ARBITRATION PROCEEDINGS UNDER ARBITRATION LAW

In Vietnam, Court proceedings are a common activity for most individuals, agencies and organizations. However, the law does not restrict the parties in resolving disputes. Therefore, in some cases, the subject may choose to resolve the dispute through the method of Arbitration Proceedings at the competent authority.

I. What is Arbitration Proceedings?

Arbitration proceedings are the process of settling commercial disputes by commercial arbitration and are conducted according to the order and procedures prescribed by law

II. Characteristics of arbitral proceedings:

Arbitral proceedings have the following characteristics:

• Arbitration proceedings shall be conducted only when the parties have an agreement.

• Only once adjudicated, the arbitrator's decision is final and binding on the disputing parties.

• Arbitration proceedings shall be conducted behind closed doors.

• Rules and procedures shall be agreed upon by the disputing parties.

• The arbitral proceedings do not depend on the national territory of the parties. 

III. Arbitration Proceedings:

According to Article 31 of the Law on Commercial Arbitration 2010, proceedings by arbitration shall commence from the time of:

1. The arbitration center receives the petition of the plaintiff in the case of settlement at the arbitration center.
2. The Defendant receives the Plaintiff's petition in the case of Arbitration.

Accordingly, the arbitration proceedings under the Law on Commercial Arbitration 2010 are as follows:

Step 1: File a petition (Article 30)

Step 2: The defendant submits a self-defense (Article 35).

Within 10 days of receipt of the petition, the arbitral tribunal must send a copy of the petition and accompanying documents to the respondent. If the dispute is resolved at the Arbitration Center, the respondent must submit a self-defense within 30 days of receipt of the petition. If the dispute is resolved by Case Arbitration, then the respondent must submit a self-defense, name, and address of the arbitrator of the respondent's choice within 30 days of receipt of the petition.

Step 3: Establishment of the arbitral tribunal (Article 39)

The arbitral tribunal may consist of one or more arbitrators as agreed by the parties. If there is no agreement, the arbitral tribunal consists of three arbitrators.

Step 4: Conciliation (Article 58)

The arbitral tribunal conducts conciliation so that the parties agree with each other on the settlement of the dispute. If the parties reach an agreement, the arbitral tribunal shall make a record of successful conciliation signed by the parties and certified by the arbitrators and conclude the arbitration proceedings.

Step 5: Hold a dispute settlement meeting (Article 55)

The order and procedures for conducting the dispute settlement meeting shall comply with the rules of arbitration procedure prescribed by the Arbitration Center or agreed upon by the parties for arbitration of the case.

Step 6: The arbitral tribunal issues a ruling.

The arbitral tribunal awards the arbitral award by majority vote. In case the vote does not reach a majority, the arbitral award shall be made according to the opinion of the President of the arbitral tribunal.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.