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Singapore Court of Appeal sets aside SIAC award for breach of natural justice (fair hearing); remission refused; tribunal's unpleaded reasoning impermissible (PVN v PM)

Published on: 19 November 2025

Published by a LexisNexis Arbitration expert
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Article summary

Vietnam Oil and Gas Group v Joint Stock Company (Power Machines—ZTL, LMZ, Electrosila Energomacgexport) [2025] SGCA 50

What was the background?

The dispute stemmed from a Vietnamese thermal power plant project between Vietnam Oil and Gas Group (PVN), as owner, and Joint Stock Company (Power Machines-ZTL, LMZ, Electrosila Energomachexport) (PM), a contractor consortium member. In 2013, PVN and PM signed an Engineering, Procurement and Construction Contract governed by Vietnamese law, with arbitration in Singapore under the SIAC Rules. The contract permitted termination for non-payment persisting beyond 150 days (Clause 16.2(b)) or where force majeure halted work for more than 84 days (Clause 19.6). In January 2018, PM was added to the US Office for Foreign Assets Control sanctions list, which impeded subcontractor performance. PM subsequently issued:

  • a First Notice in January 2019 terminating for force majeure under Clause 19.6; and
  • a Second Notice in February 2019 terminating for non-payment under Clause 16.2(b).

PVN rejected both, contending that US sanctions did not amount to a force majeure event and that PM had already wrongfully repudiated the contract by serving the First Notice. The matter proceeded to arbitration before a SIAC tribunal in Singapore...

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