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Firms ill-equipped for trade disputes: Arbitration expert
Vietnamese companies need to be more aware of laws in other countries when doing business and be better prepared to deal with trade disputes, experts said at a seminar last Saturday.
Truong Thi Hoa, Deputy Chairwoman of the HCM City Commercial Arbitration Centre (Tracent) offered local businesses tips on finding solutions to trade disputes and informed them of factors that will facilitate trading activities. She also spoke of potential pitfalls in the path of Vietnamese businesses as they pursued international trade.
With the increased integration into the global market through WTO accession, Viet Nam will enjoy great benefits from trade liberalisation in the coming years. The widespread practice of competing through prices, however, will expose the country further to the threat of international trade disputes, she said.
Due to a limited understanding of international law and consuming trends in new markets as well as a lack of negotiation and foreign language skills, Vietnamese companies have been disadvantaged when big market players embroil them in trade disputes, Hoa added.
She said one basic reason for international trade disputes was the different views on the contract implementation process. This happened when contract terms were not clear or detailed enough, or when companies only studied the details cursorily.
Other factors included cultural and trade practices differences as well as geographical distance between the parties involved, she said.
Hoa said solutions to international disputes revolved around four processes – negotiation, conciliation, arbitration and enquiry.
The solution most chosen these days is arbitration, Hoa said.
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