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VietNamNews

Firms unaware of arbitration

Update: April, 27/2013 - 11:04

(VNS) Chairman of the Viet Nam International Arbitration Centre Tran Huu Quynh speaks to Dau Tu (Vietnam Investment Review) about the challenges facing commercial arbitration in Viet Nam.

What are your comments on the recent trade disputes in Viet Nam?

Since the Viet Nam International Arbitration Centre (VIAC) was established in 1993, we have worked on dozens of trade disputes every year. There were 83 cases in 2011 and 64 cases last year.

The disputes were mostly in trade, finance and banking, construction, processing, investment co-operation, services and agents.

Notably, 71 per cent of the cases were related to foreign partners, mostly from Singapore, South Korea, mainland China and the US.

What role have arbitrators played?

Viet Nam already has the Law on Commerce. However, enterprises are not well-informed about the law.

Since they are used to the old mechanism of being subsidised by the Government, they are still reluctant to use non-governmental organisations for arbitration.

Therefore, the Government should send a clear message that it plans to effectively support and supervise arbitration activities.

Also, courts and law enforcement agencies need to ensure that arbitrators' judgements will stand firm. Judgements must involve clear and transparent proof and reasoning.

These moves will show the business community that commercial arbitration is quick and effective and that they are free to choose the arbitration place and arbitrators.

Also, the fee on arbitration is transparent and judgements can be enforced quickly.

What trade disputes do you think will happen in the coming months?

They will be related to international trade lawsuits and contract disputes, fraud and payment.

Without arbitration, it's easy for the illegal ‘black credit' market [in which people borrow money illegally instead of seeking loans from authorised commercial banks] to develop, along with illegally hired debt collectors.

What will VIAC do to promote its role in the coming time?

We will try to become more competitive in international arbitration and bring our procedural principles and regulations into line with international ones.

This will show foreign enterprises that Vietnamese arbitrators are as good as international arbitrators.

We also need to invite foreign arbitrators to work in Viet Nam to make arbitration seem more reputable to enterprises. — VNS


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