Forms of settling business and commercial disputes

In commercial business activities from the national to the international level, there are always appropriate dispute resolution mechanisms, with different levels. Dispute settlement methods are committed by the country itself or by countries around the world according to a common principle.

For the international level it is the principle of settling disputes by peaceful means. For a country, dispute settlement according to that country’s regulations. Bi Law would like to introduces to readers the current methods of resolving commercial business disputes.

1. Concept

According to at Article 3 of Commercial Law No 36/2005/QH11 dated June 14^th2005 of the Socialist Republic of Viet Nam, effective on Jan 1^st, 2006  stipulating that commercial activities mean activities for the purpose of generating profits, including: sale and purchase of goods, provision of services, investment, commercial promotion and other activities for the profit purpose.

Based on the above concept, it can be inferred that commercial disputes are conflicts between two parties cooperating with each other over rights and obligations in the course of commercial business activities. Since then, the methods of settling business and commercial disputes are ways to implement the settlement, including forms such as: Negotiation; Reconcile; Settlement by arbitration; Settlement by court.

2. Current forms of commercial dispute resolution
   • Negotiation

Negotiation is a method of dispute settlement through which the disputing parties discuss together, self-settlement, and resolve arising disagreements to eliminate disputes without any assistance or judgment any third party.

Whether at the national or international level, negotiation is always the first priority solution when dealing with commercial disputes. If negotiation fails to solve the problem, another method of dispute resolution will be selected.

• Mediation

Mediation is a method of dispute resolution with the participation of a third party as a mediator to assist and persuade disputing parties to seek conciliatory solutions. The third party may be the Mediator or any other third party chosen by the parties. Mediation also occurs during dispute resolution by commercial arbitration or the court.

To resolve a dispute by conciliation, the parties must agree to conciliation. The parties may agree to settle the dispute by conciliation before, after the dispute occurs or at any time during the dispute settlement process.

2.3 Commercial arbitrations

Settlement of commercial disputes by commercial arbitration is a method of settlement through the action of an arbitrator as an independent third party to end conflicts by issuing an arbitral award to compel the parties respect and perform. Currently, in Vietnam, the arbitration procedure is according to the Law on Arbitration 2010.

The order of commercial arbitration is summarized through the following steps:

Step 1: Submit the petition and attached documents

Step 2: Defendant submits a self-defense statement

Step 3: Set up an arbitration panel

Step 4: Reconciliation

Step 5: Hold a dispute resolution meeting

Step 6: The arbitral tribunal issues the award

For international commercial disputes between national parties, commercial arbitration is selected by the parties. However, the arbitral award is not binding on a country to follow and implement, but is only a recommendation.

• Court

The current order and procedures for resolving commercial disputes by way of the court must comply with the Code of Civil Procedure 2015. The steps to resolve commercial business disputes can be summarized through the following steps:

Step 1: Submit a petition

Step 2: Assign a judge to review the petition

Step 3: Accept the case

Step 4: Conduct mediation

Step 5: Prepare for trial

Step 6: Bring the case to trial

Step 7: The court makes a decision

Step 8: Carry out judgment execution.

 Bi Law has just presented on the forms of commercial business dispute resolution. If you have any questions regarding the above, please contact Bi Law Firm for more detailed advice.

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