New Commercial Arbitration Law introduced

What do you think about the new commercial arbitration law in relation to international commercial arbitration acts – especially that of the United National Commission on International Trade Law (Uncitral)?

This is advantageous for foreign firms in Vietnam and domestic firms doing business overseas in terms of choosing arbitration to settle litigations. Besides, compared to the arbitration ordinance that has just expired, the new commercial arbitration law features more credibility and safety. The invalidity of arbitration agreements is restricted in order to get closer to commercial arbitration practices.

Moreover, the arbitral tribunal is added with some rights, such as the right to apply direct temporary emergency measures, and the right to summon witnesses to support arbitrators.

Besides, arbitrator verdicts are more worthy under the new arbitration law, which is clearer and more transparent.

Accordingly, I personally think that the new commercial arbitration law will help resolve legal disputes more easily in the coming period.

Do you think that businesses will get the most benefit from the introduction of the new commercial arbitration law?

Yes, I think so. Arbitration is applied to assorted disputes among businessmen, organisations and enterprises. Accordingly, consumers, local communities and social organisations that get involved in business activities may choose arbitration to solve their problems instead of going to court as previously.

What do enterprises need to focus on to ensure the efficiency of arbitrator verdicts?

Firstly, firms must take note that when having arbitral agreements, courts will not get involved in disputes unless the arbitral agreements are invalidated or cannot be enforced. Therefore, if firms turn to arbitration they then have to carry out the arbitral agreements independently and effectively.

Secondly, arbitrator verdicts will rarely be changed so when firms had the arbitral agreement they should be well prepared right from the beginning.

Thirdly, despite geographical distance, firms need to show up to protect their rights when they are convened by arbitrators.