Advantages of commercial arbitration

Advantages of commercial arbitration

13/01/2017 09:52

Derive from arbitration’s dispute settlement principles, arbitration shows many pros and brings many benefits for parties in commercial dispute, specifically as follows:

First of all, different from the court procedure which is stipulated in Civil Procedural Code 2015, to settle civil dispute cases in all kinds of civil relations, arbitration procedures are tailored for commercial disputes to be more applicable.

Parties are facilitated with more autonomy with regards to procedural matters such as time, place, language, governing laws, etc. Moreover, normally, parties choosing arbitration do not have to go through different levels of adjudication, as in the national court system, which helps to save time and money for both side.

Secondly, the right to choose arbitrators to resolve the dispute gives parties the opportunity to select experts with suitable expertise and practical experience to the nature of dispute (insurance, construction, finance, intellectual property, etc). It helps to considerably improve the quality of dispute resolution in comparision with the option of administrative assigment of jugdes at the court.

Thirdly, the entire arbitration process will be kept confidential. Unlike in State Court, arbitration hearing will not be held publicly, therefore, parties can protect and preserve their branding/ reputation. Nowadays, confidentiality is growing attention in the context where financial problems are sensitive and can create great impact, either good and bad, toward entrepreneurs, especially joint stock company.

Fourthly, arbitral tribunal’s jurisdiction derives from parties’ agreement in which is empowered by but not dependent on state power. As a result, arbitration could be flexible in its own way (allows using foreign languages, foreign laws, etc.) and most suitable to disputes with foreign factors.

Last but not least, arbitral award are legally enforceable as court verdict.

Within Vietnam’s territories, VIAC arbitral awards might be sent directly to enforcement agencies (Department of Civil Judgment Enforcement) to be enforced legally.

VIAC arbitral awards also might be recognized and enforced in more than 150 countries and territories which are Contracting State of New York Convention 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.


 

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