What is commercial arbitration? Current Criteria of arbitrators in Vietnam

What is commercial arbitration? Current Criteria of arbitrators in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is commercial arbitration?

According to Clause 1, Article 3 of the Law on Commercial Arbitration 2010, Commercial arbitration means a mode of dispute settlement agreed by the parties and to be conducted under the Law on Commercial Arbitration 2010.

Clause 5, Article 3 of the Law on Commercial Arbitration 2010 stipulates that arbitrator means a person selected by the parties or designated by an arbitration center or a court to settle a dispute under the Law on Commercial Arbitration 2010.

2. 05 Principles of dispute settlement by arbitration in Vietnam

Article 4 of the Law on Commercial Arbitration 2010 stipulates five principles of dispute settlement by arbitration including:

- Arbitrators must respect the parties agreement if such agreement neither breaches prohibitions nor contravenes social ethics.

- Arbitrators must be independent, objective and impartial and shall observe law.

- Disputing parties are equal in their rights and obligations. The arbitration council shall create conditions for disputing parties to exercise their rights and fulfill their obligations.

- Dispute settlement by arbitration shall be conducted in private, unless otherwise agreed by the parties.

- Arbitral awards are final.

3. Criteria of arbitrators in Vietnam

Criteria of arbitrators are specified in Article 20 of the Law on Commercial Arbitration 2010 as follows:

- A person who satisfies all the following criteria may act as arbitrator:

= Having the full civil act capacity under the Civil Code;

= Possessing a university degree and having at least 5 years* work experience in the trained discipline:

= In special cases, an expert who has high professional qualifications and much practical experience, though not satisfying the requirement specified at Point b of Clause 1 of Article 20 of the Law on Commercial Arbitration 2010, may also be selected as arbitrator.

- Persons who satisfy all the conditions specified in Clause 1 of Article 20 of the Law on Commercial Arbitration 2010 but fall into either of the following cases may not act as arbitrators:

= Incumbent judges, procurators, investigators, enforcement officers or civil servants of peoples courts, peoples procuracies, investigative agencies or judgment enforcement agencies:

= The accused, defendants, persons serving criminal sentences or having served the sentences but having their criminal records not yet remitted.

- Arbitration centers may set criteria for their arbitrators which are higher than those specified in Clause 1 of Article 20 of the Law on Commercial Arbitration 2010.

4. What are the rights and obligations of arbitrators in Vietnam?

Arbitrators have the following 07 rights and obligations:

- To accept or refuse to settle disputes.

- To be independent in dispute settlement.

- To refuse to provide dispute-related information.

- To enjoy remuneration.

- To keep secret the circumstances of disputes they settle, unless they have to provide information to competent state agencies under law.

- To ensure impartial, fast and prompt settlement of disputes.

- To adhere to the rules of professional ethics.

(Based on Article 21 of the Law on Commercial Arbitration 2010)

5. What are the conditions for dispute settlement by arbitration in Vietnam?

According to Article 5 of the Law on Commercial Arbitration 2010, the conditions for dispute settlement by arbitration are 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.

- When one of the parties being an individual to an arbitration agreement dies or loses his/her act capacity, such arbitration agreement remains valid for his/her heir or representative at law. unless otherwise agreed by the parties.

- When one of the parties being an institution to an arbitration agreement has to terminate its operation, goes bankrupt, or is dissolved, consolidated, merged, divided, split up or reorganized, such arbitration agreement remains valid for an institution that takes over the rights and obligations of the institution to such arbitration agreement, unless otherwise agreed by the parties.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE