About 40% of FDI enterprises choose arbitration to resolve disputes.

The workshop aims to support the business community in learning about effective and safe dispute resolution methods, thereby improving the competitiveness of businesses.

Participating in the workshop, in addition to business associations and local businesses and entrepreneurs, there were also leaders from the International Finance Corporation and the World Bank, Ho Chi Minh City People's Court, the International Arbitration Center, etc.

Delegates attending the workshop. Photo: Phu Huong

With the provisions of the 2015 Civil Procedure Code and Decree 22/2017/ND-CP on Commercial Mediation, the legal framework for methods of resolving commercial disputes in Vietnam has been established with clear provisions. The promulgation of these legal documents has also institutionalized Resolution No. 49-NQ/TW dated June 2, 2005 of the Politburo on the strategy of reforming the Judiciary until 2020, which emphasizes "encouraging the resolution of some disputes through negotiation, mediation, and arbitration; the court supports by deciding to recognize such resolution".

According to a recent survey by the World Bank, Vietnam ranks 66/190 countries in terms of contract enforcement rate; 29/190 in terms of access to credit. These figures show that businesses in Vietnam have better business conditions and faster and easier dispute resolution methods.

Mr. Phi Trong Duc - Director of VCCI Nghe An stated: Currently, many businesses still do not clearly understand about resolving commercial disputes by arbitration and mediation. Photo: Phu Huong

According to the PCI report in 2016 and 2017, the new trend of enterprises is to prioritize choosing methods other than the Court to resolve disputes, in which the choice is commercial arbitration. For example, in the foreign investment (FDI) sectorIt is estimated that approximately 40% of businesses choose arbitration to resolve disputes.

However, commercial mediation is still a relatively new issue for businesses and entrepreneurs when Decree 22/2017/ND-CP was issued in February 2017; the first mediation center under the Vietnam International Arbitration Center was also established in April 2018.

Produced at Lan Anh Garment Company. Photo: Thu Huyen

At the workshop, businesses had a better understanding of commercial mediation methods. Business leaders were informed about some contents on: Current laws and support from the Court sector for dispute resolution mechanisms by arbitration and mediation; Commercial arbitration and mediation - why should businesses choose?; Some notes for businesses when using arbitration and mediation mechanisms to resolve disputes; Some contents of the Civil Procedure Code on Procedures for recognizing out-of-court mediation results; Decree 22/2017/ND-CP on Commercial Mediation.

On this occasion, VCCI Nghe An organized the awarding of new Membership Certificates.