Contract Dispute in Vietnam

Disputes occur during contract performance are beyond the control of the entity entering contractual relations. In developed countries, lawyers always invited to advise customers to identify potential disputes, and provide solutions, support and provide legal advice and to accompany the enterprises solve disputes in accordance with the provisions of the law, which help businesses to focus on its business activities. The contract should be carefully reviewed by lawyers. Foreign companies when entering Vietnam mostly follow suit to engage dispute or litigation dispute lawyers in Vietnam at early stage of the transactions. 

 

Contract Dispute

Contractual disputes in Vietnam shall be construed as conflicts, disagreements, conflicts between the parties regarding the implementation or non-implementation of rights and obligations in the contract. Disputes could arise in failure to collect the payment from debtor in sales agreement, construction contract disputes between investor and contractor, labour dispute between employer and employee, insurance disputes between ship owner and insurance company.

Contract disputes must satisfy the following factors:

First, there is a contract between the parties. The contract would be in different for ms therefore, there is a need to clearly define if the contractual relationship has been formed or not.

Second, there is a breach of obligations or duties that are in violation of a party in the contractual relationship.

Third, there is disagreement between the parties about the handling of infringement or the consequences of such violations.

It should be noted, the contract disputes arise from the breach. However, not all breaches of contract also lead to disputes.

How to settle the contract disputes in Vietnam?

Contractual disputes can be resolved by the following methods:

Negotiation is the process or behavior in which the two sides conduct exchanges, agreement on common interests and characteristics of disagreement and come to a unified agreement. The negotiation is without the presence of third parties. However, if the contract dispute lawyers in Vietnam would be involved during the negotiation process, at the role of representing or advising, counseling, then the negotiations tend to be more effective and parties would reach agreement.

Mediation is one of the options for disputing parties to end the conflict. Mediation is different from negotiating with the intervention of a third party. Mediator will help parties to achieve agreement and resolve conflict.

Court or arbitration: The settlement of the dispute in court would take time. The court’s ruling can be appealed. It should be noted that, per Vietnam laws, only Vietnam litigation or dispute law firms could represent the client at court. Commercial arbitration is available only in commercial-business sector. The advantage of this method is fast and efficient. However, compare with disputing at court, this method of handling dispute would take higher costs.

Disputes and dispute resolution matters are natural and inevitable in any countries including Vietnam. It is important that parties involved need to identify, anticipate disputes can occur. Contract or agreement should be reviewed by lawyers. When there is a dispute, the dispute lawyers in Vietnam will be able to help parties to with advice to reasonable solution to address the disputes effectively.

ANT Lawyers have litigation  and dispute  lawyers in Ho Chi Minh City, Hanoi and Da Nang cities that help clients dealing with dispute resolution and alternative dispute resolution in Vietnam.

 

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Effective Date of the Contract and the Time of Ownership Transfer

What is the Effective Date of the Contract and the Time of Ownership Transfer?

One of the most common disputes in contract disputes is the dispute on the effective date of the contract. In order to avoid these disputes, parties should refer to the nature of the validity of the contract as well as distinguish the difference between effective date of the contract and the time of ownership transfer.

 

Contract dispute lawyers in Vietnam

Regarding the effective date, contract shall take effect when contract meets all condition of participants in contract, condition of purpose and contents of contract and condition of form (in case there is regulation). Specifically, participants in contract shall have legal capacity in conformity with such contract and the participation shall base entirely on voluntariy will. For the second condition, the purpose and contents of the contract will not be contrary to the law and social ethics. When there are enough conditions met, a contract legally entered into shall take effect from the time when it is entered into, unless otherwise agreed or otherwise provided by law. From the effective date of the contract, parties shall mutually exercise rights and perform obligations as agreed. A contract may be amended or terminated as agreed by the parties or prescribed by law.

Through definition of the effective date of the contract, basic difference between dealing with breaches of contracts which have taken effect and dealing with breaches of invalid contracts can clearly be seen. In invalid contracts, the general remedy rule is restoring everything to its original state and returning to each other what have received. Dealing with breaches of contracts, which have taken effect, must be based on the terms of contract on how to handle such violations. If the contract does not stipulate, the provisions of law on such violation will be applied. It should be noted that there are many regulations from time to time, so the law must be properly applied.

Specially, a contract violating conditions of form validity shall be invalid, except that a party or the parties have fulfill at least two third of the obligations in the contract. A court, at their request, shall issue a decision on recognition of the validity of such contract. It is understood that the contract takes effect after the Court’s judgments or decisions take effect. After the contract takes effect, regulation of law will be applied to determine time of ownership transfer. Contract which can be recognized as valid does not mean that such contract will naturally take effect at the time of fulfilling two third of the obligations. Recognition of the Court is to force parties to continue to execise the obligations of the contract or resolve later disputes according to valid contract.

Time of ownership transfer normally belongs to stage of contract enforcement, which is after the effective date of the contract. Except for special contracts (such as contracts for gift), whose time of ownership transfer can be a condition of making contract be valid. With respect to other normal contract, time of ownership transfer is not related to validity condition of contract, which does not make the contract be valid or invalid. It should be noted that time of ownership transfer is stipulated differently with respect to different contract, different property and different specific time. According to Vietnam law of transfer of ownership rights by owner, when an owner transfers ownership rights to another person through a contract for sale and purchase, exchange, gift or loan, other contract of ownership transfer or through inheritance, the ownership rights of the owner shall terminate from the time when the ownership rights of the transferee arise.

The law stipulates that the time of establishing ownership rights and other property-related right shall be determined according to Civil Code 2015 and relevant laws. If there is no relevant regulations of law, the agreement of the parties shall be applied. If there is no either relevant regulations of law or agreement of the parties, the time of establishing ownership rights and other property-related rights shall be the time when the property is transferred. The time when the property is transferred is the time when the obligee or his or her legal representative possesses the property. In case where the property which has been not transferred and there are yield or income arise from that property, such yield or income shall belong to the transferor, unless otherwise agreed.

Legal significance of determining time of ownership transfer is to determine who is responsible for the risk and property. According to law, owner shall bear all risks of the property under his or her ownership, unless otherwise agreed or unless otherwise prescribed by laws. The holder of other property-related rights shall bear risks of the property within his or her right scope, unless otherwise agreed with the owner of the property or unless otherwise prescribed by laws.

ANT Lawyers - a 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. For advice or serive request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529. 

 

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When a Contract is Invalid Due to Non-compliance With Form in Vietnam?

Generally, contracts for sale and purchase of goods and service contract shall be expressed in verbal or written form or established with specific acts. For types of contract which must be made in writing provided by law, such contract must comply with such form regulation. Particularly, contract for international purchase and sale of goods shall be conducted on the basis of written contracts or other forms of equal legal validity.

 

Contract dispute law firm in Vietnam

There are two cases of non-compliance with form: (i) form of contract is not in accordance with the law and; (ii) contract violates against regulations on notarizing or authorization. It should be noted that the form of contract shall be the conditions for its effectiveness in cases where it is provided by law. The time limit of requiring the court to declare a contract of non-compliance with form in Vietnam invalid is 02 years, from the establishment date of contract. After such time limit, if there is still no request for declaring contract invalid, such contract still remains valid.

When the contract is invalid, the general rule is restoring everything to its original state and returning to each other what have received. The non-compliance with form contract could be valid de facto contract if recognized by the Court’s decision when one party or the parties has fulfill at least two third of the obligation contract. Obligations means work whereby one or more entities must transfer objects, rights, pay money or provide valuable papers, perform or not perform certain work for the interests of one or more other entities. However, one party or the parties fulfilling at least two third of the obligation contract will not naturally make such contract valid unless there is decision of the the Court to recognize such. Specifically, according to request of one party, after fully considering conditions mentioned above, the Court shall make a decision on recognizing the validity of such contract.

It is important for parties to have a proper contract with terms and conditions that provide sufficient details with consideration of the nature of the business transactions and the possible resolution when potential disputes arise.  Further, the law governing the contract and the dispute resolution clause which refers to court or arbitration choice should be as clear as possible to avoid confusion and extended time resolving the arisen disputes.

ANT Lawyers - A Contract dispute 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. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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Fundamental Contract Breaches in Law on Commerce 2005 and CISG 1980

What Are Fundamental Contract Breaches in Law on Commerce 2005 and CISG 1980?

Fundamental breach is a type of contract breach, in which the Law on Commerce 2005 defines that a breach of contract committed by one of the parties is fundamental if it causes damage to the other party to the extent that the other party fails to achieve purpose of contract conclusion. The significant factor that makes the difference between the fundamental and minor breach of contract is the materiality.

 

Contract Dispute Lawyers in Vietnam

Fundamental breach is an important foundation for the imposition of trade remedies such as temporary suspension of performance, suspension of performance or contract cancellation when the contract has no specific agreement. Nonetheless, Law on Commerce 2005 does not provide further guidance on fundamental breach. Court or arbitrator has a right to determine whether a breach is fundamental on a case-by-case basis. 

As set forth in CISG 1980, a breach of contract committed by one of the parties is fundamental if it results in such detriment to the other party as substantially to deprive him of what he is entitled to expect under the contract, unless the party in breach did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result. CISG also does not provide specific provisions to explain fundamental breach in details. Nonetheless, it can be deemed that in order to constitute a fundamental breach, three following factors need to be met: (i) a breach is made, (ii) detriment resulted from such breach substantially deprives him of what he is entitled to expect under the contract, and (iii) the breach can be foreseen.

The difference between constitution of a fundamental breach under CIGS 19080 and Law on Commerce 2005 is that: a breach cannot be treated as under CISG 1980 in case the breaching party did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result. Law on Commerce 2005 does not stipulate factor (iii) as mentioned herein but requires that (1) a breach is made and (2) damage resulted from such breach causes other party failed to achieve its purpose of contract conclusion to constitute a fundamental breach. The aggrieved party accordingly has a right to impose remedies such as temporary suspension of performance, suspension of performance or contract cancellation.

The consequence factor of fundamental breach in Law on Commerce 2005 is similar to CIGS 1980. In case the purchaser is aggrieved party, what he/she is entitled to expect under the contract is right to receive the goods, to own the goods and to sell to other parties to earn profits or manufacture products or other ways he/she can make a profit. In case the seller is aggrieved party, what he/she is entitled to expect under the contract is right to receive payments, which is profits he/she may earn. The purpose of contract conclusion as provided in Law on Commerce 2005 is same as what the purchaser and seller are entitled to expect under the contract as stipulated in CISG 1980.

ANT Lawyers - a Dispute 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. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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How to Determine Penalty and Compensation for Damages from Breach of Commercial Contract?

When drafting a contract, especially a commercial business contract, in addition to basic provisions such as the object, scope of the contract, value and payment method, rights and obligations of the parties, dispute settlement, information confidentiality, and the regulations on the penalty for a breach of the contract and damage compensation are also very important.

 

Contract dispute lawyers in Vietnam

Penalty for a breach of the contract

Under the provisions of the Commercial Law 2005, penalty for a breach means that the breaching party must pay a sum of money to the aggrieved party due to the breach of the violating party if the parties agree in the contract on the fine for a breach. Thus, the penalty for a breach only arises when there is a breach of the contract by the violating party and the parties have agreed on the penalty.

The law gives the right to agree on sanctions for violations to contractual parties, but this freedom to negotiate is limited. Specifically, the parties are only allowed to agree to a maximum penalty of 8% of the breached contractual obligation value, except traders providing assessment services issue assessment certificates showing incorrect results caused by their unintentional faults, they must pay penalty therefor to customers. The penalty level shall be agreed upon by the parties but must not exceed ten times the assessment service charge. In fact, the dispute settlement agency also bases on the prescribed limit of the law to handle; therefore, even if the parties agree to a higher penalty for a breach, it is not applicable in practice.

Compensation for damage

Compensation for damage means a remedy whereby the breaching party pays compensation for the loss caused by a contract-breaching act to the aggrieved party. The basis for arising damages is a breach of the contract; there is material loss and act of breaching the contract is the direct cause of the loss. Difference from penalty for a breach, liability to compensate for damages caused by breaches of contract performance obligations arises even in cases where the parties do not have an agreement on this matter. Besides, the law does not provide any regulation to limit the amount of compensation; it is based on the actual damages that the aggrieved party can prove.

When participating in the transaction, if both types of sanctions are specified in the contract, they should clearly specify the basis for the amount of compensation for the damages and the penalty for violation.

In fact, there are many cases where the parties do not agree clearly or agree on the penalty but the amount of the penalty exceeds the prescribed level, the excess could be considered invalid. The parties should also note that there will be no agreement on late payment interest on the infringement penalty and the amount of compensation damages.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Dispute Attorneys in Hanoi, Ho Chi Minh City and Danang, will help customers conveniently drafting contracts and assist in resolving contract disputes in Vietnam.

 

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How Amendment to Contracts in Vietnam Can be Made?

Once a contract is made legally, contracting parties shall implement and such contract is respected by third parties. As stated in Civil Code 2015 (“CC”): “Each commitment or agreement that does not violate regulations of law and is not contrary to social ethics shall be bound by contracting parties and must be respected by other entities”. However, in the implementation process, the contract can be amended, which means, rights and obligation of parties can be amended accordingly.

 

Contract Dispute Lawyer in Vietnam

Due to the fact that the contract is result of before agreement, amendment shall follow certain conditions. According to laws, parties may agree to amend a contract. Enterprises need to pay attention to some following issues when amending the contract in the implementation process:

Firstly, entities participating in contract amendment is the matter which enterprises need to notice. Both contract and supplemental agreement are made on behalf of the parties, which means between two juridical persons. In reality, juridical persons only carry out transactions through representatives, it may be legal representative or authorized representative. Therefore, entities participating in contract amendment shall be representative of juridical persons. A civil transaction entered into and performed with a third person by a representative in accordance with his/her scope of authorization shall give rise to rights and obligations of the principal. Regarding consequence of civil transactions made by unauthorized persons or by representatives beyond scope of representation, such civil transactions shall not give rise to rights and obligations of the principal or not give rise to rights and obligations of the principal with respect to that part of the transaction which exceeded the scope of representation, except for any of the following cases: (i) The principal recognizes the transaction or gives consent; (ii) The principal knows it without any objection within an appropriate time limit; (iii) It is the principal’s fault that the other party does not know or is not able to know that the person entering into and performing the civil transaction therewith was unauthorized or beyond his/her scope of representation. In above circumstances, the unauthorized person must fulfill the obligations to the person with which he/she transacted or the obligations owning to the person with which he/she transacted in respect of the part of transaction which is beyond the scope of representation, unless such person knew or should have known that the representative was unauthorized or the scope of representation was exceeded but still transacted. A person having transacted with above representative has the right to terminate unilaterally the performance or to terminate the made civil transaction or to terminate the civil transaction with respect to that part which is beyond the scope of representation or with respect to the entire transaction and to demand compensation for any damage, except that such person knew or should have known that that the representative was unauthorized or the scope of representation was exceeded or the case of which the principal recognizes the transaction or gives consent. If above representatives and the other party in a civil transaction deliberately enter into and perform such transaction and thereby cause damage to the principal, they must jointly compensate for the damage.

Form of agreement on amending contract is the second matter which needs to be taken into consideration. Amendment shall comply with the form of the initial contract. For instance, if the initial contract is made in written, notarized, certified, registered, the amendment shall follow such forms. The form of contract shall be the conditions for its effectiveness in cases where it is provided by law. Therefore, the form of amended contract shall be the conditions for its effectiveness in cases where it is provided by law. In invalid contracts, the general rule is restoring everything to its original state and returning to each other what have received. The condition for the contract of non-compliance with form recognized by the Court’s decision is that one party or the parties has fulfill at least two third of the obligation contract. However, not one party or the parties fulfilling at least two third of the obligation contract will naturally make such contract invalid but there must go through the Court. Specifically, according to request of one party, after fully considering conditions mentioned above, the Court shall make a decision on recognizing the validity of such contract. This principle also applies to contracts amendment. It is important that parties to consult with lawyers at early stage to anticipate matters of dispute and clearly have clauses drafted to avoid potential future disputes.

ANT Lawyers – A Law firm in Vietnam has law offices in Hanoi, Ho Chi Minh City and Da Nang.  The lawyers at each law offices in Vietnam have consistently made valuable and important contributions to our profession through the cases we handled on daily basis to facilitate business transaction or represented our clients to access justice.

 

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When a Contract is Invalid Due to Non-compliance With Form in Vietnam?

Generally, contracts for sale and purchase of goods and service contract shall be expressed in verbal or written form or established with specific acts. For types of contract which must be made in writing provided by law, such contract must comply with such form regulation. Particularly, contract for international purchase and sale of goods shall be conducted on the basis of written contracts or other forms of equal legal validity.

 

Contract dispute law firm in Vietnam

There are two cases of non-compliance with form: (i) form of contract is not in accordance with the law and; (ii) contract violates against regulations on notarizing or authorization. It should be noted that the form of contract shall be the conditions for its effectiveness in cases where it is provided by law. The time limit of requiring the court to declare a contract of non-compliance with form in Vietnam invalid is 02 years, from the establishment date of contract. After such time limit, if there is still no request for declaring contract invalid, such contract still remains valid.

When the contract is invalid, the general rule is restoring everything to its original state and returning to each other what have received. The non-compliance with form contract could be valid de facto contract if recognized by the Court’s decision when one party or the parties has fulfill at least two third of the obligation contract. Obligations means work whereby one or more entities must transfer objects, rights, pay money or provide valuable papers, perform or not perform certain work for the interests of one or more other entities. However, one party or the parties fulfilling at least two third of the obligation contract will not naturally make such contract valid unless there is decision of the the Court to recognize such. Specifically, according to request of one party, after fully considering conditions mentioned above, the Court shall make a decision on recognizing the validity of such contract.

It is important for parties to have a proper contract with terms and conditions that provide sufficient details with consideration of the nature of the business transactions and the possible resolution when potential disputes arise.  Further, the law governing the contract and the dispute resolution clause which refers to court or arbitration choice should be as clear as possible to avoid confusion and extended time resolving the arisen disputes.

ANT Lawyers - A Contract dispute 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. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529

 

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Contract Dispute in Vietnam

Disputes occur during contract performance are beyond the control of the entity entering contractual relations. In developed countries, lawyers always invited to advise customers to identify potential disputes, and provide solutions, support and provide legal advice and to accompany the enterprises solve disputes in accordance with the provisions of the law, which help businesses to focus on its business activities. The contract should be carefully reviewed by lawyers. Foreign companies when entering Vietnam mostly follow suit to engage dispute or litigation dispute lawyers in Vietnam at early stage of the transactions.

 

Contract Dispute

Contractual disputes in Vietnam shall be construed as conflicts, disagreements, conflicts between the parties regarding the implementation or non-implementation of rights and obligations in the contract. Disputes could arise in failure to collect the payment from debtor in sales agreement, construction contract disputes between investor and contractor, labour dispute between employer and employee, insurance disputes between ship owner and insurance company.

Contract disputes must satisfy the following factors:

First, there is a contract between the parties. The contract would be in different for ms therefore, there is a need to clearly define if the contractual relationship has been formed or not.

Second, there is a breach of obligations or duties that are in violation of a party in the contractual relationship.

Third, there is disagreement between the parties about the handling of infringement or the consequences of such violations.

It should be noted, the contract disputes arise from the breach. However, not all breaches of contract also lead to disputes.

How to settle the contract disputes in Vietnam?

Contractual disputes can be resolved by the following methods:

Negotiation is the process or behavior in which the two sides conduct exchanges, agreement on common interests and characteristics of disagreement and come to a unified agreement. The negotiation is without the presence of third parties. However, if the contract dispute lawyers in Vietnam would be involved during the negotiation process, at the role of representing or advising, counseling, then the negotiations tend to be more effective and parties would reach agreement.

Mediation is one of the options for disputing parties to end the conflict. Mediation is different from negotiating with the intervention of a third party. Mediator will help parties to achieve agreement and resolve conflict.

Court or arbitration: The settlement of the dispute in court would take time. The court’s ruling can be appealed. It should be noted that, per Vietnam laws, only Vietnam litigation or dispute law firms could represent the client at court. Commercial arbitration is available only in commercial-business sector. The advantage of this method is fast and efficient. However, compare with disputing at court, this method of handling dispute would take higher costs.

Disputes and dispute resolution matters are natural and inevitable in any countries including Vietnam. It is important that parties involved need to identify, anticipate disputes can occur. Contract or agreement should be reviewed by lawyers. When there is a dispute, the dispute lawyers in Vietnam will be able to help parties to with advice to reasonable solution to address the disputes effectively.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

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How to Determine Interest Rate for Late Payment Obligations in Commercial Transaction?

The most important obligation of the parties to a commercial contract is to deliver or provide services and pay in full and on time as agreed. However, in reality, there are times that one party or the parties fail to perform their payment obligations, causing damages to the other party. In particular, in the case of a breach of the payment obligation, the aggrieved party may request the person having caused damage to pay late payment obligations interest.  Potential dispute on this matter might arise between parties.

 

How to Determine Interest Rate for Late Payment Obligations in Commercial Transaction?

Article 306 of the Commercial Law 2005 provides for the application of the interest rate due to the delay of payment as follows: Where a contract-breaching party delays making payment for goods or payment of service charges and other reasonable fees, the aggrieved party may claim an interest on such delayed payment at the average interest rate applicable to overdue debts in the market at the time of payment for the delayed period, unless otherwise agreed or provided for by law.

The interest rate for late payment of obligations in commercial business is applied according to the average interest rate on overdue debts in the market at the time of payment corresponding to the late payment period, unless otherwise agreed or otherwise provided by law.

However, the Commercial Law 2005 at that time did not have a specific regulation on the average interest rate of overdue debts on the market. The Resolution No. 01/2019/NQ-HDTP has detailed instructions on this interest rate. When determining the interest on late payments, the Court shall determine the interest rate on late payments on the basis of average interest rates on overdue debts announced by at least 03 (three) commercial banks (such as Vietcombank, VietinBank, Agribank, etc.) whose headquarters, branch or transaction office is located in the same province or central-affiliated city where the headquarters of the Court in charge of the case is located at the payment date (the date of first-instance trial), except otherwise agreed upon by the parties or regulated by laws.

In case of late payment liabilities defined in a contract which includes the parties’ agreement on interest payment, the judgment debtor is liable to pay interest on the outstanding judgment debt at the agreed interest rate which must be conformable with applicable laws; if the agreed interest rate is not available, the Court shall decide application of the interest rate prescribed in Clause 2 Article 468 of the 2015 Civil Code. In case interests are charged on amounts payable to the state budget as regulated by laws, the judgment debtor is liable to pay an interest on the judgment debt arrears calculated at the interest rate prescribed in Article 357 or Article 468 of the 2015 Civil Code, unless otherwise prescribed by laws.

In order to protect the best interest of parties, it is important to consult with dispute lawyers in Vietnam for advice.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

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The Need for Commercial Mediation in the Performance of International Contracts

In contract dispute resolution, the average time to resolve a commercial contract dispute at the Court in Vietnam, even with the help of dispute lawyers in Vietnam whom know well the process would take long time through multiple proceedings. This period will last longer if there is a foreign party in the dispute, including service of notarization, legalization, authentication (or apostile) the documents. According to World Bank statistics, the cost of resolving a commercial dispute at the Court accounts for about 29% of the contract value (including attorneys’ fees, court fees, judgment execution fees).

 

The practice of resolving the dispute case at the Court appears to face many challenges of time lengthening and possible effective enforcement leading to cost of time and money. Therefore, the selection of dispute resolution in the mediation center is a possible option to resolve this issue.

Vietnam authorities and international agencies have taken active measures needed to promote the application of commercial mediation in international contracts, in order to resolve issues more quickly and effectively in international trade disputes. The application of commercial dispute resolution at mediation centers in Vietnam will save time and costs for dispute resolution. In addition, the dispute resolution at the mediation center will also help the parties maintain the relationship for future business transactions.

Until Aug 2019, in Vietnam, there are 7 commercial mediation centers licensed by the Ministry of Justice with a team of domestic and international certified mediators and lawyers who can contribute to resolving disputes in international trade contracts.  The use of mediation centers in the settlement of disputes in Vietnam with the help of lawyers in Vietnam will help the parties to find common grounds and together save cost, time, keep confidentiality of the dispute and could continue to do business with each other.

ANT Lawyers is a Law firm in Vietnam with international standards, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 juridictions. The firm provides a range of legal services as following to multinational and domestic clients.

 

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