Current status of international trade disputes in Vietnam

International trade disputes are one of the emerging issues in the economic market of Vietnam. In order to handle the current situation of international commercial disputes in Vietnam, arbitration is a method that is respected both in the country and around the world. So what is international trade? Why is the above form appropriate and should be applied in today’s practice?

What is international trade?

International trade is the exchange of goods and services between countries. The exchange process is subject to the principle of parity or benefits to the parties. Along with the development of globalization and industrialization, international trade is gradually growing stronger than ever.

Current status of international trade disputes in Vietnam

In Vietnam today, arbitration is being widely applied. Because our country is a late developed country. So with the requirement Along with the needs of practice, the Vietnamese government has established the Vietnam International Arbitration Center (VIAC). VIAC is a non-governmental organization competent to settle disputes arising from international economic relations. Such relationships include: purchase and sale contracts, investment contracts, travel, health insurance, etc.

The reality of international trade in Vietnam shows that every year the number of disputes resolved by international arbitration in Vietnam is increasing. From the period 1993-2003 to solve 18 cases/year, in the period 2004-2010, 42 cases/year were solved. The team of arbitrators is constantly growing in both quantity and quality. In the first 6 months of 2012, 37 more arbitrators were admitted, including 12 foreign arbitrators.

However, domestic commercial arbitration has not yet prospered compared to other countries in the region and the world. The main reason is still due to overlapping and flawed legal regulations. Not to mention because most Vietnamese people respect the court more than arbitration. Some arbitrations have not yet met the requirements when commercial disputes become increasingly complex and foreign elements.

Advanced solutions to settle disputes by arbitration

From the above situation, it is necessary to have solutions to improve settlement by arbitration. The State needs to have specific activities to support this mechanism to develop further. To do that, it is necessary to have a coordination mechanism from more competent state agencies. Directly here is the court, in the function of enforcement as well as recognition of judgments.

For international trade disputes to be highly effective. Much depends on the attitudes of the participants. The propaganda, dissemination and spread of this form to businesses, so that they better understand, as well as grasp the nature and advantages of this form. This mechanism will be further developed. Before successful dissemination, the most important thing is to have a team of highly qualified arbitrators. Ensure the most reasonable and legal dispute resolution process.

Advantages of resolving disputes by arbitration

Based on the reality of international trade in Vietnam, international arbitration is gradually being used more widely. All fields with foreign elements related to civil, investment, labor, insurance… are handled thoroughly by VIAC. Especially in foreign trade contracts, if there is a dispute, this is the most commonly used method because:

– The processing procedure is quick and convenient.

– Judgments from highly qualified arbitrators. Bring accuracy, objectivity, reliability.

– Ensuring confidentiality between the parties to the dispute.

– Decisions made are final.

Therefore, based on the reality of international trade in Vietnam. International arbitration is a method with many outstanding advantages. Therefore, to be able to quickly integrate into the world economy. We need to constantly improve the national legal system in general and the law on arbitration in particular.