Top Reasons Why Businesses Should Opt for Commercial Arbitration to Settle Disputes

In today fast-paced business landscape, conflicts and disputes are an inevitable part of conducting commercial activities. When disagreements arise, it is crucial for businesses to have an effective dispute resolution mechanism in place to ensure a fair and timely resolution. There are many modes of dispute settlement, with the same destination being an effective judgment or decision of the dispute settlement agency, but Commercial arbitration is a superior dispute resolution mode to the Court. In this post, Apolo Lawyers (Tel: (+84) 903. 419. 479) will give the top reasons Why Businesses Should Opt for Commercial Arbitration to Settle Disputes?.

1. What is Commercial Arbitration?

According to Clause 1, Article 3 of the Law on Commercial Arbitration 2010, Commercial arbitration is a mode of dispute settlement agreed upon by the parties and conducted by the Law on Commercial Arbitration.

What is Commercial Arbitration?

2. Reasons why business should opt for commercial arbitration to settle dispute.

(i). Flexibility and Customization

According to the provisions of arbitration law, when the parties agree to settle disputes by Commercial arbitration, arbitration mechanism will be applied to resolve disputes. This is a select mechanism, not the same as the Court, which will default to a dispute settlement mechanism if the parties do not have another select agreement. It can be seen that the arbitration mechanism gives the parties more selections and initiative in dispute settlement.

According that, commercial arbitration provides businesses with the flexibility to customize the arbitration process to suit their specific needs. Parties can choose their arbitrators, determine the rules governing the proceedings, and even select the language in which the arbitration will be conducted. This flexibility allows for a more efficient and tailored resolution process, ensuring that the arbitrators have expertise in the relevant industry and are well-equipped to understand the complexities of the dispute.

(ii). Confidentiality and Privacy:

Commercial arbitration offers a high degree of confidentiality and privacy, which is often crucial for businesses. Unlike court proceedings, which are generally open to the public, arbitration proceedings are conducted in a private setting. This confidentiality helps protect sensitive business information, trade secrets, and maintains the reputation of the involved parties. By keeping disputes out of the public eye, businesses can avoid potential negative publicity and maintain their competitive edge (especially for companies listed on stock exchanges).

In particular, there are lawsuits related to trade secrets and inventions or other factors that need to be kept confidential at the request of the parties.

(iii) Expertise and Neutrality:

In commercial arbitration, parties have the opportunity to select arbitrators with expertise in the subject matter of the dispute. This allows for a more informed decision-making process, as the arbitrators can assess the technical aspects of the dispute accurately. Moreover, arbitrators are neutral and independent, ensuring an unbiased resolution. This impartiality helps businesses have confidence in the arbitration process and the final outcome.

(iv). Speed and Efficiency:

Unlike traditional litigation, which can be time-consuming and subject to court backlogs, commercial arbitration offers a faster and more efficient resolution process. Parties have greater control over the timetable, allowing them to set deadlines for various stages of the arbitration. The streamlined process reduces unnecessary delays, enabling businesses to resolve disputes in a more timely manner and focus on their core operations.

(v). Final and Global Enforceability:

The arbitral award is different from the judgment or decision of the court which is final and cannot be appealed or protested against.

In the case an international commercial contract arises, the judgment of the National Court is commonly difficult to achieve international recognition. Due to the Court essence within a country jurisdiction, it is common for the Court decision to be recognized in another country which has to be adopted by bilateral agreement and under very strict rules. In contrast, commercial arbitration awards are recognized and enforceable under international treaties and conventions, such as the New York Convention. This global enforceability ensures that businesses can have their arbitration awards recognized and enforced in multiple jurisdictions, making it an ideal choice for international commercial disputes. 

This advantage provides businesses with a sense of security and guarantees that the resolution reached through arbitration will be effective worldwide.

Reasons why business should opt for commercial arbitration to settle dispute

In today competitive business landscape, choosing the right dispute resolution mechanism is crucial for businesses to thrive. Commercial arbitration offers a compelling alternative to traditional litigation, providing confidentiality, expertise, flexibility, cost-effectiveness, and enforceability. By opting for commercial arbitration, businesses can secure efficient and effective resolutions, minimizing the impact of disputes on their operations. In an era where time and resources are highly valued, commercial arbitration emerges as a strategic choice for businesses seeking a fair and favorable resolution

We are proud to introduce a prestigious Law Firm in Ho Chi Minh City - Apolo Lawyers Law Firm. With a team of experienced lawyers and legal experts with highly specialized knowledge in the field of commercial dispute, with a deep understanding of Vietnamese law, international law especially commercial arbitration, we commit that our clients will be solved problems with the fastest progress and achieve your wishes in accordance with the law. Please contact us using the information below to be consulted and supported by Apolo Lawyers Law Firm.

The clients can contact Apolo Lawyers - Solicitors & Litigators via Hotline: (+84) 903. 419. 479 to present your problem for the lawyer and be given the best advice.

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