảo Tran Thi Hue "Trách nhiệm bui thường thiệt
hại do lài san gâ y ra theo p h á p luật Dim sự Việt Nam ", N hà xuất bàn Chính trị- H ành
chính, 2013, trang 33-54.
[N guyen M inh O anh, co-author, Part I, Chapter II “Som e f'undam ental issues on
com pensation lỉability fo r dam ages cciused by p ro p erty under Vietnam ese law a n d other
ịu r is d ic ìio m " in Tran Thi H ue (editor) "C um pem ation liabilỉty fo r dam age causcd by
p ro p erty under Victnam esc C ỉvil L a w ", Politic and A dm inistrative Publisher, 2013, pp.
33-54.]

2. N guyên M inh O anh, Overvievv o f the State Com pensation Liability in V ietnam , La\V
an d D evelopm ení Jo u rn a l, N o.5/2013, pp. 30-41.
3. N guyễn M inh O anh, M ột số ý kiến góp ý sửa đổi, bổ sung Luật Trách nhiệm Bồi
thường của N hà nước, Tạp ch í NIÙI nước vù Pháp luật, số 7/2013, trang 13-20, 28.
[N guyên M inh O anh, Som e suggestions for am endm ent o f the State C om pensation
L iabilily La\v, State a n d Lcnv .ỉournal, N o .7/2013, pp. 13-20, 28]
4. N guyen M inh O anh, A critical review o f the Vietnam ese L aw 011 State Liability íb r
C om pensation in V ietnam , La\v a n d D evelopm ent JournaI, N o .3/2013, pp. 27-38.
5. N guyen M inh O anh, "State liability fo r com pem ation in Vietnam: a study in le ga ỉ
change", M elbourne U nivcrsity W orkshop, D ecem ber 2010.
6. N guyễn M inh O anh, K hái niệm và p h á n loại trách nlĩiệm bồi thư ờng thiệt hại, Đe tài
cấp Trường “Trách nhiệm bồi thường thiệt hại do tài san g â y ra ", 2009.
[Nguyen M inh O anh, D efm ition a n d category o f liabiliíy f o r com pensation, Science
Prọịect oí’ Hanoi Lavv U niversity "C ivil ỉiability fo r com pensation fo r dam ages caused
by p r o p e r ty ”, 2009]
A vailable at H anoi Law Library, Shclves Code: DSVDKH 000129
Also availablc at: />
xi


7. N guyễn M inh O anh, P háp luật m ột sổ nước trên thé giới về trách nhiệm bồi thường
N hà nước, Đe tài cấp T rường "Trách nhiệm dân sự vẻ thiệt hại do hành vi CIICI cán bộ
công chức gây ra- n h ữ ng vân để lý luận và thực tiên ”, 2009.
[N guyên M inh O anh. The law on State liabiỉity f o r C um pensation in som c ịurisdiclions
in the worỉd- expcrience fo r Vietnam, Science P rọịect o f H anoi Law U niversity "C iviì
liability fo r co m p em a liu n fo r dam ages caused by State officials- thcorclicaỉ a n d
p ra ctỉca l issues ", 2009.]
A vailable at H anoi Law Library, Shelves Code: DSVDKH 000120

xii

Table oỉ’ Contents
A b stra c t........................................................................................................................................................... ị
S tudent D ec la ra tio n ........................................................................................................................................ ii
A c k n o w le d g e m e n ts.......................................................................................................................................iii
P r e íầ c e ................................................................................................................................................................V
T ablc o f A b b rev iatio n s.............................................................................................................................. viii
T able o f A p p en d ices.......................................................................................................................................X
Sonic initial ideas in relation to this thesis w ere published in ...........................................................xi
C hap tcr one: Introduction..........................................................................................................................i
1.1.

C ontcxt o f P ro ịe c t.................................................................................................................................1

1.2.

Literature review and conceptual ữ a m e w o rk .............................................................................. 5
1.2.1. State liability: global o v e rv ie w ......................................................................................... 5
1.2.2. State liability in V ietnam ese reibrm p ro ccss............................................................... 15
1.2.3. Fram ew ork íbr the research ........................................................................................... 21

1.3.

A im s o f P ro je c t................................................ .................................................................................26

1.4.

C ore research questions...................................................................................................................27

1.5. O utline o f the th e s is .........................................................................................................................37
C hapter two: Methodology in data collcction and an a ly sis.......................................................40
2.1. ln tro d u ctio n .........................................................................................................................................40
2.2. The selection o f a m ethodological d esig n .................................................................................. 40
2.3. M ethod o f data co llection................................................................................................................43
2.3.1. C ollecting docum ents and m aterials................................................................................ 43
2.3.2. Interv iew ................................................................................................................................. 45
2.4. Interview p ro c e s s ..............................................................................................................................47
2.4.1. Sam pling for in te rv ie w s....................................................................................................47
2.4.2. The intcrview sch ed u le......................................................................................................48

xiii


2.4.3. C onduct o f intervievvs........................................................................................................ 48
2.4.4. T aking n o te s ..........................................................................................................................52
2.4.5. Ethics is s u e ............................................................................................................................ 52
2.4.6. V alidity and R eliab ility ......................................................................................................55
2.5. M ethods o f D ata a n a ly sis................................................................................................................ 57
2.5.1. Them atic a n a ly sis................................................................................................................ 57
2.5.2. C om parative a n a ly sis ......................................................................................................... 58
2.5.3. C ontent a n a ly s is .................................................................................................................. 59
2.6. C o n c lu sio n ...........................................................................................................................................60
C hapter three: Ovcrvie\v o f State iiability for conipcnsation

in V ictn a in ............................61

3.1.

In tro d u ctio n .........................................................................................................................................61

3.2.

The V ietnam ese political sy stem s................................................................................................ 61

3.3.

The legal sy stem ................................................................................................................................65

3.4.

State liability in legal h is to ry ........................................................................................................67
3.4.1.

Period beĩo re 1945 ...........................................................................................................67

3.4.2.

Period from 1945 to 1986................................................................................................ 70

3.4.3.

Period from 1986 to 2 0 0 9 .................................................................................................. 72

3.4.4.

Period from 2009 to p re se n t..............................................................................................74

3.5. T heories o f State liab ility .................................................................................................................76
3.6. N ature and sig n iiìcan ee oi'State liab ility ..................................................................................... 81

3.6.1. N ature o f State liability for co m p en satio n ..................................................................... 81
3.6.2. Significance o f the SCL in V ie tn a m ...............................................................................89
3.7. C o n c lu sio n .......................................................................................................................................... 91
C haptcr four: A critical revie\v o f the SCL - The neccssity for its íurthcr rcfo r m .......92
4.1. In tro d u ctio n ........................................................................................................................................ 92
4.2. The Progressive aspects o f the S C L ............................................................................................92

xiv


4.3. T he lim itations o f the SCL w hich are inconsistent its overalỉ g o als................................97
4.3.1. The scope o f liability for com pensation is lim itcd and inconsistent vvith the
C onstitulion and Civil C o d c .............................................................................................98
4.3.2. The grounds ío r State com pensation liability lim it claim ants in cnibrcing
their r ig h ts ...........................................................................................................................110
4.3.3. The m ethod o f calculating dam ages is unclcar and in ap p ro p riatc......................115
4.3.4. The responsibility o f the officials..................................................................................118
4.4.

C o n c lu sio n ......................................................................................................................................122

C hap ter fivc: The proccdures for claiming com pcnsatỉon - a complex and
indTective p ro cess..................................................................................................... 123
5.1.

In tro d u ctio n .................................................................................................................................... 123

5.2.

V ietnam ese C om pensation P rocedure......................................................................................123

5.2.1. O btaining a valid d o c u m e n t...........................................................................................123
5.2.2. Procedures for claim ing c o m p en sa tio n ...................................................................... 127
5.2.2.1.

A gency-based com pensation p ro c e d u re s .................................................... 127

5.2.2.2.

C ourt-based com pensation p ro ced u res......................................................... 132

5.2.3. C om pensation íunds and paym ent p ro ced u res.........................................................132
5.3.

E valuation o f the com pensation p ro c e d u re s..........................................................................134

5.4.

The agencies w hich are liable to pay c o m p en sa tio n ........................................................... 140

5.5.

A gencies w hich resolve com pensation c la im s...................................................................... 146
5.5.1.

The relevant State a g e n c y ...............................................................................................146

5.5.2.

The P eople’s C o u rt...........................................................................................................146

5.6.

Tim e lim itations on claim s..........................................................................................................148

5.7.

C o n c lu sio n ...................................................................................................................................... 152

Chapter six: Im plcmcntation of the SCL - Achieveincnts and íailing and their
c a u s e s ............................................................................................................................ 153
6.1.

In troductio n ..................................................................................................................................... 153

XV


6.2. A chievcm ents obtained in im plem entation o f the S C L ....................................................153
6.2.1. Secondary legislation guiding the im plem cntalion o f the L a w ..............................153
6.2.2. Building proíessional institutions lo adm inistralc the Lavv.....................................156
6.2.3. Publicising o f and education about the L a w ................................................................ 157
6.2.4. Training in the skills for settling State com pensation claim s.................................. 159
6.2.5. A chievem ents o f com pensation s e ttle m e n t................................................................. 159
6.3.

Lim itations in the entbrccm ent o f the S C L ..............................................................................161
6.3.1. C laim ants íầce difficulties in m aking claim s............................................................... 161
6.3.2. The difficulty o f determ ining and calculating d am ag e............................................ 167
6.3.3. The lim ited am ount o f co m p en satio n ............................................................................ 171
6.3.4. C hallenges in determ ining the agency liable ío r co m p en satio n ............................ 174

6.3.5. lneffectiveness o f the com pulsory n e g o tia tio n s........................................................ 176
6.3.6. D elays in the settlem ent o f com pensation c laim s...................................................... 178
6.3.7. D ifficulties and delays in eníbrcem ent o f ju d g m e n ts ............................................... 181

6.4.

Causes o f in effectiv en ess............................................................................................................183
6.4.1. The shortcom ings oí' the SCL and secondary le g isla tio n ........................................184
6.4.2. Inadequate publication o f and education about the S C L .........................................187
6.4.3. The lim ited capabilities o f State ofíĩcials and ju d g e s ................................................188
6.4.4. The iníluence oi'th e legal c u ltu re ...................................................................................191

6.5. Intervievv analysis..........................................................................................................................194
6.6. C o n c lu sio n ......................................................................................................................................197
Chapter sevcn: A comparative perspective - State liability for compcnsation in
Chincse la w ...........................................................................................................198
7.1.

Introductio n .....................................................................................................................................198

7.2.

Justification for the co m p ariso n ................................................................................................198

7.3.

Sim ilaritics betw een V ictnam cse and Chinese SC’L .............................................................201

xvi

7.4.

7.5.

7.3.1.

The background to State lia b ility .................................................................................... 201

7.3.2.

R ecognising State liab ility .................................................................................................205

7.3.3.

L im itation in listing the vvrongiìil a c tio n s .................................................................. 206

7.3.4.

C om pensation ío r both m ental and physical lo s s ......................................................211

7.3.5.

The agency liablc for c o m p e n sa tio n ............................................................................. 213

7.3.6.

The personal liability oi’the oíT icials............................................................................ 215

7.3.7.

T im e lim itations ío r claim ing co m p en satio n ..............................................................217

DiíYerences from V ietn am ese SCL and C hinese S C L ....................................................... 218
7.4.1.

P rovision about c laim a n ts.................................................................................................218

7.4.2.

G rounds for State lia b ility ................................................................................................ 219

7.4.3.

D eterm ining and calcu latin g the d a m a g e ....................................................................220

7.4.4.

C om p en satio n p ro c e d u re ..................................................................................................223

C o n c lu sio n .......................................................................................................................................227

C hapter cight: C onclu sion and R ecom in cn d a tio n ..................................................................... 228
8.1.

In tro d u ctio n ......................................................................................................................................228

8.2.

C onclusions on rescarch q u e s tio n s .......................................................................................... 228

8.3.

R cco m m en d atio n s..........................................................................................................................239

8.4.

Research co n trib u tio n ....................................................................................................................243
8.4.1. A cadem ic c o n trib u tio n ........................................................................................................ 243
8.4.2. Practical c o n trib u tio n .......................................................................................................... 244

8.5.

L im itations o f th e re sc a rc h ..........................................................................................................245

8.6.

Suggestions íb r the future re s e a rc h .......................................................................................... 246

B ib liography...............................................................................................................................................248

xvii


Chapter onc: Introducíion
1.1.

C ontext o f the Projcct

Since W orld W ar II there has been a tcndency lo prom ote lavvs vvhich create m ore

egalitarian socictics and w hich better protect hum an rig h ts.1 There are increasing
num bers o i'p ro v isio n s in civil, socialist and com m on lavv national legal system s 011 State
liability to protect the rights o f individuals and th eir econom ic interests.2 There are also
increasing num bers o f provisions in international law w hich im pose related obligations
on states. Liability m ay be stipulated at an intem ational level, such as in the C onventỉon
o f Urtiversal D eclaration o f H um an Rights (U D H R ) 1948, International C ovenant on
C ivil a n d P olitical R ights (ICCPR) 19663, and D raft A ríicles on the R esponsibility o f
States fo r Intern a tỉo n a lly W rongful A cts 2001 4 01' in the E uropean Union.'5 Increasing

1 L Morlino, Rule o f Law and Democracy: Inquiries into Internal and Externcd Issues (Brill
2010). Li Lin (ed), The China Legal Development Yecirbook Vol 2 (Brill, 2008) xix, ch 3, 4, 5.
Giuseppe Dari-Mattiacci ct al, ‘State liability’ (2010) 18 (4) European Review o f Private Law
773; Lin, above n 1; and also see Universal Declaration o f Human Righís 1948, International
Covenant on Civil and Political Righís 1966.
' The Universal Declaration o f Hunian Rights 1948 requires member states to comply witlì it in
protecting human rights. If the State inữinges these provisions, it may have a sanction imposed
on it.
International Covenant Oĩì Civìl and Political Rìghts 1966 (United Nation) Alt 14 (6) provides
that'."ỈVhen a person has by a fin a l decision been convicted o f u criminaỉ ọffence and when
subsequently his conviction has been reversed or he has be en pardoned 011 the ground ỉhat a
new or newly discovcred fa c t shows conclusively that there has becn a miscarriage o f justice,
the person who has suffered pimỉsìvnent as a result o f such conviction shall be compensated
according to law, unless it ỉs proved that the non-discỉosure o f the Uỉikiwwn fa ct in liìììe ỉs
\vhoIIy or partìy attributabìe lo him ”
4 Draft Articles 011 the Responsibility o f States for International ly Wrongful Acts ("Draft
Articles") by the International Lavv Commission (ILC) in August 2001.
' Treaíy ơn the European Union (Europe) Alt 228 (2), (3):
“2. I f the Commissỉon considers that the Member State concerned has not taken the necessary
measures to comply wilh judgm ent o f the Court, it may bring the case before the Court after
giving thai State the opportunity to submit its observatỉons. It shaỉì speciỳỳ the amouỉìí o f the

lump sum or penalty payment to be paid by the Member State conceniecỉ \vhich it considers
oppropriatc ỉn the circumstances.
3. ÌVhen the Commission brings a case before the Court pursuant to Article 226 on the groimcỉs
that the Member State concerned has failed ío fu lfiì its obligation ío ỉìotiỳỳ measures
transposing a directive aciopted ưnder a legisỉative procedure, ỉt may, xvhen it deems
appropriate, speciýy the amount o f the hunp sum or enalty payment to be paid by the Member
State concerned which it considers appropriaíe in the circumstances. I f the Court /ìncls tliat
there is an in/ringemcní, it may impose a ìump sum or penalty payment 011 the Member State
concerned Yìot exceeding the amount specifìed by the Commissioỉi. The payinent obligation sliall
take effect on the dcite set by the Court in its judgment.”
Protocoì 7 to the European Convention fo r the Prection o f Hutììcm Rights and Fwìclanicníaỉ
Freedoms 1984Alt 3; Andrea Francovich and Others V Itaìicm Republic, Joined Cases C-6/90
and C-9/90, [1991] ECR 1-5357; Duncan Pairgrieve, Mads Andenas and John Bell, Tort
1


globalisation o f com m erce and the harm onisation o f international. regional and national
lavvs has proíbundly iníluenced nalional laws related lo civil w rongs.6
V ietnam started its D oi m oi (renovation) policy in 1986 w ith its olTicial
ratitìcation by the Sixth C ongress o f the V ietnam ese C om m unist Party (VCP). This
policy has led to a com prehensive reíorm process starting w ith econom ic reíbrm and
leading to adm inistrative, judicial, legal and political reíbrm s. This has also been an
international trend. In V ietnam , as in Russia, C hina and B razil, it represents a part o f
w hat a num ber o f observers have described as the 'cen tralised system ’,7 ‘developm ental
State',8

4new

m ercantilisnv,

‘state-directeđ

cap italism ’, 1

‘centrally-m anaged

capitalism ’11. This trend was previously observed in G erm any and France, and after
W orld W ar II, in Japan, South K orea and Taivvan.
In this process, vvider legal relbrm s are an essential step. The relationship betw een
econom ic developm ent and law is subject to considerable debate. W eber, for exam ple,
saw a rational legal system as essential for econom ic developm ent. This issue has been
extensively discussed since by w riters such as N orth, Peerenboom , G illespie, Chen,
M ilhaupt and P isto r.12 It is also an issue com m only identified in the V ietnam ese
literature relating to econom ic and legal dcv elo p m en t.13 T he im portance o f law was

Liability o f Public Aiithorities in Comparatỉve Perspective? British Institute o f International and
Comparative Law (2003) 571.
6 Carol Harlovv, State liabiliíy: Tort law and Beyond (Oxiord University Press, 2004) 44; John
Gillespie and Albert HY Chen (eds), Legal Re/onns in Chìna and Vietnam: A Compcirison o f
Asiatì Commimist Regimes (Routledge Law in Asia, 2010) 7.
Milhaupt and Katharina Pistor, Law and Capitalism: What Corporate Crises Reveal about
Legal Systems and Economic Development around the World (University of Chicago Press,
2008)183.
8 Gordon White ‘Developmental States and Socialist lndustrialisation in the Third World’
(1984) 21 JournaI o f Development Studies 97; Gordon White and Robert Wade,
‘Developmental States and Markets in East Asia: An Introduction’ in Gordon Wlìite (ed),
Developmental States in Easí Asia (Macmillan Press, 1988) 1; Phil Deans, ‘The People’s
Republic o f China: The Post-Socialist Developmental State’ in Linda Lovv (ed), Developmental
States: Relevancy, Redimdancy or Reconfiguration? (Nova Science, 2004) 133; Alvin Y So
introduction’ (2002) (35) The Chỉnese Economy 3.

9 Jonathan Holslag, *China’s New Mercantilism in Central Africa’ (2006) 5 Africatì
Asicin
Studics 133.
ỉu Stefan Halper, The Beỳiỉig Consensus (Basic Books, 2010)11; Yasheng Huang, Capilalism
wilh the Chinese Chưracíeristics (Cambridge University Press), ix.
1 Nan Lin, *Capitalism in China: A Centrally Managed Capitalism (CMC) and Its Puture'
(2010) 7 Management and Ovgcmisation Rcview 63.
This wi 11 be discussed íurther in the next sections: 1.2.2 and 1.2.3.
13 For example, Bui Ngoe Cuong, kVai trò của pháp luật kinh lế trong việc bảo đàm quyền tự do
kinh doanh’ [The role o f business law in ensuring the riglits o f íreedom to do business] (2002)
(7) Tạp chí Khoa hoe Pháp lý [Legal sicence journaI]; Phạm Duy Nghĩa, ‘Tính minh bạch của
c ỉ ì k

2

I


especially recognised in the VCP Politburo R csoluíion 48-N O /TÌV in 2005 on the
strategy o f legal rb rm .14 As part o f im plem enting these íioals, in 2009, the V ietnam ese
N ational A ssem bly (NA) passcd the Law on State C om pensation Liability (SCL). It
gives to those injured by the actions o f State officials the right to sue ío r com pensation
in som e circum stances. It also m akes the State liable lo com pensate for speciílc actions
o f th e executive and judicial branches o f governm ent and ío r speciíìc entbrcem ent
activities. The law cam e into iorce on l sl January 2010.
The SCL is expected lo address a num ber o f problem s identiíìed in the íorm er
law. It was intended to create a uniíorm lcgal basis under w hich claim ants w ould bc
m ore easily able to claim dam ages from the State. This vvas m eant to better protect the
interests o f individuals and legal persons when State oiììcials have engaged in unlawful
actions. The Law also aims to enhance the accountability o f State officials by m aking

them ỉiable for reim bursem ent. This w as expected to íìưther prom ote the developm ent
o f a State based on the rule o f law in V ietn am .15 On 3 M arch 2010, the govcrnm ent
passed D ecree 16/2010/N D -C P providing guidelines for the im plem entation o i'th e SCL

pháp luật - Một thuộc tính của nhà nước pháp quyên' [the transparency of laws- one fealure of
the rule of law] (2002) (1) Tạp chí Dan chù và pháp luật [Dctììocracy and Law Journal]\ ‘Anh
hưởng của mơi trường pháp luật trong kinh doanh quốc tế’ [Intluence of laws 011 international
business] (2004) (169) Tạp chỉ Phát triển kinh tế [Economic Developmenl Joum]\ Nguyễn
Quang Thắng, ‘Hồn thiện hệ thống pháp luật góp phần thúc đẩy kinh tế phát triển’ [lmproving
the legal System in order to promote development o f the economy] (1998) (10) Tạp chí Người
đại biếu nhân dân [People’s Delegciíe JournaI] 16; Nguyễn Như Nhiên, ‘Cần hoàn thiện pháp
luật về kinh tế nhằm đảm bảo hiệu quả an ninh kinh tế trong điều kiện hội nhập hiện nay’ [The
need to reíbrm economic lavv in order to ensure effectiveness o f economic security in the
integration] (2009) (15) Tạp chi Kiếm sát [Procuracial JounialJ 34; Đỗ Ngọc Thịnh, 'M ột số
vấn đề về vai trị pháp luật trong q trình chuyển đồi từ kinh tế kế hoạch hoá tập trung sang
kinh tế thị trường ở nước ta’ [Some issues relating to the role of law in the process of
transíerring from a planned economy to a market economy in Vietnam] (1999) (10) Tạp chí
Nhà nước và Pháp luật [State and Law Joum al]\5\ Tào Hữu Phùng, T háp luật kinh tế trong
thời kỳ đổi mới: Thục trạng và phương hướng hoàn thiện’ [Economic law in the relbrm: the
iầcts and suggestions] (2002) (7) Tạp chí Nghiên cứu lập pháp [Legislative Research Journaì]
55; Bùi Ngọc Cường, ‘Quan niệm về pháp luật kinh tế trong cơ chế thị trường’ [Understanding
economic lavv in the market economy] (2004) (1) Tap chi Luật học [Jurisprudence Joumal] 3;
Trần Thị Nguyệt, T ín h quyết định xã hội của pháp luật kinh tế: một số vấn đề lý luận cơ bản’
[The decisive role of economic lavv in society: some theoreticai issues] (2006) (2) Tạp chí Nhà
nước và Pháp luật [State andLaw Journcil] 39.
14 VCP Rcsolution 48-NQ/TỈV- The strategies on building a comprehensive legal system to 2010
and an orientation upvvard to 2020, adopted 011 24/5/2005.
Ministry of Justice, Department of Civil and Economic Law, Docuiììcỉìl Iníroduciỉìg the Lcnv
on State Compension Liabỉỉiíy
<http://thonụtinphapỉiiatdansii.vvordprcss.com/2QQ9/08/04/3477-3/> .

3


(D ccree 16). Then, the other G overnm ent agencies issued a series oi' sccondary
lcgislation to guide the im plcm entation oí'S C L as w ell as Decree 7ố .16
O ne vear after the SCL cam e into íorce, acco rd in s to an evaluation by the
M inisíry o f Justice (M OJ), it had not yet met the expectations o f it. A num bcr o f 1'actors
bclieved to be responsible íor tlìis w ere identitìed in clu d in g :17
(1) the delay in issuing secondary legislation guiding the im plcm entation oi'
SCL, m aking it d ifíìcult for State Yieials lo accept and resolve State
com pensation claim s;
(2) offícials acting slovvly and arbitrarily in resolving cases;
(3) the concepts vvere new and raised novcl issues and w ere seen to be com plcx
including in requiring the application o f a num ber o f other laws;
(4) the different levels o f governm ent, from the Central to the local governm ent,
from vvhich liability could em erge; and
(5) the large and increasing num ber o f cases w ith lim ited rcsources to address
them and the lim itcd capacity o f State oíTicials.
In spite o f this claim about the large num ber o f cases, because o f ineíYective
resolution and enforcem ent processes, there w ere already in 2010 indications that thc
num ber o f cases being resolved w as lovver than expected. A ccording to an investigation
by the Suprem e P eo p le’s Procuracy (SPP), relevant agencies had not properly
understood their responsibilities and there w as a continuing practice o f dodging

u’ Tliey are the Joint Circularl9/ 2010/ TTLT-DTP-DTC-TTCP guiding the implementation of
tlie State liability in administrative activities of 26lh November 2010; the Joint Circuìur 24/
2011/ BTP-BQP guiding the iniplementation of State liability in enforcement of civil judgm ent
of 1511, December 2011; and Joint Circular 18/2011/TTLT- BTP-DNV guiding duties, rights,
organization and personnel o f local government on State ỉiability for compensation o f 19lh
October 2011; Joint Circar 71/2012/TTLT- BTC-BTP on Dining the estimation,

management, use and settlement o f íunds for implementation of the State liability of 9U| May
2012; Joint Circuìar 01/2012/TTLT/TANDTC-VKSNDTC-BTP 18/09/2012 guiding the
implementation o f the State's liability 111 civil and, administrative proceedings.
17 Dáo cáo số 5 7 /BC- BTP cua Bộ Tư pháp về Sư kết một năm thi hành Luật Trách nhiệm Bồi
thường cùa Nhà nước ngày 04/04/2011 [Report 57/DC- BTP of MOJ on lmplcmentation of ihe
Lavv 011 State Liabilitv for Compensation in its First Year 011 04/04/2011].
4


liab ility .1 The M OJ"s reporl 011 the iìrst vcar o l t h e Lavv"s opcration coníĩrm ed ihis. Il
indicated that in th e :1
(1) procuracv system : 49 claim s had been acccpled vvith 18 resolved leading to
com pensation o f 1.200.504,955 VND;
(2) court system : 16 claim s had been accepted w ith 9 cases resolved leading to
com pensation o f 1,633,627,250 VND;
(3) adm inistrative system : 11 claim s had been accepted vvith one resolved w ith
the am ount o f com pensation unknovvn;
(4) P rovincial P eo p le’s C om m ittees’ system s: 36 claim s w ith 27 having been
accepted and 16 resolved leađing to com pensation o f 1,081,392,287 VND.
This report indicated additional difficulties in im plem cnting the new Law,
including the m anagem ent o f com pensation claim s, the conduct o f adm inistrative
officials req u ữ ed to pay com pensation, and the d iũ ìcu lty ol' determ ining the personal
rcsponsibility o f State o ffícials.20
In the context o f protecting hum an rights, the iu rth er devclopm ent o f V ietnam ese
econom y, and thc legal system required to support it, it is im portant to conduct a
Íuríher, thorough investigation inlo the lavv and the p ractices related to State liability
regarding com pensation. This has the potential to contribute to the im provem ent o f the
SCL and its im plem entation vvhich arc signiíicant for ihc succcss o f the legal reform
process in the developm ent o f Vietnam .
1.2.

Litcrature revievv and conccptual íramevvork

1.2.1. State liability: global overview
II is generally accepted, albeit w ith lim itations, that a person w ho causes dam age to
another intentionally or carelessly should com pensate for that loss. The dam age m ight
18 Viện Kiểm Sát Nhân dân Tối cao, Tập huấn công tác nghiệp vụ về án hình sự, [The Supreme
People’s
Procuracy
of
Vietnam:
Pressional
Training]
1/11/2010
<nd(c.»ov.vn/tintuc/1686.asp\>
19 Report 57, above n 17.
J’ Phùng Hưong, Vướng mắc trong triển khai thi hành Luật Trách nhiệm Bồi thường của Nhà
nước, Dai hieu lìhan dan. [Challenges in Implementiiig the Lavv 011 State Liability for
Compensation j < ỉ &Nc\vsld=204578>;
Huy
Hoàng, Triên khai Luật Trách nhiệm bồi thường cua Nhà nước: Tơ chức "bí" vì thiếu ngirài,
ỈVebsitc Btì Tu pltítp [Lack of Professional StaiT to implement the Lavv 011 State Liability for
Compensation]
< ht tD:/ /mo i. »o v. vn / ct / t in tL ic /! i st s/ imh ii i %20 cu %2 0l r ao %2 0 i /v ie\ v_ de ta il . a sp \ ?l t c ni lD= 27 82 >
5


be caused not only bv indivicluals but also by authorities including governm ents and
th c ir agcncics. T herịre, lavvs protecting individuals and legal pcrsons from dam ages
caused by State olĩicials need to be considercd.21 The law regarding the liability o f the

State has been evolving throughout thrce distinct periods: prior to the 19lh century,
during the 19lh century and early 20 lh century, and the late 2 0 lh century lo the prescnt.
B eíbre the 19lh century, in W estern E uropean statcs, both com m on law and civil
ỉaw traditions had alm ost com plete im m unity from claim s by individuals, under
principles usually referred to as ‘sovereign im m unity’. T his was related to concepts o f
royal authority. M axim s suclì as The K ing can ch no xvrong (Le Roi ne p eu t

iììc iI

faire)

reílectcd these principles.22 The justifications vvere that there can bc no legal right
against the authority that m akes the law on w hich the right depends and that no vvrong
can be done by the State w hen there is no rem edy against the State.23 Justinian claim ed
that G od had sent the em peror as a "living statute", to vvhom statutes them selves w ere
subịect.24 Elsew here, Justinian h im self stated that the em peror alone had pow er to m akc
statutes and to interpret them .25 The acceptance o f R om an law increased royal authority
and laid the foundations for absolutism .26
attributes o f

The

law ascribed to

the

king

the

"sovereignty and independcncc" w ithin his own dom inions stating that

thc king Mow es no kind o f subjection to any other potentate on eartlì” . 7 Blackstone
w riting 011 E nglish lavv stated th a t:28

21 Wolfgang Peschorn, ‘Liability for Officer Fault - The Austrian Experience’ OECD and
European Union Con/erence 011 Organisation o f the Legal Services o f the Minisíry o f Pinance:
The Experience o f EU Member States’ (Tbilisi, Georgia, 25-26 September 2009)
<www. oecd. org/dataoecd/18/24/44319890.pdf>
Dari-Mattiacci et al, above 11 2, 8.
23 Francis Breidenbach, ‘Some Recent Trends in State Liability for Tort’ (1962) 38 North
Dakota Laxv Revievv 7.
24 Nov. 105, 2, 4 (536): "[imperator], cui et ipsas deus leges subiecit, legem animatam eum
mittens hominibus11 cited in Dr Ana Malta González, Contemporary Perspecíives on Natural
Law: Natural Law as a Limiting Concept (Ashgate Publishing, Ltd., 2008) 37.
c . 1, 14, 12, 3-5 (529): "explosis itaque huiusmodi ridiculosis ambiguitatibus tam conditor
quam interpres legum solus imperator iuste existimabitur", cited in Jean Betlìke Elshtain,
Sovereignty: God, State, and S clf (Basic Books, 2008).
20 D Johnston, T h e General Iníluence of Roman Institutions o f State and Public Lavv', in D L
Carey Miller and R. Zimmermann, eds., The Civilian Tradition and Scots Lavv. Aberdeen
Ọuinccntenary Essays [Schrilten zur Europãischen Reclìts- und Verfassungsgeschichte, Bd. 20]
(Beiiin: Duncker & Humblot, 1997) (ISBN 3-428-09011-X) 87-101.
27 E dw in M B o rc h a rd , 'G o v e r n m e n t L iab ility in T o r t’ (1924) (34) (1) The Yale Law
J o u r n a l 7.
28 William Blackstone, Commentaries 011 the Laws o f Eỉìgỉcmd in Four Books. Notes selected
from the edỉlions o f Archibold, Christian, Coỉericlge, Chilty, Stewart, Kcrr, and oíhers, Barron
6