New Commercial Arbitration Law to Help Resolve Disputes Faster
Jul. 21 – Vietnam’s new Commercial Arbitration Law, set to take effect from January 1, 2011, is expected to help local and foreign businesses resolve disputes quicker outside of the court of law.
The new law was approved on June 17, 2010 by the National Assembly and will provide an important legal foundation for businesses to minimize the risks of disputes, said the head of the Vietnam Chamber of Commerce and Industry’s legal department, Tran Huu Huynh, during a press conference in Hanoi yesterday.
Resolving commercial disputes via an arbitration center is a faster and more effective way of addressing disputes rather than taking the matter to court where it risks being delayed. Hanoi’s People’s Court reported 300 economic disputes last year and Ho Chi Minh City reported 1,000 says the Vietnam International Arbitration Center.
In contrast, the Vietnam International Arbitration Center only reported 58 petitions for commercial arbitration. There are currently seven arbitration centers in the country.
“Every judge in Hanoi and HCM City’s economic courts yearly handles from 30 to 50 disputes while the average arbitrator handles only one,” said Vietnam Law Association chairman Pham Quoc Anh.
“The law has improved shortcomings in the ordinance such as removing limitations on the application of arbitration to commercial disputes. Commercial disputes, meanwhile, are increasing rapidly, requiring quick and efficient forms of settlement.”
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