The Vietnam International Arbitration Centre (VIAC) reported a 20% to 30% increase in the number of trade disputes in recent years. Most disputes went to the court. A very modest number of cases were settled through commercial arbitration. In Vietnam, commercial arbitration methods are acknowledged in legal and sub-law documents, as well as in international treaties that Vietnam has signed. The Politburo’s Resolution on Judicial Reform Strategy to 2020 underscores Vietnam’s encouragement of settling disputes via negotiations, reconciliation, and arbitration, adding that the court will assist this process by acknowledging rbitration results. This has laid a basic foundation for setting up legal regulations on alternative dispute resolution methods, including commercial arbitration. The Vietnamese government has promulgated a Decree on Commercial Mediation, the first legislation specifically governing commercial mediation in Vietnam. It has played a very important role in encouraging dispute resolution via reconciliation, and enhancing mediation methods. Vu Anh Duong, Vice Chairman of VIAC, said 2017 saw 19 trade disputes settled by arbitration, which were hailed by the Arbitration Council. All parties have pledged to follow the arbitration results. Vietnam is determined to improve its legal system, including regulations on commercial arbitration, and to enhance Vietnamese arbitrators’ expertise in the near future.
Viet Nguyen, partner, and Nghia Nguyen, attorney-at-law, Bizconsult Commercial arbitration, as an alternative to lawsuits to resolve disputes, has not become popular in Viet Nam. In the country's two leading cities, Ha Noi and HCM City, the number of commercial lawsuits averages 1,200-1,500 cases per year resolved by the People's Courts, compared to about 60-80 cases per year handled by commercial arbitration centres. In contrast, the International Arbitration Centre in Singapore settled 599 cases in 2007, while the China International Economic and Trade Arbitration Commission settled a total of 1,118 cases and the Hong Kong International Arbitration Centre 448 cases.…... [read more]
Thanh Nien Daily continues a bimonthly column in which eminent jurists analyze various aspects of business and investment laws. The column appears on the second and fourth Fridays of the month. In the 1960s, the commercial dispute resolution system consisted of three tiers: the State Economic Arbitration Council, the Foreign Trade Arbitration Committee, and the Maritime Arbitration Committee. The State Economic Arbitration Council, founded in 1960 and funded by the government, and which also appointed its own arbitrators, adjudicated all domestic disputes between state-owned enterprises. The Foreign Trade Arbitration Committee and the Maritime Arbitration Committee, set up in 1963 and…... [read more]
Transaction at VPBank Ha Thanh office in Ha Noi. VIAC has introduced a model arbitration clause reserved for the banking and credit sectors.— VNA Photo Tran Viet
The Vietnam International Arbitration Centre (VIAC) organised a workshop yesterday with the International Finance Corporation (IFC) to promote the use of alternative dispute resolution (ADR) methods in the banking and finance sector.
The conference, named ‘Benefits and Challenges of Using ADR for Banking Disputes’, focused on the principles, conditions and procedures of commercial mediation as an ADR method, as well as…... [read more]
Viet Nam News When both court and arbitration have jurisdiction over the resolution of disputes arising from the performance of commercial contracts, selecting the appropriate mode of resolution will help the parties ensure the benefits of the process and save a lot of time, effort and money. Principles for dispute resolution The courts regularly go to trial under the principle of openness, which is different from the principle of private dispute resolution as applied in commercial arbitration. Many enterprises choose to resolve disputes by arbitration to protect their trade secrets and reputation in markets because of the private nature of…... [read more]
When both court and arbitration have jurisdiction over the resolution of disputes arising from the performance of commercial contracts, selecting the appropriate mode of resolution will help the parties ensure the benefits of the process and save a lot of time, effort and money. Principles for dispute resolution The courts regularly go to trial under the principle of openness, which is different from the principle of private dispute resolution as applied in commercial arbitration. Many enterprises choose to resolve disputes by arbitration to protect their trade secrets and reputation in markets because of the private nature of arbitral awards. Forms…... [read more]
