The Vietnam International Commercial Mediation Centre (VICMC), the first of its kind licensed by the Ministry of Justice, has officially launched in Hanoi.
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“The mission and vision of the VICMC is to build up professionalism and implement non-profit activities in accordance with the principles and the goals of the Vietnam Society of International Law (VSIL) and VICMC,” the Asia Business Law Journal quoted him as saying.
VICMC hopes to cut commercial dispute settlement in courts in Vietnam to between one day and seven weeks instead of 250 days currently.
At present, Vietnam has some arbitration centers offering commercial mediation services but the number of disputes they settle remains modest.
In reality, many businesses in Vietnam are not yet aware of the advantages of commercial mediation.
The establishment of VICMC is in line with Vietnam’s legal reform plans for 2020 aiming to boost the efficiency of dispute settlement in the context that the number of trade deals is on the rise in Vietnam after the country signed dozens of free trade agreements.
The World Bank Doing Business Report indicated that 174 economies recognize voluntary mediation or conciliation as a valid method of resolving contractual disputes, in addition to formal courts.
Mediation offers many benefits, such as reduced legal costs, prevention of future or full-fledged litigation and the flexibility in finding a solution to the dispute based on mutual parties’ interest, rather than solely on legal rights.
