In Banking Industry”.
Speaking at the opening of the program, Mr. Nguyen Quoc Hung, General Secretary of VNBA said that, due to the development and diversification of the economy, activities in the banking industry, disputes are inevitable and tends to increase. Currently, many economic cases are transferred to the courts which results in overcrowding in courts while the number of judges is insufficient.
Regarding overcrowding in courts which has hindered cases from being handled in a timely manner, Mr. Nguyen Quoc Hung questioned: why don't we choose another dispute settlement method such as commercial mediation and arbitration? The Law on Commercial Arbitration was promulgated on June 17, 2010, 12 years ago. And then, 7 years later, the Government issued Decree No. 22/2017 on commercial mediation. These methods have many advantages compared to dispute settlement in court, but have not yet been applied much.
“We hope that this program would help the participants get useful information from panel of experts sharing their knowlege and experience on commercial arbitration and mediation. Since then, the application of these methods in handling disputes with clients will contribute to handling non - performing loans (NPLs) of credit institutions, especially in the post-COVID-19 context " emphasized Mr. Nguyen Quoc Hung.
 |
|
Ms. Nguyen Thi Kim Thanh, Deputy General Secretary of VAPCF. |
On the side of VAPCF, Ms. Nguyen Thi Kim Thanh, Deputy General Secretary of VAPCF said : “Disputes in commercial banking activities are undesirable but inevitable. We hope the training session could eqquip people's credit funds with adequate knowledge for dispute settlement method selection when a dispute occurs."
Information given by the speakers at the program showed that contractual disputes in the banking industry include: disputes over credit contracts, mortgage contracts and property guarantees between banks and the borrower, the property owner; a dispute over a contract performance guarantee or a payment guarantee; disputes over mortgaged, pledged or guaranteed properties at banks or credit institutions; disputes over deposits at banks; trade finance disputes and other....
According to Assoc. Prof. Dr. Pham Thi Giang Thu, President of VTIAC, there are two methods of settling contract disputes in the banking industry in Vietnam today: "soft" and "drastic" measures. Commercial mediation and arbitration are methods of "soft" measures.
Specifically, commercial mediation is a method of dispute resolution through which commercial banks and clients negotiate to settle disputes with the support of a third party who is an individual or an organization to assist the parties in resolving disputes.
 |
|
Overview of the Training Program |
Meanwhile, commercial arbitration is a method of dispute settlement agreed upon by the parties and regulated by the Law on Commercial Arbitration. The method of settlement through the action of the Arbitrator as an independent third party to end the conflicts by issuing an arbitral award that is having binding force upon the parties.
Legal provisions on mediation include the 2015 Civil Procedure Code (Chapter XXXIII on Procedures for Recognition of Successful Out-of-Court Mediation results), Decree No. 22/2017/ND-CP on Mediation Commercial Law, Law on Civil Judgment Execution No. 26/2008/QH12.
Dr. Lawyer Nguyen Thanh Nam, Vice Chairman cum General Secretary of VTIAC said, the advantage of commercial mediation method is that the procedure is conducted quickly without damaging the reputation of the parties; save time and costs; respect the right to self-determination of the parties; does not affect business relations; secure the business secrets. However, this measure is dependent on the goodwill of the parties and the mediation agreement is not as enforceable as arbitration and court.
The scope of dispute resolution by commercial mediation of VTIAC includes disputes between parties arising from commercial activities; disputes arising between the parties in which at least one party has commercial activities; other disputes between the parties as provided for by law shall be resolved by mediation.
Also according to Dr. LS Nguyen Thanh Nam, regulations on commercial arbitration include Law on Commercial Arbitration 2010, Law on Civil Procedure 2015, Resolution No. 01/2014/NQ-HDTP dated 20/3/ 2014; Law on Enforcement of civil .
"The advantage of commercial arbitration is that the mediation procedure is conducted quickly, the parties can take the initiative in the time and place to settle the dispute; save time and costs compared to the court; secure business secrets; the arbitral award is final and enforceable" shared Dr. LS Nguyen Thanh Nam.
Despite these advantages, in reality, commercial mediation and arbitration has not been widely choosen. Therefore, with the experience shared by the speakers at the program, the participants were equipped with more knowledge to select the best method of settlement when a dispute occurs.