Latest order and procedures for commercial mediation in Vietnam

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

Commercial mediation is a method of resolving disputes outside of court with many advantages such as preserving relationships between parties, keeping information confidential, and saving time and costs. According to the provisions of Chapter 3 of Decree 22/2017/ND-CP, the order and procedures for commercial mediation is carried out as follows:

1. Mediation agreement and selection and appointment of commercial mediators

Regarding the mediation agreement

- Mediation agreement may be established in the form of a mediation clause in a contract or of a separate agreement.

- Mediation agreement shall be established in writing.

Regarding selection and appointment of commercial mediators

- Involved parties shall reach agreement on selecting a commercial mediator from the list of commercial mediators of a commercial mediation institution or from the list of ad hoc commercial mediators publicized by the provincial-level Department of Justice.

- The appointment of a commercial mediator via a commercial mediation institution must comply with the Mediation Rule of this institution.

During the conciliation process, the disputing parties have the following rights and obligations:

- Disputing parties have the following rights:

+ To select the mediation order and procedures, commercial mediators, and venue and time for mediation;

+ To accept or refuse mediation; to request suspension or termination of mediation;

+ To request mediation to be conducted publicly or behind closed doors;

+To express their wills and decisions on mediation contents;

+ Other rights as prescribed in Decree 22/2017/ND-CP and relevant laws.

- Disputing parties have the following obligations:

+ To truthfully present circumstances of their dispute, and provide information and documents relating to the dispute at the request of the commercial mediator;

+ To comply with the successful mediation result;

+ To pay remuneration and costs for commercial mediation, unless otherwise agreed upon;

+Other obligations as prescribed in Decree 22/2017/ND-CP and relevant laws.

2.  Mediation order and procedures

- Involved parties may select to apply the Mediation Rule of a commercial mediation institution for conducting mediation or reach agreement on the mediation order and procedures. If the parties do not reach such agreement, the commercial mediator may conduct mediation according to the order and procedures he/she finds suitable to the circumstances of the dispute and the aspirations of the parties, which are accepted by the parties.

- The resolution of a dispute may be mediated by one or more than one commercial mediator as agreed upon by involved parties.

- At any time in the mediation process, a commercial mediator may put forth proposals for dispute resolution.

- The venue and time of mediation may be agreed upon by involved parties or selected by the commercial mediator in case the parties reach no agreement thereon.

3. Successful mediation result and recognition of successful mediation results in Vietnam

- When attaining a successful mediation result, involved parties shall make a written record thereof. This record is binding on the parties in accordance with the civil law.

- A written record of successful mediation result must contain the following principal contents:

+ Grounds for conducting mediation;

+ Basic information of involved parties;

+ Major circumstances of the dispute;

+ Agreement reached and solution;

+ Other contents as agreed upon by the parties in accordance with law.

- A written record of successful mediation result must bear the signatures of the involved parties and the commercial mediator.

- A written record of successful mediation result shall be recognized in accordance with the civil procedure law.

Note:  If unable to attain a successful mediation result, involved parties may either continue the mediation or request an arbitration or a court to resolve their dispute in accordance with law.

In addition, a mediation proceeding shall terminate in the following cases:

- Involved parties have attained a successful mediation result.

- The commercial mediator finds it unnecessary to continue the mediation after consulting involved parties.

- At the request of one or more than one disputing party.

Thus, conducting commercial mediation aims to ensure voluntary, fair, transparent nature for the entire mediation process, establish a legal framework and facilitate the recognition and enforcement of mediation results, while promoting the effective resolution of commercial disputes through mediation methods.

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