1. What is international commercial arbitration?
International commercial arbitration is a method of resolving disputes arising from international commercial activities through arbitration. Instead of taking the dispute to court, the parties involved may choose to use arbitration to resolve their issues.
According to this method, the parties agree to submit the dispute to a certain arbitration agency.
2. Benefits of commercial arbitration in international disputes
Resolving disputes by international commercial arbitration brings many outstanding benefits. First, the arbitration process is often faster than going to court, saving time for the parties involved. Although arbitration fees can be high, the total cost is usually less than that of lengthy or complicated trials.
Second, arbitration provides great flexibility. Parties can agree on procedures, rules and even the choice of arbitrators, helping the dispute resolution process suit their specific needs. This not only saves time but also helps reduce stress and conflict.
Third, arbitration is often conducted in a confidential environment, helping to protect the parties’ sensitive information and business secrets. This process also ensures fairness because the arbitrator chosen to work is neutral and unbiased.
Fourth, arbitral decisions are more easily enforced internationally thanks to international conventions such as the New York Convention, which help parties enforce arbitral awards in many different countries.
Finally, arbitration allows parties to choose arbitrators with expertise appropriate to their area of dispute, ensuring that decisions are made based on a thorough understanding of the specific issue. All these factors combined make arbitration an effective and flexible means of resolving international commercial disputes.
3. Relevant international legal regulations
In Vietnam, international commercial arbitration is governed by a number of national and international legal regulations. Below are the important international and national legal regulations related to international commercial arbitration in Vietnam:
3.1. International Regulations
- New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958):
Vietnam is a member of the New York Convention, and therefore, international arbitration awards are recognized and enforced in Vietnam according to the provisions of this convention.
- Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1965):
Vietnam is a member of the Washington Convention, which provides a mechanism to resolve international investment disputes through the International Center for Settlement of Investment Disputes (ICSID).
- UNCITRAL Model Law on International Commercial Arbitration (1985, revised 2006):
Although Vietnam is not a member of UNCITRAL, the UNCITRAL model Law has influenced international commercial arbitration regulation in Vietnam, especially in adjusting and improving the country’s arbitration system.
3.2. National Regulations
- Vietnam Commercial Arbitration Law (2010, amended 2017):
The Vietnam Commercial Arbitration Law regulates issues related to domestic and international arbitration. This law applies to commercial disputes arising from business, trade and investment activities, and regulates the procedures, rights and obligations of the parties in arbitration.
- Decree No. 22/2017/ND-CP:
This Decree guides the implementation of a number of articles of the Vietnam Commercial Arbitration Law, including detailed regulations on international arbitration, powers and responsibilities of arbitration centers, as well as procedures and procedures. arbitration.
- Circular No. 01/2017/TT-BTP:
This Circular provides detailed regulations on the management and operations of arbitration centers, including regulations on international arbitration conditions and processes in Vietnam.
- Free Trade Agreement (FTA):
Vietnam participates in many free trade agreements with different countries and regions. These agreements often include provisions relating to dispute resolution by international arbitration, and may affect how disputes are resolved in Vietnam.
These legal regulations create the legal framework for the resolution of international commercial disputes in Vietnam, while ensuring that Vietnam complies with international standards in the field of commercial arbitration.
4. How to resolve disputes with BigBoss International Commercial Arbitration Center
To resolve disputes by commercial arbitration at BBIAC. Customers can write in the contract one of the following two contents:
4.1. Model Arbitration Clause
“Any dispute arising out of or in connection with this contract shall be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with its Rules of Arbitration”.
In addition, the parties may add:
(a) the number of arbitrators is [one or three].
(b) the place of arbitration is [city and/or country].
(c) the law applicable to the contract is [ ].*
(d) the arbitration language is [ ].** Note: *
Only applicable to disputes with foreign elements **
Only applies to disputes with foreign elements or disputes in which at least one party is a foreign-invested enterprise.
4.2. The Model Arbitration Clause applies to summary proceedings
“Any dispute arising out of or in connection with this contract shall be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with its Rules of Arbitration. The parties agree that the arbitration proceedings will be conducted in accordance with the Summary Procedures set out in Article 37 of the BBIAC Arbitration Rules.”
In addition, the parties may add:
(a) the place of arbitration is [city and/or country].
(b) the law applicable to the contract is [ ].*
(c) the arbitration language is [ ]. **
Note:
* Only applies to disputes with foreign elements
** Only applies to disputes with foreign elements or disputes where at least one party is a foreign-invested enterprise
