Ho Chi Minh City is the locality with the largest economy in Vietnam. Trading and commercial activities in Ho Chi Minh City always develop strongly and are very vibrant. However, along with the strong development of commercial activities, Ho Chi Minh City is also a place where many disputes arise in commercial business, where there are many arbitration centers as well as commercial mediation centers, where many mediators practice, and where commercial mediation activities are most developed in the country. Therefore, in this article, Viet An Law will provide you with information related to dispute resolution for sale of goods in Ho Chi Minh City.
Current Vietnamese legal documents currently do not have regulations on contract for the sale of goods, but are based on the general concept of civil contracts, the concept of sale of property contracts in the Civil Code 2015 and the concept of sale of goods in Clause 8, Article 3, Commercial Law 2005, we can introduce the concept of the contract for sale of goods as follows:
A contract for the sale of goods is an agreement between the parties, whereby the seller is obliged to deliver the goods, transfer ownership of the goods to the buyer, and receive payment; then the buyer shall pay the seller, receive the goods, and take ownership of the goods according to the agreement.
A sale of goods contract establishes the rights and obligations of the parties in a civil transaction. Sale of goods disputes are conflicts and disagreements about the previously determined rights and obligations of the subjects, mainly related to the performance of rights and obligations under the contract. Disputes may arise from the substantial contract, interpretation of the contract, rights, and obligations of the parties in the contract, and liability for compensation for damages due to breach of contract.
Ho Chi Minh City is a dynamic and friendly city and is also an important economic, cultural, educational, scientific, and technological center of the South in particular and Vietnam in general. The strong development of economic activities also leads to an increase in business and commercial disputes in Ho Chi Minh City.
According to a report from the Ministry of Justice summarizing commercial mediation activities in 2020, out of 73 cases resolved by commercial mediation, 70 were in Ho Chi Minh City. In 2021, due to the heavy impact of the Covid-19 pandemic, commercial mediation activities in Ho Chi Minh City in particular and the whole country in general were quieter with only 3/27 cases resolved in Ho Chi Minh City.
Currently, when the economy is gradually stabilizing, sales transactions in Ho Chi Minh City have reaffirmed their position in contributing GDP to the country’s overall economy. However, along with the high intensity of commercial transactions, disputes arise. Therefore, to be able to protect your transactions in Ho Chi Minh City, you should have preliminary knowledge related to resolving disputes arising from goods purchase and sale transactions.
According to the provisions of the Commercial Law 2005, when a dispute over a sale of goods contract occurs, the parties can resolve it by negotiation or mediation between the parties by an agency, organization, or individual authorized by the parties. The parties agree to choose to act as a mediator, resolve in commercial arbitration, resolve in court, or resolve in arbitration.
This is a method of resolution by which two parties in commercial activities come together to contact, learn, negotiate, and make concessions to resolve arising disagreements to eliminate disputes without the need for assistance, judgment, or decision of any third party.
This solution is only effective for sales transactions where the parties have sympathy and understanding for each other during the transaction process. For transactions with large differences in benefits, negotiation is unlikely to bring about the desired effect of the parties.
Mediation is a private dispute resolution process in which the mediator is a third party chosen by the parties themselves, helping the disputing parties reach an agreement.
In case a third party is chosen as a mediation center, the procedure will be carried out according to Decree 22/2017/ND-CP dated February 24, 2017, issued by the Government on commercial mediation. However, the mediation center also does not have the jurisdictional function to bind the parties to comply with the mediation settlement agreement.
Article 14 of Decree 22/2017/ND-CP stipulates the proceeding of commercial mediation as follows:
Implementing Decree No. 22/2017/ND-CP, by the end of 2021, 4 commercial mediation centers have been established in Ho Chi Minh City. Along with that, several arbitration centers have also registered additional commercial mediation activities and established branches in Ho Chi Minh City, typically: Vietnam International Arbitration Center (VIAC) has launched the Vietnam Mediation Center (VMC), headquartered in Hanoi and has a branch in Ho Chi Minh City.
Viet An Law will provide you with information related to resolving goods purchase and sale disputes at the Ho Chi Minh Commercial Arbitration Center.
Section 2 of the Civil Procedure Code 2015 regulates the jurisdiction of Courts at all levels. Accordingly, Point b, Clause 1, Article 35 stipulates that commercial business disputes specified in Clause 1, Article 30 of this Law fall under the jurisdiction of the district people’s court to resolve disputes according to first-instance proceedings.
Thus, the resolution of goods purchase and sale disputes in Ho Chi Minh City will fall under the jurisdiction of the district People’s Court where the dispute occurs.
Clients who need advice or support in dispute resolution for sale of goods in Ho Chi Minh City, please contact Viet An Law for the best support!
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