How many forms of settlement of disputes over product and goods quality are there in Vietnam?

Regarding this matter, LawNet would like to answer as follows:

1. What cases are considered disputes over product and goods quality in Vietnam?

According to Article 54 of the Law on product and goods quality 2007, disputes over product and goods quality include:

- Disputes between purchasers and importers or sellers or between traders due to products or goods non-conformity with announced applicable standards, relevant technical regulations or contractual agreements on quality.

- Disputes between production and business organizations or individuals and consumers and concerned parties due to products or goods poor quality, which causes harms to humans, animals, plants, properties or the environment.

Thus, there are 02 cases are considered disputes over product and goods quality in Vietnam including:

(1) Goods non-conformity with announced applicable standards, regulations or contractual agreements;

(2) Goods poor quality, which causes harms to humans, animals, plants, properties or the environment.

2. How many forms of settlement of disputes over product and goods quality are there in Vietnam?

According to the provisions of Article 55 of the Law on product and goods quality 2007, there are 03 forms of settlement of disputes over product and goods quality, including:

(1) Negotiation on product and goods quality between disputing parties.

(2) Conciliation between the parties by an intermediary agency, organization or individual agreed upon by the parties.

(3) Settlement by arbitration or a court.

Note: Procedures for settlement of disputes over product and goods quality by arbitration or courts comply with legal provisions on arbitration or civil procedures.

At the same time, according to the provisions of Clause 3, Article 56 of the Law on product and goods quality 2007, The statute of limitations for complaint and initiation of lawsuits claiming compensation for damage caused by products or goods of poor quality to humans, animals, plants, assets or the environment is 2 years from the time the concerned parties are notified of the damage, provided that:

- Damage is caused in the use duration of products or goods which is displayed on those products;

- Damage is caused in the use duration of goods, or 5 years from the date of goods delivery, for products and goods with unspecified use duration.

Thus, the statute of limitations for filing a lawsuit to claim compensation for damages due to goods of poor quality is 2 years, but must be within the use duration of goods or 5 years from the date of goods delivery, for products and goods with unspecified use duration.

3. Do the disputing parties have the right to appoint an organization to inspect goods with poor quality in Vietnam?

According to Article 57 of the Law on product and goods quality 2007:

- Designated dispute-settling agencies or organizations or involved parties shall reach agreement on requesting professional agencies or organizations to examine, test or inspect products and goods whose quality is under dispute.

- Bases for examination, test and inspection of products and goods under dispute include:

+ Contractual agreements on product and goods quality;

+ Announced standards and relevant technical regulations applied to those products and goods.

If the disputing parties request an appraisal, which party bears the costs?

According to Article 58 of the Law on product and goods quality 2007, the costs of goods quality assessment are stipulated as follows:

- Complainants or initiators of lawsuits shall pay costs of sample taking, testing or inspection of product and goods quality.

- If the testing or inspection results show that organizations or individuals producing and/or trading in products and goods commit violations on product and goods quality, those organizations or individuals shall pay to complainants or lawsuit initiators costs of sample taking and testing or inspection of the quality of products and goods under dispute.

Thus, the disputing parties have the right to appoint or agree to request an inspection organization, but the complaining or suing party must pay the inspection costs in advance and be reimbursed if the results prove that the goods do not meet quality standards due to the fault of the manufacturer or trader.

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