Regulations on Arbitration Centers in Vietnam

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Regulations on Arbitration Centers in Vietnam

In the legal landscape of Vietnam, the presence of arbitration centers plays a pivotal role in providing an effective and alternative mechanism for dispute resolution. These centers offer a platform where parties can resolve conflicts outside the traditional court system, promoting efficiency, expertise, and a streamlined process through an optimized arbitration system.

Functions of Arbitration Centers

Arbitration centers are responsible for organizing and coordinating dispute resolution activities through arbitration proceedings, as prescribed by the arbitration rules, and provide administrative, office, and other assistance to arbitrators during the arbitration process.

Conditions and Procedures for Establishing Arbitration Centers

  1. An arbitration center is established when there are at least five founders who are Vietnamese citizens and meet the qualifications as arbitrators prescribed in Article 20 of the Law on Commercial Arbitration. They submit a proposal for establishment and obtain a License for Establishment from the Minister of Justice.
  2. The application dossier for establishing an arbitration center includes:

a) A proposal for establishment;

b) A draft charter of the arbitration center according to the template issued by the Ministry of Justice;

c) A list of the founders and accompanying documents proving their qualifications as prescribed in Article 20 of the Law on Commercial Arbitration.

  1. Within 30 days from the date of receiving a complete and valid dossier, the Minister of Justice issues a License for Establishment of the arbitration center and approves the charter of the arbitration center. In case of refusal, reasons must be provided in writing.

Registration of Activities of Arbitration Centers

Within 30 days from the date of receiving the License for Establishment, the arbitration center must register its activities with the Department of Justice of the province or centrally-affiliated city where the arbitration center is headquartered. If the arbitration center fails to register within this period, the license becomes invalid.

The Department of Justice issues a Certificate of Activity Registration for the arbitration center within a maximum of 15 days from the date of receiving the registration request.

Publicizing the Establishment of Arbitration Centers

  1. Within 30 days from the date of receiving the Certificate of Activity Registration, the arbitration center must publish in three consecutive issues of a central or local daily newspaper:

a) The name and address of the arbitration center’s headquarters;

b) The scope of activities of the arbitration center;

c) The number of the Certificate of Activity Registration, the issuing authority, the date of issuance;

d) The commencement date of the arbitration center’s activities.

  1. The arbitration center must also display the information specified in Clause 1 of this Article and the list of arbitrators at its headquarters.
  1. An arbitration center possesses legal personality, its own seal, and bank account.
  2. An arbitration center operates not for profit.
  3. An arbitration center may establish branches, representative offices domestically and abroad.
  4. An arbitration center has a Board of Management and a Secretariat. The structure and organization of the arbitration center are stipulated in its charter.

The Board of Management of the arbitration center includes a Chairman, one or more Vice Chairmen, and a possible Secretary-General appointed by the Chairman. The Chairman of the arbitration center is also an arbitrator.

  1. An arbitration center maintains a list of arbitrators.

Rights and Obligations of Arbitration Centers

An arbitration center has the following rights and obligations:

  1. Formulate its charter and procedural rules in compliance with the provisions of the Law on Commercial Arbitration.
  2. Establish standards for arbitrators and procedures for selection, compilation, and deletion of names of arbitrators from its list of arbitrators.
  3. Submit the list of arbitrators and any changes to the list to the Ministry of Justice for public announcement.
  4. Appoint arbitrators to constitute an Arbitration Council in cases specified in the Law on Commercial Arbitration.
  5. Provide arbitration, conciliation, and other commercial dispute resolution services in accordance with the law.
  6. Provide administrative, office, and other necessary services for dispute resolution.
  7. Collect arbitration fees and other lawful charges related to arbitration activities.
  8. Pay remuneration and other expenses to arbitrators.
  9. Organize training to enhance the qualifications and skills of arbitrators in dispute resolution.
  10. Submit annual activity reports to the Department of Justice where the arbitration center registers its activities.
  11. Maintain records and provide copies of arbitral awards as required by the disputing parties or competent state agencies.

Termination of Activities of Arbitration Centers

The activities of an arbitration center terminate in the following cases:

  1. In cases prescribed in its charter;
  2. Revocation of the License for Establishment or Certificate of Activity Registration.

The Government stipulates the specific cases of revocation of the License for Establishment, Certificate of Activity Registration, and the procedures for terminating the activities of arbitration centers.

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