LAW ON ARBITRATION IN VIETNAM: DEVELOPMENT AND ISSUES
Pham Duy Nghia [1]
1. Introduction
2. Development of the law on arbitration in Vietnam: A retrospective review
3. Evaluation of Arbitration Ordinance 2003: Achievement and shortcomings
4. Controversial issues and options in Draft Law on Arbitration
5. Conclusion
I. Introduction
Vietnam’s Law on Arbitration is currently in the drafting process. If approved by the National Assembly in the meeting session in fall 2009, the draft law possibly will take into force in the second half of 2010. According to the lawmaking tradition in Vietnam, a drafting board comprising of 07 members is established. The members are high-ranging officials, including vice-ministers of the Ministry of Justice, Ministry of Industry and Commerce, the vice-chief judge of the Supreme Court, the vice-chairman of the Vietnam Chamber or Commerce and Industry, chairman and vice-chairman of the Vietnam Lawyer Association [[2]]. The drafting board has the political mandate to develop the main legal policy of the draft law, gather public opinions and to present the draft law to the parliamentary committees before it may be discussed and approved by the plenary meeting session of the National Assembly.
Supporting the work of the law drafting board, an expert team is formed under the leadership of Vietnam Lawyer Association to conduct survey on the existing law on commercial arbitration in Vietnam, to collect and analyse foreign and international experience in the field of the law of arbitration, and to the end, to present the very first draft of the law on arbitration. We have collected legislative on arbitration of nearby 80 countries in the world, we have studied the UNCITRAL Model Law on International Commercial Arbitration [[3]], we have organized at least 05 national workshops in Hanoi, Ho Chi Minh City, and other cities of Vietnam in order to gather the opinions of legal experts and business people across the country to the proposed law on arbitration.
The draft vision being discussed at this international workshop reflects insofar our initial results in evaluating the existing law on commercial arbitration in Vietnam, in selecting the most suitable experiences of foreign and international experiences in arbitration practise and adopting them into the national draft law. We fully understood that adoption into the law on the book, even though complicated to pass the legislative proceedings, is just the very easily first step. In order to successfully transplant the law on arbitration into Vietnam’s legal contexts, much more should be done. However, an advanced, tailor-made Law on Arbitration, meeting fully the Vietnam’s socio-economical and cultural environment is very important. It helps to settle the business disputes in peace and justice; it will help to lessen the workload of the people courts; and to broader perspective, it will help to improve the business environment in Vietnam toward the more transparency, predictability and safety.
The following article focus on the main policy we intend to incorporate into the new draft Law on Arbitration. Following this introductory remark, I will look at the development of the law on arbitration to inform the readers an overview of historical background of this law in Vietnam. The existing Ordinance on Commercial Arbitration 2003 will be evaluated in very brief in order to highlight its main legal achievement, but also its main weakness and shortcomings. Then, discussing the most controversial standing issues, the article considers several options available to be selected in the draft law and will end with some concluding remarks on the current status of the law drafting process.
Pham Duy Nghia [1]
1. Introduction
2. Development of the law on arbitration in Vietnam: A retrospective review
3. Evaluation of Arbitration Ordinance 2003: Achievement and shortcomings
4. Controversial issues and options in Draft Law on Arbitration
5. Conclusion
I. Introduction
Vietnam’s Law on Arbitration is currently in the drafting process. If approved by the National Assembly in the meeting session in fall 2009, the draft law possibly will take into force in the second half of 2010. According to the lawmaking tradition in Vietnam, a drafting board comprising of 07 members is established. The members are high-ranging officials, including vice-ministers of the Ministry of Justice, Ministry of Industry and Commerce, the vice-chief judge of the Supreme Court, the vice-chairman of the Vietnam Chamber or Commerce and Industry, chairman and vice-chairman of the Vietnam Lawyer Association [[2]]. The drafting board has the political mandate to develop the main legal policy of the draft law, gather public opinions and to present the draft law to the parliamentary committees before it may be discussed and approved by the plenary meeting session of the National Assembly.
Supporting the work of the law drafting board, an expert team is formed under the leadership of Vietnam Lawyer Association to conduct survey on the existing law on commercial arbitration in Vietnam, to collect and analyse foreign and international experience in the field of the law of arbitration, and to the end, to present the very first draft of the law on arbitration. We have collected legislative on arbitration of nearby 80 countries in the world, we have studied the UNCITRAL Model Law on International Commercial Arbitration [[3]], we have organized at least 05 national workshops in Hanoi, Ho Chi Minh City, and other cities of Vietnam in order to gather the opinions of legal experts and business people across the country to the proposed law on arbitration.
The draft vision being discussed at this international workshop reflects insofar our initial results in evaluating the existing law on commercial arbitration in Vietnam, in selecting the most suitable experiences of foreign and international experiences in arbitration practise and adopting them into the national draft law. We fully understood that adoption into the law on the book, even though complicated to pass the legislative proceedings, is just the very easily first step. In order to successfully transplant the law on arbitration into Vietnam’s legal contexts, much more should be done. However, an advanced, tailor-made Law on Arbitration, meeting fully the Vietnam’s socio-economical and cultural environment is very important. It helps to settle the business disputes in peace and justice; it will help to lessen the workload of the people courts; and to broader perspective, it will help to improve the business environment in Vietnam toward the more transparency, predictability and safety.
The following article focus on the main policy we intend to incorporate into the new draft Law on Arbitration. Following this introductory remark, I will look at the development of the law on arbitration to inform the readers an overview of historical background of this law in Vietnam. The existing Ordinance on Commercial Arbitration 2003 will be evaluated in very brief in order to highlight its main legal achievement, but also its main weakness and shortcomings. Then, discussing the most controversial standing issues, the article considers several options available to be selected in the draft law and will end with some concluding remarks on the current status of the law drafting process.
II. Development of the law on arbitration in Vietnam: A retrospective review
Settling disputes amicable under the influence of families, relatives, friendships, using customary rules and relationship to narrow discrepancy and hopefully to find resolution in case of disputes is well known in Vietnamese society from the early days. Arbitration, however as recognized institution to settle private disputes, occurred much later in the 19 century, as earliest documented in a decision of the Appellation Court of Saigon of 08/07/1897, which recognized the private agreement to select a foreigner to act as arbitrator in a land disputes in the case Dương Thị Lành versus Võ Văn Thụ [[4]].
Quoted this case, I will call in mind the “civil law legal heritage” Vietnam may have, as the country failed under the French colonial power, thus having a chance, or least an event, more than a century ago, to receive the civil and commercial legal system of France. Several advanced civil and civil procedure codes are being adopted in three parts of Vietnam in the late of 19 century and in the first three decades of the 20 century. Beside the ordinary judiciary, commercial courts were established in major cities of Vietnam (Hanoi, Haipong, Danang, and Saigon). Arbitration rules were parts of the complex civil procedure codes. However, these rules seem to have little impacts to Vietnamese society, because the French colonialist controlled most of the industry and commerce, only a small group of Chinese middlemen worked in the distribution services, the overwhelming majority of Vietnamese nationals continued to work as peasants, handicraft, or small shop keepers in emerging cities. They did not have any chance to learn the concept of arbitration.
Not surprisingly, after the French have gone, the “civil law heritage” also collapsed, first in the Northern, then in the unified Vietnam. Integrated into the communist block, Vietnam introduced the “socialist legality”, first through Chinese lenses in the sixties, and then directly from the former Soviet Union in the seventies. The ordinary court system was replaced by the people court system, integrated into the hierarchy of State apparatus from district, province to central government, each level has its own court. Private agreement on arbitration and enforcement of arbitration awards, as introduced in colonial time, were absence, at least for private individuals. For trade relationship within the communist block, the Foreign Trade Arbitration Commission and the Maritime Arbitration Commission were established in 1963 and 1964 respectively. For settlement of disputes arising among state owned enterprises and other socialist entities, a system of “economic arbitration” modelled on the Soviet economic law was established from the district level, up to province and central government. The name may lead to confusing, but Soviet “economic arbitration” was in fact not arbitration. It was an administrative agency with the mandate to settle economic disputes among state owned enterprises. The people courts have no jurisdiction in these case, their competency remained limited to so called civil disputes among individuals, mostly in marriage and family issues, in disputes relating to individual goods allowing to used for personal purposes only, such as consumption. Private property, particularly private property on productive means was not recognized in the communist economic order.
This rigid system was liberalised, piece by piece, since Vietnam opened up to the world. The “economic arbitration system” was abolished in 1994; a new branch of the people courts, namely the economic courts at provincial and central level, was established to have the judiciary on the so called “economic disputes”, as defined as disputes arising business, in distinction to civil disputes among individuals. At the same time, a governmental Decree was issued allowing the formation of so called “centres for economic arbitration” [[5]]. This was the first sign, again, to recognize arbitration and arbitration award into Vietnam’s legal jargon, a century later, after its first notion in court decisions. The success of this Decree 116/CP was at best very limited, at worse it was a failure to introduce modern arbitration system. In addition the Vietnam International Arbitration Centre [[6]], 05 further economic arbitration centres were established in Hanoi, Bacninh, Ho Chi Minh City; their practical importance was very limited [[7]].
Replacing the above mentioned decree, the currently existing law on arbitration in Vietnam is the Ordinance on Commercial Arbitration (Arbitration Ordinance 2003), as adopted by the Standing Committee of the National Assembly on February 25, 2003 and took into force on July 01 of the same year [[8]]. Implementing the Ordinance 2003, the number of “commercial arbitration centres” was increased sometime from 05 up to 08 centres [[9]], among them the VIAC remains the most important arbitration centre in the country, with the number of cases being settled annually sometime extends around 20 cases [[10]].
III. Evaluation of Arbitration Ordinance 2003: Achievement and shortcomings
With 08 chapters and 63 articles, the Arbitration Ordinance 2003 is an important step toward the internationally recognized principles and rules on arbitration [[11]]. It provides that private persons shall have the freedom to conclude arbitration agreement to select the arbitration as a channel to settle their potential disputes (§§ 2, 3, 5, 9). The Ordinance recognizes that “arbitral awards shall be final and binding on all the involved parties, except where they are cancelled by courts under the provisions of this Ordinance”, (§ 2). It provides basic rules on formation and operation of arbitration centres, provides rules on arbitral proceedings, cases and circumstances in which the court may cancel arbitral awards. For my understanding, the Arbitration Ordinance 2003 is, at least based on comparison letter by letter, modelled largely on the UNCITRAL Model Law on International Commercial Arbitration as adopted on June 21, 1985. It borrows almost literally the same definition of the term “commercial” as indicated in the footnote 2 of the Model Law 1985 (see § 2.3 Ordinance 2003), the rules relating to composition of arbitral tribunal and to conduct of arbitral proceedings of the Ordinance 2003 and the Model Law 1985 are almost compatible.
In practical perspective, the Arbitration Ordinance 2003 laid down the most important legal foundation for the activities of arbitration centres, particularly of VIAC as the most important arbitration institution in Vietnam. The cases settled by VIAC since 2004 have risen, quantitatively as also in perspective of the increasing value and complexity of disputes. In addition, to a broader since, the Ordinance 2003 helps to broad the public awareness on arbitration and arbitral activities though out the country. VIAC has organized dozen of workshops and training seminars introducing the arbitration to the business community. Publications and public concern on arbitration has been raised; firms are starting to seek advice to incorporate arbitral clauses in their commercial contracts.
Beside the need to improve the legal text and clarify a number of uncertain rules, for the purpose to create more efficient and effective rules on arbitration, the following focuses on three main weakness of the Ordinance 2003.
1. [Uncertain scope of disputes]: The Ordinance 2003 still follows the separation of economic/commercial from merely civil/consumer’s disputes. As open ended and loosely defined under § 2.3, VIAC and other arbitration centres are not confident enough to accept a further wide range of disputes, such as disputes in stock, securities market, disputes among shareholders, partners and members of companies. If the courts, later, don’t accept such disputes as commercial, the courts may cancel the arbitral awards. This uncertainty has also an impact on recognition of foreign arbitral awards in Vietnam. In one case relating to services of a golf-provider, the court rejected to accept maintenance of grass as commercial activities, such rejected the jurisdiction of the arbitration on the case (reason to cancel to arbitration award, § 54.4 Ordinance 2003).
2. [Insecurity of legal effect of arbitral awards]: As provided that the awards are final and binding (§ 6), however, the Ordinance also contents a chapter VI starting with a quasi right to request the court to cancel the arbitral award, if one disputing party disagrees with such award, see § 50 Ordinance 2003. This rule, in fact, helps the losing party, in most of the cases, at least a chance to delay the enforcement, at best to challenge the validity of arbitral award. The court, in its jurisdiction, has to review a wide range of legal reasons to cancel the awards, as listed in § 54 Ordinance 2003. This list is widely defined, including the most unsecure notion of “commercial” as mentioned, the case where the arbitration clause shall be invalid, see § 54.2, in comparison to § 10, particularly § 10.4 Ordinance 2003. Often, when the arbitration clause only failed to indicated the correct full name of the arbitration centre (such as International Arbitration Centre in Vietnam, of Vietnam, etc.), the court may decide that this clause is void, according to the § 10.4 Ordinance 2003.
3. [Insufficiency of court’s supports in evidence gathering and interim urgent measures]: Evidences and interim urgent measures are in most of the cases very important; to inventory and seal up, to ban the transfer or any change in the existing conditions of disputing properties bring to the plaintiff sometime more value than the final awards. The §§ 32, 33 of Arbitration Ordinance 2003 are relative weak and unclear in this regard; arbitrator cannot order third parties, particularly the state authorities, to provide evidence, cannot order interim urgent measures. The obligation of the courts, the time frame for the court’s activities to intervene in these matters, is not appropriated provided by the Ordinance 2003 [[12]].
The initial draft law (Draft 0), which the expert team of Vietnam Lawyer Association provided for discussion, has proposed a number of chances to the existing Ordinance 2003. We have addressed both to improve technically the legal text, as to amend the legal policy to response to the mentioned weakness of the Ordinance [[13]].
IV. Controversial issues and options in Draft Law on Arbitration
In drafting the Law on Arbitration, we have incorporated a number of new provisions to protect better the private agreement of the parties in regard of arbitration clause, to limit the extent of court intervention into the arbitral proceedings, to provide more efficient court support and assistance for the activities of arbitration. With that chances, one again, we call attention for the thesis, that arbitration could not function well, if not supported by the court. We understand that new arbitration policy need strong support by the existing judiciary in Vietnam. This is a difficult task, partly because the arbitration is still a new phenomenon in Vietnam’s society; the social reputation of arbitration in the judiciary and in the wider public needs firstly to be build. Moreover, allocation of litigation power to the arbitration and burden more obligations to the courts in providing assistance to arbitration, to some extent, mean also narrowing the existing power of the judiciary. This controversial issue is probably the most difficult task, for which the drafting board shall seek broader consensus across the society and among the most important stage-holders in the law making process.
For further discussion, in the followings we highlight several controversial issues. The articles quoted in this part, unless otherwise provided, are referred to our Draft 0 of the Law on Arbitration, which is provided by Vietnam Lawyer Association in June 2008 for broader discussion.
1. [Scope of arbitral jurisdiction]: The mandate of the drafting board is to draft the Law on Commercial Arbitration. After conducting research of legislative of more than 80 countries in the world, we come to the conclusion that almost foreign legislative don’t make strong separation from commercial to non-commercial disputes. In addition, the notion “commercial” as provided in the footnote No 2 of the Model Law 2006 is a non-exclusive list. It is in fact difficult to distinct commercial from non-commercial. This uncertainty opens ways possibly for abuse by the courts. Therefore, we suggest that the title of the law is Law on Arbitration, (not Law on Commercial Arbitration), applying for any disputes as agreed by the parties, if not excluded by the law. This change will extend the political mandate of the drafting board, and wider the arbitration jurisdiction over non-commercial disputes. However, we are not clear, which role the arbitration may play in private life of individuals in foreign countries. Arbitration is surely very important to business, but we need to understand to which extent this change may have impact on transaction among individuals and consumer’s transaction.
2. [Negative list]: As proposed, we extend the scope of application of arbitration not only to contractual relationship, but also to torts, see § 2.2, § 17 Draft Law on Arbitration. Only two kinds of disputes are excluded from the arbitral jurisdiction, namely the personal-right-related disputes including those involved in marriages and families under the provisions of the Civil Procedure Code and administrative disputes that fall within the jurisdiction of relevant administrative agencies. There are some concerns about labour disputes or land disputes, for which special rules may apply.
3. [Dispute between investor and public authorities]: The lex special rules of the Law on Investment 2005 will remain, i.e. disputes between investor and the state authorities in issues relating to the investment may fall under the arbitral jurisdiction, see § 12 Law on Investment 2005 and § 17.2 Draft Law on Arbitration. The USAID represents the view that § 17.2 shall be revised to extend arbitral jurisdiction also over administrative disputes. I personally believe that proposal goes too far and seem not realistic, at least at this time.
4. [Consumer’s right to refuse arbitration clause]: § 16 Draft Law on Arbitration provides means to protect consumer’s right in the assumption that the weaker group of consumers may be abused by pre-printed conditions of good and service providers. However, we still need to look for a better and more efficient protection.
5. [Foreign arbitration: Per se binding or recognition]: § 13.3 Draft Law on Arbitration responses to the fact that the Civil Procedure Code 2004 of Vietnam, de facto, has two different types of stipulation in recognition and enforcement of domestic and foreign arbitration. For domestic arbitration, there are in fact no proceedings to recognize the awards; the award is binding and enforceable, without any formal recognition of the court, if its validity will not challenged by one of the parties. For foreign arbitral awards, there are proceedings to recognize and to enforce such awards, also in accordance with the New York Convention. We are still concern this distinction and look forward to learn experiences from foreign countries in this regard. Controversially is still the issue, either the arbitral award is per se binding and enforceable, without any court’s recognition formalities, or at least the award needs to be registered with the court in order to be recognized.
6. [Lex arbitrari]: § 10.2 Draft Law on Arbitration in comparison to § 49.2 Ordinance 2003. In recent years, the disputing parties present often to VIAC such arbitration clause which select VIAC for settle of contractual disputes, but the parties agree to select the arbitral proceeding rules of ICC for handling the case before the VIAC tribunal. Some experts believe that VIAC can only accept the case, if the parties agree to apply VIAC own proceedings rule. But some other experts oppose this approach, based on § 49.2 Arbitration Ordinance 2003, which allows the parties to make agreement on arbitral proceedings. In fact, VIAC has refused to accept these cases. Here again, we need advice to clarify the situation. I personally believe that the parties can make agreement on applicable laws, but not on the arbitral proceedings rule.
7. [Formation of arbitration organization]: Compare hereto §§ 22-27 Draft Law on Arbitration. Over the last decade, the number of a handful established arbitration centres remain almost very constant in Vietnam (06-08 centres). We understand the most concern of the law will be the formation of the arbitral tribunal, and not of the arbitration centre as institution. We have debated and came to the conclusion that not the number (quantitative), but the quality and professional expertise and reputation of arbitration organization are our concern. Here we provide the founders of arbitration organization the freedom to choose the name for their arbitration (such as arbitration commission, arbitration institute, etc.). We are still considering in order maintaining the existing rules on formation procedures applied to arbitration organization, or consider lessening the formalities. Hence the Model Law 2006 is silent on formation of such arbitration organizations as legal entities; we need advice how to draft stipulation regarding this issue.
8. [Nomination of arbitrator]: As organization, VIAC for example, has important role to train the arbitrator and advocate toward broader acceptance of arbitration in the society. VIAC has a list of arbitrators (currently 123 arbitrators, including 06 foreign arbitrators); the disputing parties usually have to select arbitrators from this list provided by the VIAC Secretariat. As matter of fact, we need advice to understand the real importance of such list of arbitrators provided by arbitration organization. We also have concern under which circumstances the parties may select a person beyond the provided list to act as arbitrator.
9. [Nationality of arbitrator]: § 20 Draft Law on Arbitration opens the option for foreigner to act as arbitrator in Vietnam. We have debated and came to the conclusion that Vietnamese citizenship may not be required for an individual to be an arbitrator. However, we still need advice how foreign legislative will deal with this issue.
10. [Interim measures]: §§ 45-46 Draft Law on Arbitration are the most complicated part in the drafting process. We are still not convinced on the issue, either the power to decide on interim urgent measures shall be allocated to the arbitral tribunal, or to the court. The USAID and some other experts go far and argue that this power can also belong to the arbitral tribunal. If so, we are concerned how to present the abuse of using interim measures by the arbitral tribunal and by the requesting party. Surely, despite the arbitral tribunal, the courts always have the power to decide on interim urgent measures. The question is, however, to strengthen the court’s assistance to support the arbitral tribunal in seeking for interim measures. In this regard, we strongly need advices how to design the appropriate stipulation of the draft law. In the Draft Law, we attempted to strengthen the plaintiff’s right on interim measures, i.e. to request to the court for such measures, even when the claim is not yet lodged with the arbitration organization or when the arbitral proceedings are not yet started. However, we reserve for the arbitral tribunal only the right to request the courts for assistance in interim measures; the tribunal itself cannot order interim measures.
11. [Security for interim measures]: § 46.4 Draft Law on Arbitration, in comparison to § 17E Model Law provides that the party requesting an interim measure shall provide appropriate security in connection with the measure. This is fair and correct, but we are concerned, that the courts may make interim measures useless or unworkable, when they request the party to pay a security in the value equally to the value of disputes. We need advice to design more workable stipulation in order to guide the judges to the right appropriate security for interim measures.
12. [Evidence gathering]: §§ 42-43 Draft Law on Arbitration, similar to interim measures §§ 45-46, are most debated. Important is the case that the tribunal need to gather evidences, which are in the hand of third parties, such as hold in state authorities (bank information, real estate registers in land management agencies, etc.). We are not convinced on the issue, either the tribunal itself shall have the right to order third parties to deliver evidences, or the tribunal has only the right to request the courts to do so. If preferring the late option, we seek advice how to strengthen the court’s assistance to the arbitral tribunal in such cases.
13. [Grounds for setting aside arbitral award]: § 62 Draft Law on Arbitration, in comparison to § 34 Model Law, is very important to the legal effect and binding character of the award. We have attempted to keep these rules tightly as possible. Hence these stipulations are the real key of the Draft Law on Arbitration; we seek advice to review that carefully, particularly in comparison to foreign legislative and court’s practice.
14. [Relationship between the arbitration organization and the courts]: Beside substantial issues as raised above, we still have some concern in practical, technical or organizational issues relating to the relationship between the arbitration and the courts. In order to secure the court’s assistance to the tribunal, the arbitration certainly shall maintain a close relationship to the courts, for example reporting of claims lodged, request for assistance in selecting of arbitrator in case of need, request court’s decision on the validity of arbitration clause, reporting of awards issued, reporting of interim measures applied, etc. We seek advice how to design a kind of reporting relationship between the arbitration organization and the courts and to learn from foreign legislative and legal practise how, and to which extent, this relationship can be stipulated by the law.
15. [Arbitration institution, professional ethics of arbitrators and other issues]: In organizational perspective, we need also advice how far the law can provide the legal framework for the arbitration organization, for example in perspective of internal management, legal representative, using of institution’s assets, etc. We have provided that the arbitration institution is a non-profit organization and shall be free from corporate income taxation. However, other organizational issues remain open, such as how the arbitration may have a role in establishing and supervising professional ethics of arbitrators, either the arbitrators need to be licensed with an arbitrator card or not, or how can an individual be banned to act as an arbitrator, etc.
V. Conclusion
Reviewing letter by letter, it may be surprisingly, if once come to the conclusion that the Arbitration Ordinance 2003 may be comparable to nearby 80% with the UNCITRAL Model Law 1985. Receiving advanced legal concepts into the law on book, though complicated with legislative proceedings, is just the very first step to transplant a new legal culture into a transitional country like Vietnam. With the Draft Law on Arbitration, hopefully approved by the National Assembly in fall 2009, we attempt to incorporate the most essential provisions of UNCITRAL Model Law 2006 into our national law. But our main concern is not only to create advanced norms, but to create institutional environment which support the enforcement of such norms. Arbitration can not work rightly, if not supported by the existing judiciary in Vietnam.
The Law on Arbitration therefore can only be enforceable, if appropriate court’s assistance is provided by other legislation, such as by the Civil Procedure Code, the Law on Judiciary System, and not least by the Law on Enforcement of Civil Court’s Decisions. A workable arbitration system is good for the business community; it also will help the judiciary to lessening the workload. It helps to create justice based on the freedom to private agreement and by private jurisdiction. Numerous controversial issues will remain, and certainly they cannot be settled satisfactory at one time. The most important task and consensus is, however, to build social reputation and trust into the arbitration as private jurisdiction created by private person./.
Settling disputes amicable under the influence of families, relatives, friendships, using customary rules and relationship to narrow discrepancy and hopefully to find resolution in case of disputes is well known in Vietnamese society from the early days. Arbitration, however as recognized institution to settle private disputes, occurred much later in the 19 century, as earliest documented in a decision of the Appellation Court of Saigon of 08/07/1897, which recognized the private agreement to select a foreigner to act as arbitrator in a land disputes in the case Dương Thị Lành versus Võ Văn Thụ [[4]].
Quoted this case, I will call in mind the “civil law legal heritage” Vietnam may have, as the country failed under the French colonial power, thus having a chance, or least an event, more than a century ago, to receive the civil and commercial legal system of France. Several advanced civil and civil procedure codes are being adopted in three parts of Vietnam in the late of 19 century and in the first three decades of the 20 century. Beside the ordinary judiciary, commercial courts were established in major cities of Vietnam (Hanoi, Haipong, Danang, and Saigon). Arbitration rules were parts of the complex civil procedure codes. However, these rules seem to have little impacts to Vietnamese society, because the French colonialist controlled most of the industry and commerce, only a small group of Chinese middlemen worked in the distribution services, the overwhelming majority of Vietnamese nationals continued to work as peasants, handicraft, or small shop keepers in emerging cities. They did not have any chance to learn the concept of arbitration.
Not surprisingly, after the French have gone, the “civil law heritage” also collapsed, first in the Northern, then in the unified Vietnam. Integrated into the communist block, Vietnam introduced the “socialist legality”, first through Chinese lenses in the sixties, and then directly from the former Soviet Union in the seventies. The ordinary court system was replaced by the people court system, integrated into the hierarchy of State apparatus from district, province to central government, each level has its own court. Private agreement on arbitration and enforcement of arbitration awards, as introduced in colonial time, were absence, at least for private individuals. For trade relationship within the communist block, the Foreign Trade Arbitration Commission and the Maritime Arbitration Commission were established in 1963 and 1964 respectively. For settlement of disputes arising among state owned enterprises and other socialist entities, a system of “economic arbitration” modelled on the Soviet economic law was established from the district level, up to province and central government. The name may lead to confusing, but Soviet “economic arbitration” was in fact not arbitration. It was an administrative agency with the mandate to settle economic disputes among state owned enterprises. The people courts have no jurisdiction in these case, their competency remained limited to so called civil disputes among individuals, mostly in marriage and family issues, in disputes relating to individual goods allowing to used for personal purposes only, such as consumption. Private property, particularly private property on productive means was not recognized in the communist economic order.
This rigid system was liberalised, piece by piece, since Vietnam opened up to the world. The “economic arbitration system” was abolished in 1994; a new branch of the people courts, namely the economic courts at provincial and central level, was established to have the judiciary on the so called “economic disputes”, as defined as disputes arising business, in distinction to civil disputes among individuals. At the same time, a governmental Decree was issued allowing the formation of so called “centres for economic arbitration” [[5]]. This was the first sign, again, to recognize arbitration and arbitration award into Vietnam’s legal jargon, a century later, after its first notion in court decisions. The success of this Decree 116/CP was at best very limited, at worse it was a failure to introduce modern arbitration system. In addition the Vietnam International Arbitration Centre [[6]], 05 further economic arbitration centres were established in Hanoi, Bacninh, Ho Chi Minh City; their practical importance was very limited [[7]].
Replacing the above mentioned decree, the currently existing law on arbitration in Vietnam is the Ordinance on Commercial Arbitration (Arbitration Ordinance 2003), as adopted by the Standing Committee of the National Assembly on February 25, 2003 and took into force on July 01 of the same year [[8]]. Implementing the Ordinance 2003, the number of “commercial arbitration centres” was increased sometime from 05 up to 08 centres [[9]], among them the VIAC remains the most important arbitration centre in the country, with the number of cases being settled annually sometime extends around 20 cases [[10]].
III. Evaluation of Arbitration Ordinance 2003: Achievement and shortcomings
With 08 chapters and 63 articles, the Arbitration Ordinance 2003 is an important step toward the internationally recognized principles and rules on arbitration [[11]]. It provides that private persons shall have the freedom to conclude arbitration agreement to select the arbitration as a channel to settle their potential disputes (§§ 2, 3, 5, 9). The Ordinance recognizes that “arbitral awards shall be final and binding on all the involved parties, except where they are cancelled by courts under the provisions of this Ordinance”, (§ 2). It provides basic rules on formation and operation of arbitration centres, provides rules on arbitral proceedings, cases and circumstances in which the court may cancel arbitral awards. For my understanding, the Arbitration Ordinance 2003 is, at least based on comparison letter by letter, modelled largely on the UNCITRAL Model Law on International Commercial Arbitration as adopted on June 21, 1985. It borrows almost literally the same definition of the term “commercial” as indicated in the footnote 2 of the Model Law 1985 (see § 2.3 Ordinance 2003), the rules relating to composition of arbitral tribunal and to conduct of arbitral proceedings of the Ordinance 2003 and the Model Law 1985 are almost compatible.
In practical perspective, the Arbitration Ordinance 2003 laid down the most important legal foundation for the activities of arbitration centres, particularly of VIAC as the most important arbitration institution in Vietnam. The cases settled by VIAC since 2004 have risen, quantitatively as also in perspective of the increasing value and complexity of disputes. In addition, to a broader since, the Ordinance 2003 helps to broad the public awareness on arbitration and arbitral activities though out the country. VIAC has organized dozen of workshops and training seminars introducing the arbitration to the business community. Publications and public concern on arbitration has been raised; firms are starting to seek advice to incorporate arbitral clauses in their commercial contracts.
Beside the need to improve the legal text and clarify a number of uncertain rules, for the purpose to create more efficient and effective rules on arbitration, the following focuses on three main weakness of the Ordinance 2003.
1. [Uncertain scope of disputes]: The Ordinance 2003 still follows the separation of economic/commercial from merely civil/consumer’s disputes. As open ended and loosely defined under § 2.3, VIAC and other arbitration centres are not confident enough to accept a further wide range of disputes, such as disputes in stock, securities market, disputes among shareholders, partners and members of companies. If the courts, later, don’t accept such disputes as commercial, the courts may cancel the arbitral awards. This uncertainty has also an impact on recognition of foreign arbitral awards in Vietnam. In one case relating to services of a golf-provider, the court rejected to accept maintenance of grass as commercial activities, such rejected the jurisdiction of the arbitration on the case (reason to cancel to arbitration award, § 54.4 Ordinance 2003).
2. [Insecurity of legal effect of arbitral awards]: As provided that the awards are final and binding (§ 6), however, the Ordinance also contents a chapter VI starting with a quasi right to request the court to cancel the arbitral award, if one disputing party disagrees with such award, see § 50 Ordinance 2003. This rule, in fact, helps the losing party, in most of the cases, at least a chance to delay the enforcement, at best to challenge the validity of arbitral award. The court, in its jurisdiction, has to review a wide range of legal reasons to cancel the awards, as listed in § 54 Ordinance 2003. This list is widely defined, including the most unsecure notion of “commercial” as mentioned, the case where the arbitration clause shall be invalid, see § 54.2, in comparison to § 10, particularly § 10.4 Ordinance 2003. Often, when the arbitration clause only failed to indicated the correct full name of the arbitration centre (such as International Arbitration Centre in Vietnam, of Vietnam, etc.), the court may decide that this clause is void, according to the § 10.4 Ordinance 2003.
3. [Insufficiency of court’s supports in evidence gathering and interim urgent measures]: Evidences and interim urgent measures are in most of the cases very important; to inventory and seal up, to ban the transfer or any change in the existing conditions of disputing properties bring to the plaintiff sometime more value than the final awards. The §§ 32, 33 of Arbitration Ordinance 2003 are relative weak and unclear in this regard; arbitrator cannot order third parties, particularly the state authorities, to provide evidence, cannot order interim urgent measures. The obligation of the courts, the time frame for the court’s activities to intervene in these matters, is not appropriated provided by the Ordinance 2003 [[12]].
The initial draft law (Draft 0), which the expert team of Vietnam Lawyer Association provided for discussion, has proposed a number of chances to the existing Ordinance 2003. We have addressed both to improve technically the legal text, as to amend the legal policy to response to the mentioned weakness of the Ordinance [[13]].
IV. Controversial issues and options in Draft Law on Arbitration
In drafting the Law on Arbitration, we have incorporated a number of new provisions to protect better the private agreement of the parties in regard of arbitration clause, to limit the extent of court intervention into the arbitral proceedings, to provide more efficient court support and assistance for the activities of arbitration. With that chances, one again, we call attention for the thesis, that arbitration could not function well, if not supported by the court. We understand that new arbitration policy need strong support by the existing judiciary in Vietnam. This is a difficult task, partly because the arbitration is still a new phenomenon in Vietnam’s society; the social reputation of arbitration in the judiciary and in the wider public needs firstly to be build. Moreover, allocation of litigation power to the arbitration and burden more obligations to the courts in providing assistance to arbitration, to some extent, mean also narrowing the existing power of the judiciary. This controversial issue is probably the most difficult task, for which the drafting board shall seek broader consensus across the society and among the most important stage-holders in the law making process.
For further discussion, in the followings we highlight several controversial issues. The articles quoted in this part, unless otherwise provided, are referred to our Draft 0 of the Law on Arbitration, which is provided by Vietnam Lawyer Association in June 2008 for broader discussion.
1. [Scope of arbitral jurisdiction]: The mandate of the drafting board is to draft the Law on Commercial Arbitration. After conducting research of legislative of more than 80 countries in the world, we come to the conclusion that almost foreign legislative don’t make strong separation from commercial to non-commercial disputes. In addition, the notion “commercial” as provided in the footnote No 2 of the Model Law 2006 is a non-exclusive list. It is in fact difficult to distinct commercial from non-commercial. This uncertainty opens ways possibly for abuse by the courts. Therefore, we suggest that the title of the law is Law on Arbitration, (not Law on Commercial Arbitration), applying for any disputes as agreed by the parties, if not excluded by the law. This change will extend the political mandate of the drafting board, and wider the arbitration jurisdiction over non-commercial disputes. However, we are not clear, which role the arbitration may play in private life of individuals in foreign countries. Arbitration is surely very important to business, but we need to understand to which extent this change may have impact on transaction among individuals and consumer’s transaction.
2. [Negative list]: As proposed, we extend the scope of application of arbitration not only to contractual relationship, but also to torts, see § 2.2, § 17 Draft Law on Arbitration. Only two kinds of disputes are excluded from the arbitral jurisdiction, namely the personal-right-related disputes including those involved in marriages and families under the provisions of the Civil Procedure Code and administrative disputes that fall within the jurisdiction of relevant administrative agencies. There are some concerns about labour disputes or land disputes, for which special rules may apply.
3. [Dispute between investor and public authorities]: The lex special rules of the Law on Investment 2005 will remain, i.e. disputes between investor and the state authorities in issues relating to the investment may fall under the arbitral jurisdiction, see § 12 Law on Investment 2005 and § 17.2 Draft Law on Arbitration. The USAID represents the view that § 17.2 shall be revised to extend arbitral jurisdiction also over administrative disputes. I personally believe that proposal goes too far and seem not realistic, at least at this time.
4. [Consumer’s right to refuse arbitration clause]: § 16 Draft Law on Arbitration provides means to protect consumer’s right in the assumption that the weaker group of consumers may be abused by pre-printed conditions of good and service providers. However, we still need to look for a better and more efficient protection.
5. [Foreign arbitration: Per se binding or recognition]: § 13.3 Draft Law on Arbitration responses to the fact that the Civil Procedure Code 2004 of Vietnam, de facto, has two different types of stipulation in recognition and enforcement of domestic and foreign arbitration. For domestic arbitration, there are in fact no proceedings to recognize the awards; the award is binding and enforceable, without any formal recognition of the court, if its validity will not challenged by one of the parties. For foreign arbitral awards, there are proceedings to recognize and to enforce such awards, also in accordance with the New York Convention. We are still concern this distinction and look forward to learn experiences from foreign countries in this regard. Controversially is still the issue, either the arbitral award is per se binding and enforceable, without any court’s recognition formalities, or at least the award needs to be registered with the court in order to be recognized.
6. [Lex arbitrari]: § 10.2 Draft Law on Arbitration in comparison to § 49.2 Ordinance 2003. In recent years, the disputing parties present often to VIAC such arbitration clause which select VIAC for settle of contractual disputes, but the parties agree to select the arbitral proceeding rules of ICC for handling the case before the VIAC tribunal. Some experts believe that VIAC can only accept the case, if the parties agree to apply VIAC own proceedings rule. But some other experts oppose this approach, based on § 49.2 Arbitration Ordinance 2003, which allows the parties to make agreement on arbitral proceedings. In fact, VIAC has refused to accept these cases. Here again, we need advice to clarify the situation. I personally believe that the parties can make agreement on applicable laws, but not on the arbitral proceedings rule.
7. [Formation of arbitration organization]: Compare hereto §§ 22-27 Draft Law on Arbitration. Over the last decade, the number of a handful established arbitration centres remain almost very constant in Vietnam (06-08 centres). We understand the most concern of the law will be the formation of the arbitral tribunal, and not of the arbitration centre as institution. We have debated and came to the conclusion that not the number (quantitative), but the quality and professional expertise and reputation of arbitration organization are our concern. Here we provide the founders of arbitration organization the freedom to choose the name for their arbitration (such as arbitration commission, arbitration institute, etc.). We are still considering in order maintaining the existing rules on formation procedures applied to arbitration organization, or consider lessening the formalities. Hence the Model Law 2006 is silent on formation of such arbitration organizations as legal entities; we need advice how to draft stipulation regarding this issue.
8. [Nomination of arbitrator]: As organization, VIAC for example, has important role to train the arbitrator and advocate toward broader acceptance of arbitration in the society. VIAC has a list of arbitrators (currently 123 arbitrators, including 06 foreign arbitrators); the disputing parties usually have to select arbitrators from this list provided by the VIAC Secretariat. As matter of fact, we need advice to understand the real importance of such list of arbitrators provided by arbitration organization. We also have concern under which circumstances the parties may select a person beyond the provided list to act as arbitrator.
9. [Nationality of arbitrator]: § 20 Draft Law on Arbitration opens the option for foreigner to act as arbitrator in Vietnam. We have debated and came to the conclusion that Vietnamese citizenship may not be required for an individual to be an arbitrator. However, we still need advice how foreign legislative will deal with this issue.
10. [Interim measures]: §§ 45-46 Draft Law on Arbitration are the most complicated part in the drafting process. We are still not convinced on the issue, either the power to decide on interim urgent measures shall be allocated to the arbitral tribunal, or to the court. The USAID and some other experts go far and argue that this power can also belong to the arbitral tribunal. If so, we are concerned how to present the abuse of using interim measures by the arbitral tribunal and by the requesting party. Surely, despite the arbitral tribunal, the courts always have the power to decide on interim urgent measures. The question is, however, to strengthen the court’s assistance to support the arbitral tribunal in seeking for interim measures. In this regard, we strongly need advices how to design the appropriate stipulation of the draft law. In the Draft Law, we attempted to strengthen the plaintiff’s right on interim measures, i.e. to request to the court for such measures, even when the claim is not yet lodged with the arbitration organization or when the arbitral proceedings are not yet started. However, we reserve for the arbitral tribunal only the right to request the courts for assistance in interim measures; the tribunal itself cannot order interim measures.
11. [Security for interim measures]: § 46.4 Draft Law on Arbitration, in comparison to § 17E Model Law provides that the party requesting an interim measure shall provide appropriate security in connection with the measure. This is fair and correct, but we are concerned, that the courts may make interim measures useless or unworkable, when they request the party to pay a security in the value equally to the value of disputes. We need advice to design more workable stipulation in order to guide the judges to the right appropriate security for interim measures.
12. [Evidence gathering]: §§ 42-43 Draft Law on Arbitration, similar to interim measures §§ 45-46, are most debated. Important is the case that the tribunal need to gather evidences, which are in the hand of third parties, such as hold in state authorities (bank information, real estate registers in land management agencies, etc.). We are not convinced on the issue, either the tribunal itself shall have the right to order third parties to deliver evidences, or the tribunal has only the right to request the courts to do so. If preferring the late option, we seek advice how to strengthen the court’s assistance to the arbitral tribunal in such cases.
13. [Grounds for setting aside arbitral award]: § 62 Draft Law on Arbitration, in comparison to § 34 Model Law, is very important to the legal effect and binding character of the award. We have attempted to keep these rules tightly as possible. Hence these stipulations are the real key of the Draft Law on Arbitration; we seek advice to review that carefully, particularly in comparison to foreign legislative and court’s practice.
14. [Relationship between the arbitration organization and the courts]: Beside substantial issues as raised above, we still have some concern in practical, technical or organizational issues relating to the relationship between the arbitration and the courts. In order to secure the court’s assistance to the tribunal, the arbitration certainly shall maintain a close relationship to the courts, for example reporting of claims lodged, request for assistance in selecting of arbitrator in case of need, request court’s decision on the validity of arbitration clause, reporting of awards issued, reporting of interim measures applied, etc. We seek advice how to design a kind of reporting relationship between the arbitration organization and the courts and to learn from foreign legislative and legal practise how, and to which extent, this relationship can be stipulated by the law.
15. [Arbitration institution, professional ethics of arbitrators and other issues]: In organizational perspective, we need also advice how far the law can provide the legal framework for the arbitration organization, for example in perspective of internal management, legal representative, using of institution’s assets, etc. We have provided that the arbitration institution is a non-profit organization and shall be free from corporate income taxation. However, other organizational issues remain open, such as how the arbitration may have a role in establishing and supervising professional ethics of arbitrators, either the arbitrators need to be licensed with an arbitrator card or not, or how can an individual be banned to act as an arbitrator, etc.
V. Conclusion
Reviewing letter by letter, it may be surprisingly, if once come to the conclusion that the Arbitration Ordinance 2003 may be comparable to nearby 80% with the UNCITRAL Model Law 1985. Receiving advanced legal concepts into the law on book, though complicated with legislative proceedings, is just the very first step to transplant a new legal culture into a transitional country like Vietnam. With the Draft Law on Arbitration, hopefully approved by the National Assembly in fall 2009, we attempt to incorporate the most essential provisions of UNCITRAL Model Law 2006 into our national law. But our main concern is not only to create advanced norms, but to create institutional environment which support the enforcement of such norms. Arbitration can not work rightly, if not supported by the existing judiciary in Vietnam.
The Law on Arbitration therefore can only be enforceable, if appropriate court’s assistance is provided by other legislation, such as by the Civil Procedure Code, the Law on Judiciary System, and not least by the Law on Enforcement of Civil Court’s Decisions. A workable arbitration system is good for the business community; it also will help the judiciary to lessening the workload. It helps to create justice based on the freedom to private agreement and by private jurisdiction. Numerous controversial issues will remain, and certainly they cannot be settled satisfactory at one time. The most important task and consensus is, however, to build social reputation and trust into the arbitration as private jurisdiction created by private person./.
Annex1: LAW ON ARBITRATION
VLA, (Draft 1 dated 29 June 2008)
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended and added to by Resolution 51-2001-QH10 dated 25 December 2001 of Legislature X of the National Assembly at its 10th Session;
In order to enable civil parties to resolve their disputes in a prompt, timely and favorable manner.
This Law provides for the arbitral organization and proceedings.
CHAPTER I
General Provisions
Article 1. Governing scope
This Law provides for arbitral organizations and proceedings for the resolution of disputes over the civil rights and obligations in accordance with an agreement between the parties.
Article 2. Interpretation of terms
In this Law, the following terms shall be interpreted as follows:
1. Arbitration means a method for resolving disputes agreed by the parties and conducted in accordance with the order and procedures stipulated in this Law.
2. Arbitration agreement means an agreement between the parties to use arbitration to resolve disputes which may arise or which have arisen in relation to the legitimate rights and interest of the civil parties including disputes arising from contractual obligations or obligations in tort.
3. Civil parties means any individual or organization with the right to agree upon arbitration in their transactions in order to establish their civil rights and obligations, including the disputes between investors and a State management agency of Vietnam under the Investment Law.
4. Dispute with a foreign element means a dispute arising from civil transactions in which one or more of the participating parties is a foreigner or foreign legal entity, or where the grounds for establishing, altering or terminating the relationship which is the subject of dispute arise abroad, or where assets relating to the dispute are located abroad.
5. Arbitrator means a person satisfying all of the conditions stipulated in Article 17 of this Law and selected by the parties or appointed by an arbitration organization or a competent court to resolve a dispute.
6. The arbitral tribunal set up by the parties shall be the form of arbitration set up by the party to resolve their specific dispute[14]. After a dispute has been completely resolved the arbitral tribunal set up by the parties shall be automatically dissolved.
7. An arbitration organization is the form of arbitration with regular operations and organizational structure. It has separate charter and rules of proceedings together with a list of its arbitrators. An arbitration organization may call itself as Arbitration Center, Arbitration Association, Arbitration Institute, an Arbitration Commission or with another valid name
8. Relatives means a person belonging to the three inheritance ranks stipulated in the Civil Code.
9. Conciliation means a private procedure of dispute resolution where the conciliator is a third party who acts as an intermediary between the dispute parties and who help them to reach an agreement
Article 3. Principles for dispute resolution by arbitration
1. When resolving a dispute, an arbitrator must be independent, objective and impartial, must comply with the law, and must respect the agreement of the parties.
2. Arbitrators shall resolve the dispute in a non-public manner, operates for non-profit purpose[15], the arbitral award shall be final.
Article 4. Conditions and form of dispute resolution by arbitration
1. A dispute shall be resolved by arbitration if it is so agreed by the parties either before or after the dispute occurs. If the parties have agreed upon the arbitration and either party dies or lost its civil conduct capacity, such agreement shall remain in its effect and be enforceable either by the heir or the legal representative of that party, unless otherwise agreed by the parties.
2. A dispute between parties shall be resolved by an arbitral tribunal set up by an arbitration organization or by an arbitral tribunal established by the parties pursuant to the provisions of this Law.
Article 5. Refusal of the court to accept a case where there is an arbitration agreement
Where a dispute already has an arbitration agreement but one party constitutes court proceedings, the court must refuse to accept jurisdiction, unless the arbitration agreement is invalid or the arbitration agreement is not enforceable.
Article 6. Forms of Alternative Dispute Resolutions
1. Before approaching the arbitration, the disputed parties may settle their conflict through mediation or conciliation. If such mediation or conciliation fails and there is an arbitration agreement, such dispute may be resolved in accordance with this Law.
2. During the mediation or conciliation, if either party refers the dispute to arbitration, such mediation or conciliation shall automatically be terminated.
3. In case of unsuccessful conciliation, the conciliator shall not be entitled to either appoint an arbitrator, or act as the representative, witness or lawyer of any party in the arbitral proceeding, unless it is so consented to in writing by all parties.
4. Any agreement reached through mediation or conciliation shall not be used as evidence in an arbitral proceeding.
Article 7: Determination of court having jurisdiction over arbitration
1. The court that is competent to arbitration shall be the provincial level court in one of the following cases:
a. The provincial court where the arbitral tribunal conducts the proceeding,
b. The provincial court where the arbitral tribunal accepts the case;
c. The provincial court where the asset in dispute is located.
d. The provincial court agreed upon between the parties.
2. If the asset, witnesses and evidence are located overseas, except for the cases referred to in clause 1 of this Article, the court having jurisdiction over the arbitration shall be determined in accordance with the provisions of the Civil Procedure Code on judicial cooperation.
Article 8. Scope of support and supervision of the Court with regard to arbitral proceedings
The Court shall only take measure to support and supervise the resolution of disputes by arbitration in the cases stipulated by this Law.
Article 9. Supporting and supervising responsibilities of the court toward arbitration
The court shall be responsible to support for and supervise the arbitral proceeding in the following cases:
1. Collecting and preserving evidence under Article 41 of this Law;
2. Keeping files and records under Article 59 of this Law.
3. Rendering a null and void an arbitration agreement under Article 18 of this Law.
4. Determining the jurisdiction of the arbitral tribunal under Article 38 of this Law.
5. Recognizing and enforcing arbitral awards under Article 68 of this Law and the provisions of the Civil Procedure Code.
6. Dealing with requests for refuting arbitral wards under Articles 60, 61, 62, 63 and 64 of this Law.
7. Assuring that witnesses are present under Articles 43, 44, 45 and 46 of this Law;
8. Applying provisional measures under Articles 43, 44, 45 and 46 of this Law;
9. Appointing or replacing arbitrators under Articles 34 and 35 of this Law.
Article 10. Applicable laws for dispute resolution
1. With respect to a dispute between Vietnamese parties, the arbitral tribunal shall apply the law of Vietnam in order to resolve the dispute, unless otherwise provided for under specialized law.
2. With respect to a dispute with a foreign element, the arbitral tribunal shall apply the law chosen by the parties. The choice of a foreign law and its application shall not be inconsistent with the fundamental principles of the law of Vietnam.
3. Where the parties are unable to agree upon the applicable law, the arbitral tribunal shall decide to apply the most appropriate law.
Article 11. Languages
1. The applicable language in arbitral proceedings shall be Vietnamese.
2. With regard to a dispute with a foreign element, the parties have the right to agree upon the applicable language in arbitral proceedings. If such agreement is not available, the applicable language in arbitral proceedings shall be Vietnamese. The parties may ask the arbitral tribunal for an interpreter and must be the costs thereof.
Article 12. Manner of notification and notification procedures
1. Representations, correspondences and other documents sent by either party must be sent to the arbitral tribunal with a sufficient number of copies for distribution to the tribunal members, the other party and for filing at the arbitration organization, if the case is to be resolved at the Arbitration organization, or at the provincial people’s court as referred to in Article 7 of this Law, if the case is to be resolved at the arbitral tribunal set up by the parties.
2. Notifications and documents sent to the parties shall be served by the Arbitral tribunal to the last known address of the parties or to their representatives at the address notified by the parties.
Notification and documents may also be sent by the Arbitral tribunal by personal delivery, guaranteed post, post, fax, telex, telegram or any other methods which can acknowledge this sending.
3. Notifications and documents sent by the Arbitral tribunal shall be regarded as received on the date actually received by the parties or their representatives or if such documents or notifications have been duly sent under clause 2 of this Article.
4. The time limit referred to in this Article shall commence from the date following the date on which the notification or documents are regarded as received under clause 3 of this Article. If that following day falls on an official holiday or a day off as regulated by the country or territory where such notifications or documents are to be received, the time limit shall commence from the first working day that follows that holiday or day-off. If the expiry date of the time limit falls on an official holiday or a day off as regulated by the country or territory where such notifications or documents are received, the expiry date shall be the first working day that follows such holiday or day-off.
Article 13. Foreign arbitration
1. The arbitration shall be regarded as foreign arbitration if:
(a) The parties to the arbitration agreement, at the time of entry into that arbitration agreement, have their business head offices located in different countries or reside in different countries; or
(b) One of the following places where the parties locate their business head office or reside are located outside the territory of Vietnam:
(i) The place where the arbitral proceeding is conducted it such place is determined or stated in the arbitration agreement. This provision shall not apply to the disputes resolved by the Vietnamese arbitration overseas under clause 3 of this Article.
(ii) The place where the primary part of obligations in the civil relationship is performed or where the subject matter of the dispute has the closes relationship with;
(c) The parties have explicitly agreed that the subject matter of the arbitration agreement relates to more than one country.
2. The following issues also fall within the foreign arbitration under clause 1 of this Article:
a. Where either party has several business head offices, the head office shall be the place with the closest relationship with the arbitration agreement.
b. Where either party does not have a business head office, its residence place shall be referred to.
3. If a dispute is resolved by the Vietnamese arbitration overseas, the award of that Vietnamese arbitration shall also be regarded as a domestic arbitral award. An award of the Vietnamese arbitration overseas must comply with the existing laws of Vietnam.
Article 14. Applicability of international treaties
In the case of any inconsistency between an international treaty signed or acceded to by the Socialist Republic of Vietnam and the provisions of this Law, the provisions of the international treaty shall apply.
CHAPTER II
Arbitration Agreements
Article 13. Form of arbitration agreements
An arbitration agreement shall be regarded as having been made in writing when it meets one of the following conditions:
1. When [the arbitration agreement is] made in a document signed by the parties.
2. [An arbitration agreement] shall also be regarded as having been made in writing, if:
a) it is made by way of exchange of telex, telegrams etc or other forms of exchange of e-data;
b) it is established by way of exchange of information in writing;
c) it is contained in exchanges of statement of claims and defence where the existence of the arbitration agreement is referred to by one party and is not opposed by the other party.
d) it is evidenced by way of documents if it is recorded by either party or a third party authorized by the parties to such agreement;
e) the transaction refers to a document with an arbitration agreement such as a bill of lading, a charter, a company’s charter or a similar document.
Article 16. Right of customers to refuse arbitration
1. In case of a dispute between an enterprise and a customer over goods, service or any other product supplied for personal consumption purpose, the arbitration agreement shall not be referred to as a proof against the consumer.
2. A party to a contract shall be regarded as the consumer if that party does not seek for profits while the other party to the contract takes part in the contract for the profit-making purpose.
3. An arbitration agreement shall only be regarded as being possibly against the consumer if:
(a) The consumer has acknowledged, on the basis of a separate written agreement, that he/she has read and understood the arbitration agreement and agreed to be bound upon that agreement; and
(b) The separate written agreement referred to in clause 39ª) above explicitly states that any or all the provisions of such agreement does not apply to the arbitration agreement.
Article 17. The following disputes shall not fall within the arbitration jurisdiction
1. Personal-right-related disputes including those involved in marriages and families under the provisions of the Civil Procedure Code.
1. Administrative disputes that fall within the jurisdiction of relevant administrative agencies.
Article 18. Invalid arbitration agreements
An arbitration agreement shall be invalid in the following circumstances:
1. When a dispute which arises in a sector that does not fall within the arbitration jurisdiction referred to in Article 17 of this Law.
2. A creator of or signatory to the arbitration agreement lacks power pursuant to law.
3. Either party to the arbitration agreement lacks full civil legal capacity.
4. The arbitration agreement is not established under Article 13 of this Law.
5. Either party to the arbitration agreement was deceived or threatened, and requests that the arbitration agreement be declared invalid.
Article 19. Independence of arbitration agreements
An arbitration agreement shall exist independently from a contract. Any modification, extension or termination of a contract or the fact that the contract cannot be enforced or becomes null and void shall not affect the validity of the arbitration agreement.
CHAPTER III
Arbitrators
Article 20. Arbitrators
1. Individuals who have full civil legal capacity and good ethics and are honest, impartial and objective, may act as an arbitrator if they meet one of the following conditions:
a) Having a university degree and at least five years' work experience.
b) Being a trader with more than 5 years’ business experiences.
2. Any person currently being prosecuted for a criminal offence, or having been convicted and whose conviction has not yet been expiated shall be barred from acting as an arbitrator.
3. Judges, prosecutors, investigators, enforcement officers, and officials currently working in the people's courts, the people's procuracy, investigative bodies or enforcement bodies shall be barred from acting as arbitrators.
Article 21. Rights and obligations of arbitrators
1. Arbitrators shall have the rights:
(a) To accept or refuse to resolve a dispute;
(b) To remain independent during dispute resolution;
(c) To refuse to provide information concerning a dispute;
(d) To receive remuneration.
2. Arbitrators shall have the obligations:
(a) To refuse to resolve a dispute in the circumstances stipulated in clause 1 of Article 35 of this Law;
(b) To keep confidential the contents of the dispute which he or she resolves;
(c) To comply with the code of ethics for arbitrators.
CHAPTER IV
Arbitration organizations
Article 22. Conditions for setting up Arbitration organizations
1. Pursuant to the socio-economic development status of each locality, an arbitration organization shall be set up in several localities in accordance with the Government regulations at the request of a professional association. After a consideration and a letter of introduction is given by the Vietnam Lawyers Association, the Minister of Justice shall consider and issue an establishment licence to the arbitration organization.
2. Application documents for setting up an arbitration organization must contain the following:
(a) Application for establishment of an arbitration organization;
(b) The draft Charter of the arbitration organization;
(c) Letter of introduction from the Vietnam Lawyers Association.
3. Within a time-limit of forty five (45) days, the Minister of Justice shall issue a licence for establishment of an arbitration organization and approve its charter. In the case of refusal, there must be a written reply specifying the reasons therefor.
Article 23. Registering operations of arbitration agreements
Within a time-limit of thirty (30) days from the date of receipt of its establishment licence, an arbitration organization must register its operations with the Department of Justice of the province or city under central authority (to be jointly referred to as DoJ) where the arbitration organization locates its office. If, upon expiry of this time limit, an arbitration organization has failed to register, its licence shall be revoked.
Article 24. Publication in newspaper of announcement of establishment of arbitration organizations
1. Within a time-limit of thirty (30) days from the date of issuance of an establishment licence, an arbitration organization must cause to be published in three consecutive issues of a central daily newspaper or a daily newspaper in the locality where it registers its operation, the following main items:
(a) Title and office address of the arbitration organization;
(b) Sector of operation of the arbitration organization;
(c) Number of certificate of registration of operation, issuing-body and date of issuance;
(d) Date of commencement of operations of the arbitration organization.
2. An arbitration organization shall display at its office a notice of the items stipulated in clause 1 of this Article and a list of its arbitrators.
Article 22[16]. Legal status and organizational structure of arbitration organizations
1. An arbitration organization shall have a legal person status, operate for non-profit purpose and have its own seal and bank account.
2. An arbitration organization shall be exempt from payment of taxes on the income from arbitration fees.
3. During its operations, an arbitration organization may establish branches and representative offices.
4. An arbitration organization shall have a list of arbitrators.
Article 25. Duties and powers of arbitration organizations
Arbitration organizations shall have the following duties and powers:
1. To draw the charter and procedural rules of the arbitration centre which shall not be inconsistent with the provisions of this Law.
2. To invite individuals who satisfy all of the conditions stipulated in Article 20 of this Law to act as arbitrators for the centre.
3. To appoint arbitrators to establish an arbitral tribunal in accordance with the provisions of this Law.
4. To provide administrative and office services for arbitral tribunal s in accordance with this Law.
5. To collect arbitration fees and to pay remuneration to arbitrators in accordance with the charter of the arbitration organization.
6. To hold courses for arbitrators to derive lessons from experience and to foster and improve their expertise and skills in dispute resolution.
7. To annually report on the operations of the arbitration organization to the Ministry of Justice, the Vietnam Lawyers Association, and the DoJ in the locality where the arbitration organization registers its operation.
8. To remove the name of an arbitrator from the list of arbitrators of the arbitration organization when the arbitrator commits a serious breach of the provisions of this Law and the charter of the arbitration organization.
9. To archive files and to provide copies of arbitral awards at the request of the parties or of competent State bodies.
10. To have other duties and powers in accordance with law.
Article 26. Termination of operation of arbitration organizations
1. The operation of an arbitration organization shall be terminated in the following circumstances:
(a) In the circumstances prescribed in the charter of the arbitration organization;
(b) Upon revocation of its establishment licence.
2. Upon termination of its operation, an arbitration organization shall return its establishment licence to the issuing-body.
3. The Government shall provide detailed regulations on the order and procedures for termination of operation of arbitration organizations.
CHAPTER V
Initiating a proceeding and acceptance of disputes
Article 27. Statement of claim
1. In order for a dispute to be resolved by an arbitration organization, the claimant must file a statement of claims with the arbitration organization. If a dispute is to be resolved by an arbitral tribunal set up by the parties, the statement of claims must be sent by the claimant to the respondent.
2. A statement of claim shall contain the following basic particulars:
(a) Date on which the statement of claim is drawn;
(b) Names and addresses of the parties;
(c) Summary of the dispute;
(c) Relief sought by the claimant;
(dd) Value of the assets claimed by the claimant;
(e) Name of the arbitrator of the arbitration organization which the claimant selects, if the dispute is to be resolved by arbitration organization or the name of the Arbitrator selected by the claimant or by the head of the Arbitration organization at the request of the claimant. In case of selecting an Arbitrator beyond the list of Arbitrators, the claimant must notify the Arbitration organization of the name and contact details of the Arbitrator that he/she selected. If the claimant requests the head of an Arbitration organization for appointment of an Arbitrator, the head of that Arbitration organization shall appoint an Arbitrator who is named in the list of Arbitrators.
3. Together with its statement of claim, the claimant must produce evidence of the arbitration agreement, must provide the original or a copy arbitration agreement, and originals or copies of documents and evidence. Copies must be validly certified.
4. If a dispute is resolved at an arbitration organization, the arbitral proceedings shall commence upon receipt by an arbitration organization of the statement of claim of the respondent. If the dispute is resolved by an arbitral tribunal established by the parties, the arbitral proceedings shall commence upon receipt by the respondent of the statement of claim of the claimant.
5. If a dispute is to be resolved by arbitration organization, within a time-limit of five working days from the date the statement of claim is regarded as valid and a document evidencing the payment of the arbitration fee advance is produced, an arbitration organization shall forward a copy of such statement of claim, together with the documents referred to in clause 2 of this Article, to the respondent.
Article 28. Limitation period for initiating proceedings for dispute resolution by arbitration
1. With respect to a dispute for which the law stipulates a limitation period for initiating proceedings, such limitation period shall apply.
2. With respect to a dispute for which the law does not stipulate a limitation period for initiating proceedings, the limitation period for initiating proceedings for dispute resolution by arbitration shall be two years from the date the aggrieved party knows or should have known that its legitimate rights and interest is being violated, except in cases of events of force majeure. The period from the date of occurrence of an event of force majeure up until the date on which such event no longer exists as provided for by the Civil Code shall be excluded when calculating the limitation period.
Article 29. Arbitration fees
1. A claimant shall pay arbitration fees in advance, unless the parties otherwise agree.
If a dispute is resolved by an arbitration organization, the executive committee of the arbitration organization shall determine the arbitration fees in accordance with the charter of the organization.
2. In the case of dispute resolution by an arbitral tribunal established by the parties, the arbitral tribunal shall determine the arbitration fees.
3. The party which loses the case shall bear the arbitration fees, unless the parties otherwise agree or otherwise decided by the arbitral tribunal with regard to the liability for the arbitration fee.
Article 30. Venue of arbitration
The parties shall have the right to agree on the venue for dispute resolution. In the absence of any such agreement, the arbitral tribunal shall decide the venue.
Article 31. Statement of defence
1. Where the parties have chosen dispute resolution by an arbitration organization, unless the parties otherwise agree, the respondent shall file a statement of defence with the arbitration organization within a time-limit of thirty (30) days from the date of receipt of the statement of claim of the claimant and annexed documents from the arbitration organization.
2. With respect to dispute resolution by an arbitral tribunal established by the parties, unless the parties have an agreement, the respondent shall forward to the claimant a statement of defence and the name of the arbitrator selected by the respondent within a time-limit of thirty (30) days from the date of receipt of the statement of claim of the claimant and annexed documents pursuant to clauses 2 and 3 of Article 27 of this Law.
3. A statement of defence shall contain the following basic particulars:
(a) Date on which the statement of defence is drawn;
(b) Name and address of the respondent;
(c) Arguments and evidence in support of the defence, including denial of part or all of the particulars in the statement of claim of the claimant.
4. In addition to the items stipulated in this clause, if the respondent alleges that the dispute is outside the jurisdiction of the arbitrator or that there is no arbitration agreement or that the arbitration agreement is invalid, the respondent shall have the right to raise these matters in the statement of defence.
5. At the request of the respondent, the time-limit for the respondent to send a statement of defence annexing evidence may be longer than thirty (30) days but not exceeding 60 days, but it must be prior to the date on which the arbitral tribunal holds the hearing stipulated in Article 38 of this Law.
CHAPTER VI
Establishment of arbitral tribunal s
Article 32. Composition of arbitral tribunals
1. The disputed parties have discretion to select arbitrators to resolve their dispute.
2. The composition of an arbitral tribunal shall be agreed and selected by the parties. If the parties agree to select a sole arbitrator, that sole arbitrator shall carry out the duties as an arbitral tribunal.
Article 33. Establishment of arbitral tribunal s at arbitration organizations
1. Unless the parties otherwise agree, within a time-limit of five working days from the date of receipt of a valid statement of claim, an arbitration organization shall forward to the respondent a copy of the statement of claim, the name of the arbitrator selected by the claimant, the annexed documents and a list of the arbitrators. Unless the parties otherwise agree, within a time-limit of thirty (30) days from the date of receipt of the statement of claim and annexed documents from the arbitration organization, the respondent shall select an arbitrator for himself and inform the arbitration organization or shall request the head of the arbitration organization to appoint an arbitrator. If, upon expiry of this time-limit, the respondent fails to select an arbitrator or fails to request the head of the arbitration organization to appoint an arbitrator, the head of the arbitration organization shall appoint an arbitrator for the respondent from the list of arbitrators at the arbitration organization within a seven working days from the date of expiry of the time-limit stipulated in this clause 1.
2. If a dispute involves multiple respondents, the respondents shall agree on the selection of an arbitrator within a time-limit of thirty (30) days from the date of receipt of the request from the arbitration organization to select an arbitrator. The number of arbitrators selected by the respondent must be equal to the number of arbitrators selected by the claimant. If, upon expiry of this time-limit, the respondents fail to select an arbitrator, the head of the arbitration organization shall appoint an arbitrator for the respondents from the list of arbitrators at the arbitration organization within a time-limit of seven working days from the date of receipt of a request.
3. Within a time-limit of fifteen (15) days from the date of selection by the parties or of appointment by the head of the arbitration organization of the arbitrators, these arbitrators shall appoint another arbitrator to act as chairman of the arbitral tribunal. If, upon expiry of this time-limit, the selection of such another arbitration is not conducted, within seven working days from the date of expiry of the [initial] time-limit, the head of the arbitration organization shall appoint the chairman of the arbitral tribunal.
4. Where the parties agree to dispute resolution by a sole arbitrator but fail to select an arbitrator, at the request of either party and within a time-limit of fifteen (15) days from the date of receipt of the request, that sole arbitrator shall be appointed by the head of the arbitration organization for the parties.
Article 34. Arbitral tribunal established by the parties
1. Unless the parties otherwise agree, within a time-limit of thirty (30) days from the date of receipt by the respondent of the statement of claim of the claimant, the respondent shall select an arbitrator and inform the claimant of the selected arbitrator. If, upon expiry of this time-limit, the respondent fails to notify the claimant of the name of the selected arbitrator, the claimant shall have the right to request the competent court referred to in clause 1 of Article 7 of this Law to appoint an arbitrator for the respondent. Within a time-limit of seven working days from the date of receipt of a request, the chief judge of the court shall assign a judge to appoint an arbitrator for the respondent and to inform the parties.
2. If a dispute involves multiple respondents, the respondents shall agree on the selection of an arbitrator within a time-limit of thirty (30) days from the date of receipt of the statement of claim and annexed documents from the claimant. The number of arbitrators selected by the respondent must be equal to the number of arbitrators selected by the claimant. If, upon expiry of this time-limit, the respondents fail to select an arbitrator within 7 working days from the date of the request, the chief judge of the court shall assign a judge to appoint an arbitrator at the request of the claimant and to inform the parties.
3. Within a time-limit of fifteen (15) days from the date of selection or appointment by a court of the arbitrators, these arbitrators shall select another arbitrator to act as chairman of the arbitral tribunal. If, upon expiry of this time-limit, such selection is not made, within a time-limit of seven working days from the date of receipt of a request, the chief judge of the court referred to in Article 7 of this Law shall assign a judge to appoint an arbitrator to act as chairman of the arbitral tribunal and to inform the parties.
4. Where the parties agree to dispute resolution by a sole arbitrator but fail to select the arbitrator, at the request of either party, the chief judge of the court referred to in Article 7 of this Law shall assign a judge to appoint an arbitrator for the parties and to inform the parties.
Article 35. Replacement of arbitrators
1. An arbitrator must refuse to resolve a dispute and the parties shall have the right to request replacement of an arbitrator to resolve a dispute in the following circumstances:
(a) The arbitrator is a relative of a party or a representative of a party;
(b) The arbitrator has an interest in the dispute;
(c) There are clear grounds for considering that the arbitrator will not be impartial or objective.
2. When one is selected or appointed to be an arbitrator and throughout arbitral proceedings, the arbitrator must disclose publicly and promptly any facts which may prejudice his or her objectiveness or impartiality.
3. The replacement of an arbitrator shall be decided by the other arbitrators in the arbitral tribunal. In the event that a decision is unable to be made, or if the arbitrators refuse or the sole arbitrator voluntarily refuses to resolve the dispute, the replacement of an arbitrator shall be regulated as follows:
(a) In the case of dispute resolution by an arbitration organization, the head of the arbitration organization shall decide upon the replacement of an arbitrator;
(b) In the case of dispute resolution by an arbitral tribunal established by the parties, at the request of either party, the chief judge of the provincial court referred to in clause 1 of Article 7 of this Law shall assign a judge to make a decision. The decision of the court shall be final.
4. If, during arbitral proceedings, an arbitrator is unable to continue to participate, the replacement of an arbitrator shall be carried out under the procedures set out in Articles 27, 33 or 34 of this Law.
5. In necessary cases, after consulting the parties, a newly established arbitral tribunal may reconsider the issues already raised in previous hearings of the dispute resolution.
Article 36. Amendment of and addition to, or withdrawal of, statement of claim
A claimant has the right to amend, add to or withdraw the statement of claim before the arbitral tribunal issues an arbitral award.
Article 37. Counter-claim
1. A respondent shall have the right to file a counter-claim against the claimant on issues relevant to the statement of claim of the claimant.
2. A counter-claim shall be concurrently filed with the arbitral tribunal and forwarded to the claimant before the arbitral tribunal holds a hearing to resolve the statement of claim of the claimant.
3. The claimant must respond to the counter-claim within thirty (30) days from the date of receipt of the counter-claim. Such a response must be forwarded to the claimant and the arbitral tribunal.
4. Procedures for resolution of a counter-claim procedures shall be the same as the procedures for resolving the statement of claim of the claimant and shall be decided concurrently by the arbitral tribunal that dealt with the statement of claim of the claimant.
CHAPTER VII
Jurisdiction of the arbitral tribunal
Article 38. Scope of jurisdiction of the arbitral tribunal
1. The arbitral tribunal may consider by itself its dispute resolution jurisdiction, and other complaints about arbitration agreements or their validity.
2. If, prior to consideration of the contents of a dispute, one of the parties lodges a complaint that the arbitral tribunal lacks jurisdiction or that there is no arbitration agreement for the dispute or that the arbitration agreement is invalid, the arbitral tribunal shall be responsible to consider and decide upon these issues.
3. A complaint about the arbitral tribunal not having jurisdiction shall be raised not later than the submission of the statement of defence. A party is not precluded from raising such a complaint by the fact that he has appointed, or participated in the appointment of, an arbitrator. A complaint about the arbitral tribunal exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is detected. In these cases, the arbitral tribunal may admit a complaint if it is found reasonable.
4. The arbitral tribunal may rule on a request referred to in clause 3 of this Article either as a preliminary question or in an award on the merits. If the arbitral tribunal rules as a preliminary question that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the court specified in clause 1 of Article 7 of this Law to decide the matter, which decision, in this case, shall be final.
5. If the parties disagree with the ruling of the arbitral tribunal on the matters referred to in clause 2 of this Article, within a time-limit of five working days from the date of receipt by the parties of the ruling of the arbitral tribunal, they shall have the right to request the provincial court referred to in clause 1 of Article 7 of this Law where the arbitral tribunal issued its ruling to reconsider the ruling of the arbitral tribunal. The party making such a request must notify the arbitral tribunal of the request.
6. A request shall contain the following basic particulars:
(a) Date on which the request is drawn;
(b) Name and address of the requester;
(c) Particulars of the request.
7. Copies of the statement of claim, the arbitration agreement and the ruling of the arbitral tribunal shall be enclosed with the request. The copies must be validly certified.
8. Within a time-limit of five working days from the date of receipt of a request, the chief judge of the court shall assign a judge to consider and resolve the request. Within a time-limit of ten (10) days from the date of being assigned, the judge must consider and make a decision. The decision of the court, in this case, shall be final.
9. If the court decides that the dispute does not fall within the jurisdiction of the arbitral tribunal, or that there is no arbitration agreement for the dispute or that the arbitration agreement is invalid, the arbitral tribunal shall issue a decision staying the dispute resolution. Unless there is some other agreement, the parties shall have the right to institute court proceedings to resolve their dispute. The limitation period for initiating court proceedings shall be as stipulated in the Civil Procedure Code, but excluding the time from the date on which the applicant initiated arbitral proceedings until the date of issuance of a decision by the court as stipulated in this Article.
10. While the court is processing a request concerning the jurisdiction of the arbitral tribunal as referred to in this Article, the arbitral tribunal shall continue the arbitral proceedings.
Article 39. Jurisdiction of arbitral tribunals to verify the facts
After being selected or appointed, an arbitral tribunal shall have the right to meet the parties to hear them present their views. At the request of one or more of the parties or at the initiative of an arbitrator, the arbitral tribunal may conduct fact-finding with a third person in the presence of the parties or after having notified the parties.
Article 40. Jurisdiction of the arbitral tribunal over evidence
1. At the request of the parties, an arbitral tribunal may summon expert witnesses or conclusions and must inform the parties thereof. The requesting party shall pay an advance of the examination fees and the cost of hiring the expert.
2. The parties shall have the burden of providing evidence to prove the facts relating to the dispute. The arbitral tribunal shall have the right to require the parties to provide evidence pertaining to the dispute.
CHAPTER VIII
Jurisdiction of the court relating to arbitral proceedings
Article 41: Court support for collection of evidence
1. Upon request of either party for collection of evidence or where deemed necessary, the arbitral tribunal may request the competent court referred to in Article 7 of this Law for support in collection of evidence.
2. The court shall be responsible to collect evidence in accordance with the procedures set out in the Civil Procedure Code.
Article 42. Ensuring the presence of witnesses
Upon request of either party for summoning a witness or where deemed necessary, the arbitral tribunal may request the competent court referred to in Article 7 of this Law for support to ensure the presence of such witness.
Article 43. Support of Vietnamese courts towards foreign arbitrations
Vietnamese courts may support foreign arbitrations in collecting evidence or applying provisional measures in accordance with the provisions of the Law on Judicial Cooperation.
Article 43. Right to request application of provisional measure
Before or after initiating an arbitral proceeding, if the lawful rights and interests of the parties are infringed or are in danger of being directly infringed, the parties shall have the right to apply to the competent provincial court determined under Article 7 of this Law to take one or a number of provisional measure:
The court shall apply a provisional measure in accordance with the procedures set out in the Civil Procedure Code.
Article 44. Procedures for application of provisional measures
1. An applicant for the provisional measure shall file an application at the competent provincial court determined under Article 7 of this Law or in the place where the arbitral tribunal accepted jurisdiction over the dispute.
2. An applicant for provisional measure shall file, together with the application, a copy of the statement of claim with all of the particulars stipulated in Article 27, and a copy of the arbitration agreement stipulated in Article 15 of this Law. Copies must be validly certified.
3. Depending on the type of provisional measure sought, the applicant shall provide the court with specific evidence in respect of the evidence which needs to be preserved, or evidence in respect of the dispersal or concealment by the respondent of assets which may make it impossible to enforce an arbitral award.
4. An applicant for provisional measure shall pay a security sum or a similar guarantee undertaking to be fixed by the court, not to exceed the property obligation which the obligor must discharge in order to protect the interests of the respondent and to prevent abuse of provisional measure on the part of the applicant.
5. After receipt of an application together with the documents stipulated in clauses 1, 2 and 3 of this Article, the chief judge of the provincial court specified in clause 1 of this Article, within no more than 3 working days, shall assign a judge to consider and decide the application. Within a time-limit of three working days from the date of such assignment, the judge shall inspect the accuracy of the documents pursuant to the provisions in clause 2 of this Article, within the scope of the application by the applicant, and may issue a decision granting one or more provisional measure.
6. Any decision granting provisional measure must be immediately sent to the arbitral tribunal and to the parties to the dispute. Any decision granting provisional measure shall be immediately enforced. A decision granting provisional measure shall be enforced in accordance with the law on execution of civil judgments.
Article 45. Alteration or rescission of provisional measure
1. An applicant for provisional measure may also apply for its alteration or rescission when such relief is no longer appropriate or necessary.
2. Within a time-limit of three working days from the date of receipt of an application for alteration or rescission of provisional measure, the chief judge of the provincial court which made the decision granting provisional measure shall assign a judge to consider and issue a decision altering or rescinding such provisional measure. This decision must be immediately sent to the arbitral tribunal and to the parties to the dispute.
3. In the case of rescission of provisional measure, the judge shall consider and decide whether the security sum stipulated in clause 4 of Article 44 of this Law should be returned to the applicant, unless the provisions in Article 47 of this Law are applicable.
Article 46. Court responsibility for non-application or improper application of provisions measures
The responsibility of the court for non-application or improper application of provisions measures shall be in accordance with the Civil Procedure Code.
Article 47. Responsibilities of applicant for provisional measure
1. An applicant for provisional measure shall be responsible for such request.
2. If the applicant was incorrect in applying for provisional measure and causes damage to the other party or to a third person, such applicant must pay compensation in accordance with the provisions of the Civil Procedure Code.
CHAPTER IX
Hearings for dispute resolution
Article 51. Preparing for hearings
1. Unless the parties otherwise agree, the chairman of an arbitral tribunal shall decide the time of the hearing for dispute resolution.
2. Unless the parties otherwise agree, a summon to attend the hearing for dispute resolution shall be forwarded to the parties at least thirty (30) days prior to the date of commencement of the hearing.
3. A hearing for dispute resolution shall be held in private. If the parties consent, the arbitral tribunal may permit other persons to attend the hearing.
Article 49. Attendance at hearings for dispute resolution
The parties may directly attend hearings for dispute resolution or authorize their representatives to attend. The parties shall have the right to invite witnesses and lawyers to protect their legal rights and interests.
Article 50. Absence of parties
1. If a claimant has been summonsed to attend a hearing for dispute resolution but fails to attend without a legitimate reason, or leaves the hearing without the consent of the arbitral tribunal, the claimant shall be deemed to have withdrawn the statement of claim. In such a case, the arbitral tribunal shall continue the dispute resolution if the respondent so requests or if there is a counter-claim as prescribed in Article 37 of this Law.
2. If a respondent has been summonsed to attend a hearing for dispute resolution but fails to attend without a legitimate reason, or leaves the hearing without the consent of the arbitral tribunal, the arbitration tribunal shall continue the dispute resolution based on the currently available documentation and evidence.
3. If requested by the parties, an arbitral tribunal may rely on the file to conduct the dispute resolution without requiring the presence of the parties.
Article 51. Adjournment of hearing for dispute resolution
1. The parties may request an arbitral tribunal to adjourn a hearing if there is a legitimate reason. A request for adjournment of a hearing for dispute resolution must be made in writing which specifies the reason therefor together with the evidence thereof. This request must be received by the arbitral tribunal no later than seven working days before the proposed day of opening of the hearing. If there is a delay in meeting that time limit for sending such a request for adjournment, the requesting party must bear all the costs thereof. The arbitral tribunal shall consider and decide whether or not to accept such request and inform the parties of its decision.
2. An arbitral tribunal must adjourn a hearing if it considers that there are insufficient grounds for the dispute resolution and must promptly notify this to the parties.
Article 52. Minutes of hearing of dispute resolution
1. An arbitral tribunal shall prepare minutes of hearing and the chairman of the arbitral tribunal shall sign them.
2. The parties shall have the right to study the contents of minutes and to request that they be amended or supplemented. If the arbitral tribunal rejects such a request, it shall record this in the minutes.
Article 53. Conciliation
1. The parties may themselves conciliate the dispute during the course of arbitral proceedings. If the conciliation is successful, the arbitration tribunal shall stay the proceedings. If an arbitral tribunal has not yet been set up, the head of the arbitration organization shall decide to stay the dispute resolution process.
2. The parties may request the arbitral tribunal to conduct conciliation. If it is successful, the parties may request the arbitral tribunal to produce minutes of successful conciliation and to issue a decision recognizing the successful conciliation. Minutes of successful conciliation must be signed by the parties and by the arbitrators. Any decision recognizing a successful conciliation issued by an arbitral tribunal shall be final and shall be enforceable pursuant to Article 67 of this Law.
Article 54. Stay of dispute resolution
An arbitral tribunal shall stay a dispute resolution in the following circumstances:
1. The claimant withdraws the statement of claim or is deemed to have withdrawn the statement of claim pursuant to clause 1 of Article 50 of this Law, unless the respondent requests that the dispute resolution continue.
2. The parties agree to terminate the dispute resolution.
CHAPTER X
Arbitral awards
Article 55. Principles for issuance of arbitral award
1. Except in the case of dispute resolution by a sole arbitrator, an arbitral award of the arbitral tribunal shall be made on the basis of the majority principle. The view of the minority shall be recorded in the minutes of hearing.
2. In case the majority principle is not satisfied, the decision of the chairman of the arbitral tribunal shall be the award of the whole tribunal.
Article 56. Arbitral award
1. An arbitral award shall contain the following basic particulars:
(a) Date and place of issuance of the arbitral award.
(b) Names and addresses of the claimant and respondent;
(c) Name(s) of the arbitrators or sole arbitrator;
(d) Summary of the statement of claim and the matters in dispute unless otherwise agreed by the parties;
(e) Grounds for issuance of the arbitral award unless otherwise agreed by the parties;
(g) Decision on the dispute merit, the dispute resolution results;
(h) Period for enforcement of the award;
(i) Signature(s) of the arbitrators or sole arbitrator.
2. If an arbitrator does not sign an arbitral award, the chairman of the arbitral tribunal shall record this fact in the arbitral award and specify the reasons for it. In this case, the award of the arbitral tribunal shall still be valid.
3. An award shall be of full force and effect as of the date of its announcement.
Article 57. Announcement of arbitral award
1. An arbitral award may be announced immediately at the final hearing or thereafter, but shall be announced no later than thirty (30) days from the date of completion of the final hearing. The full text of the arbitral award shall be sent to the parties immediately after the date of announcement.
2. At the request of the parties, an arbitration organization or an arbitral tribunal established by the parties shall provide a copy of the arbitral award to the party requesting it.
Article 58. Correction of arbitral award
1. Within a time-limit of 30 days from the date of receipt of an arbitral award, a party may request the arbitral tribunal to correct any errors in computation, any typing or printing mistakes, or any other technical mistakes. Within a time-limit of thirty (30) days from the date of receipt of a request, the arbitral tribunal shall make the corrections and inform the other party.
2. Any decision making a correction shall be a part of the award and must be signed by the arbitral tribunal.
Article 59. Archiving arbitration files
1. The dispute file at an arbitration organization shall be kept at that arbitration organization. The dispute file at an arbitration organization prepared by the parties shall be kept at the competent court as referred to in Article 7.1 of this Law.
2. Within a time-limit of fifteen (15) days from the date of announcement of an arbitral award or the minutes of conciliation, the arbitral tribunal shall forward the arbitral award or the minutes of conciliation together with the dispute resolution file to the provincial court in the area where the arbitral tribunal issued the arbitral award or prepared the minutes of successful conciliation, for the purpose of archiving.
CHAPTER XI
Refuting Arbitral Awards
Article 60. Grounds for refuting arbitral awards
A court shall issue a decision to refute an arbitral award if the applicant proves that the arbitral tribunal issued the arbitral award in one of the following circumstances:
1. There was no arbitration agreement.
2. The arbitration agreement has become null and void.
3. The composition of the arbitral tribunal was, or the arbitration proceedings were, inconsistent with the agreement of the parties pursuant to the provisions of this Law.
4. The dispute was outside the jurisdiction of the arbitral tribunal. If only part of an arbitral award is outside the jurisdiction of the arbitration tribunal, that part shall be refuted unless a decision has been given under Article 38 of this Law.
5. The arbitral award is contrary to the public interest of the Socialist Republic of Vietnam.
Article 61. Right to apply for refuting arbitral awards
1. Within a time-limit of thirty (30) days from the date of receipt of an arbitral award, a party which has sufficient bases to prove that the arbitral tribunal issued the award in one of the cases referred to in Article 60 of this Law shall have the right to file an application with the court under Article 7.1 of this Law requesting for refuting the arbitral award.
2. This time limit also applies to decisions on correction or explanation or addition to arbitral awards under Article 58 of this Law.
3. If an application is filed out of time due to an event of force majeure, the duration of the event of force majeure shall be excluded when calculating the time-limit for requesting that the arbitral award be refuted.
Article 62. Application for arbitral award to be refuted
1. An application for refuting an arbitral award shall contain the following basic particulars:
(a) Date on which the application is drawn;
(b) Name and address of the party applying for refuting the arbitral award;
(c) Reasons for the application for the arbitral award to be refuted.
2. The following documents shall be enclosed with the application:
(a) Original or validly certified copy of the arbitral award;
(b) Original or validly certified copy of the arbitration agreement.
3. Enclosures in a foreign language must be translated into Vietnamese and the translations must be validly certified.
Article 63. Acceptance of jurisdiction over application
1. Upon receipt of all documents stipulated in Article 62 of this Law, the court shall immediately notify the applicant to pay the fees. The court shall accept jurisdiction as from the date of payment of the fees by the applicant.
2. The court shall have the right to require the applicant to explain any unclear particulars in the application for the arbitral award to be refuted.
Article 64. Consideration by court of application for refuting arbitral awards
1. After a court has accepted jurisdiction over an application for refuting an arbitral award, the court shall notify the arbitration organization or the arbitral tribunal established by the parties, the parties to the dispute. In the case of dispute resolution held by an arbitration organization, within a time-limit of seven working days from the date of receipt of the notice from the court, the arbitration organization shall make copies and transfer to the court the statement of claim of the claimant, the statement of defence or the counterclaim of the respondent (if any), the minutes of the hearing and the arbitral award.
2. Within a time-limit of thirty (30) days from the date of acceptance of jurisdiction by the court, the chief judge of the court shall appoint a trial council consisting of three judges, one of whom shall act as the presiding judge, and shall open a court hearing to consider the application for refuting the arbitral award.
3. The court hearing shall take place in the presence of the parties to the dispute, their lawyers (if any), and a prosecutor of the procuracy at the same level. If one of the parties making the application requests the court to hear it in the absence of such party, or if a party which has been validly summonsed to attend the hearing fails to attend without a legitimate reason or leaves the hearing without the consent of the trial council, the trial council may continue to deal with the application for refuting the arbitral award.
4. In considering the application, the trial council shall not reconsider the contents of the dispute but shall only inspect the documents stipulated in Article 62 of this Law and compare the arbitral award with the provisions in Article 60 of this Law in order to issue its decision.
5. After the trial council has considered the application and enclosures, heard the evidence (if any) and the opinions of the persons summonsed and of the prosecutor, the trial council shall discuss the application and issue a decision on the basis of the majority principle.
6. A trial council shall have the right to issue a decision refuting or not refuting the award; and to stay consideration of the application if the applicant withdraws the application for refuting the arbitral award or fails to attend without a legitimate reason after having been summonsed to attend or leaves the hearing without the consent of the trial council.
7. Within a time-limit of fifteen (15) days from the date of issuance of a decision, the court shall forward a copy of the decision to the parties, to the arbitration organization or to the arbitral tribunal established by the parties.
8. Upon [considering] a request for refuting an arbitral award, the court at request of either party, may consider staying the procedures for refuting the arbitral award for a certain period of time as determined by the court but not exceeding 01 month for the arbitral tribunal to conduct the actions deemed necessary by the arbitral tribunal to exclude the bases on which an arbitral award may be refuted. If the parties agree with correction or adjustment decisions of the arbitral tribunal, the court shall issue a decision to stay the procedures for refuting arbitral awards.
9. If the trial council refutes an arbitral award, the parties shall have the right to bring such dispute before a court for resolution within the limitation period provided for by the civil legislation, unless otherwise agreed by the parties.
10. If the trial council does not refute the arbitral award, the arbitral award shall be enforced in accordance with the provisions in Article 68 of this Law.
Article 65. Appeal against court decision
1. Within a time-limit of fifteen (15) days from the date of issuance of a decision by the court pursuant to Article 64 of this Law, the parties shall have the right to appeal.
2. The statement of appeal must specify the grounds of the appeal and the relief sought. The statement of appeal must be forwarded to the court which issued the decision. After the court receives the statement of appeal, the court shall immediately notify the appellant to pay fees for the appeal.
3. If any party was not present at the hearing of the court of first instance, the time for lodging an appeal stipulated in clause 1 of this Article shall be calculated as from the date of delivery of a copy of the decision to such party; if an appeal is lodged out of time due to an event of force majeure, the time-limit shall be calculated from the date on which the event of force majeure ends.
4. Within a time-limit of fifteen (15) days from the date of receipt by the court of the statement of appeal, where the appellant has paid the fees for the appeal, the court which issued the decision shall transfer the file to the people's supreme court.
Article 66. Consideration of appeal
1. Within a time-limit of thirty (30) days from the date of receipt of an appeal file, the people's supreme court shall hold a hearing to consider and make a decision. If it is necessary to require the appellant to provide explanation of the particulars of appeal, the time-limit for holding a hearing may be extended but shall not exceed sixty (60) days from the date of receipt of the appeal file.
2. The composition of the council to hear the appeal shall consist of three judges, one of whom shall be appointed by the people's supreme court to act as presiding judge.
3. The court hearing shall take place in the presence of the parties to the dispute.
4. If the respondent requests the court to hear the appeal in his/her absence or, having been validly summonsed to attend the hearing, fails to attend without a legitimate reason or leaves the hearing without the consent of the trial council, the trial council may continue to hear the appeal.
5. After the trial council has considered the statement of appeal and enclosures, heard the evidence (if any) and the opinions of the persons summonsed, the trial council shall discuss and issue a decision on the basis of the majority principle.
6. A trial council shall have the right to uphold, or to alter a part or the whole of, the decision of the court of first instance; or to stay the consideration of the appeal if the appellant withdraws the appeal or fails to attend without a legitimate reason after having been validly summonsed to attend or leaves the hearing without the consent of the trial council.
7. The decision of the people's supreme court shall be final and enforceable.
CHAPTER XII
Enforcement of arbitral awards
Article 67. Validity of arbitral awards
1. Arbitral awards shall be final, shall come into effect from the date of its announcement and must be respected and properly enforced by State agencies, organizations and individuals.
2. Within the scope of their respective duties and powers, agencies, organizations and individuals assigned to enforce arbitral awards must properly enforce them and support for their enforcement.
3. The recognition and enforcement in Vietnam of foreign arbitral awards must comply with the provisions of the Civil Procedure Code.
Article 68. Enforcement of awards
If any party has failed to carry out voluntarily an arbitral award thirty (30) days after the date of expiry of the time-limit for its execution, and that same party has not applied for refuting the award pursuant to Article 62 of this Law, the arbitral award creditor shall have the right to apply to the provincial judgment enforcement body in the area where the award debtor has its office or residence or assets to enforce the award.
Article 69. Court fees regarding arbitration
The Government shall provide regulations on fees for applications to the court to appoint an arbitrator, applications for provisional measures, applications for refuting an arbitral award, and appeals against court decisions, and other fees.
CHAPTER XIII
Other provisions
Article 70. Losing the right to refuse
If either party knows that the provisions of this Law on arbitral proceedings or any provision of the arbitration agreement on the following issues:
a) the arbitration tribunal does not have jurisdiction [over the dispute];
b) proceedings have not yet been duly performed;
c) there is a failure to comply with the arbitration agreement; or
d) there is another violation affecting the arbitral tribunal or the arbitral proceeding.
have not yet been complied with but that party keeps taking part, without objection, in the proceeding as agreed in the arbitration agreement or determined by the arbitration tribunal, that party shall be deemed as refusing its proceeding right before the arbitral tribunal or the court.
Article 71. State administration of arbitration
1. The Government shall exercise uniform State administration of arbitration.
2. The Ministry of Justice shall be responsible before the Government for carrying out the function of State administration of arbitration.
3. The Ministry of Justice shall co-ordinate with the Vietnam Lawyers Association in carrying out State administration of arbitration.
CHAPTER XIV
Implementation provisions
Article 72. Application of this Law to arbitration organizations established prior to date of effectiveness of this Law
1. Arbitration organizations which were established prior to the date of effectiveness of this Law shall not have to apply for reestablishment. Within a period of twelve (12) months from the date of effectiveness of this Law, such organizations must amend and supplement their charters and their arbitration procedural rules for consistency with the provisions of this Law. If they fail to amend and supplement their charters and procedural rules by the expiry of such period, they must terminate their operations.
2. Arbitration agreements which were signed prior to the date of effectiveness of this Law shall be implemented in accordance with provisions of the law which was in effect on the date of signing of such arbitration agreements unless otherwise agreed between the parties.
Article 73. Effectiveness
1. This Law shall be of full force and effect as of …..
2. The 2003 Arbitration Ordinance shall cease to be effective from ….
Article 74. Implementing provision
The Government shall make detailed provisions and provide guidelines for implementation of the issues as authorized in detail in this Law.
[1] Associate Professor, Faculty of Law, Vietnam National University Hanoi, nghiadp@vnu.edu.vn (091) 252.1658
[2] Resolution No 570/2008/UBTVQH12 on Establishment of the Drafting Board of the Law on Commercial Arbitration issued by the Standing Committee of the National Assembly, dated January 23, 2008
[3] UN documents A/40/17, annex I and A/61/17, as amended by the UN Commission on International Trade Law on July 7, 2006.
[4] See Do Van Dai (2008), [Đỗ Văn Đại, Làm thế nào để Trọng tài Việt Nam là chỗ dựa của doanh nghiệp? Bài viết đăng trên tạp chí Nghiên cứu lập pháp, số 2(119) tháng 2/2008, nguồn án lệ: xem Tòa thượng thẩm Sài Gòn ngày 8/7/1897 : Tạp chí Penant, article 1278, tr. 31.
[5] Decree No 116/CP dated September 05, 1994 on organization and operation of economic arbitration.
[6] VIAC, established based on the Prime Minister’s Decision No 204/TTg dated April 28, 1993. To merge the pre-existing Foreign Trade Arbitration Commission and the Maritime Arbitration Commission into one single instituion, the scope of activities of VIAC focused in 1993-1996 initially only on international commcercial disputes, but was extended also to domestic economic disputes by the Prime Minister Decision No 114/TTg dated February 16, 1996.
[7] Vu Anh Duong (2008) [Vũ Ánh Dương, Thực tiễn áp dụng pháp lệnh trọng tài thương mại tại Trung tâm trọng tài thương mại quốc tế Việt Nam, Tạp chí Khoa học pháp lý, số 3 (46) 2008, tr. 5-15].
[8] This is a typical case of law making in Vietnam. Started with a governmental degree, i.e an administrative regulation, after collecting experiences and practice, the administrative degree will be “upgraded” into a legal document of higher range, such as in the form of an ordinance, adopted by the Standing Committee of the National Assembly. The ordinance, again, will be “upgraded” into a law, passed by the National Assembly in its plenary meeting.
[9] For more updated information, contact Ministry of Justice, Department of “Supporting Justice Service” (in charge of issues relating to lawyers, notary, paralegal, etc. , Vụ Bổ trợ tư pháp). Some centres have been reported to be liquidated during the years.
[10] See Annex: Statistics of VIAC, Cases settled by Vietnam International Arbitration Centre, 2007
[11] Official translated English vision of the Arbitration Ordinance 2003 is provided by Vietnam’s Legal Gazette, other English visions are provided by USAID and some other law firms, such as Baker and McKenzie, and others. Article quoted, (following using the symbol §), if not otherwise noted, are the articles of the Arbitration Ordinance 2003.
[12] More to the roles of courts in arbitral activities, see Phan Huy Hong (2008) [Phan Huy Hồng, Vai trò của toà án trong hoạt động trọng tài, Tạp chí Khoa học pháp lý, số 3(46) 2008, tr. 22-34].
[13] The Draft 0 of the Law on Arbitration (June 2008) is designed to include 11 chapter, with 76 articles. An English vision is translated and provided by USAID in Hanoi. Delivery of this translation is also available through request to VLA.
VLA, (Draft 1 dated 29 June 2008)
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended and added to by Resolution 51-2001-QH10 dated 25 December 2001 of Legislature X of the National Assembly at its 10th Session;
In order to enable civil parties to resolve their disputes in a prompt, timely and favorable manner.
This Law provides for the arbitral organization and proceedings.
CHAPTER I
General Provisions
Article 1. Governing scope
This Law provides for arbitral organizations and proceedings for the resolution of disputes over the civil rights and obligations in accordance with an agreement between the parties.
Article 2. Interpretation of terms
In this Law, the following terms shall be interpreted as follows:
1. Arbitration means a method for resolving disputes agreed by the parties and conducted in accordance with the order and procedures stipulated in this Law.
2. Arbitration agreement means an agreement between the parties to use arbitration to resolve disputes which may arise or which have arisen in relation to the legitimate rights and interest of the civil parties including disputes arising from contractual obligations or obligations in tort.
3. Civil parties means any individual or organization with the right to agree upon arbitration in their transactions in order to establish their civil rights and obligations, including the disputes between investors and a State management agency of Vietnam under the Investment Law.
4. Dispute with a foreign element means a dispute arising from civil transactions in which one or more of the participating parties is a foreigner or foreign legal entity, or where the grounds for establishing, altering or terminating the relationship which is the subject of dispute arise abroad, or where assets relating to the dispute are located abroad.
5. Arbitrator means a person satisfying all of the conditions stipulated in Article 17 of this Law and selected by the parties or appointed by an arbitration organization or a competent court to resolve a dispute.
6. The arbitral tribunal set up by the parties shall be the form of arbitration set up by the party to resolve their specific dispute[14]. After a dispute has been completely resolved the arbitral tribunal set up by the parties shall be automatically dissolved.
7. An arbitration organization is the form of arbitration with regular operations and organizational structure. It has separate charter and rules of proceedings together with a list of its arbitrators. An arbitration organization may call itself as Arbitration Center, Arbitration Association, Arbitration Institute, an Arbitration Commission or with another valid name
8. Relatives means a person belonging to the three inheritance ranks stipulated in the Civil Code.
9. Conciliation means a private procedure of dispute resolution where the conciliator is a third party who acts as an intermediary between the dispute parties and who help them to reach an agreement
Article 3. Principles for dispute resolution by arbitration
1. When resolving a dispute, an arbitrator must be independent, objective and impartial, must comply with the law, and must respect the agreement of the parties.
2. Arbitrators shall resolve the dispute in a non-public manner, operates for non-profit purpose[15], the arbitral award shall be final.
Article 4. Conditions and form of dispute resolution by arbitration
1. A dispute shall be resolved by arbitration if it is so agreed by the parties either before or after the dispute occurs. If the parties have agreed upon the arbitration and either party dies or lost its civil conduct capacity, such agreement shall remain in its effect and be enforceable either by the heir or the legal representative of that party, unless otherwise agreed by the parties.
2. A dispute between parties shall be resolved by an arbitral tribunal set up by an arbitration organization or by an arbitral tribunal established by the parties pursuant to the provisions of this Law.
Article 5. Refusal of the court to accept a case where there is an arbitration agreement
Where a dispute already has an arbitration agreement but one party constitutes court proceedings, the court must refuse to accept jurisdiction, unless the arbitration agreement is invalid or the arbitration agreement is not enforceable.
Article 6. Forms of Alternative Dispute Resolutions
1. Before approaching the arbitration, the disputed parties may settle their conflict through mediation or conciliation. If such mediation or conciliation fails and there is an arbitration agreement, such dispute may be resolved in accordance with this Law.
2. During the mediation or conciliation, if either party refers the dispute to arbitration, such mediation or conciliation shall automatically be terminated.
3. In case of unsuccessful conciliation, the conciliator shall not be entitled to either appoint an arbitrator, or act as the representative, witness or lawyer of any party in the arbitral proceeding, unless it is so consented to in writing by all parties.
4. Any agreement reached through mediation or conciliation shall not be used as evidence in an arbitral proceeding.
Article 7: Determination of court having jurisdiction over arbitration
1. The court that is competent to arbitration shall be the provincial level court in one of the following cases:
a. The provincial court where the arbitral tribunal conducts the proceeding,
b. The provincial court where the arbitral tribunal accepts the case;
c. The provincial court where the asset in dispute is located.
d. The provincial court agreed upon between the parties.
2. If the asset, witnesses and evidence are located overseas, except for the cases referred to in clause 1 of this Article, the court having jurisdiction over the arbitration shall be determined in accordance with the provisions of the Civil Procedure Code on judicial cooperation.
Article 8. Scope of support and supervision of the Court with regard to arbitral proceedings
The Court shall only take measure to support and supervise the resolution of disputes by arbitration in the cases stipulated by this Law.
Article 9. Supporting and supervising responsibilities of the court toward arbitration
The court shall be responsible to support for and supervise the arbitral proceeding in the following cases:
1. Collecting and preserving evidence under Article 41 of this Law;
2. Keeping files and records under Article 59 of this Law.
3. Rendering a null and void an arbitration agreement under Article 18 of this Law.
4. Determining the jurisdiction of the arbitral tribunal under Article 38 of this Law.
5. Recognizing and enforcing arbitral awards under Article 68 of this Law and the provisions of the Civil Procedure Code.
6. Dealing with requests for refuting arbitral wards under Articles 60, 61, 62, 63 and 64 of this Law.
7. Assuring that witnesses are present under Articles 43, 44, 45 and 46 of this Law;
8. Applying provisional measures under Articles 43, 44, 45 and 46 of this Law;
9. Appointing or replacing arbitrators under Articles 34 and 35 of this Law.
Article 10. Applicable laws for dispute resolution
1. With respect to a dispute between Vietnamese parties, the arbitral tribunal shall apply the law of Vietnam in order to resolve the dispute, unless otherwise provided for under specialized law.
2. With respect to a dispute with a foreign element, the arbitral tribunal shall apply the law chosen by the parties. The choice of a foreign law and its application shall not be inconsistent with the fundamental principles of the law of Vietnam.
3. Where the parties are unable to agree upon the applicable law, the arbitral tribunal shall decide to apply the most appropriate law.
Article 11. Languages
1. The applicable language in arbitral proceedings shall be Vietnamese.
2. With regard to a dispute with a foreign element, the parties have the right to agree upon the applicable language in arbitral proceedings. If such agreement is not available, the applicable language in arbitral proceedings shall be Vietnamese. The parties may ask the arbitral tribunal for an interpreter and must be the costs thereof.
Article 12. Manner of notification and notification procedures
1. Representations, correspondences and other documents sent by either party must be sent to the arbitral tribunal with a sufficient number of copies for distribution to the tribunal members, the other party and for filing at the arbitration organization, if the case is to be resolved at the Arbitration organization, or at the provincial people’s court as referred to in Article 7 of this Law, if the case is to be resolved at the arbitral tribunal set up by the parties.
2. Notifications and documents sent to the parties shall be served by the Arbitral tribunal to the last known address of the parties or to their representatives at the address notified by the parties.
Notification and documents may also be sent by the Arbitral tribunal by personal delivery, guaranteed post, post, fax, telex, telegram or any other methods which can acknowledge this sending.
3. Notifications and documents sent by the Arbitral tribunal shall be regarded as received on the date actually received by the parties or their representatives or if such documents or notifications have been duly sent under clause 2 of this Article.
4. The time limit referred to in this Article shall commence from the date following the date on which the notification or documents are regarded as received under clause 3 of this Article. If that following day falls on an official holiday or a day off as regulated by the country or territory where such notifications or documents are to be received, the time limit shall commence from the first working day that follows that holiday or day-off. If the expiry date of the time limit falls on an official holiday or a day off as regulated by the country or territory where such notifications or documents are received, the expiry date shall be the first working day that follows such holiday or day-off.
Article 13. Foreign arbitration
1. The arbitration shall be regarded as foreign arbitration if:
(a) The parties to the arbitration agreement, at the time of entry into that arbitration agreement, have their business head offices located in different countries or reside in different countries; or
(b) One of the following places where the parties locate their business head office or reside are located outside the territory of Vietnam:
(i) The place where the arbitral proceeding is conducted it such place is determined or stated in the arbitration agreement. This provision shall not apply to the disputes resolved by the Vietnamese arbitration overseas under clause 3 of this Article.
(ii) The place where the primary part of obligations in the civil relationship is performed or where the subject matter of the dispute has the closes relationship with;
(c) The parties have explicitly agreed that the subject matter of the arbitration agreement relates to more than one country.
2. The following issues also fall within the foreign arbitration under clause 1 of this Article:
a. Where either party has several business head offices, the head office shall be the place with the closest relationship with the arbitration agreement.
b. Where either party does not have a business head office, its residence place shall be referred to.
3. If a dispute is resolved by the Vietnamese arbitration overseas, the award of that Vietnamese arbitration shall also be regarded as a domestic arbitral award. An award of the Vietnamese arbitration overseas must comply with the existing laws of Vietnam.
Article 14. Applicability of international treaties
In the case of any inconsistency between an international treaty signed or acceded to by the Socialist Republic of Vietnam and the provisions of this Law, the provisions of the international treaty shall apply.
CHAPTER II
Arbitration Agreements
Article 13. Form of arbitration agreements
An arbitration agreement shall be regarded as having been made in writing when it meets one of the following conditions:
1. When [the arbitration agreement is] made in a document signed by the parties.
2. [An arbitration agreement] shall also be regarded as having been made in writing, if:
a) it is made by way of exchange of telex, telegrams etc or other forms of exchange of e-data;
b) it is established by way of exchange of information in writing;
c) it is contained in exchanges of statement of claims and defence where the existence of the arbitration agreement is referred to by one party and is not opposed by the other party.
d) it is evidenced by way of documents if it is recorded by either party or a third party authorized by the parties to such agreement;
e) the transaction refers to a document with an arbitration agreement such as a bill of lading, a charter, a company’s charter or a similar document.
Article 16. Right of customers to refuse arbitration
1. In case of a dispute between an enterprise and a customer over goods, service or any other product supplied for personal consumption purpose, the arbitration agreement shall not be referred to as a proof against the consumer.
2. A party to a contract shall be regarded as the consumer if that party does not seek for profits while the other party to the contract takes part in the contract for the profit-making purpose.
3. An arbitration agreement shall only be regarded as being possibly against the consumer if:
(a) The consumer has acknowledged, on the basis of a separate written agreement, that he/she has read and understood the arbitration agreement and agreed to be bound upon that agreement; and
(b) The separate written agreement referred to in clause 39ª) above explicitly states that any or all the provisions of such agreement does not apply to the arbitration agreement.
Article 17. The following disputes shall not fall within the arbitration jurisdiction
1. Personal-right-related disputes including those involved in marriages and families under the provisions of the Civil Procedure Code.
1. Administrative disputes that fall within the jurisdiction of relevant administrative agencies.
Article 18. Invalid arbitration agreements
An arbitration agreement shall be invalid in the following circumstances:
1. When a dispute which arises in a sector that does not fall within the arbitration jurisdiction referred to in Article 17 of this Law.
2. A creator of or signatory to the arbitration agreement lacks power pursuant to law.
3. Either party to the arbitration agreement lacks full civil legal capacity.
4. The arbitration agreement is not established under Article 13 of this Law.
5. Either party to the arbitration agreement was deceived or threatened, and requests that the arbitration agreement be declared invalid.
Article 19. Independence of arbitration agreements
An arbitration agreement shall exist independently from a contract. Any modification, extension or termination of a contract or the fact that the contract cannot be enforced or becomes null and void shall not affect the validity of the arbitration agreement.
CHAPTER III
Arbitrators
Article 20. Arbitrators
1. Individuals who have full civil legal capacity and good ethics and are honest, impartial and objective, may act as an arbitrator if they meet one of the following conditions:
a) Having a university degree and at least five years' work experience.
b) Being a trader with more than 5 years’ business experiences.
2. Any person currently being prosecuted for a criminal offence, or having been convicted and whose conviction has not yet been expiated shall be barred from acting as an arbitrator.
3. Judges, prosecutors, investigators, enforcement officers, and officials currently working in the people's courts, the people's procuracy, investigative bodies or enforcement bodies shall be barred from acting as arbitrators.
Article 21. Rights and obligations of arbitrators
1. Arbitrators shall have the rights:
(a) To accept or refuse to resolve a dispute;
(b) To remain independent during dispute resolution;
(c) To refuse to provide information concerning a dispute;
(d) To receive remuneration.
2. Arbitrators shall have the obligations:
(a) To refuse to resolve a dispute in the circumstances stipulated in clause 1 of Article 35 of this Law;
(b) To keep confidential the contents of the dispute which he or she resolves;
(c) To comply with the code of ethics for arbitrators.
CHAPTER IV
Arbitration organizations
Article 22. Conditions for setting up Arbitration organizations
1. Pursuant to the socio-economic development status of each locality, an arbitration organization shall be set up in several localities in accordance with the Government regulations at the request of a professional association. After a consideration and a letter of introduction is given by the Vietnam Lawyers Association, the Minister of Justice shall consider and issue an establishment licence to the arbitration organization.
2. Application documents for setting up an arbitration organization must contain the following:
(a) Application for establishment of an arbitration organization;
(b) The draft Charter of the arbitration organization;
(c) Letter of introduction from the Vietnam Lawyers Association.
3. Within a time-limit of forty five (45) days, the Minister of Justice shall issue a licence for establishment of an arbitration organization and approve its charter. In the case of refusal, there must be a written reply specifying the reasons therefor.
Article 23. Registering operations of arbitration agreements
Within a time-limit of thirty (30) days from the date of receipt of its establishment licence, an arbitration organization must register its operations with the Department of Justice of the province or city under central authority (to be jointly referred to as DoJ) where the arbitration organization locates its office. If, upon expiry of this time limit, an arbitration organization has failed to register, its licence shall be revoked.
Article 24. Publication in newspaper of announcement of establishment of arbitration organizations
1. Within a time-limit of thirty (30) days from the date of issuance of an establishment licence, an arbitration organization must cause to be published in three consecutive issues of a central daily newspaper or a daily newspaper in the locality where it registers its operation, the following main items:
(a) Title and office address of the arbitration organization;
(b) Sector of operation of the arbitration organization;
(c) Number of certificate of registration of operation, issuing-body and date of issuance;
(d) Date of commencement of operations of the arbitration organization.
2. An arbitration organization shall display at its office a notice of the items stipulated in clause 1 of this Article and a list of its arbitrators.
Article 22[16]. Legal status and organizational structure of arbitration organizations
1. An arbitration organization shall have a legal person status, operate for non-profit purpose and have its own seal and bank account.
2. An arbitration organization shall be exempt from payment of taxes on the income from arbitration fees.
3. During its operations, an arbitration organization may establish branches and representative offices.
4. An arbitration organization shall have a list of arbitrators.
Article 25. Duties and powers of arbitration organizations
Arbitration organizations shall have the following duties and powers:
1. To draw the charter and procedural rules of the arbitration centre which shall not be inconsistent with the provisions of this Law.
2. To invite individuals who satisfy all of the conditions stipulated in Article 20 of this Law to act as arbitrators for the centre.
3. To appoint arbitrators to establish an arbitral tribunal in accordance with the provisions of this Law.
4. To provide administrative and office services for arbitral tribunal s in accordance with this Law.
5. To collect arbitration fees and to pay remuneration to arbitrators in accordance with the charter of the arbitration organization.
6. To hold courses for arbitrators to derive lessons from experience and to foster and improve their expertise and skills in dispute resolution.
7. To annually report on the operations of the arbitration organization to the Ministry of Justice, the Vietnam Lawyers Association, and the DoJ in the locality where the arbitration organization registers its operation.
8. To remove the name of an arbitrator from the list of arbitrators of the arbitration organization when the arbitrator commits a serious breach of the provisions of this Law and the charter of the arbitration organization.
9. To archive files and to provide copies of arbitral awards at the request of the parties or of competent State bodies.
10. To have other duties and powers in accordance with law.
Article 26. Termination of operation of arbitration organizations
1. The operation of an arbitration organization shall be terminated in the following circumstances:
(a) In the circumstances prescribed in the charter of the arbitration organization;
(b) Upon revocation of its establishment licence.
2. Upon termination of its operation, an arbitration organization shall return its establishment licence to the issuing-body.
3. The Government shall provide detailed regulations on the order and procedures for termination of operation of arbitration organizations.
CHAPTER V
Initiating a proceeding and acceptance of disputes
Article 27. Statement of claim
1. In order for a dispute to be resolved by an arbitration organization, the claimant must file a statement of claims with the arbitration organization. If a dispute is to be resolved by an arbitral tribunal set up by the parties, the statement of claims must be sent by the claimant to the respondent.
2. A statement of claim shall contain the following basic particulars:
(a) Date on which the statement of claim is drawn;
(b) Names and addresses of the parties;
(c) Summary of the dispute;
(c) Relief sought by the claimant;
(dd) Value of the assets claimed by the claimant;
(e) Name of the arbitrator of the arbitration organization which the claimant selects, if the dispute is to be resolved by arbitration organization or the name of the Arbitrator selected by the claimant or by the head of the Arbitration organization at the request of the claimant. In case of selecting an Arbitrator beyond the list of Arbitrators, the claimant must notify the Arbitration organization of the name and contact details of the Arbitrator that he/she selected. If the claimant requests the head of an Arbitration organization for appointment of an Arbitrator, the head of that Arbitration organization shall appoint an Arbitrator who is named in the list of Arbitrators.
3. Together with its statement of claim, the claimant must produce evidence of the arbitration agreement, must provide the original or a copy arbitration agreement, and originals or copies of documents and evidence. Copies must be validly certified.
4. If a dispute is resolved at an arbitration organization, the arbitral proceedings shall commence upon receipt by an arbitration organization of the statement of claim of the respondent. If the dispute is resolved by an arbitral tribunal established by the parties, the arbitral proceedings shall commence upon receipt by the respondent of the statement of claim of the claimant.
5. If a dispute is to be resolved by arbitration organization, within a time-limit of five working days from the date the statement of claim is regarded as valid and a document evidencing the payment of the arbitration fee advance is produced, an arbitration organization shall forward a copy of such statement of claim, together with the documents referred to in clause 2 of this Article, to the respondent.
Article 28. Limitation period for initiating proceedings for dispute resolution by arbitration
1. With respect to a dispute for which the law stipulates a limitation period for initiating proceedings, such limitation period shall apply.
2. With respect to a dispute for which the law does not stipulate a limitation period for initiating proceedings, the limitation period for initiating proceedings for dispute resolution by arbitration shall be two years from the date the aggrieved party knows or should have known that its legitimate rights and interest is being violated, except in cases of events of force majeure. The period from the date of occurrence of an event of force majeure up until the date on which such event no longer exists as provided for by the Civil Code shall be excluded when calculating the limitation period.
Article 29. Arbitration fees
1. A claimant shall pay arbitration fees in advance, unless the parties otherwise agree.
If a dispute is resolved by an arbitration organization, the executive committee of the arbitration organization shall determine the arbitration fees in accordance with the charter of the organization.
2. In the case of dispute resolution by an arbitral tribunal established by the parties, the arbitral tribunal shall determine the arbitration fees.
3. The party which loses the case shall bear the arbitration fees, unless the parties otherwise agree or otherwise decided by the arbitral tribunal with regard to the liability for the arbitration fee.
Article 30. Venue of arbitration
The parties shall have the right to agree on the venue for dispute resolution. In the absence of any such agreement, the arbitral tribunal shall decide the venue.
Article 31. Statement of defence
1. Where the parties have chosen dispute resolution by an arbitration organization, unless the parties otherwise agree, the respondent shall file a statement of defence with the arbitration organization within a time-limit of thirty (30) days from the date of receipt of the statement of claim of the claimant and annexed documents from the arbitration organization.
2. With respect to dispute resolution by an arbitral tribunal established by the parties, unless the parties have an agreement, the respondent shall forward to the claimant a statement of defence and the name of the arbitrator selected by the respondent within a time-limit of thirty (30) days from the date of receipt of the statement of claim of the claimant and annexed documents pursuant to clauses 2 and 3 of Article 27 of this Law.
3. A statement of defence shall contain the following basic particulars:
(a) Date on which the statement of defence is drawn;
(b) Name and address of the respondent;
(c) Arguments and evidence in support of the defence, including denial of part or all of the particulars in the statement of claim of the claimant.
4. In addition to the items stipulated in this clause, if the respondent alleges that the dispute is outside the jurisdiction of the arbitrator or that there is no arbitration agreement or that the arbitration agreement is invalid, the respondent shall have the right to raise these matters in the statement of defence.
5. At the request of the respondent, the time-limit for the respondent to send a statement of defence annexing evidence may be longer than thirty (30) days but not exceeding 60 days, but it must be prior to the date on which the arbitral tribunal holds the hearing stipulated in Article 38 of this Law.
CHAPTER VI
Establishment of arbitral tribunal s
Article 32. Composition of arbitral tribunals
1. The disputed parties have discretion to select arbitrators to resolve their dispute.
2. The composition of an arbitral tribunal shall be agreed and selected by the parties. If the parties agree to select a sole arbitrator, that sole arbitrator shall carry out the duties as an arbitral tribunal.
Article 33. Establishment of arbitral tribunal s at arbitration organizations
1. Unless the parties otherwise agree, within a time-limit of five working days from the date of receipt of a valid statement of claim, an arbitration organization shall forward to the respondent a copy of the statement of claim, the name of the arbitrator selected by the claimant, the annexed documents and a list of the arbitrators. Unless the parties otherwise agree, within a time-limit of thirty (30) days from the date of receipt of the statement of claim and annexed documents from the arbitration organization, the respondent shall select an arbitrator for himself and inform the arbitration organization or shall request the head of the arbitration organization to appoint an arbitrator. If, upon expiry of this time-limit, the respondent fails to select an arbitrator or fails to request the head of the arbitration organization to appoint an arbitrator, the head of the arbitration organization shall appoint an arbitrator for the respondent from the list of arbitrators at the arbitration organization within a seven working days from the date of expiry of the time-limit stipulated in this clause 1.
2. If a dispute involves multiple respondents, the respondents shall agree on the selection of an arbitrator within a time-limit of thirty (30) days from the date of receipt of the request from the arbitration organization to select an arbitrator. The number of arbitrators selected by the respondent must be equal to the number of arbitrators selected by the claimant. If, upon expiry of this time-limit, the respondents fail to select an arbitrator, the head of the arbitration organization shall appoint an arbitrator for the respondents from the list of arbitrators at the arbitration organization within a time-limit of seven working days from the date of receipt of a request.
3. Within a time-limit of fifteen (15) days from the date of selection by the parties or of appointment by the head of the arbitration organization of the arbitrators, these arbitrators shall appoint another arbitrator to act as chairman of the arbitral tribunal. If, upon expiry of this time-limit, the selection of such another arbitration is not conducted, within seven working days from the date of expiry of the [initial] time-limit, the head of the arbitration organization shall appoint the chairman of the arbitral tribunal.
4. Where the parties agree to dispute resolution by a sole arbitrator but fail to select an arbitrator, at the request of either party and within a time-limit of fifteen (15) days from the date of receipt of the request, that sole arbitrator shall be appointed by the head of the arbitration organization for the parties.
Article 34. Arbitral tribunal established by the parties
1. Unless the parties otherwise agree, within a time-limit of thirty (30) days from the date of receipt by the respondent of the statement of claim of the claimant, the respondent shall select an arbitrator and inform the claimant of the selected arbitrator. If, upon expiry of this time-limit, the respondent fails to notify the claimant of the name of the selected arbitrator, the claimant shall have the right to request the competent court referred to in clause 1 of Article 7 of this Law to appoint an arbitrator for the respondent. Within a time-limit of seven working days from the date of receipt of a request, the chief judge of the court shall assign a judge to appoint an arbitrator for the respondent and to inform the parties.
2. If a dispute involves multiple respondents, the respondents shall agree on the selection of an arbitrator within a time-limit of thirty (30) days from the date of receipt of the statement of claim and annexed documents from the claimant. The number of arbitrators selected by the respondent must be equal to the number of arbitrators selected by the claimant. If, upon expiry of this time-limit, the respondents fail to select an arbitrator within 7 working days from the date of the request, the chief judge of the court shall assign a judge to appoint an arbitrator at the request of the claimant and to inform the parties.
3. Within a time-limit of fifteen (15) days from the date of selection or appointment by a court of the arbitrators, these arbitrators shall select another arbitrator to act as chairman of the arbitral tribunal. If, upon expiry of this time-limit, such selection is not made, within a time-limit of seven working days from the date of receipt of a request, the chief judge of the court referred to in Article 7 of this Law shall assign a judge to appoint an arbitrator to act as chairman of the arbitral tribunal and to inform the parties.
4. Where the parties agree to dispute resolution by a sole arbitrator but fail to select the arbitrator, at the request of either party, the chief judge of the court referred to in Article 7 of this Law shall assign a judge to appoint an arbitrator for the parties and to inform the parties.
Article 35. Replacement of arbitrators
1. An arbitrator must refuse to resolve a dispute and the parties shall have the right to request replacement of an arbitrator to resolve a dispute in the following circumstances:
(a) The arbitrator is a relative of a party or a representative of a party;
(b) The arbitrator has an interest in the dispute;
(c) There are clear grounds for considering that the arbitrator will not be impartial or objective.
2. When one is selected or appointed to be an arbitrator and throughout arbitral proceedings, the arbitrator must disclose publicly and promptly any facts which may prejudice his or her objectiveness or impartiality.
3. The replacement of an arbitrator shall be decided by the other arbitrators in the arbitral tribunal. In the event that a decision is unable to be made, or if the arbitrators refuse or the sole arbitrator voluntarily refuses to resolve the dispute, the replacement of an arbitrator shall be regulated as follows:
(a) In the case of dispute resolution by an arbitration organization, the head of the arbitration organization shall decide upon the replacement of an arbitrator;
(b) In the case of dispute resolution by an arbitral tribunal established by the parties, at the request of either party, the chief judge of the provincial court referred to in clause 1 of Article 7 of this Law shall assign a judge to make a decision. The decision of the court shall be final.
4. If, during arbitral proceedings, an arbitrator is unable to continue to participate, the replacement of an arbitrator shall be carried out under the procedures set out in Articles 27, 33 or 34 of this Law.
5. In necessary cases, after consulting the parties, a newly established arbitral tribunal may reconsider the issues already raised in previous hearings of the dispute resolution.
Article 36. Amendment of and addition to, or withdrawal of, statement of claim
A claimant has the right to amend, add to or withdraw the statement of claim before the arbitral tribunal issues an arbitral award.
Article 37. Counter-claim
1. A respondent shall have the right to file a counter-claim against the claimant on issues relevant to the statement of claim of the claimant.
2. A counter-claim shall be concurrently filed with the arbitral tribunal and forwarded to the claimant before the arbitral tribunal holds a hearing to resolve the statement of claim of the claimant.
3. The claimant must respond to the counter-claim within thirty (30) days from the date of receipt of the counter-claim. Such a response must be forwarded to the claimant and the arbitral tribunal.
4. Procedures for resolution of a counter-claim procedures shall be the same as the procedures for resolving the statement of claim of the claimant and shall be decided concurrently by the arbitral tribunal that dealt with the statement of claim of the claimant.
CHAPTER VII
Jurisdiction of the arbitral tribunal
Article 38. Scope of jurisdiction of the arbitral tribunal
1. The arbitral tribunal may consider by itself its dispute resolution jurisdiction, and other complaints about arbitration agreements or their validity.
2. If, prior to consideration of the contents of a dispute, one of the parties lodges a complaint that the arbitral tribunal lacks jurisdiction or that there is no arbitration agreement for the dispute or that the arbitration agreement is invalid, the arbitral tribunal shall be responsible to consider and decide upon these issues.
3. A complaint about the arbitral tribunal not having jurisdiction shall be raised not later than the submission of the statement of defence. A party is not precluded from raising such a complaint by the fact that he has appointed, or participated in the appointment of, an arbitrator. A complaint about the arbitral tribunal exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is detected. In these cases, the arbitral tribunal may admit a complaint if it is found reasonable.
4. The arbitral tribunal may rule on a request referred to in clause 3 of this Article either as a preliminary question or in an award on the merits. If the arbitral tribunal rules as a preliminary question that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the court specified in clause 1 of Article 7 of this Law to decide the matter, which decision, in this case, shall be final.
5. If the parties disagree with the ruling of the arbitral tribunal on the matters referred to in clause 2 of this Article, within a time-limit of five working days from the date of receipt by the parties of the ruling of the arbitral tribunal, they shall have the right to request the provincial court referred to in clause 1 of Article 7 of this Law where the arbitral tribunal issued its ruling to reconsider the ruling of the arbitral tribunal. The party making such a request must notify the arbitral tribunal of the request.
6. A request shall contain the following basic particulars:
(a) Date on which the request is drawn;
(b) Name and address of the requester;
(c) Particulars of the request.
7. Copies of the statement of claim, the arbitration agreement and the ruling of the arbitral tribunal shall be enclosed with the request. The copies must be validly certified.
8. Within a time-limit of five working days from the date of receipt of a request, the chief judge of the court shall assign a judge to consider and resolve the request. Within a time-limit of ten (10) days from the date of being assigned, the judge must consider and make a decision. The decision of the court, in this case, shall be final.
9. If the court decides that the dispute does not fall within the jurisdiction of the arbitral tribunal, or that there is no arbitration agreement for the dispute or that the arbitration agreement is invalid, the arbitral tribunal shall issue a decision staying the dispute resolution. Unless there is some other agreement, the parties shall have the right to institute court proceedings to resolve their dispute. The limitation period for initiating court proceedings shall be as stipulated in the Civil Procedure Code, but excluding the time from the date on which the applicant initiated arbitral proceedings until the date of issuance of a decision by the court as stipulated in this Article.
10. While the court is processing a request concerning the jurisdiction of the arbitral tribunal as referred to in this Article, the arbitral tribunal shall continue the arbitral proceedings.
Article 39. Jurisdiction of arbitral tribunals to verify the facts
After being selected or appointed, an arbitral tribunal shall have the right to meet the parties to hear them present their views. At the request of one or more of the parties or at the initiative of an arbitrator, the arbitral tribunal may conduct fact-finding with a third person in the presence of the parties or after having notified the parties.
Article 40. Jurisdiction of the arbitral tribunal over evidence
1. At the request of the parties, an arbitral tribunal may summon expert witnesses or conclusions and must inform the parties thereof. The requesting party shall pay an advance of the examination fees and the cost of hiring the expert.
2. The parties shall have the burden of providing evidence to prove the facts relating to the dispute. The arbitral tribunal shall have the right to require the parties to provide evidence pertaining to the dispute.
CHAPTER VIII
Jurisdiction of the court relating to arbitral proceedings
Article 41: Court support for collection of evidence
1. Upon request of either party for collection of evidence or where deemed necessary, the arbitral tribunal may request the competent court referred to in Article 7 of this Law for support in collection of evidence.
2. The court shall be responsible to collect evidence in accordance with the procedures set out in the Civil Procedure Code.
Article 42. Ensuring the presence of witnesses
Upon request of either party for summoning a witness or where deemed necessary, the arbitral tribunal may request the competent court referred to in Article 7 of this Law for support to ensure the presence of such witness.
Article 43. Support of Vietnamese courts towards foreign arbitrations
Vietnamese courts may support foreign arbitrations in collecting evidence or applying provisional measures in accordance with the provisions of the Law on Judicial Cooperation.
Article 43. Right to request application of provisional measure
Before or after initiating an arbitral proceeding, if the lawful rights and interests of the parties are infringed or are in danger of being directly infringed, the parties shall have the right to apply to the competent provincial court determined under Article 7 of this Law to take one or a number of provisional measure:
The court shall apply a provisional measure in accordance with the procedures set out in the Civil Procedure Code.
Article 44. Procedures for application of provisional measures
1. An applicant for the provisional measure shall file an application at the competent provincial court determined under Article 7 of this Law or in the place where the arbitral tribunal accepted jurisdiction over the dispute.
2. An applicant for provisional measure shall file, together with the application, a copy of the statement of claim with all of the particulars stipulated in Article 27, and a copy of the arbitration agreement stipulated in Article 15 of this Law. Copies must be validly certified.
3. Depending on the type of provisional measure sought, the applicant shall provide the court with specific evidence in respect of the evidence which needs to be preserved, or evidence in respect of the dispersal or concealment by the respondent of assets which may make it impossible to enforce an arbitral award.
4. An applicant for provisional measure shall pay a security sum or a similar guarantee undertaking to be fixed by the court, not to exceed the property obligation which the obligor must discharge in order to protect the interests of the respondent and to prevent abuse of provisional measure on the part of the applicant.
5. After receipt of an application together with the documents stipulated in clauses 1, 2 and 3 of this Article, the chief judge of the provincial court specified in clause 1 of this Article, within no more than 3 working days, shall assign a judge to consider and decide the application. Within a time-limit of three working days from the date of such assignment, the judge shall inspect the accuracy of the documents pursuant to the provisions in clause 2 of this Article, within the scope of the application by the applicant, and may issue a decision granting one or more provisional measure.
6. Any decision granting provisional measure must be immediately sent to the arbitral tribunal and to the parties to the dispute. Any decision granting provisional measure shall be immediately enforced. A decision granting provisional measure shall be enforced in accordance with the law on execution of civil judgments.
Article 45. Alteration or rescission of provisional measure
1. An applicant for provisional measure may also apply for its alteration or rescission when such relief is no longer appropriate or necessary.
2. Within a time-limit of three working days from the date of receipt of an application for alteration or rescission of provisional measure, the chief judge of the provincial court which made the decision granting provisional measure shall assign a judge to consider and issue a decision altering or rescinding such provisional measure. This decision must be immediately sent to the arbitral tribunal and to the parties to the dispute.
3. In the case of rescission of provisional measure, the judge shall consider and decide whether the security sum stipulated in clause 4 of Article 44 of this Law should be returned to the applicant, unless the provisions in Article 47 of this Law are applicable.
Article 46. Court responsibility for non-application or improper application of provisions measures
The responsibility of the court for non-application or improper application of provisions measures shall be in accordance with the Civil Procedure Code.
Article 47. Responsibilities of applicant for provisional measure
1. An applicant for provisional measure shall be responsible for such request.
2. If the applicant was incorrect in applying for provisional measure and causes damage to the other party or to a third person, such applicant must pay compensation in accordance with the provisions of the Civil Procedure Code.
CHAPTER IX
Hearings for dispute resolution
Article 51. Preparing for hearings
1. Unless the parties otherwise agree, the chairman of an arbitral tribunal shall decide the time of the hearing for dispute resolution.
2. Unless the parties otherwise agree, a summon to attend the hearing for dispute resolution shall be forwarded to the parties at least thirty (30) days prior to the date of commencement of the hearing.
3. A hearing for dispute resolution shall be held in private. If the parties consent, the arbitral tribunal may permit other persons to attend the hearing.
Article 49. Attendance at hearings for dispute resolution
The parties may directly attend hearings for dispute resolution or authorize their representatives to attend. The parties shall have the right to invite witnesses and lawyers to protect their legal rights and interests.
Article 50. Absence of parties
1. If a claimant has been summonsed to attend a hearing for dispute resolution but fails to attend without a legitimate reason, or leaves the hearing without the consent of the arbitral tribunal, the claimant shall be deemed to have withdrawn the statement of claim. In such a case, the arbitral tribunal shall continue the dispute resolution if the respondent so requests or if there is a counter-claim as prescribed in Article 37 of this Law.
2. If a respondent has been summonsed to attend a hearing for dispute resolution but fails to attend without a legitimate reason, or leaves the hearing without the consent of the arbitral tribunal, the arbitration tribunal shall continue the dispute resolution based on the currently available documentation and evidence.
3. If requested by the parties, an arbitral tribunal may rely on the file to conduct the dispute resolution without requiring the presence of the parties.
Article 51. Adjournment of hearing for dispute resolution
1. The parties may request an arbitral tribunal to adjourn a hearing if there is a legitimate reason. A request for adjournment of a hearing for dispute resolution must be made in writing which specifies the reason therefor together with the evidence thereof. This request must be received by the arbitral tribunal no later than seven working days before the proposed day of opening of the hearing. If there is a delay in meeting that time limit for sending such a request for adjournment, the requesting party must bear all the costs thereof. The arbitral tribunal shall consider and decide whether or not to accept such request and inform the parties of its decision.
2. An arbitral tribunal must adjourn a hearing if it considers that there are insufficient grounds for the dispute resolution and must promptly notify this to the parties.
Article 52. Minutes of hearing of dispute resolution
1. An arbitral tribunal shall prepare minutes of hearing and the chairman of the arbitral tribunal shall sign them.
2. The parties shall have the right to study the contents of minutes and to request that they be amended or supplemented. If the arbitral tribunal rejects such a request, it shall record this in the minutes.
Article 53. Conciliation
1. The parties may themselves conciliate the dispute during the course of arbitral proceedings. If the conciliation is successful, the arbitration tribunal shall stay the proceedings. If an arbitral tribunal has not yet been set up, the head of the arbitration organization shall decide to stay the dispute resolution process.
2. The parties may request the arbitral tribunal to conduct conciliation. If it is successful, the parties may request the arbitral tribunal to produce minutes of successful conciliation and to issue a decision recognizing the successful conciliation. Minutes of successful conciliation must be signed by the parties and by the arbitrators. Any decision recognizing a successful conciliation issued by an arbitral tribunal shall be final and shall be enforceable pursuant to Article 67 of this Law.
Article 54. Stay of dispute resolution
An arbitral tribunal shall stay a dispute resolution in the following circumstances:
1. The claimant withdraws the statement of claim or is deemed to have withdrawn the statement of claim pursuant to clause 1 of Article 50 of this Law, unless the respondent requests that the dispute resolution continue.
2. The parties agree to terminate the dispute resolution.
CHAPTER X
Arbitral awards
Article 55. Principles for issuance of arbitral award
1. Except in the case of dispute resolution by a sole arbitrator, an arbitral award of the arbitral tribunal shall be made on the basis of the majority principle. The view of the minority shall be recorded in the minutes of hearing.
2. In case the majority principle is not satisfied, the decision of the chairman of the arbitral tribunal shall be the award of the whole tribunal.
Article 56. Arbitral award
1. An arbitral award shall contain the following basic particulars:
(a) Date and place of issuance of the arbitral award.
(b) Names and addresses of the claimant and respondent;
(c) Name(s) of the arbitrators or sole arbitrator;
(d) Summary of the statement of claim and the matters in dispute unless otherwise agreed by the parties;
(e) Grounds for issuance of the arbitral award unless otherwise agreed by the parties;
(g) Decision on the dispute merit, the dispute resolution results;
(h) Period for enforcement of the award;
(i) Signature(s) of the arbitrators or sole arbitrator.
2. If an arbitrator does not sign an arbitral award, the chairman of the arbitral tribunal shall record this fact in the arbitral award and specify the reasons for it. In this case, the award of the arbitral tribunal shall still be valid.
3. An award shall be of full force and effect as of the date of its announcement.
Article 57. Announcement of arbitral award
1. An arbitral award may be announced immediately at the final hearing or thereafter, but shall be announced no later than thirty (30) days from the date of completion of the final hearing. The full text of the arbitral award shall be sent to the parties immediately after the date of announcement.
2. At the request of the parties, an arbitration organization or an arbitral tribunal established by the parties shall provide a copy of the arbitral award to the party requesting it.
Article 58. Correction of arbitral award
1. Within a time-limit of 30 days from the date of receipt of an arbitral award, a party may request the arbitral tribunal to correct any errors in computation, any typing or printing mistakes, or any other technical mistakes. Within a time-limit of thirty (30) days from the date of receipt of a request, the arbitral tribunal shall make the corrections and inform the other party.
2. Any decision making a correction shall be a part of the award and must be signed by the arbitral tribunal.
Article 59. Archiving arbitration files
1. The dispute file at an arbitration organization shall be kept at that arbitration organization. The dispute file at an arbitration organization prepared by the parties shall be kept at the competent court as referred to in Article 7.1 of this Law.
2. Within a time-limit of fifteen (15) days from the date of announcement of an arbitral award or the minutes of conciliation, the arbitral tribunal shall forward the arbitral award or the minutes of conciliation together with the dispute resolution file to the provincial court in the area where the arbitral tribunal issued the arbitral award or prepared the minutes of successful conciliation, for the purpose of archiving.
CHAPTER XI
Refuting Arbitral Awards
Article 60. Grounds for refuting arbitral awards
A court shall issue a decision to refute an arbitral award if the applicant proves that the arbitral tribunal issued the arbitral award in one of the following circumstances:
1. There was no arbitration agreement.
2. The arbitration agreement has become null and void.
3. The composition of the arbitral tribunal was, or the arbitration proceedings were, inconsistent with the agreement of the parties pursuant to the provisions of this Law.
4. The dispute was outside the jurisdiction of the arbitral tribunal. If only part of an arbitral award is outside the jurisdiction of the arbitration tribunal, that part shall be refuted unless a decision has been given under Article 38 of this Law.
5. The arbitral award is contrary to the public interest of the Socialist Republic of Vietnam.
Article 61. Right to apply for refuting arbitral awards
1. Within a time-limit of thirty (30) days from the date of receipt of an arbitral award, a party which has sufficient bases to prove that the arbitral tribunal issued the award in one of the cases referred to in Article 60 of this Law shall have the right to file an application with the court under Article 7.1 of this Law requesting for refuting the arbitral award.
2. This time limit also applies to decisions on correction or explanation or addition to arbitral awards under Article 58 of this Law.
3. If an application is filed out of time due to an event of force majeure, the duration of the event of force majeure shall be excluded when calculating the time-limit for requesting that the arbitral award be refuted.
Article 62. Application for arbitral award to be refuted
1. An application for refuting an arbitral award shall contain the following basic particulars:
(a) Date on which the application is drawn;
(b) Name and address of the party applying for refuting the arbitral award;
(c) Reasons for the application for the arbitral award to be refuted.
2. The following documents shall be enclosed with the application:
(a) Original or validly certified copy of the arbitral award;
(b) Original or validly certified copy of the arbitration agreement.
3. Enclosures in a foreign language must be translated into Vietnamese and the translations must be validly certified.
Article 63. Acceptance of jurisdiction over application
1. Upon receipt of all documents stipulated in Article 62 of this Law, the court shall immediately notify the applicant to pay the fees. The court shall accept jurisdiction as from the date of payment of the fees by the applicant.
2. The court shall have the right to require the applicant to explain any unclear particulars in the application for the arbitral award to be refuted.
Article 64. Consideration by court of application for refuting arbitral awards
1. After a court has accepted jurisdiction over an application for refuting an arbitral award, the court shall notify the arbitration organization or the arbitral tribunal established by the parties, the parties to the dispute. In the case of dispute resolution held by an arbitration organization, within a time-limit of seven working days from the date of receipt of the notice from the court, the arbitration organization shall make copies and transfer to the court the statement of claim of the claimant, the statement of defence or the counterclaim of the respondent (if any), the minutes of the hearing and the arbitral award.
2. Within a time-limit of thirty (30) days from the date of acceptance of jurisdiction by the court, the chief judge of the court shall appoint a trial council consisting of three judges, one of whom shall act as the presiding judge, and shall open a court hearing to consider the application for refuting the arbitral award.
3. The court hearing shall take place in the presence of the parties to the dispute, their lawyers (if any), and a prosecutor of the procuracy at the same level. If one of the parties making the application requests the court to hear it in the absence of such party, or if a party which has been validly summonsed to attend the hearing fails to attend without a legitimate reason or leaves the hearing without the consent of the trial council, the trial council may continue to deal with the application for refuting the arbitral award.
4. In considering the application, the trial council shall not reconsider the contents of the dispute but shall only inspect the documents stipulated in Article 62 of this Law and compare the arbitral award with the provisions in Article 60 of this Law in order to issue its decision.
5. After the trial council has considered the application and enclosures, heard the evidence (if any) and the opinions of the persons summonsed and of the prosecutor, the trial council shall discuss the application and issue a decision on the basis of the majority principle.
6. A trial council shall have the right to issue a decision refuting or not refuting the award; and to stay consideration of the application if the applicant withdraws the application for refuting the arbitral award or fails to attend without a legitimate reason after having been summonsed to attend or leaves the hearing without the consent of the trial council.
7. Within a time-limit of fifteen (15) days from the date of issuance of a decision, the court shall forward a copy of the decision to the parties, to the arbitration organization or to the arbitral tribunal established by the parties.
8. Upon [considering] a request for refuting an arbitral award, the court at request of either party, may consider staying the procedures for refuting the arbitral award for a certain period of time as determined by the court but not exceeding 01 month for the arbitral tribunal to conduct the actions deemed necessary by the arbitral tribunal to exclude the bases on which an arbitral award may be refuted. If the parties agree with correction or adjustment decisions of the arbitral tribunal, the court shall issue a decision to stay the procedures for refuting arbitral awards.
9. If the trial council refutes an arbitral award, the parties shall have the right to bring such dispute before a court for resolution within the limitation period provided for by the civil legislation, unless otherwise agreed by the parties.
10. If the trial council does not refute the arbitral award, the arbitral award shall be enforced in accordance with the provisions in Article 68 of this Law.
Article 65. Appeal against court decision
1. Within a time-limit of fifteen (15) days from the date of issuance of a decision by the court pursuant to Article 64 of this Law, the parties shall have the right to appeal.
2. The statement of appeal must specify the grounds of the appeal and the relief sought. The statement of appeal must be forwarded to the court which issued the decision. After the court receives the statement of appeal, the court shall immediately notify the appellant to pay fees for the appeal.
3. If any party was not present at the hearing of the court of first instance, the time for lodging an appeal stipulated in clause 1 of this Article shall be calculated as from the date of delivery of a copy of the decision to such party; if an appeal is lodged out of time due to an event of force majeure, the time-limit shall be calculated from the date on which the event of force majeure ends.
4. Within a time-limit of fifteen (15) days from the date of receipt by the court of the statement of appeal, where the appellant has paid the fees for the appeal, the court which issued the decision shall transfer the file to the people's supreme court.
Article 66. Consideration of appeal
1. Within a time-limit of thirty (30) days from the date of receipt of an appeal file, the people's supreme court shall hold a hearing to consider and make a decision. If it is necessary to require the appellant to provide explanation of the particulars of appeal, the time-limit for holding a hearing may be extended but shall not exceed sixty (60) days from the date of receipt of the appeal file.
2. The composition of the council to hear the appeal shall consist of three judges, one of whom shall be appointed by the people's supreme court to act as presiding judge.
3. The court hearing shall take place in the presence of the parties to the dispute.
4. If the respondent requests the court to hear the appeal in his/her absence or, having been validly summonsed to attend the hearing, fails to attend without a legitimate reason or leaves the hearing without the consent of the trial council, the trial council may continue to hear the appeal.
5. After the trial council has considered the statement of appeal and enclosures, heard the evidence (if any) and the opinions of the persons summonsed, the trial council shall discuss and issue a decision on the basis of the majority principle.
6. A trial council shall have the right to uphold, or to alter a part or the whole of, the decision of the court of first instance; or to stay the consideration of the appeal if the appellant withdraws the appeal or fails to attend without a legitimate reason after having been validly summonsed to attend or leaves the hearing without the consent of the trial council.
7. The decision of the people's supreme court shall be final and enforceable.
CHAPTER XII
Enforcement of arbitral awards
Article 67. Validity of arbitral awards
1. Arbitral awards shall be final, shall come into effect from the date of its announcement and must be respected and properly enforced by State agencies, organizations and individuals.
2. Within the scope of their respective duties and powers, agencies, organizations and individuals assigned to enforce arbitral awards must properly enforce them and support for their enforcement.
3. The recognition and enforcement in Vietnam of foreign arbitral awards must comply with the provisions of the Civil Procedure Code.
Article 68. Enforcement of awards
If any party has failed to carry out voluntarily an arbitral award thirty (30) days after the date of expiry of the time-limit for its execution, and that same party has not applied for refuting the award pursuant to Article 62 of this Law, the arbitral award creditor shall have the right to apply to the provincial judgment enforcement body in the area where the award debtor has its office or residence or assets to enforce the award.
Article 69. Court fees regarding arbitration
The Government shall provide regulations on fees for applications to the court to appoint an arbitrator, applications for provisional measures, applications for refuting an arbitral award, and appeals against court decisions, and other fees.
CHAPTER XIII
Other provisions
Article 70. Losing the right to refuse
If either party knows that the provisions of this Law on arbitral proceedings or any provision of the arbitration agreement on the following issues:
a) the arbitration tribunal does not have jurisdiction [over the dispute];
b) proceedings have not yet been duly performed;
c) there is a failure to comply with the arbitration agreement; or
d) there is another violation affecting the arbitral tribunal or the arbitral proceeding.
have not yet been complied with but that party keeps taking part, without objection, in the proceeding as agreed in the arbitration agreement or determined by the arbitration tribunal, that party shall be deemed as refusing its proceeding right before the arbitral tribunal or the court.
Article 71. State administration of arbitration
1. The Government shall exercise uniform State administration of arbitration.
2. The Ministry of Justice shall be responsible before the Government for carrying out the function of State administration of arbitration.
3. The Ministry of Justice shall co-ordinate with the Vietnam Lawyers Association in carrying out State administration of arbitration.
CHAPTER XIV
Implementation provisions
Article 72. Application of this Law to arbitration organizations established prior to date of effectiveness of this Law
1. Arbitration organizations which were established prior to the date of effectiveness of this Law shall not have to apply for reestablishment. Within a period of twelve (12) months from the date of effectiveness of this Law, such organizations must amend and supplement their charters and their arbitration procedural rules for consistency with the provisions of this Law. If they fail to amend and supplement their charters and procedural rules by the expiry of such period, they must terminate their operations.
2. Arbitration agreements which were signed prior to the date of effectiveness of this Law shall be implemented in accordance with provisions of the law which was in effect on the date of signing of such arbitration agreements unless otherwise agreed between the parties.
Article 73. Effectiveness
1. This Law shall be of full force and effect as of …..
2. The 2003 Arbitration Ordinance shall cease to be effective from ….
Article 74. Implementing provision
The Government shall make detailed provisions and provide guidelines for implementation of the issues as authorized in detail in this Law.
[1] Associate Professor, Faculty of Law, Vietnam National University Hanoi, nghiadp@vnu.edu.vn (091) 252.1658
[2] Resolution No 570/2008/UBTVQH12 on Establishment of the Drafting Board of the Law on Commercial Arbitration issued by the Standing Committee of the National Assembly, dated January 23, 2008
[3] UN documents A/40/17, annex I and A/61/17, as amended by the UN Commission on International Trade Law on July 7, 2006.
[4] See Do Van Dai (2008), [Đỗ Văn Đại, Làm thế nào để Trọng tài Việt Nam là chỗ dựa của doanh nghiệp? Bài viết đăng trên tạp chí Nghiên cứu lập pháp, số 2(119) tháng 2/2008, nguồn án lệ: xem Tòa thượng thẩm Sài Gòn ngày 8/7/1897 : Tạp chí Penant, article 1278, tr. 31.
[5] Decree No 116/CP dated September 05, 1994 on organization and operation of economic arbitration.
[6] VIAC, established based on the Prime Minister’s Decision No 204/TTg dated April 28, 1993. To merge the pre-existing Foreign Trade Arbitration Commission and the Maritime Arbitration Commission into one single instituion, the scope of activities of VIAC focused in 1993-1996 initially only on international commcercial disputes, but was extended also to domestic economic disputes by the Prime Minister Decision No 114/TTg dated February 16, 1996.
[7] Vu Anh Duong (2008) [Vũ Ánh Dương, Thực tiễn áp dụng pháp lệnh trọng tài thương mại tại Trung tâm trọng tài thương mại quốc tế Việt Nam, Tạp chí Khoa học pháp lý, số 3 (46) 2008, tr. 5-15].
[8] This is a typical case of law making in Vietnam. Started with a governmental degree, i.e an administrative regulation, after collecting experiences and practice, the administrative degree will be “upgraded” into a legal document of higher range, such as in the form of an ordinance, adopted by the Standing Committee of the National Assembly. The ordinance, again, will be “upgraded” into a law, passed by the National Assembly in its plenary meeting.
[9] For more updated information, contact Ministry of Justice, Department of “Supporting Justice Service” (in charge of issues relating to lawyers, notary, paralegal, etc. , Vụ Bổ trợ tư pháp). Some centres have been reported to be liquidated during the years.
[10] See Annex: Statistics of VIAC, Cases settled by Vietnam International Arbitration Centre, 2007
[11] Official translated English vision of the Arbitration Ordinance 2003 is provided by Vietnam’s Legal Gazette, other English visions are provided by USAID and some other law firms, such as Baker and McKenzie, and others. Article quoted, (following using the symbol §), if not otherwise noted, are the articles of the Arbitration Ordinance 2003.
[12] More to the roles of courts in arbitral activities, see Phan Huy Hong (2008) [Phan Huy Hồng, Vai trò của toà án trong hoạt động trọng tài, Tạp chí Khoa học pháp lý, số 3(46) 2008, tr. 22-34].
[13] The Draft 0 of the Law on Arbitration (June 2008) is designed to include 11 chapter, with 76 articles. An English vision is translated and provided by USAID in Hanoi. Delivery of this translation is also available through request to VLA.
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