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Thinh Tri Commercial Arbitration Center launched

Released at: 14:41, 08/08/2018

Thinh Tri Commercial Arbitration Center launched

Photo: Khanh Chi (VET)

Commercial arbitration center to help resolve disputes arising among businesses.

by Khanh Chi

The Thinh Tri Commercial Arbitration Center (TTCAC) in Ho Chi Minh City’s District 3 has been officially introduced after a year of operations. It is a legal entity belonging to the Thinh Tri law firm, a member of the Ho Chi Minh City Union Business Association (HUBA).

The introduction ceremony was attended by Chairman of the Ho Chi Minh City’s People Committee Nguyen Thanh Phong, HUBA Chairman Chu Tien Dung, and representatives of more than 200 enterprises.

Commercial arbitration and commercial mediation are two methods for commercial dispute resolution outside of courts that are allowed under Vietnamese law and are based on voluntary settlement procedures.

Although the Law on Commercial Arbitration was passed by the National Assembly in 2010, only 10 per cent of trade and investment disputes between enterprises have been resolved via commercial arbitration.

According to Mr. Nguyen Hong Vinh, an arbitrator who founded TTCAC, when disputes arise, enterprises often choose courts for settlement because they have long been accustomed to legal proceedings. Arbitration fees are also quite high and many enterprises are concerned about the risks from arbitration. Once an arbitrator is selected to settle a dispute, related parties must respect and enforce the arbitration decision, and the chances of the judgment being changed are low as persuasive reasons must be offered to prove that proceedings contained errors or violations. Court proceedings are then undertaken to cancel the judgment.

Mr. Vinh also explained that although proceedings at courts and commercial arbitrators are different, all judgments are based on the opinions of the litigants, the evidence, and the law. “Important factors are considered, ensuring that the interests of parties are met,” he said.

In addition to meeting statutory criteria, arbitrators must also be able to adjudicate, evaluate and analyze evidence provided by parties and offer a fair and accurate judgment, he went on. Arbitrators also need to be able to communicate, because their role is to analyze the claims of litigants so a final agreement is made.

“The advantage for TCCAC is that its arbitrators are former judges from economic courts and procurators with many years of experience,” Mr. Vinh said. “Fees applied follow court fees and charges.”

In addition to commercial arbitration, commercial mediation is also a method of settling disputes outside of courts that are recognized by the law. Their advantage is that mediation is mutually agreed upon or in accordance with the mediation rules of the center.

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