Dispute Resolution Through Arbitration
Dispute resolution methods are litigation, negotiation, mediation and arbitration. Handling disputes requires the skills from litigation law firm with dispute lawyers in Vietnam whom bring in experience and knowledge to provide resolutions to complex cross-border issues, commercial and civil disputes. If the agreement between parties refer to arbitration as a method of dispute resolution, then it is suggested to engage arbitration lawyers in Vietnam for advice and representation.
Litigation at court or dispute through arbitration
In Vietnam, most of contracts refer to litigation at court as a method of dispute resolution. The overload of works the court might make dispute resolution taking over a long period of time, discouraging disputants to use litigation at court. Thing has changed over the last 10 years or so after the introduction of Law on Arbitration. In the current business environment, many lawyers have been introduced to arbitration as an effective ways to resolve disputes whom in term refer clients to use arbitration clause in the contract.
Valid arbitration agreement in the contract
For a dispute to be referred to arbitration, there must be a valid arbitration agreement in writing, either as an arbitration clause within a contract or a separate agreement. If the agreement is included within the context of a contract, the arbitration clause is considered independent, and any modification, extension, or termination of the contract does not affect the validity of the arbitration clause. Vietnamese law allows for a written arbitration agreement to take the form in any written form, so long as the writing clearly indicates the parties’ intent to resolve any dispute via arbitration. If a dispute falls within the scope of a valid arbitration agreement, but a party attempts to initiate court proceedings, the residing court does not have jurisdiction over the matter, and must drop the case. Moreover, an arbitration agreement does not have to stipulate specific dispute matters and/or the arbitration organization authorized to resolve disputes without supplemental agreement. Even if there is a valid arbitration agreement, Vietnamese Arbitration Law stipulates that in order for a dispute to go to arbitration, it must also fit into one of three categories:
(1) Disputes arising from “commercial activities”;
(2) Disputes where at least one party is engaged in commercial activities;
(3) Other disputes where the law stipulates that arbitration is a permissible means of resolution.
In category (1), the term “commercial activity” is defined in Commercial Law as “activity for profit-making purposes comprising the purchase and sale of goods, provision of services, investment, commercial enhancement, and other activities for profit-making purposes.” The types of disputes that often fall into the second category are noncommercial disputes, such as civil disputes, where at least one party to the dispute is engaged in commercial activities. However, this category does not apply in disputes between a good/service provider and a consumer. In this case, the law allows the party to choose between litigation and arbitration. Even the agreement includes a standard arbitration clause in the supply of goods or services contract, the dispute may not be arbitrated without the consumer’s consent. The final category of disputes permissible for arbitration gives legislators discretion to expand or maintain the types of disputes resolved through arbitration. An example of a category (3) dispute is a dispute arising from investment activities governed by the Law on Investment.
Arbitration has become an extremely popular method of dispute resolution, as many businesses prefer it over the high costs of litigation.
How arbitration lawyers in Vietnam could help?
Arbitration lawyers in Vietnam at ANT Lawyers with accreditation in national and international arbitration practice could help providing legal advice in disputed matters, and guide the clients throughout the process. The arbitration lawyers could also advise the clients on various matters from choice of arbitrator, choice of arbitration rules, ad-hoc or institutional arbitration, place of arbitration, enforcement of arbitral award.
ANT Lawyers, a law firm in Vietnam will be available to assist the clients when required to handle dispute matters out of court, at court or through arbitration in Vietnam.
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