In Vietnam, arbitration is increasingly being chosen by individuals and organizations due to its advantages, such as flexibility and alignment with the demands of a market economy. The principles in the arbitration dispute resolution process reflect its essence and serve as guiding principles throughout the entire resolution process. This article will clarify the principles of arbitration dispute resolution according to Vietnamese law, thereby highlighting the role of arbitration in protecting the legal rights and interests of the parties involved.
1. The principle of equality of rights and obligations between the parties
This principle is a distinctive feature of the dispute resolution process. It reflects the principle of equality before the law, as enshrined in the Constitution and legal documents. According to this principle, the disputing parties have equal rights and obligations throughout the proceedings. The parties have the right to appoint arbitrators, request changes to arbitrators when there are grounds as stipulated by law, select the venue, present evidence, state their claims, and respond during hearings, regardless of their nationality, legal status, or economic condition.
2. The principle of confidentiality in arbitration proceedings
Businesses often choose arbitration over court proceedings because of its high level of confidentiality. According to Article 4 of the Law on Commercial Arbitration 2010 (“LCA”), arbitration proceedings are conducted privately unless the parties have agreed otherwise.
Confidentiality in arbitration proceedings helps the parties protect business secrets and sensitive information, while also preserving their reputations. Maintaining confidentiality is particularly important in international commerce, as failing to keep dispute information private can impact partnership relationships and erode trust from multinational clients.
3. The principle that arbitrators must respect the agreement of the parties if it does not violate prohibitions or contravene social morality
Article 5 of the LCA affirms the role of the arbitration agreement in the formation of the commercial arbitration dispute resolution process. According to this, disputes are resolved by arbitration if the parties have an arbitration agreement. Additionally, the parties have the right to agree on various aspects such as the form of arbitration (institutional or ad hoc arbitration), the arbitrators who will resolve the dispute, the scope of the arbitration request, the venue of the dispute resolution, etc. The parties also have the right to mediate at any stage of the arbitration proceedings.
4. The principle that arbitrators must be independent, objective, impartial, and adhere to legal provisions
The LCA recognizes the independence, impartiality, and neutrality of arbitrators as one of the fundamental principles in the arbitration dispute resolution process. To ensure this principle is upheld, Article 21 of the LCA stipulates the independent rights and obligations of arbitrators in resolving disputes, ensuring that disputes are resolved impartially and promptly. Article 42 of the LCA also establishes the right to replace an arbitrator if there is clear evidence indicating that the arbitrator is not impartial or objective.
5. The principle that the arbitral tribunal must facilitate the parties in exercising their rights and fulfilling their obligations
Arbitration dispute resolution arises from the agreement between the parties. Therefore, in addition to the authority stipulated by law, the jurisdiction of the Arbitral Tribunal is also determined based on the parties’ agreement. Since the law recognizes the responsibility to respect the parties’ agreement and their right to equality, it also imposes on the Arbitral Tribunal the duty to facilitate the parties in exercising their rights and obligations. For example, Article 48 of the LCA acknowledges the obligation of the Arbitral Tribunal to apply interim urgent measures upon the request of one of the disputing parties, as well as to modify, supplement, or revoke the application of such interim urgent measures.
6. The principle that arbitration awards are final and binding
This principle is concretized in Clause 5, Article 61 of the LCA, which states that an arbitral award is final and binding from the date of issuance. The finality of the award means that it cannot be appealed or reviewed under cassation or retrial procedures. However, the law provides a mechanism for supervising the arbitration process. The competent court’s authority to consider whether to annul an arbitral award is viewed as a supervisory mechanism over the arbitration dispute resolution process. Article 68 of the LCA specifies the circumstances under which an arbitral award may be annulled by the court.
Arbitration has established a significant role within the Vietnamese commercial law system, especially in the context of international economic integration. The application of principles such as respecting the parties’ autonomy, ensuring equality, and confidentiality not only ensures legality but also fosters trust among parties when choosing arbitration for dispute resolution.
Below is the article “Principles of dispute resolution through arbitration” that TNTP presents to our readers. Should you have any questions or require further discussion, please contact TNTP for timely assistance.
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