How Does Dispute Settlement Mechanism of WTO Work?

The dispute settlement mechanism of the World Trade Organization (WTO) is a succession of the dispute settlement rules that has been effective for nearly 50 years in the history of GATT 1947. The basic objective of this dispute resolution mechanism is to achieve a positive solution to the dispute. Vietnam is member of WTO therefore it could refer to dispute settlement mechanism of WTO in dispute against other country member.

 

Dispute law firm in Ho Chi Minh City

When a dispute arises at the WTO, the parties will first conduct consultations to come up with a mutually agreed solution to resolve the case (Consultation – the stage of mediation), as  usual in each case there is the participation of third parties (who are members of significant interest and desire to participate in the dispute resolution process), if they feel a significant interest in the case and should be considered by the panel. In the case of an unsuccessful inquiry, a panel of 3 to 5 members will be established and tasked with examining a particular issue in dispute on the basis of WTO rules cited by the claimant’s country.

After the establishment of a panel to review the complaint, the first thing that the panel needs to do is to set a timetable for its proceedings (Article 12.3 of the DSU). The panel procedure usually covers the contents set forth in Article 12 and Annex 3 of the DSU, including certain flexibility to ensure the quality of the report without delaying the proceedings. Setting a timetable helps the parties understand the contents and deadlines for each dispute, helping them be more proactive in presenting evidence, bases and arguments in their submitted documents.

After the hearings take place, the panel will enter the internal discussion phase (deliberation), to review the assessment of relevant legal, practical issues in accordance with the provisions of the WTO, the deliberation must be kept secret. These reports were drafted without the presence of the parties to the dispute, but only according to the content of the information provided and the comments made earlier. Individual opinions of jurors presented in a panel report shall not include the names of speakers of such opinions.

After the final report will be sent to the parties to the dispute within 2 weeks after the panel has concluded the mid-term review. Normally, every report of the panel has very large content, to facilitate the study of review by the appellate body and to quote case law, the report must show the table of contents and paragraphs which are separate numbered in the order of the report. If there is no appeal, the dispute resolution process will immediately go to the implementation stage after the DSB adopts a panel report. If there is an appeal, the case will be reviewed at the Appellate level.

It is important for Vietnam as member of WTO to be aware of the dispute settlement mechanism and fully prepared when having dispute against other country members in international trade dispute matters.

 

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

 

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How Dispute Settlement Mechanism of ASEAN Work?

As economic cooperation has expanded, having an effective mechanism to resolve disputes arising between member countries has become an essential need. Therefore, since 1996, ASEAN has started drafting a Protocol on Dispute Settlement Mechanism, and this Protocol was signed by ASEAN Economic Ministers on November 20, 1996 in Manila (Philippines).

The dispute settlement mechanism of ASEAN is built on the spirit of negotiation and mediation. At any time, Member States which are parties to the dispute have the right to choose forms of mediation. These forms may begin or end at any time. Only when the procedure for mediation  has ended, the complainant proceeded to bring the matter to the Senior Economic Officials Meeting of ASEAN (SEOM). While the dispute is in progress, if the parties to the dispute agree, mediation procedures will continue to apply.

SEOM will set up a panel or, if possible, refer the matter to the special rules and procedures team or additional for review. However, in specific cases, if deemed necessary, SEOM may decide to resolve the dispute amicably without having to appoint a panel.

SEOM will review the panel report during its discussion and give a decision to the dispute within thirty (30) days from the date the panel submitted the report. In exceptional cases, SEOM may have an additional ten (10) days in adjudicating a dispute. SEOM representatives of Member States who are parties to the dispute may be present If the consultation does not resolve the dispute within sixty (60) days of the receipt of the request, the matter will be referred to SEOM. during the discussion but may not participate in judgments of SEOM. SEOM will adjudge on a majority basis.

Member States that are parties to the dispute may appeal the judgments of SEOM to the ASEAN Economic Ministers (“AEM”) within thirty (30) days. AEM must make a decision within thirty (30) days of the appeal. In exceptional cases, AEM may have an additional ten (10) days to make a decision on dispute resolution.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. 

 

 

 

 

 

 

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How Probation is Regulated in Vietnam Labour Code?

Probation is an agreement between an employee and an employer on a probationary job in a certain period of time in accordance with the provisions of law. Before entering into a labor contract, the employer and the employee should go through a probationary period to determine the long-term cooperation and attachment between the parties. The probation should comply with the provisions of the Labor Code and relevant guiding documents. The Labor Code 2019 comes into force as of January 1^st, 2020, a number of new regulations accordingly are issued in connection to the probation, which each company should review the matter with its labour lawyers in Vietnam for compliance.

 

Regarding the circumstances which are permitted to enter into a probationary contract, this contract is not applicable to the labor term which is below 01 month.  The Labor Code 2012 does not require that the probationary provision must be stipulated in the labor contract. Accordingly, an employer and an employee may negotiate on the probation, the rights and responsibilities of the parties during the probation period. The parties may conclude a probation contract if there is an agreement on the probation. If the probation work meets the requirements, the employer shall conclude an employment contract with the employee. From these provisions, it can be understood that the employee and the employer should make a separate probationary contract. The labor contract should be signed when the probation is completed and the employee meets the recruitment requirements of the employer. According to the latest provisions in the Labor Code 2019, the employer and the employee may agree on the probation stated in the labor contract or a separate probationary contract. If the probationary provision is stipulated in the labor contract, the employer shall continue performing the existing labor contract at the end of the probationary period once the employee satisfies the requirements. Otherwise, a new labor contract shall be entered into.

The Labor Code determined the restriction of the probation period based on the nature and complexity of the job. The probationary period previously was limited to no more than 60 days for jobs requiring a college or higher professional qualification. Currently, the probationary period is permitted to extend up to 180 days for the executives. The executives play an important role in business and operation of the enterprises, including owner of a sole proprietorship, a partner of a partnership company, chairperson or member of the Board of Member, President of a company, President or member of the Board of Directors, Director/General Director, or holder of another managerial position prescribed in the company’s charter (applicable to the enterprise with no state capital)

Another amendment to the cancellation of the probationary contract, the Labor Code 2019 removed the limitation of the right to cancel. Accordingly, during the probationary period, each party has the right to cancel the probationary contract or labor contract entered into without prior notice and compensation. On the contrary, the employee and the employer may cancel the probation if the probationary job does not meet the requirements that the parties have agreed upon under the Labor Code 2012

Probationary periods are primarily designed to test out whether both employer and employee to match each other at the start of an employment relationship. The enterprises as employers need to have a clear understanding of the principles of entering into a labor contract as well as a probationary contract to avoid potential dispute in Vietnam.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. 

 

 

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Singaporean Investors Increase Capital in Finance and Technology

In addition to the real estate sector, Vietnam has recently been considered a key market for many financial and technology enterprises from Singapore.

 

Investment capital flows of Singaporean businesses are flowing strongly into southern provinces to welcome opportunities when Vietnam joins many free trade agreements (FTAs).

According to a report by Ho Chi Minh City Statistics Office, in the first 9 months of 2020, out of 111 countries and territories having investment projects in the City, businesses from Singapore contributed 813.5 million USD, accounting for 25 % of total foreign direct investment (FDI) in Ho Chi Minh City.

Broadly, according to recent statistics, out of 106 countries and territories having investment projects in Ho Chi Minh City, Singapore is ranked first with 1,100 projects with a total investment of 10.73 billion USD. Up to now, there have been many investors, large corporations of Singapore such as Keppel Land, Capital Land… having large-scale projects in Ho Chi Minh City.

In Binh Duong, from the beginning of the year up to now, Singapore businesses have invested the third largest investment capital among countries and territories investing in this locality, with a total registered capital of 198 million USD, accounting for 16% of the total investment capital.

According to the Singapore Consulate General in Ho Chi Minh City, up to now, this country has invested in Dong Nai more than 70 projects with a total registered capital of about 3.6 billion USD, ranking 4th among countries and territories investing in this province. Singapore businesses invest in Dong Nai quite successfully, so many businesses are researching and planning to continue to invest.

A month ago, when receiving the project investment certificate of SG Logistics Joint Stock Company with an investment of more than 80 million USD in Tan Phu Trung Industrial Park, the CEO of BW Group said that this was the third project of this business in Ho Chi Minh City to prepare for investment waves.

 

In fact, businesses from Singapore operating in the field of industrial real estate soon had projects in Binh Duong, Ho Chi Minh City, Dong Nai… and had outstanding successes.

According to experts, with the impact of FTAs ​​and the movement of capital into Vietnam, industrial real estate and logistics are the fastest growing segments recently. In particular, investors from Singapore, having an early presence in Vietnam, actively preparing many large land banks in the strongly developed industrial areas, are considered to have many advantages.

In addition to the real estate sector, Vietnam has recently been considered a key market for many financial and technology enterprises from Singapore to set up company and enter the market. According to Chairman of Bankograph Pte Limited, a Singapore’s fintech company, Vietnam stands out as a leading destination for foreign investors, not only in the financial sector, but also in many other sectors.

The wave of Singapore’s technology enterprises participating in investment and cooperation in Vietnam has been more strongly developed in the past two years. For example, Finaxar cooperates with Indovina Bank Vietnam to provide suitable financial support solutions for small and medium enterprises…

With the above handshakes, Vietnamese companies and financial institutions will benefit in cooperation with Singapore’s fintech company. At the same time, cooperation between businesses of the two countries is expected to create an ecosystem in the fields of finance and technology.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. 

 

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Philippine initiated anti-dumping investigation on cement from Viet Nam (AD case no. AD01-2021)

On April 20^th, 2021, Department of Trade and Industry of the Philippines (DTI) has issued the notice of initiation of an investigation on the application for an anti-dumping duty on cement from Viet Nam (AD case no. AD01-2021).  Request for investigation on application for an anti-dumping is the most international trade remedy under WTO Agreement which Vietnam company should hire local international trade lawyers to respond to authority in the Philippines.

 

According to the notice, DTI has officially received properly documented applications from Cemex Philippines, Holcim Philippines, Inc., and Republic Cement Builders and Building Materials, Inc., for the initiation of an anti-dumping investigation on cement from Viet Nam. These companies’ output of like product constitutes 70% of the total domestic production of cement. The applications allege that cement products are being imported from Viet Nam at dumped prices which cause material injury to the local industry.

The Department acting under Section 3 (a) of RA8752, the Philippines Anti-Dumping Act of 1999, reviewed the evidence adduced in the applications and has determined the existence of sufficient evidence to justify the initiation of an investigation. The products covered by the investigation are cement classified under AHTN Codes 2523.2990 and 2523.9000. The period of investigation (POI) for dumping is from July 2019 to June 2020, while the POI for injury is from 2017 to June 2020. For 2019 (July to December), dumping margins are alleged to range from US$1.75/MT to US$5.36/MT or 3.49% to 10.66%; For 2020 (January to June), the dumping margins are alleged to range from US$1.66/MT to US$6.54/MT or 3.31% to 14.46%.

Interested parties are invited to submit their comments, evidences, and information or reply to the questionnaire to dispute the allegations contained in the application. Submissions are made within thirty (30) days from receipt of the notice.

It should be noted that all uncooperative behaviors or insufficient cooperation will lead to the result that the Investigating Body will use adverse available evidence or apply anti-dumping duty proposed by the applications. In case of being applied anti-dumping duty, competitive advantage will decline, which results in the risk of losing a part or the whole export market to domestic manufacturing industry of the Philippines and/or competitors from other countries.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

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Extension of Submission Duration of the Questionnaire in Investigation on the Anti-dumping Case AD15

On April 02^nd, 2021, Trade Remedies Authority of Vietnam – Ministry of Industry and Trade (Investigation Body) has issued the investigation questionnaire for the interested parties in AD15. Accordingly, the deadline for receiving the full answer is 5pm of May 7^th 2021.

 

Investigation Body has received some requests for extending duration of answering the questionnaire for the interested parties in AD15.

In order to facilitate for the interested parties to fully cooperate, pursuant to Article 35.2 of Decree 10/2018/ND-CP on January 15^th, 2018 of Government on detailed regulations of some provisions of Law on foreign trade management of trade remedies, the Investigation Body extends the duration of receiving the answer for the interested parties in AD15 to 5pm on June 05^th, 2021. The response will be considered properly received when the Investigation Body receives full hard copies and soft copies before this deadline.

 

Trade Remedies Authority of Vietnam propose the interested parties implement other requirements according to the instructions in the questionnaire issued on April 08^th 2021.

Our international trade and competition lawyers in Vietnam at ANT Lawyers will always follow the development from authorities to provide update to our clients.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.  

 

 

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The advantages of attracting FDI to Vietnam in 2021

In 2020, due to the impact of the covid-19 epidemic, the global supply chain will be seriously affected. Besides, the effects of the US-China trade war, the shift of production out of China took place quickly. In which, there are four areas that corporations tend to shift to Vietnam to set up company and make investment are information technology and high technology, electronic equipment, e-commerce and logistics, consumer goods, and retail.

 

Some big global corporations have started recruiting, searching for supply chains, and Vietnam is one of the destinations in the transition to other countries in the region such as Indonesia, Thailand, or Malaysia.

Vietnam, with the advantage of being close to China, is favorable for the movement of investment and machinery. Besides, having policies to attract FDI from Vietnam will make it easier for international investors to transfer investment.

At the same time, Vietnam also participates in many Free Trade Agreements such as CPTPP, EVFTA, etc. that facilitate trade relations with many countries and regions in the world, which will make cooperation more favorable. In addition, the stability in the value of Vietnam currency is also a strong point in attracting international investment.

As the report of a famous industrial real estate brokerage firm, data comparing occupancy rates and rental rates of industrial zones in Southeast Asian countries in the first quarter shows that Vietnam has an average rental rate of 45-50% lower than in Thailand, Malaysia, and Indonesia. According to a report in 2019, Vietnam’s labor costs are also lower than that of Thailand, Malaysia and Indonesia, in addition, the labor force in Vietnam is increasingly abundant and the quality of labor is increasing.

Regarding electricity prices, according to EVN, comparing electricity prices in 2019 of Vietnam compared to other countries in the region, according to statistics, shows that electricity prices in Vietnam reach 80% compared to electricity prices of Indonesia; 42.1% of the electricity price of the Philippines and 66.7% of the electricity price of Cambodia.

In addition, with the application of supportive policies such as reduction of corporate income tax, import and export tax, land rental assistance, labor supply, and administrative procedures, Vietnam deserves to become be best investment destination in the world, for international companies to make investment, establish company and obtain investment registration certificate.

ANT Lawyers in a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

 

 

 

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