Arbitration proves useful in settling disputes

A conference called Viet Nam – Global Investment Destination – An Arbitral Perspective in Ha Noi on Monday revealed that creating a transparent legal environment in which commercial arbitration is the tool in enterprise dispute settlement, contributes to more investment capital.

Arbitration was a suitable form of dispute resolution especially in the context of Viet Nam’s global economic integration, said Deputy Minister of Justice Nguyen Duc Chinh at the conference held jointly by the Viet Nam International Arbitration Centre together with Singapore International Arbitration Centre.

Aware of the importance of arbitration, Viet Nam published the Law on Commercial Arbitration early this year, Chinh said.

The law created an important legal framework for organisations and individuals offering arbitration services in Viet Nam, he added.

Trade disputes and differences in trade laws are unavoidable in this international playground, the centre’s vice chairman Vu Xuan Phong said.

Employing commercial arbitrators was necessary for enterprises to resolve these disputes, Phong said.

Other experts at the event agreed. They said that hiring arbitrators helped businesses save time and money while further easing the burden on the nation’s court system.

Despite these advantages, domestic enterprises seemed to be vague about this form of settlement, Phong said. He added that last year, the centre settled only 60 disputes, a modest number compared to other Asian countries as Singapore and Hong Kong.

He emphasised the importance of a public relations campaign to raise awareness, particularly among domestic enterprises, on the advantages of arbitration.

The firms should be better informed about ordinance on arbitration and the benefits and procedures of this form of dispute resolution, said Tran Huu Huynh, head of the Legal Department under the Viet Nam Chamber of Commerce and Industry.

Arbitrators and arbitration centres also needed to establish closer connections to enterprises, market their roles to business associations and provide information through websites and marketing efforts, Huynh said.

Increasing assistance from the State and relevant agencies were also needed, he added. — VNS

Tags: Viet Nam - Global Investment Destination - An Arbitral Perspective