Methods to resolve the commercial dispute in Vietnam

Commercial conflicts are a typical occurrence in the normal course of a business. While many conflicts are addressed by the parties themselves, there are times when a proactive and measured approach can assist clients in resolving challenging difficulties quickly and effectively. Disputes must be avoided or resolved efficiently in an increasingly global economy with rising costs and liability. In the recent years, thanks to the completion in many laws and regulation in the field of private law, settling dispute by negotiation, mediation and arbitration has been increasingly encouraged in Vietnam. As of 2012, the majority of commercial disputes in Vietnam had been resolved by court proceedings. Arbitration had also been used as one of the methods for dispute settlement but only in a limited number of cases (accounting for about 1% of total number of trade disputes. Claimants also chose commercial mediation although its popularity is not significant with a narrow spread.