As business, investment and trade activities continue to expand, disputes between businesses and their partners have become increasingly difficult to avoid. In addition to litigation before the courts, commercial arbitration is becoming a preferred dispute resolution mechanism for many domestic and international businesses due to its professionalism, flexibility, efficiency and confidentiality.
Under Vietnamese law, disputes may be resolved by arbitration where the parties have entered into an arbitration agreement, whether before, during or after the dispute arises. The scope of arbitration includes disputes arising from commercial activities, disputes involving at least one party engaged in commercial activities, and other disputes that may be resolved by arbitration as prescribed by law.
As a dispute resolution mechanism founded on the parties’ agreement and freedom of choice, commercial arbitration plays an increasingly important role in protecting businesses’ legitimate rights and interests, particularly in high-value transactions and cross-border commercial dealings.
Key Advantages of Commercial Arbitration
1. Speed, Flexibility and Time Efficiency
Unlike court proceedings, which may extend over multiple levels of adjudication, arbitration is designed to be relatively streamlined, flexible and efficient. The parties may agree on the venue, timing, language and procedures for resolving their dispute to suit their particular needs.
This flexibility can help shorten dispute resolution timelines, allowing businesses to resume normal operations sooner while saving time, costs and resources.
2. Choice of Arbitrators with Relevant Expertise
One of the key advantages of commercial arbitration is that the parties have the right to select the arbitrators who will resolve their dispute.
Arbitrators often include experienced professionals in fields such as investment, construction, finance, banking, insurance, international trade and intellectual property. Their expertise enables disputes to be considered not only from a legal perspective but also in light of relevant industry knowledge and practical experience, supporting a more informed and technically sound resolution.
3. Confidentiality and Protection of Business Reputation
Unlike court proceedings, which are generally conducted publicly, arbitration proceedings are confidential, subject to applicable laws and arbitration rules.
Case files, the substance of disputes, documentary evidence and dispute resolution outcomes may be protected by applicable confidentiality requirements. This is particularly important for businesses operating in competitive markets or dealing with trade secrets, financial information and strategically significant commercial transactions.
Confidentiality helps reduce the potential adverse impact of disputes on a company’s image, brand reputation and business relationships.
4. Suitability for International Transactions
An arbitral tribunal’s jurisdiction is founded on the parties’ voluntary agreement to arbitrate, rather than directly on the exercise of state judicial authority.
This provides flexibility and neutrality in dispute resolution, making arbitration particularly suitable for cross-border contracts, international investment transactions and disputes involving businesses from different jurisdictions.
5. Final and Binding Arbitral Awards
An arbitral award is final under Vietnamese law, subject to the limited grounds and procedures for setting aside an award prescribed by law. The parties are obliged to comply with the award in accordance with applicable legal requirements.
This finality helps avoid prolonged disputes across multiple levels of court proceedings and promotes greater certainty and stability in commercial, investment and business relationships.
VIETSAVVY’s Commercial Arbitration Services
With a team of lawyers, arbitrators and specialists experienced in commercial, investment and corporate dispute resolution, VIETSAVVY has supported numerous clients in protecting their interests in proceedings before reputable commercial arbitration institutions in Vietnam.
Our services extend beyond representation during arbitration proceedings. We also assist clients from the early stages of contract drafting, legal risk prevention and dispute strategy development, enabling them to respond effectively as soon as a dispute arises.
1. Commercial Dispute Advisory and Representation
- Assessing the circumstances of a dispute and the suitability of arbitration as a resolution mechanism.
- Developing dispute resolution strategies aligned with the client’s objectives.
- Representing or assisting clients in pre-arbitration negotiations and mediation.
- Supporting the protection of clients’ legitimate rights and interests throughout the dispute resolution process.
2. Representation in Arbitration Proceedings under Power of Attorney
- Accepting mandates to participate in arbitration proceedings on behalf of claimants or respondents.
- Preparing statements of claim or submissions in defence of clients’ interests.
- Collecting and assessing evidence and developing a coherent evidentiary strategy.
- Representing clients at hearings and other dispute resolution sessions conducted by arbitration institutions.
3. Drafting and Reviewing Arbitration Clauses
- Advising on the drafting of arbitration clauses in commercial contracts.
- Reviewing dispute resolution clauses to mitigate legal risks.
- Advising on the selection of appropriate domestic and international arbitration institutions.
- Structuring contractual arrangements to protect clients’ legitimate rights and interests if a dispute arises.
4. Commercial Negotiation and Mediation
- Representing or assisting clients in mediation proceedings.
- Negotiating alternative dispute resolution solutions outside formal arbitral proceedings.
- Helping clients pursue favourable settlement outcomes.
- Minimising the time and costs associated with dispute resolution.
5. Enforcement of Arbitral Awards
- Advising on the steps to be taken following the issuance of an arbitral award.
- Assisting clients with the implementation and enforcement of arbitral awards.
- Representing clients in dealings with competent authorities and relevant parties.
- Protecting clients’ interests in proceedings for the recognition or enforcement of arbitral awards, where applicable.
6. Appointment of Lawyers to Protect Clients’ Interests
- Providing lawyers to represent clients in proceedings before commercial arbitration institutions.
- Providing legal representation in domestic commercial mediation proceedings.
- Presenting legal arguments and advocating for clients’ positions and interests.
- Supporting clients throughout the entire process, from the emergence of a dispute until its resolution.
The Value VIETSAVVY Delivers
- A team of lawyers and specialists with extensive practical experience in commercial arbitration.
- Structured, clear and effective dispute resolution strategies.
- Strong advocacy for clients’ legitimate rights and interests.
- An integrated approach combining arbitration advocacy, negotiation and mediation to optimise dispute resolution outcomes.
- Strict adherence to confidentiality obligations and careful protection of client information.
- Continuous support throughout negotiations, arbitration proceedings and the implementation or enforcement of awards.
Contact Us
Every commercial dispute has its own legal characteristics and requires a tailored resolution strategy. Obtaining advice and assistance from experienced lawyers at an early stage can help businesses protect their interests effectively and minimise potential risks.
VIETSAVVY is ready to assist clients with commercial arbitration, commercial mediation, contractual disputes, investment disputes and domestic and international business disputes. Our goal is to deliver effective, timely and practical solutions tailored to each client’s needs.
