Decree No. 116-CP on the organization and operation of Economic Arbitration

DECREE

Regarding the organization and operation of Economic Arbitration

___________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Justice,

DECREE:

PART I

GENERAL PROVISIONS

Article 1.

Economic arbitration is a social-professional organization with authority to resolve disputes concerning economic contracts; disputes between companies and their members, among company members, related to the establishment, operation, and dissolution of companies; disputes related to the purchase and sale of shares and bonds.

Article 2.

1- Economic arbitration shall be organized in the form of an Economic Arbitration Center.

2- The organization and operation of each Economic Arbitration Center shall be determined in its Charter in accordance with this Decree and other relevant legal documents.

Article 3.

1- The parties have the right to agree to choose an Economic Arbitration Center to resolve disputes for themselves, regardless of the location of the headquarters or residence of the parties.

2- An Economic Arbitration Center shall only accept applications to resolve economic disputes specified in Article 1 of this Decree if the parties have agreed in writing before or after the dispute arises to refer the dispute to that specific Economic Arbitration Center for resolution.

Article 4.

The resolution of economic disputes may be conducted by an Arbitration Tribunal consisting of three arbitrators or by a single arbitrator.

Article 5.

The decision resolving disputes of an Economic Arbitration Center (hereinafter referred to as the arbitration award) shall be enforceable and not subject to appeal.

Article 6.

Arbitrators resolving economic disputes must respect objective truth, impartiality, and comply with the law.

Chapter II

ORGANIZATION OF ECONOMIC ARBITRATION CENTERS

Article 7.

1- An Economic Arbitration Center may only be established when it has at least five founding arbitrators.

2- Applications for permission to establish an Economic Arbitration Center shall be submitted to the People's Committee of the province or centrally governed city (hereinafter collectively referred to as the provincial People's Committee) where the Economic Arbitration Center intends to locate its headquarters.

3- The application for permission to establish an Economic Arbitration Center shall contain the following information:

a) Names, professions, and addresses of the founding arbitrators;

b) The field of activity of the Economic Arbitration Center;

c) The intended location for the headquarters of the Economic Arbitration Center;

4- Accompanying the application shall be:

a) A draft Charter of the Economic Arbitration Center;

b) A list of arbitrators;

c) Curriculum vitae of the founders confirmed by the People's Committee of the commune, ward, or town where they reside;

d) Copies of the arbitrator cards.

Article 8.

1- Vietnamese citizens residing in Vietnam who meet the following conditions may be recognized as arbitrators:

a) Having good moral character, honesty, impartiality, and objectivity;

b) Possessing knowledge and experience in the fields of law and economics.

2- Persons who are mentally incapacitated, persons who have been convicted of a crime and whose criminal record has not been expunged, and persons currently under criminal investigation shall not be eligible to serve as arbitrators.

3- Judges and prosecutors shall not concurrently serve as arbitrators.

4- The Minister of Justice shall decide on the establishment of a Selection Board for Arbitrators and prescribe the procedures for selecting arbitrators and issuing arbitrator cards upon the recommendation of the Selection Board for Arbitrators.

Article 9.

1- The Ministry of Justice is the governmental agency responsible for managing the activities of Economic Arbitration Centers nationwide.

2- The Department of Justice assists the Chairman of the provincial People's Committee in managing the organization and operation of Economic Arbitration Centers locally, including the following main tasks:

a) Receiving applications for permission to establish Economic Arbitration Centers and submitting them to the Chairman of the provincial People's Committee for consideration and decision;

b) Regularly reporting on the activities of Economic Arbitration Centers and recommending measures for managing the organization and operation of Economic Arbitration Centers to the Chairman of the provincial People's Committee;

c) Considering and recommending the Chairman of the provincial People's Committee to resolve proposals from Economic Arbitration Centers and arbitrators;

d) Recommending the Chairman of the provincial People's Committee to issue decisions suspending operations and revoking licenses to establish Economic Arbitration Centers in cases of serious violations of the law;

đ) Recommending the Minister of Justice to revoke arbitrator cards in cases of serious violations of the law by arbitrators.

Article 10.

1- Within forty-five days from the date of receiving complete and valid documents, the Chairman of the People's Committee at the provincial level shall examine and decide to issue or refuse to issue a license for establishing an Economic Arbitration Center, after consulting with the Minister of Justice; in case of refusal, the reasons must be notified to the applicant.

2- The license for establishing an Economic Arbitration Center must clearly state:

a) The names of the arbitrators who are founding members;

b) The address of the headquarters; the name of the Economic Arbitration Center;

c) The field of operation of the Economic Arbitration Center.

3- The validity period of the license is five years. When the license expires, if the Economic Arbitration Center wishes to continue its activities, it must reapply for permission.

4- When issuing the license for establishment, the Chairman of the People's Committee at the provincial level simultaneously approves the Charter of the Economic Arbitration Center.

Article 11.

1- The Economic Arbitration Center has a Chairman and Deputy Chairmen elected by the arbitrators of the Center.

2- The Chairman of the Economic Arbitration Center appoints the Secretary of the Center.

3- The organizational structure of the Economic Arbitration Center, duties, powers, responsibilities, and term of office of the Chairman and Deputy Chairmen are stipulated in the Charter of the Center.

Article 12.

1- The Economic Arbitration Center ceases operations when:

a) The term specified in the license has expired;

b) In accordance with the conditions agreed upon in the Charter;

c) Six months have passed since the Center did not have enough five arbitrators without replenishment;

d) The license is revoked.

2- Upon cessation of operations, the Economic Arbitration Center must return the establishment license to the issuing authority.

Chapter III

ARBITRATION PROCEDURE

Article 13.

1- When requesting dispute resolution, the plaintiff must submit to the Economic Arbitration Center a written agreement of all parties regarding the submission of the dispute for resolution at that Economic Arbitration Center.

The complaint must contain the following contents:

a) Date of writing the application;

b) Names and addresses of the parties;

c) Name of the Economic Arbitration Center requested to resolve the dispute;

d) Summary of the dispute content and request for resolution;

đ) Measures of negotiation and mediation that the parties have implemented but were unsuccessful;

e) The name of the arbitrator chosen by the plaintiff from the list of arbitrators of the Economic Arbitration Center.

2- Along with the complaint, the plaintiff must submit to the Economic Arbitration Center necessary documents to prove their claim.

Article 14.

1- When submitting the complaint, the plaintiff must pay the advance arbitration fee.

2- The arbitration fee is determined by the Economic Arbitration Center within the framework of the arbitration fee scale prescribed by the Ministry of Finance and the Ministry of Justice.

3- The arbitration fee is paid by the losing party, unless otherwise agreed by the parties.

Article 15.

1- Within seven days from the date of receipt of the request, the Secretary of the Economic Arbitration Center must send a copy of the plaintiff's complaint and the list of arbitrators of the Economic Arbitration Center to the defendant.

2- Within the time limit set by the Economic Arbitration Center, the defendant must submit a response document to the Center and to the plaintiff. The response document contains the same content as the plaintiff's complaint.

The defendant may also attach other necessary documents to the Economic Arbitration Center.

Article 16.

In the case where the dispute is resolved by an Arbitration Panel, each party selects one arbitrator; the two arbitrators selected by the parties will select the third arbitrator as the Chairman of the Arbitration Panel.

Within ten days from the date the second arbitrator was selected, if the two arbitrators selected by the parties cannot agree on the third arbitrator, then the Chairman of the Economic Arbitration Center will designate the third arbitrator as the Chairman of the Arbitration Panel.

Article 17.

In the case where the parties agree that the dispute will be resolved by a single arbitrator but cannot agree on which arbitrator to choose, within seven days from the date the parties are informed about the selection of the arbitrator, the Chairman of the Economic Arbitration Center will designate an arbitrator to resolve the dispute.

Article 18.

1- An arbitrator must recuse himself or be requested to recuse himself if there is evidence indicating that he may not be impartial in resolving the dispute.

2- Each party can only recuse the arbitrator they have chosen.

3- The party requesting recusal must submit a written application to the Economic Arbitration Center.

4- The application for recusal must be examined and decided by the Chairman of the Economic Arbitration Center within seven days from the date of receipt of the application.

5- If the application for recusal is accepted, the selection or designation of a substitute arbitrator will be carried out according to the provisions of Articles 16 and 17 of this Decree.

Article 19.

In the event that an arbitrator is unable to continue participating in the resolution of the dispute, the selection or designation of another arbitrator to replace him will be carried out according to the provisions of Articles 16 and 17 of this Decree.

Article 20.

1- The arbitrator studies the file and performs necessary tasks for resolving the dispute.

At the request of one or both parties, or on his own initiative, the arbitrator may hear the parties' statements. The arbitrator may also investigate the matter from other people in the presence of the parties or after informing the parties.

2- At the request of the parties, the arbitrator may request an expert opinion.

3- When necessary, the arbitrator may require the parties to provide explanations, evidence, and other relevant documents.

Article 21.

1- The time and place of the hearing to resolve the dispute are determined by the Chairman of the Arbitration Panel or the arbitrator, if the parties do not have an agreement.

2- Summonses to attend the hearing to resolve the dispute must be sent to the parties fifteen days before the hearing.

Article 22.

1- The parties may participate in the resolution of the dispute themselves or through their duly authorized representatives.

2- The parties may invite lawyers to protect their legitimate rights and interests.

Article 23.

1- Upon the request of the parties or with their consent, the dispute may be resolved in the absence of the parties.

2- In the case where one or more parties are absent without a valid reason, the resolution of the dispute may proceed based on the available documents and evidence.

Article 24.

1- The language and writing used in the dispute resolution process shall be Vietnamese.

2- The parties may request the Center to invite an interpreter or may invite their own interpreter, but such requests must be approved by the Center. The party requesting the interpreter shall bear the cost thereof.

Article 25.

The dispute resolution proceedings shall be conducted based on the terms of the contract and the current laws.

Article 26.

When rendering a decision, the Arbitration Tribunal shall vote by majority.

Article 27.

1- All developments during the dispute resolution hearing must be recorded in minutes by the Center's Secretary.

2- The minutes must be signed by the arbitrators and the Secretary.

3- The parties have the right to review the contents of the minutes. Any changes or additions to the minutes at the request of one party or both parties shall be decided by the Chairman of the Arbitration Tribunal or the arbitrator.

Article 28.

1- The arbitral award shall contain the following items:

a) Name of the Arbitration Center;

b) Place and date of issuance of the award;

c) Names of the arbitrators resolving the dispute;

d) Names and addresses of the parties;

đ) Content of the dispute;

e) Basis for the decision and content of the decision;

f) Amount of arbitration fees that the parties must bear.

2- The Arbitration Tribunal or the arbitrator may issue partial decisions on the dispute if they deem it reasonable.

3- The arbitral award must be signed by all arbitrators.

4- After the arbitral award is published, the Arbitration Tribunal or the arbitrator shall not amend or supplement it, except in cases of clear numerical calculation errors or typographical errors, and must immediately notify the parties thereof.

Article 29.

1- The arbitral award shall be published to the parties immediately upon conclusion of the hearing or may be published later, but no later than five days from the end of the hearing.

2- The arbitral award shall be sent to the parties within three days from the date of issuance.

Article 30.

During the dispute resolution process, if the parties reach an agreement through negotiation, the Arbitration Tribunal or the arbitrator shall terminate the resolution process. The parties may request the Chairman of the Arbitration Center to confirm the agreement in writing. Such written confirmation shall have the same effect as an arbitral award.

Article 31.

In case an arbitral award is not executed by one party, the other party has the right to request the competent People's Court to adjudicate according to the procedure for economic disputes.

Chapter IV

FINAL PROVISIONS

Article 32.

The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

The Minister of Justice shall be responsible for guiding the implementation of this Decree.

Article 33.

Ministers, Heads of ministerial-level agencies, Heads of government agencies, and Chairpersons of provincial People's Committees directly under the central government are responsible for implementing this Decree.