FORMS OF OPERATION OF FOREIGN ARBITRATION ORGANIZATIONS IN VIET NAM

I. Legal basis:

  • Commercial Arbitration Law 2010

II. Foreign arbitration organizations in Vietnam

1. Concept of foreign arbitration

Foreign arbitration is an Arbitrator established under the provisions of foreign arbitration law and selected by the parties to resolve disputes outside the territory of Vietnam or within the territory of Vietnam.

2. Operating conditions of foreign arbitration organizations in Vietnam

In order for a foreign arbitration organization to operate in Vietnam, the foreign arbitration organization must meet the conditions of having been established and operating legally in a foreign country, respecting the Constitution and laws of the Republic. socialist Vietnam, was then allowed to operate in Vietnam under the provisions of the 2010 Commercial Arbitration Law.

3. Forms of operation of foreign arbitration organizations in Vietnam

Forms of operation of foreign arbitration organizations in Vietnam

According to Vietnamese law, foreign arbitration organizations can operate in Vietnam through the following forms:

a) Branches of foreign arbitration organizations (hereinafter referred to as Branches)

According to current regulations, the Branch is a dependent unit of a foreign arbitration organization, established and conducting arbitration activities in Vietnam according to the provisions of this Law. Foreign arbitration organizations and their branches are responsible for the activities of their branches before Vietnamese law.

The foreign arbitration organization shall appoint an Arbitrator to be the Head of the Branch. The Branch Head is the authorized representative of the foreign arbitration organization in Vietnam. Thus, the Head of the Branch of a Foreign Arbitration Organization in Vietnam is one of the Arbitrators of this Organization.

Rights and obligations of branches of foreign arbitration institutions in Vietnam

According to the provisions of Article 76 of the 2010 Commercial Arbitration Law, branches of foreign arbitration organizations in Vietnam have the following rights and obligations:

  • Rent headquarters, rent and purchase necessary facilities and equipment for the Branch’s operations.
  • Recruiting Vietnamese and foreign workers to work at the Branch in accordance with Vietnamese law.
  • Open an account in Vietnamese Dong or foreign currency at a bank licensed to operate in Vietnam to serve the Branch’s operations.
  • Transfer the Branch’s income abroad in accordance with Vietnamese law.
  • Have a seal bearing the name of the Branch in accordance with Vietnamese law.
  • Appoint an Arbitrator to establish an Arbitration Council as authorized by a foreign arbitration organization.
  • Providing arbitration, conciliation services and other commercial dispute resolution methods according to the provisions of law.
  • Providing administrative, office and other services for dispute resolution by foreign arbitration councils.
  • Collect arbitration fees and other legal revenues.
  • Pay remuneration to Arbitrators.
  • Organize training to improve qualifications and dispute resolution skills for Arbitrators.
  • Store records and provide copies of arbitration decisions at the request of the disputing parties or competent Vietnamese state agencies.
  • Operating in accordance with the fields stated in the Establishment License and Operation Registration Certificate.
  • Comply with the provisions of Vietnamese law related to the Branch’s operations.
  • Annually report on the Branch’s activities to the Department of Justice where the Branch is registered to operate.

In general, branches of foreign arbitration institutions have rights and obligations almost equivalent to those of foreign arbitration institutions. The branch can perform part or all of the functions of the parent arbitration organization, and is allowed to directly provide dispute resolution services in Vietnam.

b) Representative Office of Foreign Arbitration Organization (hereinafter referred to as Representative Office).

Representative offices are dependent units of foreign arbitration organizations established and seek and promote opportunities for arbitration activities in Vietnam according to the provisions of the Commercial Arbitration Law 2010. Foreign arbitration organizations Foreigners must be responsible for the activities of the Representative Office before Vietnamese law.

Rights and obligations of the Representative Office of the Vietnam Foreign Arbitration Organization

According to the provisions of Article 78 of the 2010 Commercial Arbitration Law, representative offices of foreign arbitration organizations have the following rights and obligations:

  • Search and promote arbitration opportunities for your organization in Vietnam.
  • Rent headquarters, rent and purchase facilities and equipment necessary for the operation of the Representative Office.
  • Recruiting Vietnamese and foreign workers to work at Representative Offices in accordance with Vietnamese law.
  • Open an account in foreign currency or Vietnamese Dong at a bank licensed to operate in Vietnam and only use this account for representative office operations.
  • Have a seal bearing the name of the Representative Office according to Vietnamese law.
  • Operate in accordance with the purpose, scope and duration specified in the Representative Office Establishment License.
  • Arbitration activities may not be conducted in Vietnam.
  • Only carry out promotional activities and advertise arbitration activities in accordance with Vietnamese law.
  • Comply with regulations of Vietnamese law related to representative office operations.
  • Annually report on the activities of the Representative Office to the Department of Justice where the Representative Office is registered to operate.

Accordingly, unlike branches of foreign arbitration organizations, representative offices of foreign arbitration organizations in Vietnam have the main function of promoting, promoting cooperation, and supporting the activities of arbitration organizations. foreign arbitrators in Vietnam but are not allowed to conduct arbitration activities in Vietnam. This means that the Representative Office team cannot perform the function of resolving disputes in Vietnam

4. Conclusion

The activities of foreign arbitration organizations are governed by the provisions of the 2010 Commercial Arbitration Law and related legal documents. Depending on the form of operation, foreign arbitration institutions must meet legal requirements for registration and operation in Vietnam.

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