The Thinh Tri Commercial Arbitration Center in HCM City celebrates its first anniversary of establishment. — VNA/VNS Photo

The Thinh Tri Commercial Arbitration Center in HCM City’s District 3 has completed one year of operations.

People’s Committee Chairman Nguyễn Thành Phong and chairman of the HCM City Union of Business Association, Chu Tiến Dũng, (HUBA) attended its first anniversary ceremony along with representatives of more than 200 enterprises.

Commercial arbitration and commercial mediation are two methods for commercial dispute resolution outside of courts that are allowed under Vietnamese law and are based on voluntary settlement procedures.

Although the Law on Commercial Arbitration was passed by the National Assembly in 2010, only 10 per cent of trade and investment disputes between enterprises have been resolved through commercial arbitration.

When disputes arise, enterprises often choose courts for settlement for many reasons, and one of the main reasons is that arbitration fees are quite a bit higher than courts fees, according to Nguyên Hong Vinh, the founder of Thinh Trí Commercial Arbitration Center (TTCAC).

But he said, “TTCAC applies court fees and charges.”

Vinh said TCCAC’s advantage is that its arbitrators are former judges of economic courts and procurators with years of experience.

As for commercial mediation, its advantage is that it is mutually agreed upon or in accordance with the mediation rules of the centre.

Commercial arbitration and mediation have certain advantages over court settlements such as flexibility in terms of time and language. — VNS