News

VIAC encourages alternative dispute resolutions

14/06/2017 16:49
Trong hình ảnh có thể có: một hoặc nhiều người và trong nhà

VIAC has introduced a model arbitration clause reserved for the banking and credit sectors.

— VNA Photo Tran Viet

The Vietnam International Arbitration Centre (VIAC) organised a workshop yesterday with the International Finance Corporation (IFC) to promote the use of alternative dispute resolution (ADR) methods in the banking and finance sector.

The conference, named ‘Benefits and Challenges of Using ADR for Banking Disputes’, focused on the principles, conditions and procedures of commercial mediation as an ADR method, as well as the conditions for establishment of mediation centres in Viet Nam and the implementation of Decree 22 on commercial mediation, which has been in effect since April 15, 2017.

Trong hình ảnh có thể có: 1 người, đang đứng

Ms. Nguyen Thi Mai, Deputy Head of the Justice Support Department

According to the decree, the settlement of disputes via trade reconciliation must ensure the principle of voluntarism and equality in terms of rights and duties between parties to the disputes who participate in reconciliation, said Nguyen Thi Mai, Deputy Head of the Justice Support Department.

In recent years, global banks and financial institutions have considered many ADR methods like Meditation and Arbitration as an effective way to solve disagreements. According to Tran Huu Huynh, VIAC’s Chairman, this trend arose due to the need for a customised dispute resolution mechanism for the financial sector which must also ensure efficiency and promptness.

Trong hình ảnh có thể có: 1 người, kính râm

 

Mr. Truong Thanh Duc, Chairman of the Legal Club Bank of the Vietnam Bank Association, VIAC Arbitrator

Mr. Truong Thanh Duc, Chairman of the Legal Club Bank of the Vietnam Bank Association, agreed with Huynh, saying that on average, a financial or credit dispute takes the litigation court two to three years to reach a final ruling. An arbitration court should take only five to six months. And even at a normally higher legal fee, arbitration methods have proved more effective and specialised than the traditional court, particularly in cases involving foreign entities.

Nina Mocheva, a World Bank Dispute Resolution Specialist, said at the conference that World Bank had been working closely with Viet Nam and the VIAC since 2013, and that they are deeply impressed by the country’s arbitration modernisation.

However, Mocheva also raised her concern over the temporary lack of legal framework and practical application of ADR methods in Viet Nam.

In response to Mocheva’s insight, Mai suggested a number of possible improvements, such as the Supreme People’s Court of Vietnam taking responsibility in encouraging firms and organisations working in the financial dispute resolution field to popularise ADR methods, and the Ministry of Justice proactively completing an absolute and uniform trade dispute resolution legal framework. She was also in favour of involved parties solving disputes through negotiation and appeasement before taking matters to court.

Similar to arbitration, commercial mediation is only applicable when concerned parties have entered a mediation agreement before or after the dispute has arisen, or at any point during the dispute resolution process.

The conference included two discussion panels in which representatives from commercial banks, credit organisations and legal firms discussed the future of ADR methods in Viet Nam with the speakers.

Michael Hwang, member of the Chartered Institute of Arbitrators, proposed a comprehensive approach to ADR, with trade mediation support from both the Vietnamese government and courts.

Trong hình ảnh có thể có: 1 người, hoa

 

Dr. Michael Hwang, member of the Chartered Institute of Arbitrators

Hwang recommended ADR methods in commercial arbitration on the ground of both parties being able to employ lawyers of choice, which proves effective for both financial institutions and financial service users.

At the conference, VIAC’s Deputy Secretary General Phan Trong Dat also introduced a model arbitration clause reserved for the banking and credit sectors, divided into two categories for credit contracts and contracts of guarantee in order to cover all credit activities. — VNS

Credit: Vietnam Breaking News

Share Post
SOME OTHER NEWS
  • Mitigating investment risk – treaty planning and damages claims against state entities 27/08/2018 10:27

    What do these three scenarios have in common? An investor is negotiating a contract with a state entity in a high-risk jurisdiction. An investor – an individual or a corporate entity – is considering how to structure its holdings in a tax efficient manner. An investor is facing potential asset nationalisation or breach by a state entity of its contractual obligations.

  • Firms suggested using mediation to resolve commercial disputes 23/08/2018 11:50

    Phan Trong Dat, Deputy Secretary General of the Vietnam International Arbitration Centre (VIAC) and Deputy Director of the VMC, said mediation is appropriate for Asian culture since Asians prefer to settle disputes in a peaceful way. According to Dat, mediation is simply a negotiation with the participation of an independent mediator who can help both parties discuss their matter and reach their own agreement.

  • Simplified procedure for foundation of standard LLCs 26/07/2018 14:37

    The Austrian Parliament recently passed an amendment to the law on limited liability companies (LLCs) aimed at simplifying the foundation of a special kind of LLC. The purpose of the changes – and the simplifications associated with them ­– have been hotly debated.

  • Taxation of bitcoin and other cryptocurrencies 26/07/2018 14:34

    The meteoric rise and subsequent tailspin in the price of bitcoin has incited rampant investment in cryptocurrencies. Over 1,400 coins or tokens are now in circulation. Often lost in the resplendence and chicness of buying and selling cryptocurrencies are the tax consequences.

  • Launching Ceremony of Vietnam Mediation Centre and the Official Release of VMC Mediation Rules 2018 18/06/2018 16:05

    On 29 May 2018, the Vietnam International Arbitration Centre ran the Launching Ceremony of Vietnam Mediation Centre (“VMC”), a division of Vietnam International Arbitration Centre in Hanoi. VMC is the first unit in Vietnam to provide professional service of commercial mediation under the Decree No. 22/2017/ND-CP dated 24 February 2017 on commercial mediation.

  • 1st International ADR Conference at the Dusit Thani 30/05/2018 15:52

    In the conference, Mr. Phan Trong Dat (VIAC Vice General Secretary) presented about the enforcement of Mediated Settlement Agreement in Vietnam. Dat supposed that the enforceability of mediated settlement agreements is maybe the most important factor contributing to the success of mediation.

  • Vietnam launches mediation centre for trade-related issues 30/05/2018 15:31

    According to Tran Huu Huynh, President of the VIAC, Vietnam is considered a country with high and stable economic growth in the region and in the world. The Vietnamese Government has made a number of strong commitments and actions to reform in a more facilitative fashion, aiming to build a favourable business climate for investors, including the finalisation of a legal framework for the methods of settling trade disputes.

  • Many FDI firms choose commercial arbitration in resolving disputes 22/05/2018 14:11

    Phan Trong Dat, Deputy Secretary General of the Vietnam International Arbitration Centre (VIAC) said at a recent seminar that the rate of disputes in Vietnam has increased in the last three years with over a half of commercial arbitration cases at VIAC being resolved in foreign languages (mainly English).

    REGISTER EMAIL WITH VIAC