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In September 26th, 2024, ASL LAW participates in the ALB Vietnam in house Legal Summit 2024 as the speaker of the session “Cross-Border Disputes: Experiences and Key Considerations for Vietnamese Enterprises in Resolving Disputes at SIAC”.
This session aims to provide valuable insights into the arbitration process at SIAC, focusing on best practices and strategies for resolving cross-border disputes efficiently.
With the increasing complexity of international trade and business, arbitration has become a critical tool for legal professionals, and ASL LAW is excited to share their expertise on navigating the SIAC framework to ensure successful outcomes for businesses in Vietnam and beyond.
ASL LAW’s speaker is Mr. Vu Tuan Anh, Associate. According to ALB’s introduction, Mr. Vu Tuan Anh has extensive experience in the field of dispute resolution through arbitration, both domestically and internationally. He focuses on resolving disputes within Vietnamese and international arbitration, striving to assist clients in effectively handling complex issues.
At ASL LAW, Mr. Vu Tuan Anh has expanded his expertise to include areas such as Foreign Investment, Mergers and Acquisitions, Labor Law, and Oil and Gas as well as Hydropower Projects. He has provided advisory services to numerous clients both domestically and internationally, assisting international organizations and businesses in Vietnam with legal issues arising in their operations.
Content of the session
At the begining, Mr. Vu Tuan Anh talks about the arbitral proceeding at SIAC, including the different process that the claimant and the respondent must go through. Besides the name of the documents coresponding to the claimant and respondent, the main difference is that the claimant will submit the notice of arbitration first, initiating the arbitration procedure. In response, the respondent will submit the response to the Notice of Arbitration.
After the procedural case management conference (CMC), the claimant will submit their statement of claim. Consequently, the respondent will submit the statement of Defence and Counterclaim (if any).
After that, Mr. Vu Tuan Anh gives specific intel on the number of disputes involving Vietnam parties at SIAC. In 2019, there were 17 cases. However, this number quickly risened on a year-by-year basis. In 2020, SIAC took 52 cases and it became 55 cases in 2021. The increase met a halt in 2022 as there were only 25 cases and 23 cases follow-up in 2023.
This can be the effects by the Covid-19 pandemic, affecting the number of dispute cases taken by SIAC. Overall, the number of disputes involving Vietnamese parties got resolved at SIAC is still a large number. Therefore, the speaker follows by the key considerations for the Vietnamese party when involved in SIAC cases.
There are some noteworthy experiences that ASL LAW has gone through, including:
– If a party challenges the existence or validity of the arbitration agreement or SIAC’s jurisdiction before the Arbitral Tribunal is formed, the Registrar will decide whether the issue should be referred to the Court. If referred, the Court will determine if the arbitration should continue. Arbitration will cease if the Court finds it inappropriate.
– Any decision by the Registrar or the Court does not affect the Arbitral Tribunal’s ability to rule on its own jurisdiction, including objections related to the arbitration agreement’s validity or scope.
– Among the international cases settled at SIAC, there is a tendency to choose arbitrators respectively from Singapore, the UK, Australia, India, and the US.
– Even if one opposes the jurisdiction of the arbitration agreement or claims that the agreement is invalid, non-existent, or unenforceable, the disputant party must still select an arbitrator.
Third-Party Funding in International Disputes
Third-party funding (TPF) is a financing method in which an entity that is not a party to a particular dispute funds a disputant party’s legal fees or pays an order, award, or judgment rendered against that party, or both.
According to Mr. Vu Tuan Anh’s presentation, SIAC Rules 2016 do not contain any rules on TPF. Instead, SIAC adopted a Practice Note in March 2017 to allow for TPF in international arbitration following its legalisation in the jurisdiction.
Learn more about TPF here.
Enforcement of International Arbitration Awards in Vietnam
The judgment creditors or their lawful representatives may file petitions with Vietnamese Courts for recognition and enforcement of foreign arbitral award if the judgment debtors being individuals reside or work in Vietnam, or the judgment debtors being agencies or organizations are headquartered in Vietnam or their properties related to the enforcement of the judgments or decisions of foreign Courts or foreign arbitral award exist in Vietnam at the time when the applications are filed.
The grounds for the non-recognition of foreign arbitral award in Vietnam is regulated at Article 459 of Vietnam Civil Procedural Code 2015, adapting from Article V New York Convention 1958.
At the end of the speech, Mr. Vu Tuan Anh thanks the audiences, continuing to participate in the ALB Vietnam in house Legal Summit 2024 as a spectator, along with other personnels of ASL LAW. The event has given ASL LAW the opportunity to participate in one of the highest legal stages in Vietnam, as well as in ASEAN region in general.
In the future, ASL LAW will continue to reaffirm its position through actively participating in similar events, expands the connection with legal coworkers of other law firms in order to best support our clients.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for litigation and dispute resolution. If you need any advice, please contact us for further information or collaboration.
