When conducting a PPP project, there will be many causes leading to conflicts and disputes between state agencies, investors and enterprises investing in public-private partnership (hereinafter referred to as PPP projects). Below is the dispute resolution mechanism for PPP project contract in accordance with the Law on public - private partnership investment of Vietnam.
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Specifically, according to Article 97 of the Law on public - private partnership investment of Vietnam, disputes between competent authorities or contracting authorities and investors or PPP project enterprises, and disputes between PPP project enterprises and economic organizations involved in executing projects shall be resolved through:
- Negotiation;
- Mediation;
- Arbitration;
- Court.
The following disputes must be resolved by Vietnamese Arbitration or Court:
- Disputes between competent authorities, contracting authorities and domestic investors or PPP project enterprises established by domestic investors;
- Disputes between domestic investors;
- Disputes between domestic investors or PPP project enterprises established by domestic investors and Vietnamese economic organizations.
Particularly, disputes between competent authorities, contracting authorities and foreign investors or PPP project enterprises established by foreign investors shall be settled at the Vietnamese Arbitration or the Vietnamese Court, unless otherwise agreed upon under contracts or treaties of which the Socialist Republic of Vietnam is a member.
Besides, according to Clause 4 Article 97 of the Law on public - private partnership investment of Vietnam, disputes between investors, including at least one foreign investor; disputes between investors or PPP project enterprises and foreign organizations or individuals shall be settled at one of the following entities and organizations:
- Vietnamese Arbitration;
- Vietnamese Court;
- Overseas Arbitration;
- International Arbitration;
- Arbitration established under agreements between disputing parties’ agreement.
Note: Disputes settled through arbitration prescribed in PPP and other relevant contracts shall be deemed as commercial disputes. Foreign arbitral awards shall be recognized and enforced in accordance with the law on recognition and enforcement of foreign arbitration’s awards in Vietnam.
