Arbitration in Commercial Disputes in Vietnam
What are regulations on arbitration in commercial dsisputes in Vietnam? Thank you!
Arbitration in Commercial Disputes in Vietnam - Image from Internet
When disputes arise, the parties involved can choose to resolve them through negotiation, mediation, litigation, or arbitration. Arbitration is a popular alternative to litigation in commercial disputes because it is generally faster, more efficient, and more confidential than court proceedings.
1. Jurisdiction of Commercial Arbitration
First, what is commercial arbitration? Commercial arbitration is a method of dispute resolution agreed upon by the parties and conducted in accordance with the provisions of this Law. Just like other cases, disputes within the jurisdiction of the Court are all regulated by the Law (Civil Procedure Code in 2015). As prescribed in the Law on Commercial Arbitration in 2010, the arbitration's jurisdiction shall settle follwoing disputes:
- Disputes among parties which arise from commercial activities.
- Disputes among parties at least one of whom conducts commercial activities.
- Other disputes among parties which are stipulated by law to be settled by arbitration.
2. Conditions for dispute settlement by arbitration
Article 2 of the Law on Commercial Arbitration in 2010 stipulates arbitration's jurisdiction to settle disputes. For a dispute between the parties to be resolved by arbitration, not only must the dispute be within the jurisdiction of the Court, but the parties must also meet certain conditions. However, Pursuant to Clause 1 Article 5 of the Law on Commercial Arbitration in 2010 stipulating as follows:
"A dispute shall be settled by arbitration if the parties have an arbitration agreement. An arbitration agreement may be made either before or after a dispute arises."
Arbitration agreement is an agreement between the parties to resolve disputes that may arise or have arisen through arbitration. If there is an arbitration agreement but the arbitration agreement is not legally valid, then arbitration does not have jurisdiction to resolve. In this case, if the Arbitration Center or Arbitrator still proceeds to resolve, the arbitral result will be annulled.
It can be asserted that the arbitration agreement is considered to be a key issue and plays a decisive role in the application of arbitration as a method of settlement in business, or in other words, if there is no arbitration agreement, there will be no settlement of disputes through arbitration.
3. Invalid arbitration agreements
Arbitration agreements are considered invalid in one of following cases:
- Disputes arise in the domains falling beyond the arbitration's jurisdiction defined in Article 2 of the Law on Commercial Arbitration in 2010.
- The arbitration agreement maker has no competence defined by law.
- The arbitration agreement maker has no civil act capacity under the Civil Code in 2015.
- The form of the arbitration agreement is incompliant with Article 16 of the Law on Commercial Arbitration in 2010.
- A party is deceived, intimidated or compelled in the course of making the arbitration agreement and requests a declaration that such arbitration agreement is invalid.
- The arbitration agreement breaches prohibitions specified by law.
Please refer to the Law on Commercial Arbitration in 2010 for further information.
Best regards!
