Commercial Arbitration and Issues Related to Personal Data Protection

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I). Laws on Personal Data Protection in Vietnam

  1. Vietnamese law has gradually the legal framework on personal data protection to meet the requirements of the digital economy. The 2013 Constitution recognizes the inviolability of private life, personal secrets, and family secrets. On that basis, a number of specialized legal instruments have been promulgated, such as the 2015 Civil Code, the 2018 Law on Cybersecurity, and notably Decree No. 13/2023/NĐ-CP on personal data protection.
  2. These regulations establish principles for personal data processing, define the rights and obligations of data subjects, and clarify the responsibilities of organizations and individuals in collecting, processing, and protecting personal data. At the same time, the law provides dispute resolution mechanisms through negotiation, mediation, courts, and arbitration, among which commercial arbitration has attracted increasing attention in contractual and commercial relationships.

II). Common Disputes Related to Personal Data

In practice, disputes related to personal data arise in various forms, most commonly including:

  • Disputes over the unlawful collection and use of personal data without the consent of the data subject.
  • Disputes arising from breaches of confidentiality obligations in commercial contracts, labor contracts, and digital service agreements.
  • Disputes related to the sharing or transfer of personal data to third parties in violation of agreements or legal regulations.
  • Disputes over liability for damages in cases of personal data leakage or lossThese disputes are often complex in nature, involving technical and technological factors, and require a high level of confidentiality throughout the dispute resolution process.

III). The Role of Arbitration in Personal Data Protection

  1. Commercial arbitration plays an important role in protecting personal data by resolving disputes in a confidential and effective manner. A key advantage of arbitration is the principle of confidentiality, which minimizes the disclosure of sensitive information of the parties, including personal data and business secrets.
  2. In addition, disputing parties may select arbitrators with in-depth expertise in information technology, cybersecurity, or personal data protection, thereby enhancing the quality and relevance of arbitral awards. Flexible arbitral procedures also allow the parties to agree on methods for collecting, presenting, and safeguarding data throughout the proceedings.

IV). Notable Personal Data Disputes

  1. In recent years, both in Vietnam and worldwide, numerous notable disputes have emerged involving the infringement, misuse, or leakage of personal data, clearly reflecting legal challenges in the digital era. In the field of e-commerce and digital platforms, disputes often arise from the collection and use of personal data beyond permitted scopes or without valid user consent.
  2. Moreover, personal data disputes also occur in labor relationships when enterprises use or disclose employees’ data for improper purposes, as well as in cross-border transactions involving the transfer of personal data abroad. These disputes highlight the urgent need for a confidential and effective dispute resolution mechanism, in which commercial arbitration is increasingly favored due to its ability to protect privacy and the legitimate interests of the parties.

V). Protection of Privacy in the Digital Era

    1. In the digital era, protecting privacy and personal data is not only a legal requirement but also a key factor in building trust with customers and business partners. Enterprises must proactively implement technical and legal measures to ensure data security, while incorporating personal data protection clauses and arbitration clauses into commercial contracts.
    2. Commercial arbitration, as an effective and confidential dispute resolution mechanism, will continue to play a crucial role in safeguarding privacy in the context of deepening digitalization, contributing to the creation of a safe, transparent, and sustainable business environment.

VI). Resolving Disputes through the Bigboss International Commercial Arbitration Center

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

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 its Rules of Arbitration.”

In addition, the parties may stipulate:

(a) the number of arbitrators shall be [one or three].
(b) the 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 foreign elements.
– Applicable only to disputes involving foreign elements 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 its Rules of Arbitration. The parties agree that the arbitral proceedings shall be conducted under the Expedited Procedure as stipulated in Article 37 of the BBIAC Rules of Arbitration.”

In addition, the parties may stipulate:

(a) the 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 foreign elements.
– Applicable only to disputes involving foreign elements or disputes in which at least one party is a foreign-invested enterprise.

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