A Balance of Legal Expertise and Commercial Awareness

According to Jan Paulsson, an arbitrator must, first and foremost, have strong legal expertise. However, in certain types of disputes, a deep understanding of the commercial context can help render awards that are not only legally sound but also practically viable. A contract is not merely a legal document but also a reflection of a transactional process between parties. Thus, an arbitrator should assess disputes from both legal and commercial perspectives.

At VTA, arbitrators are not selected solely based on their legal expertise but also on their ability to understand business realities relevant to the disputes they handle. They come from diverse sectors, including technology, construction, engineering, automotive, and healthcare. This approach ensures that arbitral decisions are not only legally accurate but also commercially practical, aligning with business expectations.

Professional Ethics: The Foundation of Arbitration

A skilled arbitrator is not enough; they must also be independent and impartial. If an arbitrator has any vested interest in one of the disputing parties, it may compromise the fairness of the award. Paulsson emphasizes that the arbitration system can only function effectively when arbitrators uphold the highest ethical standards. However, this is not merely an individual obligation. More importantly, the legitimacy of arbitration derives from the parties’ trust in the procedural fairness, ensuring that no bias or undue influence interferes with the process.

At VTA, we prioritize professional ethics and have established a Code of Ethics for Arbitrators, which sets out five fundamental principles: (i) Independence – Free from any influence by any party; (ii) Impartiality – Neutral and fair in assessing disputes; (iii) Fairness – Ensuring all parties have an equal opportunity to present their arguments; (iv) Confidentiality – Upholding and protecting the confidentiality of arbitration proceedings; (v) Dedication – Resolving disputes with the highest level of responsibility. For more details on VTA’s Code of Ethics for Arbitrators, visit: http://vtac.vn/code-of-ethics-for-an-arbitrator

Case Management Skills – An Arbitrator’s Role Beyond Decision-Making

Unlike court litigation, where a structured system is in place, arbitration operates through independent tribunals, and the arbitrator plays a pivotal role in leading the entire arbitration process.

Paulsson highlights that an ideal arbitrator must not only be legally proficient but also possess strong organizational and procedural management skills. They must be able to: Control the arbitration process, ensuring that all parties have a fair opportunity to present their arguments without unnecessary delays; Manage case files, ask pertinent questions, and handle situations flexibly to maintain a transparent and efficient arbitration process.

At VTA, arbitrators are evaluated not only on their ethical standards and legal expertise but also on their ability to manage arbitration proceedings effectively. Our case management philosophy ensures that there are no procedural bottlenecks or delays caused by arbitrators, thereby facilitating a smooth dispute resolution process.

Overall, an ideal arbitrator, as envisioned by Jan Paulsson, should possess: (i) Strong legal expertise while also having practical business acumen; (ii) Independence and impartiality, ensuring that they are not influenced by any interests related to the disputing parties; (iii) The ability to organize and manage proceedings effectively, facilitating an efficient and fair dispute resolution process.

At VTA, these standards have been institutionalized through the Code of Ethics for Arbitrators, which serves as a mandatory guideline for all arbitrators. By adhering to this Code, each arbitrator at VTA reaffirms their commitment to the arbitration profession and its role in promoting business and social development.

Explore and connect with VTA’s arbitrators at: http://vtac.vn/list-of-arbitrators

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VTA SECRETARIAT

VTA’s Model Arbitration Clause: “Mọi tranh chấp phát sinh từ hoặc liên quan đến hợp đồng này sẽ được giải quyết bằng trọng tài tại Trung tâm Trọng tài Thương nhân Việt Nam (VTA) theo Quy tắc tố tụng trọng tài của Trung tâm này”. “Any dispute arising out of or in relation with this contract shall be resolved by arbitration at the Vietnam Traders Arbitration Centre (VTA) in accordance with its Rules of Arbitration”.

The Vietnam Trade Arbitration Center (VTA) is responsible for organizing and coordinating the resolution of business disputes through institutional arbitration, with jurisdiction over disputes including: (i) disputes arising from commercial activities between parties; (ii) disputes involving at least one party engaged in commercial activities; and (iii) disputes as prescribed by law to be resolved by arbitration.