At the seminar on Decree and Guidance to implement Commercial Arbitration Law held on September 6, legal experts believed that the Commercial Arbitration Law (enforced from January 1, 2011) will overcome shortcomings of Commercial Arbitration Ordinance 2003 and meet practical demand of Vietnam in integration with world commercial law.
Little interest by businesses
While commercial arbitration is dominating in international trade, it remains little known in Vietnam with small cases of dispute settlement. According to Dr. Nguyen Minh Chi, Director of Vietnam International Arbitration Centre (VIAC), it is due the following reasons: First, as it is a new type of settlement and without promotion activities, businesses have little knowledge on the role and advantages of arbitration and still considers Tribunal as the place for dispute settlement. Second, though Vietnam system of economic laws in general and arbitration law in particular, have been upgraded, there remains shortfalls and inconsistency, unparallel with international law. However, with the enforcement of the Arbitration Law, the situation will be improved, Mr. Chi asserted.
Mode of integration
As Commercial Arbitration Law is promulgated at the time when Vietnam is integrating deeper with the world, it helps get closer to international standard. Mr. Vu Anh Duong (MA), Deputy Secretary General of VIAC said that the progress of the Commercial Arbitration Law is the expansion of judicial power of the arbitration to commercial field and covering also State-managed bodies.
The competence of Arbitration Council has also been expanded. The Council can apply temporary emergency measures, summon witnesses, and collect evidences. It helps accelerate arbitration process with high efficiency.
The Commercial Arbitration Law has made Vietnamese arbitration legal framework more complete and in compliance with international commercial arbitration law.
It is safe to say that norms of international arbitration law have been embodied in Vietnamese commercial arbitration law. Therefore, it will be a legal instrument to promote commercial arbitration. Businesses will have more confidence and increasingly seek arbitration for dispute settlements.
Presently, Vietnam has seven arbitration centres. They all can handle commercial disputes. Meanwhile VIAC is regarded as the earliest establishment with biggest number of dispute settlements.
N. Phuong
Vietnamese
