Is it better to arbitrate in Vietnam or to arbitrate abroad?
Three types of dispute qualify for arbitration in Vietnam. Firstly, disputes involving “commercial activity” can be arbitrated. Commercial activity is any “activity with a profit-making purpose comprising the purchase and sale of goods, provision of services, investment, commercial enhancement, and other activities for profit-making purposes.” Secondly, arbitration is allowed if one party to the contract is engaged in a commercial activity, say, a vendor in a dispute with a customer. Finally, the law requires that some disputes be settled by arbitration. Disputes that are specifically stipulated by law also qualify for arbitration. For example, contracts that relate to investments under the 2014 Law on Investment, qualify for arbitration. Arbitration is not a general right. Use of arbitration is subject to agreement. That is, the parties have to agree to arbitrate. Agreement to arbitrate can be made in any written form. The agreement may be part of an underlying agreement that is itself in dispute or it may be a separate agreement to arbitrate. Any modification, extension, termination, or invalidity of the contract will not affect the arbitration clause. This follows the separability doctrine of the New York Convention.