​NOTES ON SETTLEMENT OF DISPUTES IN BUSINESS INVESTMENT ACTIVITIES

NOTES ON SETTLEMENT OF DISPUTES IN BUSINESS INVESTMENT ACTIVITIES

With the rapid increase of investment projects, disputes in investment activities are inevitable. Therefore, the law on investment has issued provisions on dispute settlement in investment activities as an investment guarantee measure. Specifically, what is the law related to this matter? Let HTC Vietnam Law Firm provide advice on settlement of disputes in business investment activities.

First of all, when conducting business investment in Vietnam, investors are provided with diverse and flexible methods of dispute settlement.

First of all, when conducting business investment in Vietnam, investors are provided with diverse and flexible methods of dispute settlement. In particular, it can be chosen from four methods including negotiation and conciliation. If the negotiation or conciliation fails, the dispute shall be settled by an arbitration body or by a court in accordance with the law. Thus, Investors can choose from various forms of dispute settlement with different characteristics, meeting the conditions and needs of each investor depending on the dispute.

Method of dispute settlement

- Negotiation can be understood as a method of dispute settlement, in which the parties come up with a solution and compromise with each other for the purpose of resolving disagreements without either the third party or any mandatory procedures.

- Conciliation can be understood as a method of investment dispute settlement, in which the parties discuss and agree to resolve arising disputes with the support of a third party. It can be an individual or an organization chosen by the parties, the third party only acts as an intermediary to give opinions on the settlement of disputes arising between the parties, has no right to judge and the final decision remains with the disputing parties.

- Arbitration can be understood as a method of investment dispute settlement through the activities of an arbitrator, as an independent third party in order to end a conflict by making an award that forces the disputing parties to carry out.

- Court can be understood as a method of dispute settlement between parties through the operation of a state arbitration agency, in the name of state power to issue judgments that compel the parties to perform their obligations.

The investor's choice for the aforesaid four methods of dispute settlement, is completely at liberty, not restricted to any mandatory order, except for the case of arbitration and court mechanisms. Because according to the current law on commercial arbitration, if the parties to the dispute have had a lawful arbitration agreement, the court will not accept the case for settlement, unless the parties decide to choose the court again.

When choosing jurisdictional methods of dispute settlement, either arbitration or court, the difference in nationality between investors will lead to certain differences in this dispute settlement mechanism.

Such as:

Disputes between domestic investors, foreign-invested business organizations or between domestic investors, foreign-invested economic organizations and regulatory agencies over business investment activities within Vietnam’s territory shall be settled by Vietnam’s arbitral tribunal or Vietnam’s court. However, disputes between investors in which at least one party is a foreign investor or a business organization in the case mentioned in clause 1, Article 23 of the Law on Investment 2020 shall be settled through arbitration, a domestic or international court or an arbitration established by agreement between the disputing parties.

In particular, disputes between a foreign investor and a regulatory agency over business investment activities within Vietnam’s territory shall be settled by Vietnam’s arbitral tribunal or Vietnam’s court, unless otherwise agreed under a contract or prescribed by an international treaty to which the Socialist Republic of Vietnam is a signatory.

Legal consultation on settlement of disputes in business investment activities as follows:

HTC Vietnam Law Firm provides advice on notes on settlement of disputes in business investment activities thusly:

- Consulting to choose the form of settlement when a dispute occurs;

- Consulting regularly for businesses on matters in business investment activities;

- Consulting methods of dispute settlement;

- Being an authorized representative to participate in resolving arising disputes.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Đinh Thi Tuyet Mai/189; Date: 12/03/2022)

Translator: Pham Nguyen Nhat Linh