Alternate Dispute Resolution Law at Vietnam
Vietnam has developed a robust legal framework for Alternative Dispute Resolution (ADR), encompassing both arbitration and mediation. These mechanisms are increasingly utilized in commercial disputes, offering businesses efficient and flexible alternatives to traditional court proceedings.
⚖️ Legal Framework for ADR in Vietnam
1. Arbitration
The primary legislation governing arbitration in Vietnam is the Law on Commercial Arbitration 2010 (Law No. 54/2010/QH12), which aligns with the UNCITRAL Model Law. This law provides a comprehensive framework for resolving commercial disputes through arbitration. Key features include:
Arbitration Agreement: Parties must establish an arbitration agreement, which can be made before or after a dispute arises.
Arbitration Procedure: The law outlines the procedures for arbitration, including the appointment of arbitrators, conduct of hearings, and issuance of awards.
Enforceability: Arbitral awards are final and binding, with limited grounds for appeal.
Vietnam hosts several arbitration centers, with the Vietnam International Arbitration Center (VIAC) being the most prominent. VIAC has introduced the Arb-Med-Arb (Arbitration-Mediation-Arbitration) protocol, allowing parties to attempt mediation during arbitration proceedings, enhancing the flexibility of dispute resolution.
2. Mediation
Mediation in Vietnam is governed by several legal instruments:
Decree No. 22/2017/ND-CP: This decree provides the first comprehensive legal framework for commercial mediation in Vietnam, establishing principles, procedures, and the role of mediators.
Civil Procedure Code 2015: Introduced provisions for the recognition and enforcement of mediated settlement agreements by courts.
Recent Amendments: New laws, such as the Law on Protection of Consumer’s Rights 2023, the Law on Bidding 2023, and the Law on Electronic Transactions 2023, have incorporated mediation as a dispute resolution method, reflecting a growing trend towards ADR in various sectors.
Mediation offers a confidential, flexible, and cost-effective alternative to litigation. The Vietnam Mediation Centre (VMC), affiliated with VIAC, has been instrumental in promoting mediation, including the launch of the online platform MedUp to facilitate remote dispute resolution.
Vietnam's legal framework for ADR, encompassing both arbitration and mediation, provides businesses with effective tools for resolving disputes. The country's commitment to modernizing its ADR mechanisms aligns with international standards, fostering a conducive environment for both domestic and international commercial activities.
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