Minister of Justice Nguyen Hai Ninh – Enhancing and Finalizing the Legal framework for Arbitration in the new era requires a deeply innovative and substantive approach to law-making

The enhancement and finalization of legal framework for Arbitration and Mediation, as a robust legal foundation for Alternative dispute resolutions (ADR) renowned for their democracy, convenience, efficiency and efficacy in the delivery of justice and fairness for business disputes, is one of a key policy of Vietnam in its economic development strategy of the Party and State. As promulgated in the statements of the Party General Secretary Tô Lâm, innovative mindset in the formulation and enforcement of laws is a cornerstone policy of the Party. Accordingly, the finalization of legal framework these ADR mechanisms must also be grounded in a new approach, ensuring that arbitration and ADR evolve into a popular and efficient method of dispute settlement.

On the morning of November 14^th, 2024, at the proposal of the Vietnam International Arbitration Center (VIAC), Dr. Nguyen Hai Ninh, Member of the Party Central Committee, Minister of Justice, had a meeting with the VIAC delegates led by Prof. Dr. Le Hong Hanh at the headquarters of the Ministry of Justice. During the meeting, VIAC representatives briefed the Minister on the Center's activities and raised key issues regarding the development of arbitration and mediation in Vietnam.

The VIAC delegation was welcomed by Minister Nguyen Hai Ninh at the Ministry of Justice

The working session was chaired by Dr. Nguyen Hai Ninh, Member of the Party Central Committee, Minister of Justice (MoJ); and attended by Director of the Department of Judicial support Mr. Le Xuan Hong, Director of the International Cooperation Department Mr. Nguyen Huu Huyenand representatives of some specified divisions of MoJ. On VIAC's side, the delegation, led by Prof. Dr. Le Hong Hanh, President of VIAC, and the participation of Mr. Vu Anh Duong, Permanent Vice President cum Secretary General of VIAC, Mr. Tran Huu Huynh, member of the VIAC Council and representatives from several divisionsof VIAC.

Dr. Nguyen Hai Ninh was delighted to extend a warm welcome to the President and staffs of VIAC at the working session. He also carefully listened and considered VIAC's reports and proposals as well as engaged in a constructive discussion on strategic orientations and solutions towards enhancing and finalizing the legal framework for arbitration mechanism.

Mr. Nguyen Hai Ninh, Member of the Party Central Committee, Minister of Justice

On behalf of VIAC, Prof. Dr. Le Hong Hanh expressed his honor to the MoJ for accepting and facilitating the meeting. The VIAC President provided a brief introduction toVIAC’s formation and development. Established in 1993, throughout30 years of its operation, VIAC has been spreading its wing as a reputable international mediation and arbitration institution in Vietnam, gaining trust and becoming the destination for both domestic and international business communities; therefore, contributing to the improvement of the competitiveness of Vietnam and of business communities in Vietnam as well as stimulating the economic cooperation in trade, commerce and investment activities among individuals and organizations in Vietnam, and between Vietnam and other economies.

In addition, the VIAC President pointed out a number of hindrances to the development of arbitration and mediation mechanism as well as certain proposals to overcome these limitations. Prof. Dr. Le Hong Hanh emphasized the urgency of improving the legal framework to promote the sustainable development of dispute resolution activities throughcommercial arbitration and mediation. He also expressed his appreciation for the decisive and effective direction leadership of the MoJJusticeover the years in managing, supervising and supporting Arbitration and Mediation activities.

Prof. Dr. Le Hong Hanh, President of the Vietnam International Arbitration Center (VIAC)

Mr. Vu Anh Duong - Permanent Vice President cum General Secretary of VIAC, presented a summary report on the VIAC's activities, emphasizing the important role of arbitration and mediation in the development of Vietnam’s economy, as well as the Party’s directives and State’s policies aimed at promoting this field. Mr. Tran Huu Huynh, Member of VIAC Council, also made a number of proposals with the hoping that the MoJ would give due consideration to developing arbitration and mediation in Vietnam.

Mr. Le Xuan Hong, Director of the Department of Judicial support, noted that there is significant potential for improvement in arbitration and expressed confidence in its future growth. He also highly valued the role and efforts of VIAC in promoting the development of arbitration. Additionally, he highlighted the current challenges faced by VIAC and arbitration centers nationwide, proposing strategies to address these issues and create favorable conditions for the further growth of arbitration, aligning it with international standards.

Mr. Nguyen Huu Huyen, representative of the Department of International Cooperation,  shared the same view as Mr. Hong regarding the importance roles and recent achievements of arbitration and ADR in Vietnam. He also emphasized that the development of arbitration and ADR in Vietnam is still falling behind compared to the world, and to effectively bridge this gap, more attention and support from the State are essential.

Overview of the working session between VIAC and the Ministry of Justice

During the working session, Minister of Justice Dr. Nguyen Hai Ninh discussed the generalorientation and solutions for the development of ADR in Vietnam. Dr. Nguyen Hai Ninh highlighted that in recent times, the State has had many policies on encouraging and promoting arbitration methods, especially Resolution No. 27-NQ/TW dated November 9, 2022 of the Central Executive Committee on continuing to build and improve the socialist rule of law of the Socialist Republic of Viet Nam in the new period, which has emphasized the need to promote alternative dispute resolution mechanisms, especially arbitration and mediation. The Ministry of Justice, as the state authority managing commercial arbitration and mediation, plays a crucial role in fostering the development of ADR, including arbitration and mediation. Dispute settlement through ADR mechanisms has become an irreversible trend, gaining popularity in many countries, particularly those with developed economies. Dr. Nguyen Hai Ninh also outlined the strategic orientations and solutions that reflect an innovative visionary approach for the current arbitration practices, as well as the continued advancement of the arbitration in the new era.

Concluding the meeting, Dr. Nguyen Hai Ninh highly valued VIAC's contribution to arbitration and ADR in Vietnam, which has helped position the country on the regional and global map. He emphasized the importance of further strengthening the position of commercial arbitration and mediation, expressed confidence that VIAC would remain a pioneer in actively contributing to this field. The Minister also acknowledged the need to speed up the process of amending the Law on Commercial Arbitration and completing the legal framework for Arbitration and ADR methods, with the goal of removing existing obstacles and facilitating future developments.

Some images at the working session between VIAC and the leaders of the Ministry of Justice

Prof. Dr. Le Hong Hanh appreciated the Minister's instructions. The President of VIAC once again thanked the leaders of the Ministry of Justice for taking the time to discuss and listen to the report on the practical activities of dispute resolution by arbitration and mediation at VIAC, as well as the development of arbitration and ADR in Vietnam in recent years. Prof. Le Hong Hanh affirmed that exchanges at the working session had become future suggestions for VIAC and arbitration centers; and promised the leaders of the Ministry of Justice that VIAC would strive to provide fair, convenient and effective dispute resolution services, further contributing to the development of out-of-court dispute resolution institutions in Vietnam.