Method of Dispute and Violation Resolution in a Partnership Project

The State has issued numerous preferential policies for the agricultural sector, one of which is Decree 98/2018/ND-CP regarding policies to encourage the development of cooperation and linkage in the production and consumption of agricultural products. Besides the agricultural support and encouragement policies, the Decree also addresses the handling of disputes and violations that may occur.

To be specific: the handling of disputes and violations in the implementation of contracts and linkage projects is resolved as follows:

In cases where the parties involved in the linkage do not fulfill their commitments and responsibilities during the linkage supported by the state budget:

- They will not be entitled to the State's incentives and support, will be dealt with in accordance with the current law, and will be required to compensate the damaged party;- They will not be eligible to participate in the State's incentive policies on linkage for a period of 5 years from the date the violation is identified.

In cases where the parties involved in the linkage violate the provisions of the linkage contract, they will be handled in the following forms:

- Forced to comply with the linkage contract;- Fines for breach of the linkage contract;- Temporary suspension of the linkage contract;- Suspension of the linkage contract;- Cancellation of the linkage contract;- Required compensation for the damages to the related parties;- Other measures agreed upon by the parties involved in the linkage which are not contrary to current legal provisions.

The State encourages the parties involved in the linkage to resolve disputes through negotiation and mediation. In cases where agreement cannot be reached, the matter will be resolved through commercial arbitration or court adjudication.

Decree 98/2018/ND-CP takes effect from August 20, 2018.

- Thanh Lam -

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