Conditions and procedure for dispute resolution through commercial mediation in Vietnam

Conditions and procedure for dispute resolution through commercial mediation in Vietnam (Internet image)

1. Principles of dispute resolution through commercial mediation in Vietnam

Article 4 of Decree 22/2017/ND-CP stipulates the principles of dispute resolution through commercial mediation as follows:

- Disputing parties shall participate in mediation on an entirely voluntary basis and are equal in terms of rights and obligations.

- Information relating to a mediation case shall be kept confidential, unless otherwise agreed upon in writing by involved parties or otherwise prescribed by law.

- Mediation agreement contents must neither violate prohibitory provisions of law nor contravene social morality, nor aim at shirking obligations nor infringe upon rights of a third party.

2. Conditions for dispute resolution through commercial mediation in Vietnam

Pursuant to Article 6 of Decree 22/2017/ND-CP, a dispute shall be resolved through commercial mediation if involved parties so agree.

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.

(Article 11 of Decree 22/2017/ND-CP)

The parties may reach agreement on dispute resolution through mediation before or after a dispute arises or at any time in the process of dispute resolution.

3. Selection and appointment of commercial mediators in Vietnam

The selection and appointment of commercial mediators are specified in Article 12 of Decree 22/2017/ND-CP as follows:

- 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.

4. Mediation order and procedures in Vietnam

Article 14 of Decree 22/2017/ND-CP stipulates the order and procedures for conducting commercial mediation as follows:

- 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.

- Rights and obligations of the disputing parties in the commercial mediation process

5. Rights and obligation of disputing parties in the mediation process in Vietnam

Pursuant to Article 13 of Decree 22/2017/ND-CP, the rights and obligation of disputing parties in the mediation process include:

* 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.

Van Trong

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