Arbitration Agreement: Intention to arbitrate

§§ 5, 16-19, 43 LCA 2010 are referred to Arbitration Agreement. In summary, Parties can agree on arbitration before or after the occurrence of disputes. The details of such agreement can depend on circumstances, but it must at least clearly show the parties’ intention to settle the disputes by means of arbitration. That is the crucially important test to verify whether there is an arbitration agreement or not.

Example from my practice: Two close friends A and B jointly run an online business. At some time, A withdraw from the business, B was left as the sole owner. A requested B to pay part of the initial capital contribution, B refused. Per What-up messages, A notified that he would initiate a request for arbitration, if B continues refuse to pay. B responded: A will never receive any money by doing so.

The tribunal is of the view that there is a valid arbitration agreement. The party intention is documented in what-up messages, that is the written form as provided for by § 16.2.a LCA. The joint intention of both parties is to settle the dispute by means of arbitration. By uncertainties about the arbitration institution, the parties have a chance to clarify. If they cannot reach any further agreement, then Claimant has the choice to submit claim to anyone among 32 arbitration centers in Vietnam, § 43.5 LCA.