VIETNAM’S CHALLENGE TO PARTIAL AWARD IN UNCITRAL TREATY ARBITRATION IS STAYED, PENDING OUTCOME OF PARALLEL BID TO SET ASIDE EARLIER AWARD ON JURISDICTION

This case is the first VN case handled by The Vietnam International Arbitration Centre undre UNICTRAL rules since 2017. Below is a report of the case in 2017. We (CVDVN) don’t have access to the current documents in the case.

Vietnamese centre hosts first case under UNCITRAL (United Nations Commission On International Trade Law)
rules

 10/30/2019

The Vietnam International Arbitration Centre has handled its first ad hoc international commercial arbitration under the UNCITRAL rules – a case over architecture design services that raised issues regarding the appointment of a sole arbitrator and the interplay between the rules and the law of the seat. This incident has been published in the Global Arbitration Review under the name of two authors, Mr. Chau Viet Bac and Mr. Nguyen The Duc Tam.

Chau Viet Bac, who is vice secretary general of the centre and Nguyen The Đuc Tam, a Vietnamese LLM at the University of Paris II, tell GAR the DP v VD case “sheds light on Vietnamese law concerning ad hoc arbitration by demonstrating how it operates in practice. Details of this first experience may be helpful for other Vietnamese arbitral institutions and for parties intending to use the UNCITRAL arbitration rules in Vietnam”.

The case arose from a 2014 agreement for architecture design services. The letter of appointment said the parties agreed that in the event of a dispute they would use their best efforts to settle their differences by negotiating with each other in good faith. If no solution was reached within 30 days, then either could refer the matter to arbitration in Vietnam.

The Vietnamese version of the agreement explicitly made reference to the Vietnam International Arbitration Centre, which was founded in Ha Noi in 1993 and, like the Vienna International Arbitration Centre, goes by the acronym VIAC.

The agreement continued that the parties would mutually appoint an arbitrator. In the event that they failed to reach an agreement on the appointment, an arbitrator could be “court-appointed according to the relevant regulations”. 

It was agreed that all arbitration proceedings would be conducted in Vietnam and the UNCITRAL rules would be applied. The decision of the arbitrator would be final and costs and expenses would be apportioned as directed by the arbitrator or divided equally by the parties.

A dispute arose and the parties could not agree on the selection of the sole arbitrator. In September 2015, the People’s Court of Ho Chi Minh City appointed a sole arbitrator who is a well-known VIAC arbitrator and professor of arbitration law.

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International Arbitration Yearbook 2022-2023


Welcome to the 16th edition of the “Baker McKenzie International Arbitration Yearbook.” We are pleased to bring you our analysis of notable developments in international arbitration over the past year from over 45 jurisdictions worldwide.

As with the editions before it, the 2022-2023 Yearbook looks at important legislative and case law updates from each jurisdiction. This includes:

• New arbitral rules from major institutions including the AAA, CAM-CCBC, CEPANI, DIAC and the SCC
• The ongoing reform of arbitration legislation to reflect international best practice, with recent developments in Italy, Japan, Luxembourg, the United Kingdom and Vietnam
• The continued effects of the European Court of Justice’s decision in Achmea
• The decision of a number of European states to withdraw from the Energy Charter Treaty and the accession of new parties to the ICSID convention
• The latest case law on the recognition and enforcement of foreign arbitral awards under the New York Convention, which has now been ratified in 172 jurisdictions worldwide
• New requirements from several institutions to disclose the sources of third-party funding, and the expansion of financing options for arbitration parties in Hong Kong

In this year’s edition we have introduced a new chapter on the arbitration framework in the OHADA area, which includes 17 African states.

I trust you will find our coverage of these, and many other important topics, to be of interest. Such breadth of coverage is only possible because of Baker McKenzie’s truly global presence. Our international arbitration team is the largest, busiest and most ranked arbitration team in the world and is ranked in the top 10 arbitration teams globally by Global Arbitration Review. With over 200 practitioners, we have acted in more hearings than any other firm, in every major center, allowing us to offer unrivaled insights into the state of arbitration right across the globe.

Finally, we extend our thanks to Ben Roe, Markus Altenkirch and Maria Barros Mota, to our editorial team Cathy Keegan, Sarah Fox and Paul Allanigue, and to our vast network of colleagues and friends who have contributed to this international team effort.

Ed Poulton
Global Chair, International Arbitration

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