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Explanation and Application of CISG in International commercial contractl

25/09/2017 15:05

On 12 and 15 September 2017, in Hanoi and Ho Chi Minh City, the CISGVN co-operated with Vietnam Business Lawyer Club (VBLC) to organize the seminar on Explanation and Application of CISG in International commercial contract. Presenting in the seminar was speakers, experts from CISGVN, VBLC, Singapore Management University and Vietnam International Arbitration Centre (VIAC).

On 1 January 2017, CISG has officially taken effect in Vietnam. Unless parties agree on another source of law, this Convention will be the base to manage the sales contract between Vietnamese enterprises and enterprises from the remaining 83 nations and territories which are members of CISG, including some of the most important partners like the United States of America (USA), Japan, almost all EU countries, China, Korea and Singapore etc…

Overview of the seminar

With that background, the seminar was held with the hope to help law practitioners to understand and apply the new law smartly in drafting, managing the contract and resolving disputes. Companies can utilize the law to manage better, minimize risks from international commercial contract and also avoid unnecessary disputes..

 

Lawyer Dinh Anh Tuyet made an opening speech

As an opening speech, Lawyer Dinh Anh Tuyet - Managing Member of VBLC, Arbitrator of VIAC emphasized that: “International commerce has become an important part in any economy. Minimizing the cost for international transaction is utmost goal for governments as well as enterprises. In order to achieve that, simplifying the international trade by eradicating legal barriers and enhancing law stabilizers is the most effective method. Therefore, the presence of an universal commercial law like CISG has an undeniable benefit. Vietnam is proud to be the 2nd country in the ASEAN region to join CISG. It showed the effort and hope from our government and other organizations toward the common goal, which is minimizing the risks and enhancing the benefits for the business community in international trade.”

Dr. Nguyen Minh Hang presented in the seminar

Sharing the same viewpoints was Dr. Nguyen Minh Hang - Dean of Law Faculty, Foreign Trade University, Arbitrator of VIAC.

Among all the efforts to unify the international commercial contract law, CISG is considered the most successful because of its language, scale and its compulsory features. In a recent forum in Thailand organized by United Nations Commission on International Trade Law (UNICTRAL), CISG is highly encouraged in South East Asia based on its positive effects. The convention is an important step to the unification and harmonization of international law on commercial contract - an essential trend of international commerce.

    

Prof. Locknie Hsu and Prof.Basil C. Bitas, from Singapore Management University

Also in the seminar, two international experts: Professor Locknie Hsu and Professor Basil C. Bitas from Singapore Management University focused on the development of international commerce and the application of CISG in ASEAN, as well as the basic principle in explaining and applying CISG in practical situation.

Professor Locknie Hsu shared that within the ASEAN region, CISG is a highly economics efficiency choice. However, it is such a regret that only 2 ASEAN members have joined the convention. The research on international trade among Canadian enterprises in ASEAN recorded that 60% responded the inconsistent in commercial law between countries was the biggest barriers in promoting trade in the region. However, CISG is expected to lift the barriers, open up new opportunities for enterprises. In other words, CISG is an important step toward the harmonization of commercial law in the region.

Professor Basil C. Bitas added: “If you are wondering when is the best time to harmonize commercial law in ASEAN, I can assure you that the the time is now and CISG will help ASEAN to catch the trend with a practical convention and specific benefit for the business community”

Speakers in the 2nd part of the seminar

In the next part, Lawyer Nguyen Trung Nam - Managing Partners of EP Legal, Member of Legal Science Committee in VIAC, Dr. Nguyen Thanh Tam - Dean of International Commercial Law, Ha Noi Law University and Mr. Phan Trong Dat, Vice Secretary General of VIAC has presented and discussed more thoroughly on contract drafting, management and dispute resolution from the breach of contracts.

Mr. Phan Trong Dat - Vice Secretary General of VIAC

In his speech, Mr. Phan Trong Dat asserted that alternative dispute resolution will be ideal and make more specific mark in resolving dispute related to the explanation and application of CISG. As a member of the 1958 New York Convention, commercial arbitration is an useful tool to ensure fairness and transparency in international commercial trade

The “Explanation and Application of CISG in International Commercial Contract” seminar has left good impression to the attendees. The results gained from the seminar through experience sharing, open discussion will help Vietnamese lawyers understand more clearly about CISG and its undeniable advantages. We hope that Vietnamese lawyers can take this knowledge to assist their clients which are energetic businessmen with the international viewpoint but somehow still cannot affirm their position in the global market.

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