The Law on Commercial Arbitration Law recently passed by the NationalAssembly will provide an important legal foundation for businesses tominimise the risks of disputes, said the head of the Vietnam Chamber ofCommerce and Industry's legal department, Tran Huu Huynh.
Speaking at a conference in Hanoi on July 20 held to review theprovisions of the new law, Huynh said few enterprises in Vietnamhave yet paid much attention to arbitration, continuing to prefer totake their disputes to court rather than employ commercial arbitrators.
He added that the settlement of disputes by arbitration was fast,effective and confidential, and the arbitration of disputes would helpease the burden on the nation's court system. Statistics from theVietnam International Arbitration Centre have shown that the HanoiPeople's Court handled 300 economic disputes in 2009, while those inHCM City had a docket of around 1,000. Meanwhile, the centre lastyear handled only 58 petitions for arbitration from businesses.
"Every judge in Ha Noi and HCM City 's economic courts yearlyhandles from 30 to 50 disputes while the average arbitrator handles onlyone," said Vietnam Law Association chairman Pham Quoc Anh.
The nation currently has a total of seven arbitration centres, butarbitration has not been popular in Vietnam due to a lack of aproper legal framework in the 2003 Ordinance on Commercial Arbitration.
"The law has improved shortcomings in the ordinance such as removinglimitations on the application of arbitration to commercial disputes,"Anh said. "Commercial disputes, meanwhile, are increasing rapidly,requiring quick and efficient forms of settlement."
Thenew law, which would take effect next January 1, would also create anequal legal footing for both Vietnamese and foreign enterprises, saidthe vice chairman of the National Assembly's Justice Committee, Pham QuyTy.
Retailers said public relations campaigns should beconducted to raise awareness among enterprises of the advantages ofarbitration, said Dinh Thi My Loan, secretary general and standing vicechairwoman of the Association of Viet Nam Retailers./.
Speaking at a conference in Hanoi on July 20 held to review theprovisions of the new law, Huynh said few enterprises in Vietnamhave yet paid much attention to arbitration, continuing to prefer totake their disputes to court rather than employ commercial arbitrators.
He added that the settlement of disputes by arbitration was fast,effective and confidential, and the arbitration of disputes would helpease the burden on the nation's court system. Statistics from theVietnam International Arbitration Centre have shown that the HanoiPeople's Court handled 300 economic disputes in 2009, while those inHCM City had a docket of around 1,000. Meanwhile, the centre lastyear handled only 58 petitions for arbitration from businesses.
"Every judge in Ha Noi and HCM City 's economic courts yearlyhandles from 30 to 50 disputes while the average arbitrator handles onlyone," said Vietnam Law Association chairman Pham Quoc Anh.
The nation currently has a total of seven arbitration centres, butarbitration has not been popular in Vietnam due to a lack of aproper legal framework in the 2003 Ordinance on Commercial Arbitration.
"The law has improved shortcomings in the ordinance such as removinglimitations on the application of arbitration to commercial disputes,"Anh said. "Commercial disputes, meanwhile, are increasing rapidly,requiring quick and efficient forms of settlement."
Thenew law, which would take effect next January 1, would also create anequal legal footing for both Vietnamese and foreign enterprises, saidthe vice chairman of the National Assembly's Justice Committee, Pham QuyTy.
Retailers said public relations campaigns should beconducted to raise awareness among enterprises of the advantages ofarbitration, said Dinh Thi My Loan, secretary general and standing vicechairwoman of the Association of Viet Nam Retailers./.
