Break barriers to trade mediation

commercial conciliation helps businesses avoid costly and time-consuming lawsuits while still maintaining relationships with partners. Photo: S.T

Still hesitation

In the context of international integration, economic and trade disputes arising in large numbers and growing more strongly require mechanisms to be able to flexibly and appropriately resolve the disputes. with international practice and practical needs of Vietnam. If these disputes are not resolved, they will affect the legitimate rights and interests of enterprises when entering into the contractual relationship. However, if these disputes are to be heard through courts by litigants, these damages will not only result in economic losses but also loss of partnerships for the parties, the necessary procedures as well as the final results. As a result, experts are encouraged to resolve some disputes through negotiation and arbitration. The court is assisted by a decision recognizing the settlement.

The recent workshop on trade mediation has been organized by Vietnam International Arbitration Center (VIAC) in cooperation with IFC - World Bank Group member. Vu Anh Duong, Vice President of VIAC said that in 197 there were 19 disputes resolved by conciliation and the parties appreciated it. The parties to the dispute also voluntarily implemented the conciliation results. This shows that commercial conciliation is one of the most common methods of dispute resolution currently available because of it is simple, flexible, time-saving and reduces costly procedures. Therefore, enterprises have the opportunity to choose the appropriate process, avoiding the complicated legal procedures so that they can easily reach agreement.

Therefore, in early 2017, the Government issued Decree No. 22/2017 / ND-CP on trade conciliation. This decree has helped to facilitate conciliation activities more concisely and flexibly, creating a legal basis for trade conciliation and other professional activities. According to this decree, the parties are equal in their rights and obligations, freely expressing their will in order to come up with a general solution in the most optimal order or procedure, which are decided by the parties or the conciliation Member if the related parties do not agree.

A review of the mechanism of commercial conciliation in Vietnam, Nina Mocheva, Senior Finance Specialist, World Bank Group, said that Viet Nam had a relatively advanced mechanism and the important step through a new legal framework for the settlement of commercial disputes by both conciliation and arbitration. However, international experience shows that when commercial conciliation begins, the law community may be reluctant to use more litigation, so it takes time to overcome the constraints. Therefore, it is necessary to help the authorities and enterprises to develop and promote the right trade.

Expectations of foreign mediation

According to a survey conducted by the VIAC and the World Bank, 78% of respondents said they were willing to try mediation. Of the surveyed enterprises, 77% of the respondents were satisfied with the results of the reconciliation. 79% of enterprises will continue to use the mediation method, 78% will introduce it to other companies. Only 2% of businesses said they would not use mediation anymore. This result shows that the demand of Vietnamese enterprises for dispute resolution through mediation is very significant. Therefore, the current number of enterprises the development and creation of a standard mechanism for commercial reconciliation shows it is a necessity.

Nevertheless, despite the importance and initial results of helping businesses in trade disputes, according to Nguyen Dinh Tien, Deputy Chief Justice, Economic Court, People's Court of Ho Chi Minh City. In Ha Noi the mediation activities are quite simple, mainly basing on the experience of the judges. For example, the judge must go to the local government to mediate disputes with businesses there. Moreover, the procedures for conciliation are considered to cause more expense and time for enterprises; The procedure of conciliation in court proceedings is considered as an effective one, but it is too closed and relatively cumbersome due to the overwhelming cause of court system with the long time it takes.

Therefore, to overcome these disadvantages, experts and businesses are looking for commercial conciliation activities in accordance with Decree 22 to be implemented smoothly. In addition, businesses want to get into the deeper at the center with a referee, and a mediation center with the set of mediation rules. We have just two arbitration centers registered to conduct commercial reconciliation activities, so hopefully, coming soon will be the presence of foreign trade mediation organizations to jointly participate in activities as stipulated in Decree 22. The prestige and position of these centers as well as trade conciliation activities are strengthened so that enterprises can confidently resolve disputes in trading activities.