Business – commercial dispute

Limiting and settling business disputes satisfactorily will help enterprises (companies) develop sustainably, make business and investment activities effective. This is also an important service provided by LE PHAM & PARTNERS lawyers to many businesses in Vietnam, including foreign-invested enterprises.

Business – commercial dispute

Business Disputes (also known as ‘Commercial Disputes’, formerly commonly known as ‘Economic Disputes’) are understood as disagreements between entities arising when performing their obligations in business process.

1)Business Dispute Resolution Methods

The issue of choosing a dispute resolution method in business needs to be considered by the parties, choosing based on the set goals, the nature of the dispute, the business relationship between the parties, the time and cost of dispute resolution…

When settling disputes, the parties need to understand the advantages and disadvantages of each method in order to choose the appropriate one. According to the current law, there are methods of dispute resolution in business as follows: Negotiation, mediation, arbitration and court.

a) Negotiation and mediation

Negotiation: As the method chosen first by the disputing parties, negotiation is encouraged to settle disputes in the spirit of respecting the parties’ right to agreement.

Mediation: As a method of dispute resolution with the assistance of a third party, mediation depends on the goodwill of the disputing parties and the reputation, experience and skills of the mediator. However, the final decision of the dispute settlement mediation depends on the disputing parties.

Advantages of Mediation: Mediation procedures are carried out quickly and at low cost, the parties have the right to self-determination, to choose the mediator by themselves according to the set list of conciliators. Mediation is not constrained by time as in legal proceedings. Due to the friendly nature to continue to preserve the business relationship of both parties, conciliation does not lead to confrontation, winning or losing like in court proceedings or arbitration.

Disadvantages: Mediation depends on the will of the parties, rarely used if the parties do not have trust in each other. The mediator has no right to make a binding decision or impose any issue on the disputing parties. Mediation agreements are not enforceable like an arbitration or court award.

b) Arbitration

Arbitration is an indispensable form of dispute resolution in the market economy and is increasingly favored by businessmen, acting as an independent third party to settle disputes by arbitration in order to make a valid award that is obligatory by the parties.

Advantages of dispute resolution by arbitration: Flexibility, the initiative of the parties, speed and time saving can shorten the arbitration proceedings and ensure confidentiality, not limited in terms of territory. After the arbitrator makes an award, the parties have no right to appeal to any organization or court.

Disadvantages of dispute resolution by arbitration: The costs are relatively high and the enforcement of arbitral awards is not as convenient as the enforcement of court judgments and decisions.

c) Court:

Advantages: Courts are the judicial organs of the State, so decisions are highly coercive. If the parties do not comply with the court’s decision, they will be coerced. Therefore, the interests of the winning party will be guaranteed, if the losing party has assets to enforce the judgment.

Disadvantages: Procedures at the court are not flexible due to strict compliance with legal regulations. In addition, the principle of open trial, Although considered progressive but it can sometimes expose business secrets.

2) Choosing a Court or Arbitration for Business Dispute Resolution?

After being consulted by lawyer LE PHAM & PARTNERS, many businesses have chosen Arbitration to settle disputes because there are more advantages than taking each other to Court. According to the arbitration rules, the parties have the right to actively choose the jurisdiction even before and after the dispute arises, is not bound by the place where the dispute arises or where the parties are headquartered as prescribed for the settlement of disputes in Court. In addition to the advantage of being simpler and faster, the arbitral award takes effect immediately and ensures the reputation and business secret of the disputing parties. 

Meanwhile, if resolved through the Court, the parties may have to go through many levels of trial, from the first trial court, appellate court… There are years-long cases and many other disadvantages!

Regardless of which method a business chooses to settle disputes, at any stage of the proceedings, If we find it possible to negotiate with the other party, LE PHAM & PARTNERS lawyers always take advantage of the opportunity to negotiate to resolve disputes, in order to save time and money for the client and maintain long-term business relationships of the parties.

3) Content of consulting business dispute resolution at LE PHAM & PARTNERS

a) Business Dispute Resolution Procedure

• Lawyers receive and process files and information about the case, review the legal document system to come up with a dispute resolution plan.
• Agree with customers on dispute resolution plans and plan to coordinate implementation.
• Contact with relevant parties to negotiate and persuade in order to resolve disputes by negotiation and conciliation.
• Prioritize dispute resolution through mediation.
• Consulting and representing customers to attend work with the disputing parties.
• In case the negotiation fails, the lawyer prepares lawsuit options, advises the client to choose a jurisdiction (in case the client is the plaintiff) or according to the lawsuit (in the case the client is the defendant).
• Consulting and supporting customers in the process of judgment enforcement and other related issues.

b) Economic dispute cases, lawyers LE PHAM & PARTNERS participate in the settlement 

• Disputes arising in business and commercial activities between individuals, organizations that have business registration with each other and all have profit purposes such as: Disputes buying and selling goods;Disputes on service provision and investment; Disputes distribution of goods and services; Disputes over trade promotion and other profitable activities; Dispute representative ; Disputes dealer ; Disputes consignment; Disputes rent, lease, hire purchase; Disputes construction; Disputes transporting goods and passengers; DisputesInvestment …

• Disputes over intellectual property rights, technology transfer between individuals and organizations and all for profit purposes.
• Other disputes about business and commerce that are regulated by law.
• Requests related to the settlement of disputes by Vietnamese commercial arbitration in accordance with the law on commercial arbitration.
• Requesting recognition and enforcement in Vietnam of business and commercial judgments and decisions of foreign courts or non-recognition of business and commercial judgments and decisions of foreign courts without request implemented in Vietnam.
• Request for recognition and enforcement in Vietnam of business and commercial decisions of foreign arbitrators
• Other requirements on business and commerce as prescribed by law

Contact us now to get the best business dispute resolution service with the least cost!