Viet Nam News
HCM CITY — Vietnamese and foreign firms are increasingly resorting to arbitration for settling disputes related to mergers and acquisitions, experts told a conference in HCM City on December 20.
Lawyer Đặng Xuân Hợp, an arbiter from the Việt Nam International Arbitration Centre (VIAC), said alternative dispute resolution (ADR) is being used more and more.
Arbitration offers great convenience, speed and affordability, and is highly enforceable, he said, adding that the quality of ADR is also on the rise and the Vietnamese Government has been supporting it.
Phan Trọng Đạt, deputy general secretary of VIAC, said 92 per cent of foreign companies -- polled in a survey by the Việt Nam Chamber of Commerce and USAID -- do not prioritise using courts to resolve disputes.
Trần Du Lịch, vice chairman of the VIAC, said as Việt Nam’s merger and acquisition market grows, so do legal risks and disputes, and resolving them through arbitration is highly recommended.
Trương Nhật Quang, managing partner of law firm YKVN, said disputes relates to mergers and acquisitions in Việt Nam typically involve issues such as guarantee violations, compensation, price adjustments (whether they were done correctly) and shareholding.
But he said negotiating is preferable to relying solely on arbitration or the courts.
Besides, firms need to watch out for concepts and terminology in mergers and acquisitions deals that may not be covered by Vietnamese laws yet, he warned.
The conference was organised by the VIAC and the Korean Commercial Arbitration Board. — VNS