Commercial arbitration is a method of settling disputes selected
by the parties and conducted in accordance with law. Compared with other method
of dispute resolution such as mediation, negotiation, court litigation, dispute resolution by commercial
arbitration also has advantages and disadvantages.
Arbitral Award Enforcement Law Firm
in Vietnam
In accordance with Vietnamese law and international law, the
method of dispute resolution by commercial arbitration also stems from the
agreement of the parties on a voluntary basis. However, the difference between
these methods is that the settlement of disputes through arbitration will be
governed by the Commercial Arbitration Law. The parties are allowed to agree on
appropriate arbitration selection, either before or after the dispute arises.
The practice of applying commercial arbitration
law in resolving disputes presents some advantages:
Firstly, this is a method of resolving disputes on the principle
of confidentiality if the parties do not agree otherwise. This is an advantage
that all claimants respect because it limits the disclosure of business
secrets, and keeps the credibility of the parties.
Secondly, the decision of the arbitrator is final, binding on the
parties and the right to appeal in this case is invalid. The trial at Commercial
Arbitration takes place only at one trial level, which the trial at the Court
is at two levels. Therefore, it creates a premise for the following advantages.
Thirdly, the settlement of disputes arising through commercial
arbitration shows flexibility while shortening the proceedings thereby
contributing to saving time and effort of the parties.
Fourthly, the settlement of disputes by arbitration is not
territorially limited so the parties may agree to choose any arbitrator to
resolve their disputes.
However, the competing parties also need to pay attention that the
choice of arbitration method also reveals some disadvantages such as: The
enforcement of arbitral awards depends heavily on the willingness of the
parties to the dispute. If the party who is serving the judgment does not
voluntarily follow the arbitral awards and does not request to cancel the
arbitral award after the expiration of the time limit for enforcing the
arbitral award, the judgment-executing party may send a written request to the
civil judgment enforcement agency for judgment execution.
In addition, one of the disputing parties may submit a request to
the Court to cancel the arbitration award when encountering one of these
following conditions: (i) There is no arbitration agreement or the arbitration
agreement is invalid; (ii) The arbitration council’s composition or procedures
of arbitral proceedings does not comply with the parties’ agreement or
regulations; (iii) The dispute falls beyond the arbitration council’s
jurisdiction: when an arbitral award contains the details falling beyond the
arbitration council’s jurisdiction, such details shall be cancelled; (iv) The
evidence provided by the parties on which the arbitration council bases to
issue the award is counterfeit: an arbitrator receives money, assets or other
material benefits from one disputing party, thus affecting the objectivity and
impartiality of the award; (v) The award contravenes the fundamental principles
of Vietnamese law.
Finally, when the parties choose to resolve their disputes by
arbitration method, the costs are relatively higher than in the proceeding of
court litigation.
At ANT Lawyers, our trial lawyers with accreditation in national
and international arbitration practice could help providing legal advice in
disputed matters, and guide the clients throughout the process. The
lawyers could also advise the clients on various matters from choice of
arbitrator, choice of arbitration rules, ad-hoc or institutional arbitration,
place of arbitration, enforcement of arbitral award.
Employees as well as the labor collective and employers should pay
attention to selecting the most appropriate and optimal resolution solution
when labor disputes occur. It is also suggested to consult with labour lawyers
of law firm speacializing in employment matters for efficiency.
ANT Lawyers – An Arbitral Award Enforcement Law
Firm in Vietnam with international standard, local expertise and strong
international network. We focus on customers’ needs and provide clients with a
high quality legal advice and services.
