THE REGULATIONS FOR THE COMMERCIAL ARBITRATION CENTER

When arising dispute issues, the parties will always seek and require competent authorities to resolve such disputes. Specifically, in the commercial profession, commercial arbitration is one of the most popular methods of resolving disputes. Thus, What is an Arbitration Center? How is a Commercial Arbitration Center stipulated?.

I. Definition of a Commercial Arbitration Center

Pursuant to the Law on Commercial Arbitration 2010, a Commercial Arbitration Center is a center that has functions of organizing or co-ordinating activities for resolving disputes by an Arbitration, and supporting Arbitrators to resolve issues regarding administration, office and other supports during an arbitration proceeding.

II. Regulations for the Commercial Arbitration Center

1. Conditions and procedures for establishing the Commercial Arbitration Center

Conditions for establishing the Commercial Arbitration Center: the Commercial Arbitration Center is established when it has at least five (05) founders, who are Vietnamese citizens and have enough conditions to become an Arbitrator according to Article 20 of the Law on Commercial Arbitration 2010 request for establishing, and when it is granted the Establishment License by the Minister of Justice.

Procedures for establishing the Commercial Arbitration Center, as follows:

• A proposal application for establishing the Commercial Arbitration Center includes:
• A proposal application for establishing;
• A draft Charter of the Commercial Arbitration Center according to samples promulgated by the Ministry of Justice;
• A list of founders and attached documents demonstrating such persons have full conditions as defined by Article 20 of the Law on Commercial Arbitration 2010.

Within thirty (30) days from the date of receiving fully valid documents, the Minister of Justice will grant the Establishment License for the Commercial Arbitration Center, and approve the Charter of such the Center; If the Minister of Justice refuses the grant and approval, they have to respond in writing and clearly present reasonable reasons.

2. Functions of the Commercial Arbitration Center

Pursuant to Article 23 of the Law on Commercial Arbitration 2010, the Commercial Arbitration Center has organizing or co-ordinating functions for activities of dispute resolution by an Arbitration, and supports Arbitrators to resolve issues regarding administration, office and other supports during an arbitration proceeding.

3. Rights and obligations of the Commercial Arbitration Center

Arbitrators have the following rights according to Article 21 of the Law on Commercial Arbitration 2010:

• Firstly, Arbitrators have the right to accept or deny resolving dispute issues;
• Secondly, Arbitrators are independent when settling or resolving disputes. This is an important principle in proceeding and ensuring sentenced judgments that are equal and objective;
• Thirdly, Arbitrators have the right to deny providing information related to dispute issues. This is an advantage of the arbitration method. The parties can require an arbitrator to close or unpublic trial disputes to ensure prestigious and important information about the parties;
• Finally, Arbitrators have the right to receive remuneration.
• Besides those rights, Arbitrators have to comply with some obligations according to the Law, as follows:
• Firstly, Arbitrators have to secretly keep disputes information settled themselves; except for they have to provide that information to the competent Agencies according to the Law. These are both the rights and basic obligations of Arbitrators;
• Secondly, Arbitrators have to ensure that disputes are resolved equally, promptly and opportunely;
• Finally, Arbitrators have to comply with professional principles. 

4. Registration for operation of the Commercial Arbitration Center

When registering the operation of the Commercial Arbitration Center, it is necessary to have one (01) application, as follows:

• Application for operation registration;
• An authenticated copy of the Establishment License for the Arbitration Center; If submitting a copy, it is necessary to attach an origin in preference;
• An authenticated copy of a Charter of the Arbitration Center; If submitting a copy, it is necessary to attach an origin in preference;
• Demonstrative documents in a headquarters of the Arbitration Center (an origin or an authenticated copy).

Within fifteen (15) days from the date of receiving valid applications, the Department of Justice is responsible for granting the Operation Registration Certificate to the Arbitration Center. Within seven (07) days from the date of granting the Operation Registration Certificate to the Arbitration Center, the Department of Justice has to send one (01) copy of the Operation Registration Certificate to the Ministry of Justice. After being granted the Operation Registration Certificate, the Arbitration Center will publish an establishment according to Article 26 of the Law on Commercial  Arbitration 2010 and make a seal as defined by the Law; and it will start operation. 

III. Some questions and answers regarding the Commercial Arbitration Center

1. Does the Commercial Arbitration Center have a legal entity?

Pursuant to Article 27 of the Law on Commercial Arbitration 2010 stipulating a legal entity and structure of the Commercial Arbitration Center, the Commercial Arbitration Center will have a legal entity, a particular seal and account.

2. What are the cases that the Commercial Arbitration Center is terminated?

Pursuant to Clause 1, Article 29 of the Law on Commercial Arbitration No 54/2010/QH12 on June 17, 2010, the Commercial Arbitration Center will terminate operation, as follows:

• Cases are stipulated according to a Charter of the Arbitration Center;
• The Commercial Arbitration Center has revoked the Operation Registration Certificate and Establishment License.

3. How long is the duration for publishing the establishment of the Commercial Arbitration Center?

Pursuant to Article 26 of the Law on Commercial Arbitration 2010, the duration for publishing the establishment of the Commercial Arbitration Center is thirty (30) days from the date of granting the Operation Registration Certificate, the Commercial Arbitration Center has to publicize at the daily newspapers of the Central or Local where the Center registers operation.  

4. What are the cases that the Commercial Arbitration Center has revoked the Operation Registration Certificate?

 The Commercial Arbitration Center has revoked the Operation Registration Certificate in the following cases:

• The Commercial Arbitration Center has violating behaviors that are fined in administration but still repeat an offense;
• The Commercial Arbitration Center doesn’t perform any activity as defined by a Charter or the Establishment License within five (05) years from the date of granting the Operation Registration Certificate;
• Within thirty (30) days from the date of receiving the Establishment License, the Commercial Arbitration Center doesn’t perform operation registration at the Department of Justice in the Province or City under central where the Center locates its headquarter;
• If the Commercial Arbitration Center doesn’t amend or supplement Charters or arbitration proceeding principles to be appropriate to the Law on Commercial Arbitration within twelve (12) months from the date the Law on Commercial Arbitration has validity.

These are all information relating to THE REGULATIONS FOR THE COMMERCIAL ARBITRATION CENTER as prescribed by Vietnamese Law. Please don’t hesitate to contact us, if the clients have any further questions.

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