For Immediate Release
Press Release
Hanoi, March 8, 2022 – Today, the U.S. Agency for International Development (USAID) and Ministry of Justice formalized their commitment to cooperate on strengthening Vietnam’s commercial and investment alternative dispute resolution ecosystem through a Memorandum of Understanding (MOU). USAID Vietnam’s Mission Director Ann Marie Yastishock and Ministry of Justice Vice Minister Nguyen Khanh Ngoc signed the MOU at a ceremony hosted by the ministry at its headquarters.
“Creating an effective alternative dispute resolution ecosystem is critical for developing an enabling business environment that helps spur economic growth,” said USAID Mission Director Yastishock. “The outcomes of past USAID-Ministry of Justice cooperation have led to positive legal and regulatory reforms that have improved Vietnam's economic competitiveness. We hope that the long-term trust and goodwill built through our past cooperation will extendto this new collaboration on improving the alternative dispute resolution environment in Vietnam.”
The demand for alternative dispute resolution in Vietnam has increased along with the country’s strong economic growth and active integration into the global economy. Alternative dispute resolution allows for commercial and investment disputes to be settled outside of a traditional judicial system, which can be lengthy and costly to businesses and canraise the risks of doing business in a country. In addition, arbitration judgments that are a form of alternative dispute resolution are enforceable in many countries in the world, while court litigation is not.
While alternative dispute resolution is still new to Vietnam, Vietnam’s international commitments require it to rapidly strengthen its alternative dispute resolution framework. For instance, Vietnam is a signatory to more than 60 bilateral investment treaties and many free trade agreements with investment protection provisions that subject investor-state disputes to arbitration. In 1995, Vietnam adopted the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, requiring it to recognize and enforce foreign arbitration judgments.
Activities under the MOU signed today may include improving related legislation, such as the adoption of international standards and best practices; strengthening capacity and skills of stakeholders; reinforcing partnerships among stakeholders; and raising awareness among local businesses and other stakeholders of the benefits of alternative dispute resolution.
USAID has successfully collaborated in the past with the Ministry of Justice on the USAID Support for Trade Acceleration Plus (STAR Plus) and USAID Governance for Inclusive Growth (GIG) projects.
For more information on U.S. support for Vietnam’s economic growth, please visit: https://www.usaid.gov/vietnam/improving-governance-for-economic-growth
For event photos, visit: https://flic.kr/s/aHBqjzERKG
