Can a person who is not a commercial mediator be the chairman of a commercial mediation center in Vietnam?

Can a person who is not a commercial mediator be the chairman of a commercial mediation center in Vietnam?

Pursuant to Article 19 of the Decree 22/2017/NĐ-CP stipulating commercial mediation centers as follows:

1. Commercial mediation centers shall be established in accordance with this Decree and have the legal person status and own seals and bank accounts.

2. Commercial mediation centers shall operate not for profit.

3. Commercial mediation centers may establish branches and representative offices at home and abroad.

4. The organizational structure of a commercial mediation center shall be stated in the Charter of the center. The chairperson of a commercial mediation center must be a commercial mediator.

As regulations above, the chairman of a commercial mediation center must be a commercial mediator. If you are not a commercial mediator, you cannot become the chairman of a commercial mediation center.

What are the fines imposed on a commercial mediation center in Vietnam for failure to store administrative penalty records?

According to Clause 2, Article 29 of Decree 82/2020/NĐ-CP on stipulating violations of the activities of commercial mediation centers, branches of commercial mediation centers; branches and representative offices of foreign commercial mediation organizations in Vietnam as follows:

2. A fine of between VND 3,000,000 and VND 7,000,000 for one of the following acts:

a) Not notifying the competent authority in writing of the establishment of branches, representative offices of commercial mediation centers in Vietnam and abroad; representative offices of foreign commercial mediation organizations;

b) Not notifying the competent authority in writing of changes to the registered office of the commercial mediation center, branch of the commercial mediation center; location, head of the representative office of the commercial mediation center; branches and representative offices of foreign commercial mediation organizations;

c) Not publishing in the newspaper about the establishment of a mediation center or not sending a list of commercial mediators of their organization;

d) Not notifying the competent authority in writing of the termination of activities and completion of termination procedures for the mediation center; branches, representative offices of the mediation center; branches, representative offices of foreign commercial mediation organizations;

dd) Not implementing the reporting system; not establishing, managing books, forms as prescribed;

e) Not storing mediation records;

g) Not registering with the competent authority the change of name, registered office of the commercial mediation center; name, head of branch, registered office of branch, representative office of foreign commercial mediation organization.

Based on Clause 5, Article 4 of Decree 82/2020/NĐ-CP on the level of fines:

5. The fines prescribed in Articles 7, 8, 9, 16, 17, 24, 26, 29, 33, 39, 50, 53, 63, 71, 72, 73, 74 and 80 of this Decree are the fines for administrative violations of organizations.

Therefore, according to the above regulations, a commercial mediation center that does not store mediation records will be fined from VND 3,000,000 to VND 7,000,000.

What are procedures for establishment of a commercial mediation center in Vietnam?

Pursuant to Article 21 of the Decree 22/2017/NĐ-CP stipulating procedures for establishment of a commercial mediation center in Vietnam as follows:

1. A Vietnamese citizen who fully satisfies the criteria for a commercial mediator specified in Clause 1, Article 7 of this Decree and wishes to establish a commercial mediation center shall send 1 set of dossier to the Ministry of Justice, comprising:

a/ A written request for establishment of a commercial mediation center, made according to a form issued by the Ministry of Justice;

b/ A list of the center’s founders;

c/ Papers proving the founders’ full satisfaction of the criteria for a commercial mediator specified in Clause 1, Article 7 of this Decree;

d/ The draft Mediation Rule of the center.

The contents of the center’s Mediation Rule must not contravene law.

2. Within 30 days after receiving a valid dossier, the Ministry of Justice shall grant an establishment license to the commercial mediation center; in case of refusal, it shall notify the reason in writing. The person having his/her request for establishment of a commercial mediation center rejected may lodge a complaint or initiate a lawsuit in accordance with law.

Above are procedures for establishment of a commercial mediation center in Vietnam.

Best regards!