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Business disputes are among the most common disputes in Vietnam today. With the principle of prioritizing interests, once the parties cannot harmonize their interests, disputes are inevitable. Resolving business disputes is a priority to stabilize production and business operations. So, how many forms of business dispute resolution are there in Vietnam today? What are the costs of resolving disputes? The following article by LHB Law Firm will provide an overview of business dispute resolution in Vietnam. Customers who need business lawyer services, please contact LHB Law Firm via Hotline: +84.969.088.118 (Zalo)..
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Common Business Disputes in Vietnam
Within the management and operation of a business, there exist numerous relationships: relationships among capital-contributing members, between shareholders; relationships between the company and employees; relationships between businesses and state administrative agencies; and production and business relationships with customers. These diverse relationships often lead to a wide variety of disputes. Some common business disputes include:
- Internal business disputes: These may arise between the company and its shareholders or members, between managers and shareholders or members, or among shareholders and capital-contributing members themselves.
- Disputes with employees: Such disputes may involve employment contracts, disciplinary actions, or termination of employment contracts.
- Disputes in production and business activities: These can include contract disputes, intellectual property disputes, and more.
- Disputes related to state management: These disputes arise from administrative procedures in areas such as tax management, business administrative procedures, and investment.
With its expertise, LHB Law Firm will assist clients in resolving disputes effectively and quickly. This allows businesses to focus on production and business activities, thereby optimizing economic efficiency.
Contact Business Lawyer at Hotline +84.969.088.118 (Zalo).
MỤC LỤC
Common Dispute Resolution Methods in Vietnam
According to legal regulations, the following are common methods of dispute resolution currently available in Vietnam:
- Dispute resolution through negotiation;
- Dispute resolution through mediation;
- Dispute resolution at arbitration centers;
- Dispute resolution at competent People’s Courts.
Each dispute resolution method has its own advantages and disadvantages. Clients need to understand the characteristics of each method to choose the one that best suits their case.
Dispute Resolution Through Negotiation
Negotiation involves the disputing parties directly communicating with each other to resolve the conflict. This is usually the first method employed when a dispute arises. Negotiation is a method of dispute resolution that does not involve a third party. With this method, the parties take the initiative to resolve the dispute based on goodwill and honesty. The characteristics of dispute resolution through negotiation are:
- Quick resolution of conflicts when the parties find common ground;
- Confidentiality of information and trade secrets as no third party is involved;
- Low dispute resolution costs and quick resolution time;
- The parties maintain business relationships and reputations.
However, negotiation can sometimes be challenging because it relies mainly on the goodwill of the parties involved. The parties may easily break the agreements reached during the negotiation process.
Resolving Disputes through Mediation
This is a method of resolving disputes involving a third party, known as the mediator. The resolution of disputes through mediation will be based on the agreement between the parties in the contract or when a dispute arises. The parties can choose between procedural commercial mediation or case-by-case commercial mediation. Procedural commercial mediation is a form of dispute resolution conducted by a commercial mediation organization according to legal provisions and the organization’s mediation rules. Case-by-case commercial mediation is a form of dispute resolution conducted by a case-specific commercial mediator chosen by the parties, according to legal provisions and the parties’ agreement.
The parties participate in mediation voluntarily and equally. Information related to the case must be kept confidential by the parties. When the mediation is successful, the mediator will draft a successful mediation document. The parties have the right to request the civil enforcement agency to enforce the successful mediation outcome.
Resolving Disputes at an Arbitration Center
Resolving disputes at an Arbitration Center is becoming an increasingly popular method in Vietnam today. Disputes are resolved through arbitration if the parties have an arbitration agreement. The arbitration agreement can be made either before or after the dispute arises. Arbitration as a method of dispute resolution is gaining popularity for the following reasons:
- Arbitration procedures are quick and efficient, leading to a speedy resolution of disputes.
- The parties can choose the Arbitration Center and the location for resolving the dispute. The language used can also be selected by the parties to fit the case.
- The parties can choose arbitrators with expertise in the relevant field of the dispute. Arbitrators are carefully selected and are knowledgeable and specialized in business and commercial matters.
- The arbitration award has final binding effect and can be enforced.
Commercial arbitration is one of the alternative dispute resolution methods. Business and commercial disputes are often resolved at Arbitration Centers due to their suitability and the benefits they offer.
Resolving Disputes at the People’s Court
The People’s Court is the judicial authority of the Socialist Republic of Vietnam, exercising judicial power. The court, on behalf of the Socialist Republic of Vietnam, adjudicates criminal, civil, family, and commercial cases. Court judgments and decisions with legal effect must be respected by agencies, organizations, and individuals, and relevant parties must comply with them strictly.
A significant number of commercial disputes are adjudicated in Vietnamese courts. As a state authority, the court has the power to request parties to provide relevant documents and evidence to ensure an objective and transparent resolution of the case. Currently, court trials in Vietnam are conducted in two stages: the first instance and the appellate stage. Court proceedings ensure principles of publicness and transparency.
In the field of commercial business, Vietnamese courts also have the authority to annul commercial arbitration awards.
Clients seeking legal services for commercial dispute resolution are kindly invited to contact LHB Law Firm at Hotline: +84.969.088.118 (Zalo).
Court Fees for Resolving Commercial Disputes in Vietnam
Court Fees at the People’s Court
Court fees for commercial disputes at the People’s Court in Vietnam:
| Name of court fee | fee rate | |
| First-instance court fees for disputes related to business and commercial matters | ||
| 1 | For business and commercial disputes without a specified monetary value | 3.000.000 VND |
| 2 | Đối với tranh chấp về kinh doanh, thương mại có giá ngạch | |
| 2.1 | Up to 60.000.000 VND | 3.000.000 VND |
| 2.2 | Over 60.000.000 VND to 400.000.000 VDN | 5% Value of the disputed asset |
| 2.3 | Over 400.000.000 VND to 800.000.000 VND | 20.000.000 VND + 4% Of the portion of the disputed asset value exceeding 400.000.000 VND |
| 2.4 | Over 800.000 VND to 2.000.000.000 VND | 36.000.000 VND + 3% Of the portion of the disputed asset value exceeding 800.000.000 VND |
| 2.5 | Over 2.000.000.000 VND to 4.000.000.000 VND | 72.000.000 VND + 2% cOf the portion of the disputed asset value exceeding 2.000.000.000 VND |
| 2.6 | Over 4.000.000.000 VND | 112.000.000 VND + 0,1% Of the portion of the disputed asset value exceeding 4.000.000.000 VND |
| First-instance court fees for business and commercial disputes | 2.000.000 VND |
(1 USD = 25.465.000 VND according to the exchange rate of Vietcombank on 02/7/2024).
Arbitration fees at the arbitration center.
According to Article 34, Clause 2 of the 2010 Commercial Arbitration Law, arbitration fees are determined by the arbitration center. Clients can refer to the fee schedule of the Vietnam International Arbitration Center (VIAC) as follows:
| Value of the dispute | Arbitration fee (including VAT) |
| Up to 100.000.000 VND | 16.500.000 VND |
| 100.000.001 VND to 1.000.000.000 VND | 16.500.000 VND + 7,7% excess amount 100.000.000 VND |
| 1.000.000.001 VND to 5.000.000.000 VND | 85.800.000 VND + 4,4% excess amount 1.000.000.000 VND |
| 5.000.000.001 VND to 10.000.000.000 VND | 261.800.000 VND + 2,75% excess amount 5.000.000.000 VND |
| 10.000.000.001 VND to 50.000.000.000 VND | 399.300.000 VND + 1,65% excess amount10.000.000.000 VND |
| 50.000.000.001 VND to 100.000.000.000 VND | 1.059.300.000 VND + 1,1% excess amount 50.000.000.000 VND |
| 100.000.000.001 VND to 500.000.000.000 VND | 1.609.300.000 VND + 0,50% excess amount 100.000.000.000 VND |
| 500.000.000.001 VND or more | 3.609.300.000 VND + 0,30% excess amount 500.000.000.000 VND |
(1 USD = 25.465.000 VND according to the exchange rate of Vietcombank 02/7/2024).
Mediation Fees at the Mediation Center
Similar to commercial arbitration, the mediation fees at the Mediation Center are determined by the Center. Clients can refer to the fees of the Vietnam Mediation Center (VMC) as follows:
- The registration fee for mediation is: 0 VND.
- Mediation fees are calculated based on the value of the dispute, which is the total value of all the claims made by the parties in the dispute.”**
In cases where the dispute is resolved by a single Vietnamese mediator, the mediation fees are as follows:
| Trị giá vụ tranh chấp | Phí hòa giải (không bao gồm phí đăng ký hòa giải) |
| 100.000.000 or less | 8.000.000 |
| 100.000.001 to 1.000.000.000 | 8.000.000 + 5,0% excess amount 100.000.000 |
| 1.000.000.001 to 5.000.000.000 | 53.000.000 + 2,0% excess amount 1.000.000.000 |
| 5.000.000.001 to 10.000.000.000 | 133.000.000 +1,3% excess amount 5.000.000.000 |
| 10.000.000.001 to 50.000.000.000 | 198.000.000 + 0,5% excess amount 10.000.000.000 |
| 50.000.000.001 to 100.000.000.000 | 398.000.000 + 0,3% excess amount 50.000.000.000 |
| 100.000.000.001 to 500.000.000.000 | 548.000.000 + 0,2% excess amount 100.000.000.000 |
| 500.000.000.001 or more | 1.348.000.000 + 0,1% s excess amount 500.000.000.000 |
| Unit: VND | |
For special cases, the Director of VMC determines the mediation fees based on the following factors:
- The number of mediators conducting the mediation;
- The value of the dispute;
- The complexity of the dispute;
- The time required to resolve the dispute.
The value of the dispute in foreign currency is converted to Vietnamese Dong according to the transfer exchange rate of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) on the date the Request for Mediation is submitted
Lawyers for Resolving Corporate Disputes in Vietnam
LHB Law Firm is a reputable entity in the field of corporate dispute resolution in Vietnam. With a team of deeply specialized and highly experienced lawyers and legal experts, we are confident in our ability to resolve the issues that our clients face. Over the years, we have consistently received positive feedback from our clients, which has been both a source of joy and a driving force for LHB Law Firm to continue its development. Currently, we offer a wide range of corporate dispute resolution services, including:
- Consulting, assessing, and formulating plans to resolve corporate disputes;
- Lawyers participating in negotiations and settlements of corporate disputes;
- Participating in mediation to resolve disputes at mediation centers;
- Lawyers representing clients in arbitration at arbitration centers;
- Lawyers representing clients in dispute resolution at the People’s Court;
- Assisting in the enforcement of Court Judgments/Decisions and arbitration awards.
With a team of lawyers and a network of offices nationwide, we are capable of resolving disputes for clients across all 63 provinces and cities in Vietnam.
Contact Business Lawyer : Hotline +84.969.088.118 (Zalo).
Service Fees for Lawyers Resolving Corporate Disputes in Vietnam
Are you looking to hire a lawyer for consultation and dispute resolution in Vietnam but unsure about the cost? Please refer to the lawyer service fee schedule in the table below:
| STT | SERVICES | FEE |
|---|---|---|
| 1 | Receiving information and guiding legal procedures. | Free |
| 2 | Direct or telephone consultation with a lawyer | 50 USD/ hour |
| 3 | Written legal consultation. | From 100 USD |
| 4 | Drafting Complaints, Defense Statements. | From 100/page USD |
| 5 | Representing in negotiations and settlements of disputes. | From 1000 USD + %value of the dispute |
| 6 | Participating in dispute resolution at mediation centers. | Agreement. |
| 7 | Participating in litigation and dispute resolution at arbitration centers and People’s Courts. | |
| Requesting the enforcement of judgments and decisions in Vietnam | Agreement. |
(1 USD = 25.465.000 VND according to the exchange rate of Vietcombank 02/7/2024)
If you need legal advice or immediate dispute resolution, you can contact +84.969.088.118 (Zalo) for assistance.
