OVERVIEW OF DISPUTE RESOLUTION METHODS IN VIETNAM

Vietnam is a country with a fast and stable growing economy compared to other countries in the region as well as in the world. One of the important factors contributing to Vietnam's economic growth is the investment activities of businesses including state-owned enterprises, domestic and foreign enterprises (FDI). The Vietnamese State has made many commitments and strong actions to ensure the legitimate rights and interests of companies doing business and investing in this emerging market, especially every effort that has been made. for institutional and judicial reforms to facilitate investment and stimulate the economy.

The development of the economy leads to an increase in civil and commercial transactions, and certainly also leads to cases of disputes in many areas such as: internal disputes within businesses, contract disputes, commercial activities, labor relations, investment, sanctions and administrative enforcement in the fields of tax, intellectual property, construction, purchase and sale of goods... In addition, there have been disputes related to related to criminal factors.

In Vietnam, disputes can be resolved by Negotiation, Mediation, Court or Arbitration Center. In fact, 90% of disputes are resolved by litigation in Court or Arbitration Center. On behalf of the Client, the lawyer will participate in these processes to protect the Client's legal rights and interests.

Negotiation

Negotiation is a method of resolving disputes that does not necessarily require the participation of a third party. The basic features of this way are that the parties can freely present and share their opinions, persuade others to accept their arguments, work together to find suitable measures, and come to a conclusion. agreement to resolve the issue.

Advantages

• Convenient, fast, simple, flexible, effective and inexpensive.
• To protect the reputation, reputation as well as business secrets of the parties.

Disadvantages

• Depending on the understanding and attitude, goodwill and cooperation of the parties.
• The results are not guaranteed by a legally binding mechanism but depend on the voluntary attitude of the parties.

Mediation

Mediation is one of the options (Alternative Dispute Resolution) instead of taking the case to court. This is a method that involves a neutral third party but minimizes its intervention in the outcome of the dispute between the parties who will have sole discretion. Mediation is not to determine who is right or wrong based on the right and burden of proof to make a decision like in arbitration or court. The conciliator or conciliator does not make a decision but only helps the parties involved find common interests, offering solutions that are voluntarily accepted and followed by the parties.

Arbitration

Arbitration has many outstanding advantages, bringing many benefits to parties when there are disputes in their business and commercial activities, specifically as follows:

First, arbitration procedures do not go through many levels of trial like in court, thus limiting time and money for businesses.

Second, the right to choose an arbitrator to resolve a dispute allows the parties to choose experts with professional experience and practice on the disputed issue and reputation to become arbitrators to resolve their disputes. parties and ensure the quality of the final judgment.

Third, the arbitrator respects the confidentiality of the entire process. The arbitration meeting is not conducted in an open manner [different from the Court's public trial procedures], so the parties can maintain their reputation in the market.

Dispute resolution by Court

Đây là cách phổ biến nhất để giải quyết tranh chấp tại Việt Nam, có những ưu và nhược điểm sau:

This is the most popular way to resolve disputes in Vietnam, with the following advantages and disadvantages:

Advantages: 

• The cost of dispute resolution by Court will be lower than arbitration.
• The Court's judgments are highly enforceable because they are enforced by State power.
• Court procedures are very strict according to the law.

Disadvantages: 

• Court procedures are inflexible and lengthy.
• Public trial is not suitable for commercial business activities because it can easily affect reputation and reveal business secrets.
• The ruling can be appealed, leading to prolonged disputes.

For any questions or comments, please contact:

OTIS AND PARTNERS LAW FIRM

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