Nguyễn Nữ Thùy Linh - Student No.

: 085 202 0024

Arbitration has long been used worldwide, especially in international business. In Vietnam, the Commercial Arbitration State Law was first introduced in 2005, then adjusted and raised to Commercial Arbitration Act (ratified by the National Assembly on 17 June, 2010) and went into effect by 1/1/2011. These documents are the legal fundamental for this pre-eminent dispute settlement method to be practiced widely in our country. I. The reason for the fact that arbitration is applied commonly in international commercial nowadays is also right for inland commercial activities. The cost-and time-saving and private characteristic and decision from commercial-activities-savvy arbitral tribunal are main prominent advantages over traditional courts that arbitration has. The first thing to take into account is the convenience of exercising arbitration to resolve disputes arise in highly technical situation related to business such as commerce (and another example is foreign investment). On one hand, conducting arbitration allows parties to invite experts with appropriate competences and experiences to be their arbitrators and to make reasonable decision in a business-savvy way. This proceeding is very different from traditional litigation as both claimant and defendant cannot “choose the judge”. On the other hand, as they say “all roads lead to Rome”, the fact that business gurus are still likely to be consulted by the court panel who might have limited experience in particular business circumstances helps us to picture the fitting of using arbitration clause in trade contracts instead of bringing disputes before the Court. The second reason for entrepreneurs' preference of arbitration is the cost. Although it is still not clear whether arbitration expenses is lower than nominal filing jury fee in litigation while the judge, panel and other court officials' salaries not the arbitrators' are paid by taxpayers, parties do benefit from opportunity cost saving which is generally derived from time saving. For instance, the procedure scheduled and accelerated by mutual arrangement and contribute to faster settlement. Also, once the arbitral award is issued, appellate stage hardly occurs so that the dispute is closed soon. Obviously, these do help in emergency cases or in conditions that the subject of the contract such as fruit, fresh food, etc. is need to be determined quickly when further damages would happen without speedy handling. Also, time-saving is valuable especially in goods trading because the longer the consignment is not circulated, the bigger the financial and stock cost will be. Therefore, the above points are usually referred to the natural cost advantage of arbitration. Finally, the most remarkable characteristic of arbitration in many businessmen and women is the privacy. Unlike one of basic principle of litigation, arbitral proceedings are nonpublic. This is really necessary to the business activities of the involved parties in future because their customers, suppliers and partners perceive that the reliability is so important that they tend to diminish the trading with a flaw-reputation company. Therefore, not only the goodwill is reserved but also in some extent the relationship between those companies still remains. II. As we can see, arbitration seems good, so is there any promising future for the use of arbitration in domestic commercial transactions in Vietnam? Without contradiction, arbitration can be applied in trade and business within a specific

Therefore. III. the introduce of a document that regulates arbitration in Vietnam has just emerged for five years.html . a promising solution should be the interaction in foreign trade and investment activities as well as the increasing preference to arbitration that lead to the requirement of training qualified arbitrators. if one party failed to comply with the arbitration order such as pay for the damage to the other party. . Many scholars and lawmakers believe that this alternative dispute resolution deserves an consideration in changing the way that people deal with disagreement. References: 1. Actually. The foremost important reason may arise from the actual fact that arbitration is quite new for our potential users. 2. Mitchell L. Indeed. the amount of experienced arbitrators who are truly reliable is rather small. This is understandable because arbitral tribunal either appointed by involved parties (in ad hoc arbitration) or established by an institution providing arbitration services (Vietnam International Arbitration Center – VIAC for example) (in administered arbitration) has no authority in prosecuting the award in many people's perception. The third obstacle must be the psychological concern about the enforcement of the arbitral award. considerable effort will be needed to populate and stimulate the demand and the application of arbitration into the inland besides providing resolution for international contracts. they could be forced to fulfill their obligation by the authorities. the development of inland arbitration implementation is not stimulated by the labor force in this area. “Luật Trọng tài thương mại Việt Nam” No 54/2010/QH12. Resonating with this fact. In summary. Consequently. the Vietnamese enterprises have been considered lack of legal knowledge and making use of it. all the declaration and orders of the arbitral tribunal are analogous to judgment of a court and its enforcement is also guaranteed by the Prosecuting ost. Marinello. For instance. Retrieved 20/3/2011. Perhaps. although becoming a commercial arbitrator is not so demanding to be eligible in conformity with the Commercial Arbitration Act 2010. http://apps.americanbar. Take the following argument for closer view on the matter. courses on arbitration and related matters and in providing detailed practical and useful information to the target entrepreneurs and to the public as a whole. “Protecting the Natural Cost Advantages of Arbitration”. For example. contributing to the unpretentious demand for arbitration is the low availability of skilled arbitrators in our country at the present. our enterprises will probably use this resolution more frequently with sufficient information. arbitration still has a modest foothold in domestic dispute settlement in Vietnam. To some degree. the actual state of arbitral practice in many developed nations is a firm proof. Going back to the first issue. based on the advantages of arbitration together with the integration trend. Despite its apparent merits. The government should perform more actively in organizing more seminars. arbitration clause which has been used on foreign trade contracts between Vietnamese economic organizations and oversea partners will certainly be consolidated and give support to the advance of arbitration to settle dispute in domestic business context.

Sign up to vote on this title
UsefulNot useful