Dispute Settlement in International Trade

In international trade, when drafting international contracts, the parties usually focus on the terms of payment but little attention to terms of dispute settlement.  When it comes to dispute, the client should engage trial counsel in Vietnam at early stage to seek advice and representation for better preparation at all stages.

The parties should be aware that the disagreements and disputes can arise at any time. Therefore, in the process of concluding an international economic agreement, the parties should note the provisions on the selection methods of dispute settlement if a dispute occurs.

What are common dispute resolutions methods?

Currently, there are 4 dispute resolution methods in international trade as follows: negotiation, mediation, commercial arbitration and court.

Negotiation

Negotiation is a settlement method which is usually applied in international dispute settlement. In particular, the parties discuss together, struggle, compromise and agree to settle the dispute. The result of the negotiation is that the dispute could be resolve or not. Negotiation is conducted in two ways: The two parties directly meet each other to discuss and deal or one party submit complaint to the other party and the other party answers the complaint.

Mediation

Mediation is the method of resolving dispute between the parties through the role of a third party. Mediation can be accomplished by two ways: One is that the parties agree with each other about mediation, the mediator will be designated and conduct the mediation without following any rules of mediation. The second way is that the parties agree to conduct the mediation under rules of a professional organization or one specific arbitration institution, such as mediation rules of the International Chamber of Commerce (ICC).

Commercial arbitration

Arbitration is a method of dispute settlement arising in trade activities that are agreed between the parties and carried out according to the order and proceedings. Presently, there are kinds of arbitration such as: ad hoc arbitration and permanent arbitration.

Court

The 3 dispute settlement methods above are voluntary in nature. They are different from the dispute settlement in accordance with judicial procedures at court. The settlement of dispute by court is to resolve dispute through the activities of the State tribunals. Therefore, litigants in the dispute are often considered as a final solution to protect their legitimate interests. Especially, when there is a conflict, the parties will choose the form of trade negotiation or mediation rather than commercial arbitration or court.

How Trial Counsel in Vietnam Could Help Litigants?

Trial counsel in Vietnam plays a crucial role in assisting litigants in various methods of dispute resolution, including negotiation, mediation, arbitration, and court proceedings.

Here’s how trial counsel in Vietnam can provide support in each of these dispute resolution methods:

1.Negotiation

• Strategy Development

Trial counsel in Vietnam can assist litigants in developing effective negotiation strategies. This involves analyzing the strengths and weaknesses of each party’s position and identifying potential areas of compromise.

• Communication Skills

Negotiation often requires effective communication. Trial counsel can help litigants articulate their positions clearly, respond to opposing arguments, and work towards mutually acceptable solutions.

2. Mediation

• Representation in Mediation Sessions

Trial counsel in Vietnam can represent litigants during mediation sessions, presenting their case, and advocating for their interests. This includes preparing clients for the mediation process and advising on potential settlement terms.

• Legal Analysis

In mediation, legal issues may still arise. Trial counsel can provide legal analysis during the process, helping litigants understand the legal implications of proposed solutions.

3. Arbitration

• Arbitrator Selection

Trial counsel in Vietnam can assist litigants in the selection of arbitrators, considering factors such as expertise in the subject matter, neutrality, and procedural preferences.

• Evidence Presentation

In arbitration, litigants need to present evidence to support their case. Trial counsel in Vietnam can play a key role in collecting, organizing, and presenting evidence in a compelling manner.

4. Court Proceedings

• Filings

Trial counsel in Vietnam is responsible for preparing and filing legal documents, including complaints, answers required by the court.

• Legal Representation

In court proceedings, trial counsel represents litigants before the judge to present legal arguments.  There is no jury in Vietnam. 

• Adherence to Legal Procedures

Court proceedings are governed by specific legal procedures. Trial counsel ensures that litigants comply with these procedures, avoiding potential pitfalls and maintaining the integrity of the case.

In summary, trial counsel in Vietnam plays a multifaceted role in supporting litigants across negotiation, mediation, arbitration, and court proceedings. Their expertise in legal strategy, communication, representation, and adherence to legal procedures contributes to the overall success of the dispute resolution process.

About ANT Lawyers, a law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

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