What is arbitration charge? Do branches of foreign arbitration institutions in Vietnam have the right to collect arbitration charges?

What is arbitration charge?

Based on Clause 1, Article 34 of the Law on Commercial Arbitration 2010, it is stipulated as follows:

arbitration charge

1. arbitration charge refers to the charges collected for providing arbitration services for dispute resolution. The arbitration charge includes:

a) Remuneration of the arbitrator, travel expenses, and other expenses for the arbitrator;

b) Fee for consulting specialist and other assistance as requested by the arbitration council;

c) Administrative fee;

d) Fee for appointing the arbitrator for a specific case by the arbitration center upon the request of the disputing parties;

đ) Fee for utilizing other utility services provided by the arbitration center.

...

Thus, it can be seen that the arbitration charge refers to the charges collected for providing arbitration services for dispute resolution.

What is arbitration charge? Do branches of foreign arbitration institutions in Vietnam have the right to collect arbitration charges? (Image from the Internet)

Which authority shall set the arbitration charge in Vietnam?

Based on Clause 2, Article 34 of the Law on Commercial Arbitration 2010, it is stipulated as follows:

- The arbitration charge is determined by the arbitration center. In cases where disputes are resolved by ad hoc arbitration, the arbitration charge is determined by the arbitration council.

- The losing party must bear the arbitration charge unless the parties have a different agreement, or the arbitration procedural rules specify otherwise, or the arbitration council allocates differently.

Thus, it can be seen that the arbitration charge is determined by the arbitration center. In cases where disputes are resolved by ad hoc arbitration, the arbitration charge is determined by the arbitration council.

Additionally, this issue is further stipulated in Article 28 of the Law on Commercial Arbitration 2010 regarding the rights and obligations of the arbitration center, including the right to collect arbitration charges as follows:

- Develop the charter and procedural rules of the arbitration center in line with the provisions of this Law.

- Establish standards for arbitrators and the process for selection, listing arbitrators, and delisting arbitrators from their organization.

- Submit the list of arbitrators and changes to the list of arbitrators of the arbitration center to the Ministry of Justice for publication.

- Appoint arbitrators to establish the arbitration council in cases specified by this Law.

- Provide arbitration services, mediation, and other commercial dispute resolution methods according to legal regulations.

- Provide administrative, office, and other services for dispute resolution.

- Collect arbitration charges and other lawful fees related to arbitration activities.

- Pay remuneration and other expenses to the arbitrators.

- Organize training to enhance the level and skills of dispute resolution for arbitrators.

- Submit annual periodical reports on the activities of the arbitration center to the Department of Justice where the arbitration center is registered.

- Keep records, provide copies of arbitration decisions as requested by disputing parties or competent state agencies.

Do branches of foreign arbitration institutions in Vietnam have the right to collect arbitration charges?

Based on Article 76 of the Law on Commercial Arbitration 2010, it is stipulated as follows:

Rights and Obligations of the Branches of foreign arbitration institutions in Vietnam

1. Lease premises, hire, or purchase the necessary means and supplies for the operation of the branch.

2. Employ Vietnamese and foreign workers to work at the branch in accordance with Vietnamese law.

3. Open accounts in Vietnam Dong and foreign currencies at banks authorized to operate in Vietnam for the branch's activities.

4. Transfer branch income abroad in accordance with Vietnamese law.

5. Have a seal bearing the branch's name as prescribed by Vietnamese law.

6. Appoint arbitrators to establish the arbitration council as authorized by the foreign arbitration organization.

7. Provide arbitration services, mediation, and other commercial dispute resolution methods according to legal regulations.

8. Provide administrative, office, and other services for dispute resolution by the foreign arbitration council.

9. Collect arbitration charges and other lawful revenues.

10. Pay the arbitrators' remuneration.

11. Organize training to improve the level and skills in dispute resolution for arbitrators.

12. Store records and provide copies of arbitration decisions as requested by disputing parties or competent state agencies of Vietnam.

13. Operate in the field specified in the Establishment License, the Operating Registration Certificate.

14. Comply with Vietnamese law related to the branch's activities.

15. Submit annual periodical reports on the branch's activities to the Department of Justice where the branch is registered.

Thus, it can be seen that the branches of foreign arbitration institutions in Vietnam have the right to collect arbitration charges as per the regulations.