Settling business disputes in Vietnam

According to Clause 1 Article 3 of the Law on Commercial: “Commercial activities mean activities to generate profits, including sale and purchase of goods, provision of services, investment, commercial promotion, and other activities for the profit purpose.”

What are the characteristics of business disputes?

Subjects of business disputes

         Subjects in a dispute are traders with each other or between a trader and a party that is not a trader. Therefore, a dispute is considered a business dispute when at least one party to the dispute is a trader. However, in some cases, other individuals and organizations may be the subject of business disputes such as disputes between companies and company members or disputes between company members related to the establishment, operation, separation, merger, dissolution, the bankruptcy of company…

The basis for arising business disputes

         The basis for the arising business disputes is that one of the parties commits violations in the commercial relationship or commits violations of law. Therefore, a common characteristic in business disputes is conflicting over the rights, obligations, and interests of the parties in commercial activities, which directly affect the economic interests of the parties. Some specific commercial disputes can be mentioned as follows:

    Disputes between parties arising from activities: buying and selling goods, providing services; leasing, lease-purchase, construction, freight, processing, authorization, buying and selling bonds, stocks, financial investment, banking, cooperation, business association, etc.

    Disputes between parties arise related to intellectual property rights, technology transfer between individuals and organizations, and all have profit purposes.

    Disputes between parties arising from other business activities, etc.

Business disputes can be resolved through arbitration

         According to the provisions of Article 2 of the Law on Commercial Arbitration 2010, the arbitration has the jurisdiction to settle the following disputes:

    Disputes among parties which arise from commercial activities;

    Disputes among parties at least one of whom conducts commercial activities;

    Other disputes among parties are stipulated by law to be settled by arbitration.

Therefore, business disputes that are disputed are allowed to choose arbitration as the dispute settlement agency between the parties.

Business dispute resolution methods

         Business disputes are usually resolved through the following four main methods:

Settle business disputes through negotiation

         It is the first method to be chosen by the disputing parties and in fact, most disputes in business and commerce are resolved by this method. The State encourages the parties to apply this method to settle disputes on the principle of respecting the parties’ right to an agreement. In addition, when settling commercial disputes by negotiation, parties can also ask for the support of lawyers to analyze the legal bases and give legal advice for the parties to understand and realize their rights and responsibilities to find a solution as well as reconcile rights and obligations between the parties.

Settle business disputes through mediation

              Mediation is the disputing parties through an intermediary (Mediator/Mediation center), they together discuss and agree to come to an agreement on a solution to their disagreement and voluntarily perform the plan which is agreed through mediation.

Settle business disputes through arbitration

             As analyzed in the section on characteristics of business disputes, the method of business dispute settlement is a characteristic feature of business disputes. Accordingly, the parties agree to bring disputes that have arisen or will arise between them to be resolved at the arbitration center. After considering the dispute, the arbitrator will make an enforceable judgment against the dispute.

Settle business disputes through the Court

             This is a method of dispute settlement that the parties through the procedure-conducting agency to settle.