THE PROCESS OF ARBITRAL PROCEEDINGS AT VTIAC
Arbitration is an alternative dispute resolution method outside of the courtroom, which shall be selected by the disputing parties in an arbitration agreement. Currently, arbitration is widely recognized by domestic and international law because of its effectiveness. In Vietnam, the law on arbitration is stipulated in the Law on Commercial Arbitration 2010 and related legal documents.
The Vietnam Trade and Investment Arbitration Center (VTIAC) is an arbitration center established under Vietnamese law, which is a non-governmental organization with the function of resolving disputes by arbitration and mediation. The procedures for dispute settlement by arbitration at VTIAC are as follows:
Step 1. File a claim
The Claimant shall submit its Request for Arbitration and pay the arbitration fee to VTIAC. In the meantime, the Claimant should enclose the arbitration agreement, the original, or the certified copy of relevant documents. The Request for Arbitration shall contain the following information: a. Date, month, and year on which the Request for Arbitration is made; b. Names and addresses of the parties; c. Name and address of the witness, if any; d. Summary of the content of the dispute; D. Grounds for the claims, if any; e. The specific requirements of the Claimant and the monetary value of the dispute; g. Name of the person selected by the Claimant to act as an Arbitrator from the VTIAC's List of Arbitrators or a request to the Center’s President to appoint an Arbitrator.
Step 2. Notice of the Request for Arbitration
Unless the parties have agreed otherwise on the period of time, the Centre shall, within 07 days from the date of receipt of the Request for Arbitration, the arbitration agreement, other relevant documents, and the arbitration fee as mentioned above send the Claimant a Notice. At the same time, VTIAC sends the Respondent a Notice, a copy of the Request for Arbitration, attached documents of the Claimant, the name of the Arbitrator selected by the Claimant appointed by the President of VTIAC, the List of Arbitrators of VTIAC, Arbitration Rules and Arbitration Fee Schedule of VTIAC all together. VTIAC also sends the Claimant's Arbitrator a copy of the Request for Arbitration and accompanying documents.
Step 3. Respondent submits a Statement of Defense/ Counterclaim – Constitution of an Arbitral Tribunal
3.1. Respondent submits a Statement of Defense/ Counterclaim
The Respondent shall, within 30 days from the date of receipt of the Notice, the Request for Arbitration, and other relevant documents, submit to the Centre a Statement of Defence. The Centre may, depending on the specific circumstances, extend the period of time for submission of the Statement of Defence, but not later than 60 days from the date the Respondent receives the documents sent by VTIAC. The content of the Respondent’s Statement of Defense and accompanying documents shall comply with the provisions of the VTIAC Arbitration Rules.
The Respondent shall have the right to file a counterclaim against the Claimant. The Counterclaim and relevant documents shall be submitted to the Centre at the same time as and with the submission of the Statement of Defence.
3.2. Constitution of an Arbitral Tribunal
* If the arbitration agreement stipulates that the Arbitral Tribunal comprising a Sole Arbitrator
The parties shall, within 30 days from the date on which the Respondent receives the Notice, the Request for Arbitration, the arbitration agreement, and other relevant documents, agree on the selection of a Sole Arbitrator. Otherwise, the Centre’s President shall, within 15 days after the expiry date of the aforesaid period of time, make a decision to appoint the Sole Arbitrator.
* If the arbitration agreement stipulates that the Arbitral Tribunal comprising three Arbitrators:
The Respondent shall select an Arbitrator or request the Centre to appoint an Arbitrator and shall notify the Centre within 30 days from the date of receipt of the Notice, the Request for Arbitration, and other relevant documents. If the Respondent fails to do so, the Centre’s President shall, within 07 working days after the expiry date of the period of time, make a decision to appoint an Arbitrator.
Within 15 days from the date on which the Arbitrator selected by the Respondent or appointed by the Centre’s President receives the notice of the selection or appointment, the two Arbitrators shall select the third person who will act as the Presiding Arbitrator of the Arbitral Tribunal and shall notify the Centre. If the Centre does not receive the notification by the expiry of the period of time, the Centre’s President shall, within 07 working days after the expiry date of the period of time, make a decision to appoint the Presiding Arbitrator of the Arbitral Tribunal.
Step 4. Notice to Claimant and Arbitrator
Within 07 working days from the date VTIAC receives the State of Defense/ Counterclaim and accompanying documents of the Respondent, the Centre shall send the Claimant and the Arbitrators a Notice about these documents. Procedures for settlement of counterclaims shall be carried out in the same manner as those of Request for Arbitration.
Step 5. Claimant submits a Statement of Defense
Within 30 days from the date of receipt of the Counterclaim and accompanying documents sent by VTIAC, the Claimant shall send VTIAC the Claimant's State of Defence. At the request of the parties, the Centre may extend the period of time for submission of the Statement of Defence for the Claimant, but not later than 60 days from the date mentioned before. The request for an extension must be in writing and delivered to the Centre within 30 days from the date as determined in the first sentence.
Step 6. The Arbitral Tribunal examines the arbitration agreement
Before considering the merits of the dispute, the Arbitral Tribunal shall consider the validity of the arbitration agreement; whether or not the arbitration agreement is capable of being performed; and its jurisdiction.
Step 7. Notice of proceeding or stay of dispute resolution
In case the dispute is not within the arbitration’s jurisdiction, the arbitration agreement is invalid or incapable of being performed, the Arbitral Tribunal shall issue a decision to stay the dispute resolution and immediately notify the parties thereof.
In case the dispute falls under its jurisdiction, the Arbitral Tribunal shall settle the dispute following the law on arbitration and VTIAC Arbitration Rules.
A summon to attend a hearing shall be sent by the Centre to the parties within a period of time no less than 30 days before the date of the hearing unless the parties have agreed otherwise. The summon to the next hearing and also the summon for the first hearing (due to the postponement of that hearing) shall not be sent to the parties at least 30 days before the date of the hearing unless otherwise agreed by the parties.
Step 8. Prepare and Organize the hearing
The Arbitral Tribunal shall verify facts, collect evidence, summon witnesses, order interim measures, and support the parties in negotiation and mediation.
Hearings may be held online or in person at a place agreed upon by the parties or selected by the Arbitral Tribunal if the parties have agreed so. Hearings shall be conducted in camera unless the parties have agreed otherwise.
The litigation at the hearings shall be conducted under the direction of the Presiding Arbitrator and according to the process specified in the VTIAC Arbitration Rules. The parties shall have the right to invite witnesses and persons who protect their legal rights and interests to attend hearings and shall notify the Arbitral Tribunal before the date of hearings.
Step 9. Issuance of the Arbitral Award
The Arbitral Tribunal issues an Arbitral Award by voting on the principle of majority. If there is no majority, the Arbitral Award shall be decided by the Presiding Arbitrator alone. The Arbitral Award shall be issued immediately at the hearing or no later than 30 days from the date on which the final hearing finishes.
Within 30 days from the date of issuance of the Arbitral Award, the Arbitral Tribunal may amend or supplement at the request of one of the parties if they consider such request legitimate.
Step 10. Archival of arbitration dossiers
Arbitral Award shall be sent to the parties, and related agencies and archived at VTIAC under the provisions of VTIAC Arbitration Rules.
* Negotiate and mediation
At any time after the arbitration proceedings commence and before the Arbitral Award is issued, if the parties themselves negotiate and agree to terminate the dispute settlement, the parties have the right to request the Arbitral Tribunal to issue a decision staying the dispute resolution.
The parties can mediate themselves or request the Arbitral Tribunal to conduct a mediation. If the mediation is successful, a minutes of successful mediation shall be drafted. The minutes shall be signed by the parties and the Arbitrators or the Sole Arbitrator. In such case, the Arbitral Tribunal shall make the Decision recognizing the successful mediation. The Decision of the Arbitral Tribunal shall be as valid as an Arbitral Award.
The Secretariat of VTIAC
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The Vietnam Trade and Investment Arbitration Center (VTIAC) is an arbitration center established under Vietnamese law, which is a non-governmental organization with the function of resolving disputes by arbitration and mediation. The procedures for dispute settlement by arbitration at VTIAC are as follows:
Step 1. File a claim
The Claimant shall submit its Request for Arbitration and pay the arbitration fee to VTIAC. In the meantime, the Claimant should enclose the arbitration agreement, the original, or the certified copy of relevant documents. The Request for Arbitration shall contain the following information: a. Date, month, and year on which the Request for Arbitration is made; b. Names and addresses of the parties; c. Name and address of the witness, if any; d. Summary of the content of the dispute; D. Grounds for the claims, if any; e. The specific requirements of the Claimant and the monetary value of the dispute; g. Name of the person selected by the Claimant to act as an Arbitrator from the VTIAC's List of Arbitrators or a request to the Center’s President to appoint an Arbitrator.
Step 2. Notice of the Request for Arbitration
Unless the parties have agreed otherwise on the period of time, the Centre shall, within 07 days from the date of receipt of the Request for Arbitration, the arbitration agreement, other relevant documents, and the arbitration fee as mentioned above send the Claimant a Notice. At the same time, VTIAC sends the Respondent a Notice, a copy of the Request for Arbitration, attached documents of the Claimant, the name of the Arbitrator selected by the Claimant appointed by the President of VTIAC, the List of Arbitrators of VTIAC, Arbitration Rules and Arbitration Fee Schedule of VTIAC all together. VTIAC also sends the Claimant's Arbitrator a copy of the Request for Arbitration and accompanying documents.
Step 3. Respondent submits a Statement of Defense/ Counterclaim – Constitution of an Arbitral Tribunal
3.1. Respondent submits a Statement of Defense/ Counterclaim
The Respondent shall, within 30 days from the date of receipt of the Notice, the Request for Arbitration, and other relevant documents, submit to the Centre a Statement of Defence. The Centre may, depending on the specific circumstances, extend the period of time for submission of the Statement of Defence, but not later than 60 days from the date the Respondent receives the documents sent by VTIAC. The content of the Respondent’s Statement of Defense and accompanying documents shall comply with the provisions of the VTIAC Arbitration Rules.
The Respondent shall have the right to file a counterclaim against the Claimant. The Counterclaim and relevant documents shall be submitted to the Centre at the same time as and with the submission of the Statement of Defence.
3.2. Constitution of an Arbitral Tribunal
* If the arbitration agreement stipulates that the Arbitral Tribunal comprising a Sole Arbitrator
The parties shall, within 30 days from the date on which the Respondent receives the Notice, the Request for Arbitration, the arbitration agreement, and other relevant documents, agree on the selection of a Sole Arbitrator. Otherwise, the Centre’s President shall, within 15 days after the expiry date of the aforesaid period of time, make a decision to appoint the Sole Arbitrator.
* If the arbitration agreement stipulates that the Arbitral Tribunal comprising three Arbitrators:
The Respondent shall select an Arbitrator or request the Centre to appoint an Arbitrator and shall notify the Centre within 30 days from the date of receipt of the Notice, the Request for Arbitration, and other relevant documents. If the Respondent fails to do so, the Centre’s President shall, within 07 working days after the expiry date of the period of time, make a decision to appoint an Arbitrator.
Within 15 days from the date on which the Arbitrator selected by the Respondent or appointed by the Centre’s President receives the notice of the selection or appointment, the two Arbitrators shall select the third person who will act as the Presiding Arbitrator of the Arbitral Tribunal and shall notify the Centre. If the Centre does not receive the notification by the expiry of the period of time, the Centre’s President shall, within 07 working days after the expiry date of the period of time, make a decision to appoint the Presiding Arbitrator of the Arbitral Tribunal.
Step 4. Notice to Claimant and Arbitrator
Within 07 working days from the date VTIAC receives the State of Defense/ Counterclaim and accompanying documents of the Respondent, the Centre shall send the Claimant and the Arbitrators a Notice about these documents. Procedures for settlement of counterclaims shall be carried out in the same manner as those of Request for Arbitration.
Step 5. Claimant submits a Statement of Defense
Within 30 days from the date of receipt of the Counterclaim and accompanying documents sent by VTIAC, the Claimant shall send VTIAC the Claimant's State of Defence. At the request of the parties, the Centre may extend the period of time for submission of the Statement of Defence for the Claimant, but not later than 60 days from the date mentioned before. The request for an extension must be in writing and delivered to the Centre within 30 days from the date as determined in the first sentence.
Step 6. The Arbitral Tribunal examines the arbitration agreement
Before considering the merits of the dispute, the Arbitral Tribunal shall consider the validity of the arbitration agreement; whether or not the arbitration agreement is capable of being performed; and its jurisdiction.
Step 7. Notice of proceeding or stay of dispute resolution
In case the dispute is not within the arbitration’s jurisdiction, the arbitration agreement is invalid or incapable of being performed, the Arbitral Tribunal shall issue a decision to stay the dispute resolution and immediately notify the parties thereof.
In case the dispute falls under its jurisdiction, the Arbitral Tribunal shall settle the dispute following the law on arbitration and VTIAC Arbitration Rules.
A summon to attend a hearing shall be sent by the Centre to the parties within a period of time no less than 30 days before the date of the hearing unless the parties have agreed otherwise. The summon to the next hearing and also the summon for the first hearing (due to the postponement of that hearing) shall not be sent to the parties at least 30 days before the date of the hearing unless otherwise agreed by the parties.
Step 8. Prepare and Organize the hearing
The Arbitral Tribunal shall verify facts, collect evidence, summon witnesses, order interim measures, and support the parties in negotiation and mediation.
Hearings may be held online or in person at a place agreed upon by the parties or selected by the Arbitral Tribunal if the parties have agreed so. Hearings shall be conducted in camera unless the parties have agreed otherwise.
The litigation at the hearings shall be conducted under the direction of the Presiding Arbitrator and according to the process specified in the VTIAC Arbitration Rules. The parties shall have the right to invite witnesses and persons who protect their legal rights and interests to attend hearings and shall notify the Arbitral Tribunal before the date of hearings.
Step 9. Issuance of the Arbitral Award
The Arbitral Tribunal issues an Arbitral Award by voting on the principle of majority. If there is no majority, the Arbitral Award shall be decided by the Presiding Arbitrator alone. The Arbitral Award shall be issued immediately at the hearing or no later than 30 days from the date on which the final hearing finishes.
Within 30 days from the date of issuance of the Arbitral Award, the Arbitral Tribunal may amend or supplement at the request of one of the parties if they consider such request legitimate.
Step 10. Archival of arbitration dossiers
Arbitral Award shall be sent to the parties, and related agencies and archived at VTIAC under the provisions of VTIAC Arbitration Rules.
* Negotiate and mediation
At any time after the arbitration proceedings commence and before the Arbitral Award is issued, if the parties themselves negotiate and agree to terminate the dispute settlement, the parties have the right to request the Arbitral Tribunal to issue a decision staying the dispute resolution.
The parties can mediate themselves or request the Arbitral Tribunal to conduct a mediation. If the mediation is successful, a minutes of successful mediation shall be drafted. The minutes shall be signed by the parties and the Arbitrators or the Sole Arbitrator. In such case, the Arbitral Tribunal shall make the Decision recognizing the successful mediation. The Decision of the Arbitral Tribunal shall be as valid as an Arbitral Award.
The Secretariat of VTIAC