Enterprises need to make better use of arbitrators in trade disputes as solving disputes by arbitration is more secret and faster, said VIAC chairman Nguyen Minh Chi in an interview with Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times).
Chi said previously about 80% of cases involved foreign enterprises suing Vietnamese ones but the situation has reversed in the last four years.
Last year alone, 60% of the cases were Vietnamese enterprises suing foreign firms. The reason for this change is that previously, Vietnamese enterprises were not adequately aware of international law and often broke contractual regulations. Now, while integrating into the international market, Vietnamese enterprises, most of which are small and medium-sized, are inexperienced and often bullied by foreign ones. To protect their rights, they have no other choice than suing their bullying partners.
According to the VIAC chairman, today trade disputes arise in various domains, including buying, selling, even buying and selling licenses and trading rights, services supply, hiring, consultancy, financial investment, banking and insurance. Most trade disputes around the world are solved not with trials but by arbitrators since traders never want to waste time by going to court.
Chi said in foreign countries, traders trust arbitration and foreign partners often asked Vietnam to follow the principle that commercial disputes would be dealt with by international arbitrators, not through trials.
He highly recommended that Vietnamese enterprises try to foresee potential disputes. They should make sure contracts mention that if there are disputes, both sides should enter a process of negotiation. If they cannot negotiate, both sides should ask for help from arbitrators. They should mention a concrete group of arbitrators in the contract.
Now the VIAC has 117 members who are experts in various domains of the economy, Mr. Chi said.-