Steps in the Process of Resolving Disputes through Arbitration

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1. Initiation of Arbitration and Submission of the Statement of Claim

1.1 Conditions for Initiating Arbitration Proceedings

The essential condition for resolving a dispute by arbitration is the existence of a valid arbitration agreement between the parties. An arbitration agreement may be concluded before or after a dispute arises, either in the form of an arbitration clause in a contract or as a separate agreement.

According to the Law on Commercial Arbitration 2010, if there is no arbitration agreement or if the arbitration agreement is invalid, the dispute does not fall within the jurisdiction of arbitration.

1.2 Content and Form of the Statement of Claim

The statement of claim is a document that sets out the official request of the claimant. Pursuant to Article 30 of the Law on Commercial Arbitration 2010, a statement of claim must include:

  • The date, month, and year of submission;

  • Names, addresses, and legal information of the disputing parties;

  • A summary of the dispute;

  • Specific claims and requests for relief;

  • The value of the dispute (if any);

  • Supporting evidence and accompanying documents.

After receiving a valid statement of claim and the arbitration fees, the arbitration center shall notify the respondent and set a time limit for the submission of the statement of defense.

2. Selection of Arbitrators

2.1 Role of Arbitrators

An arbitrator is the person who directly resolves the dispute and performs a role similar to that of a judge in court proceedings. The quality, independence, and impartiality of arbitrators have a decisive impact on the outcome of dispute resolution.

2.2 Principles for Selecting Arbitrators

Vietnamese law recognizes the parties’ freedom of agreement in selecting arbitrators:

  • The parties may agree to appoint arbitrators from the list of arbitrators of an arbitration center or outside such list (where permitted);

  • The number of arbitrators is usually one or three;

  • If the parties fail to reach an agreement, the arbitration center or the court shall appoint arbitrators in accordance with the law.

Arbitrators must satisfy the requirements regarding legal capacity, professional qualifications, professional ethics, independence, and impartiality.

2.3 Establishment of the Arbitral Tribunal

Once the arbitrators are selected or appointed, the Arbitral Tribunal is established to conduct the dispute resolution proceedings. This stage marks the official commencement of arbitration proceedings.

3. Arbitration Hearing and Related Procedures

3.1 Principles of Arbitration Proceedings

Arbitration proceedings are conducted based on the following principles:

  • Respect for the parties’ right of self-determination;

  • Equality of the parties;

  • Independence and impartiality of arbitrators;

  • Procedural flexibility in compliance with the law.

3.2 Preparation for the Arbitration Hearing

The Arbitral Tribunal collects and reviews evidence, requests the parties to submit documents, and may summon witnesses or order expert examinations where necessary. The parties have the right to appoint lawyers or representatives to protect their legitimate rights and interests.

3.3 Arbitration Hearing

Arbitration hearings are generally conducted in private, unless the parties agree otherwise. At the hearing:

  • The parties present their positions, claims, and legal arguments;

  • Oral arguments and rebuttals are conducted;

  • The Arbitral Tribunal evaluates the evidence and arguments of the parties.

4. Arbitral Award and Enforcement

4.1 Issuance of the Arbitral Award

Upon completion of the hearing, the Arbitral Tribunal issues the arbitral award based on the majority decision of its members. The award must be made in writing and clearly state the legal grounds, the decision, and the obligations of the parties.

The arbitral award takes effect from the date of issuance and is final and binding, not subject to appeal or review on the merits.

4.2 Enforcement of the Arbitral Award

As a general principle, the parties are obliged to voluntarily comply with the arbitral award. If a party fails to do so, the successful party may:

  • Request the competent civil judgment enforcement authority to enforce the award;

  • In the case of a foreign arbitral award, request a Vietnamese court to recognize and enforce the award.

5. Procedures for Challenging an Arbitral Award

5.1 General Principle

An arbitral award is not subject to appeal or cassation under appellate procedures. However, the law allows courts to set aside an arbitral award in exceptional circumstances to ensure the legality of arbitration proceedings.

5.2 Grounds for Setting Aside an Arbitral Award

Pursuant to Article 68 of the Law on Commercial Arbitration 2010, an arbitral award may be set aside if:

  • There is no arbitration agreement or the arbitration agreement is invalid;

  • The Arbitral Tribunal was improperly constituted;

  • There were serious violations of arbitration procedures;

  • The dispute falls outside the jurisdiction of arbitration;

  • The award is contrary to the fundamental principles of Vietnamese law.

5.3 Time Limit and Jurisdiction

The time limit for requesting the setting aside of an arbitral award is 30 days from the date of receipt of the award. Jurisdiction lies with the People’s Court at the provincial level where the arbitral tribunal issued the award

6. Methods for Resolving Disputes through the BIGBOSS International Commercial Arbitration Center

To resolve disputes by commercial arbitration at BBIAC, the parties may include one of the following clauses in their contract:

6.1. Standard 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 the Arbitration Rules of the Center.”

In addition, the parties may agree on the following:

(a) The number of arbitrators shall be [one or three].
(b) The seat/place of arbitration shall be [city and/or country].
(c) The governing law of the contract shall be [ ].
(d) The language of arbitration shall be [ ].

Notes:

  • Applicable only to disputes involving a foreign element.

  • Applicable only to disputes involving a foreign element or disputes in which at least one party is a foreign-invested enterprise.

6.2. Standard Arbitration Clause under Expedited Procedure

“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 the Arbitration Rules of the Center. The parties agree that the arbitration proceedings shall be conducted under the Expedited Procedure as provided in Article 37 of the BBIAC Arbitration Rules.”

In addition, the parties may agree on the following:

(a) The seat/place of arbitration shall be [city and/or country].
(b) The governing law of the contract shall be [ ].
(c) The language of arbitration shall be [ ].

Notes:

  • Applicable only to disputes involving a foreign element.

  • Applicable only to disputes involving a foreign element or disputes in which at least one party is a foreign-invested enterprise.

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