In Vietnam, the landscape of dispute resolution is evolving rapidly, and one approach that is gaining significant attention is mediation. Mediation is a method where parties involved in a dispute work together, with the help of a neutral third party, to find a mutually acceptable resolution. This method, while relatively new in Vietnam, has long been popular in many developed countries like the United States, the United Kingdom, and various European nations. As Vietnam continues its journey of economic growth and international integration, mediation in Vietnam is expected to play a role in the country’s legal and business sectors.
The following explores why mediation in Vietnam is becoming a more important method of dispute resolution and how the country is likely to follow the lead of developed nations in making mediation getting known and used more.
1. Vietnam’s Economic Growth and Global Integration
Vietnam has emerged as one of the fastest-growing economies in Southeast Asia, with significant foreign investment and international trade agreements. The country’s signing of Free Trade Agreements (FTAs) with major economies like the United States, the European Union, and other Asia-Pacific countries has led to a surge in cross-border business dealings. As international commerce expands, the potential for disputes also increases.
In developed countries, mediation is widely used to resolve such commercial disputes because it is efficient, cost-effective, and helps maintain relationships. Vietnam, in its effort to align with international legal standards, is likely to follow this trend. By adopting mediation as a common method of dispute resolution, Vietnam can ensure that its legal framework remains competitive and attractive to both domestic and international businesses.
2. Mediation: A Flexible and Efficient Solution
One of the primary reasons developed countries have embraced mediation is its flexibility. Unlike the rigid structures of litigation or arbitration, mediation allows the parties involved to craft their own solutions to a conflict. This flexibility is especially valuable in commercial disputes, where both sides may want to preserve a working relationship after the conflict is resolved.
In Vietnam, where the business culture often emphasizes maintaining long-term relationships, mediation offers a more suitable approach to resolving disputes. Rather than engaging in adversarial litigation, which can damage relationships beyond repair, mediation encourages collaboration and problem-solving. This makes mediation in Vietnam an ideal tool for resolving conflicts in a way that benefits both parties and supports the continued growth of business partnerships.
3. Cost and Time Efficiency
Litigation can be expensive and time-consuming, particularly in complex commercial disputes. In developed countries, one of the primary reasons mediation has become so popular is that it provides a much quicker and cheaper way to resolve conflicts. Court cases often drag on for months or even years, leading to substantial legal fees and lost productivity for the parties involved. Mediation, on the other hand, can often be completed in a matter of weeks, or even days, depending on the complexity of the issue.
Vietnam’s legal system is still developing, and its courts can sometimes be overwhelmed with cases, leading to delays in resolution. Mediation in Vietnam offers a way to alleviate this burden on the courts, allowing disputes to be resolved more quickly and efficiently. As Vietnam’s economy continues to grow, the demand for faster and more affordable dispute resolution methods will increase, and mediation in Vietnam is well-suited to meet that demand.
4. Promoting Mediation in Vietnam as an Alternative Dispute Resolution (ADR)
Many developed countries have invested heavily in promoting mediation as a form of Alternative Dispute Resolution (ADR). Governments, courts, and legal institutions in these countries often encourage parties to try mediation before pursuing litigation. In some jurisdictions, mediation is even a mandatory first step before a case can be taken to court.
Vietnam has already begun taking steps in this direction. The introduction of Decree 22/2017/ND-CP on Commercial Mediation in Vietnam marked a significant milestone in recognizing mediation as a legal tool for resolving disputes. This decree on mediation in Vietnam outlines the rules for conducting mediation in commercial matters and sets the foundation for a wider adoption of mediation in Vietnam’s legal system. As mediation in Vietnam becomes more known, we can expect the Vietnamese government and legal institutions to promote its use further, just as developed countries have done.
5. Cultural Compatibility of Mediation in Vietnam
Mediation’s emphasis on cooperation, respect, and compromise aligns well with Vietnamese culture. In Vietnam, both in business and personal matters, there is often a preference for resolving conflicts quietly and amicably rather than engaging in confrontational or public disputes. This cultural inclination toward maintaining harmony makes mediation an attractive option for dispute resolution.
In developed countries like Japan and South Korea, which share similar cultural values, mediation has become a widely accepted method for resolving disputes. Vietnam, with its own deep-rooted values of harmony and collaboration, is well-positioned to adopt mediation in a similar way. By encouraging people to find mutually beneficial solutions to their conflicts, mediation fits naturally into the Vietnamese way of resolving disputes.
6. Confidentiality and Privacy in Mediation in Vietnam
Another advantage of mediation that appeals to both developed and developing countries is the confidentiality it offers. Unlike court cases, which are typically public, mediation allows the parties to resolve their disputes in a private setting. This confidentiality is particularly important in business disputes, where sensitive information about financial matters, intellectual property, or trade secrets might be involved.
In Vietnam, as businesses become more complex and globally connected, the need for confidentiality in dispute resolution will only grow. Mediation in Vietnam provides a solution that protects the interests of both parties, allowing them to settle their differences without exposing sensitive information to the public. Developed countries have long recognized the value of privacy in dispute resolution, and as Vietnam’s business environment matures, the demand for confidential services of mediation in Vietnam will likely increase.
7. Mediation in Commercial Disputes
Commercial disputes are one of the main areas where mediation is expected to grow in Vietnam. With the increasing number of international transactions and business partnerships, disputes over contracts, payments, and services are inevitable. However, litigation is not always the best solution, especially when both parties want to continue doing business together.
In countries like the United States and the United Kingdom, mediation has become the preferred method for resolving commercial disputes because it allows for creative, business-focused solutions. Vietnam is gradually moving in this direction as well. Mediation in Vietnam enables businesses to address their disputes in a way that minimizes disruption, saves time, and avoids the adversarial nature of litigation.
8. Training and Certification of Mediators in Vietnam
One of the key factors in the success of mediation in developed countries is the presence of well-trained, certified mediators. These mediators are often legal professionals or individuals with expertise in specific industries who are trained to guide parties through the mediation process.
Vietnam is beginning to build its own pool of qualified mediators through institutions. VEMC also wishes to take part in the journey and provides mediation training programs that equip individuals with the skills needed to facilitate effective dispute resolution. As more professionals in Vietnam become trained in mediation, the country will be better positioned to integrate mediation into its legal and business systems, following the example of developed nations.
9. The Role of International Agreements
Vietnam’s commitment to international trade and investment is a driving force behind its adoption of mediation. Many international trade agreements, including FTAs, include provisions that encourage or require mediation as a first step in resolving disputes. By incorporating mediation into these agreements, Vietnam is aligning itself with international norms and practices.
For example, in the European Union, mediation is widely used in cross-border commercial disputes, and businesses often expect this method of dispute resolution when dealing with international partners. By adopting mediation, Vietnam ensures that it remains an attractive destination for foreign investment and continues to foster strong international relationships.
10. The Future of Mediation in Vietnam
The future of mediation in Vietnam looks promising, with increasing awareness of its benefits and growing support from the legal community. As the country continues to expand its international trade relationships, the demand for efficient and effective dispute resolution methods will increase. Mediation, with its focus on cooperation, flexibility, and cost-effectiveness, is well-suited to meet these needs.
Over the coming years, we can expect mediation to become more common in Vietnam, both in commercial disputes and in other areas such as family law, labor disputes, and community conflicts. By following the example of developed countries, Vietnam is positioning itself to create a modern, efficient legal system that supports both domestic and international businesses.
Conclusion
Mediation is set to play an increasingly important role in Vietnam’s future, especially as the country continues to integrate into the global economy. With its flexibility, cost-efficiency, and cultural compatibility, mediation offers a practical solution to the growing complexity of disputes. Vietnam has already taken significant steps toward embracing mediation, and as the country continues to follow the path of developed nations, mediation will likely become a central pillar of its dispute resolution system.
For Vietnam, adopting mediation is not just about improving its legal processes, but also about building a more harmonious and efficient society. As businesses and individuals recognize the benefits of mediation, the demand for this peaceful and constructive method of resolving disputes will only continue to grow.
About VEMC, a Mediation Center in Vietnam
Vietnam Effective Commercial Mediation Center (VEMC) is a a Non-Profit Organization that Promote Mediation as Alternative Dispute Resolution in Vietnam, Provide Training and Mediate Disputes. The idea of mediation is to offer a different way of handling disagreements as compared to litigation proceedings. At VEMC, we pride ourselves on having a team of highly qualified and experienced professionals dedicated to the vision and mission of the center. Contact us to exchange ideas for cooperation in dispute resolution, work with us, or request services.