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When choosing arbitration to resolve disputes, parties are typically concerned about the fees and expenses payable, the timing of their financial obligations, the principles governing cost allocation, and the circumstances under which arbitration fees may be refunded.
In arbitral proceedings involving a foreign element, or where at least one party is a foreign-invested enterprise, the parties are entitled to agree on the language to be used for resolving their dispute. The Arbitral Tribunal may determine the language of the proceedings only in the absence of such an agreement.
Commercial arbitration respects the parties’ freedom of agreement. In particular, selecting an arbitral tribunal composed of one Arbitrator or three Arbitrators directly affects two core objectives: the speed/cost of the proceedings and the quality/impartiality of the award.
Changes to an enterprise’s fundamental information, such as its name, registered office address, or legal representative, during the resolution of a dispute by arbitration may affect the validity of the service and receipt of procedural documents.
In arbitral proceedings, the Respondent is entitled not only to submit a Statement of Defence in response to the Claimant's claims but also to bring counterclaims against the Claimant on matters related to the dispute. However, an independent claim by the Respondent may be considered and resolved by the Arbitral Tribunal only if it is submitted in the proper form and in accordance with the applicable procedures for counterclaims.
Decision No. 07/2017/QĐ-PQTT of the People's Court of Hanoi provides a noteworthy practical example of the consequences arising when the Respondent raises a claim for damages in its Statement of Defence without submitting a separate Counterclaim.
Under Vietnamese law, the inclusion of an arbitration clause in a contract is not a prerequisite for establishing arbitral jurisdiction. Rather, arbitral jurisdiction is determined based on the existence of a valid arbitration agreement between the parties. Such an agreement may be concluded either before or after a dispute arises.
Accordingly, the absence of an arbitration clause in a contract does not necessarily mean that the dispute must be resolved by a court. If the parties subsequently enter into a valid arbitration agreement in accordance with the law, the dispute may still fall within the jurisdiction of commercial arbitration.