International Commercial Arbitration is a mode of dispute resolution whose initiation is based on the agreement of the parties to the dispute to settle commercial disputes involving foreign elements between traders with each other by an arbitral tribunal consisting of one or more arbitrators on the basis of a procedural order selected by agreement by the disputing parties. The “internationality” of arbitration is decided based on two factors, either used separately or combined: the international nature of the dispute and the identity of the parties.

Law on Commercial Arbitration 2010: “Commercial arbitration means a method of dispute settlement agreed by the parties and conducted in accordance with this Law”.

According to the provisions of Article 2 of the Law on Commercial Arbitration 2020, the following disputes will be resolved by arbitration:

• Disputes among parties arising from commercial activities;
• Disputes among parties at least one of whom conducts commercial activities;
• Other disputes among parties which are  stipulated by law to be resolved by arbitration.

Features of commercial dispute settlement by arbitration 

First, arbitration proceedings often take place quickly to meet the requirements of the disputing parties in maintaining business operations. 

Second, most of the provisions of the law on Arbitration usually recognize the principle of closed trial/hearing unless the parties agree otherwise. 

Third, the arbitrator’s adjudication activities are continuous because the arbitral tribunal hearing the lawsuit is selected by the parties following the agreement, or appointed to settle the case, the arbitrator follows the case from the beginning to the end, thereby saving time and costs for the disputing parties. 

Fourth, the parties have the right to appoint an arbitrator. Accordingly, the parties can choose an arbitral tribunal with capacity, qualifications, and a solid understanding of international commercial law in general and specialized fields related to the dispute in particular. 

Fifth, the arbitral award is a final decision, binding on the parties, unless this decision is canceled by the Court because the arbitration proceedings were not fully followed.

The above are the advantages of dispute resolution by arbitration. It is these advantages that have made the method of dispute resolution by arbitration recognized as an effective method of settlement and used by the parties in this commercial relationship more and more popular in international commercial practice. 

If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!