SURVEY ON THE APPLICATION OF CISG IN THE DISPUTE SETTLEMENT OF INTERNATIONAL GOODS PURCHASE CONTRACTS CONTRACTIONS IN VIETNAMESE ENTERPRISES – CURRENT SITUATION AND SOLUTIONS (*)
Nguyen Hoang Nam1,2
1Member of SEAYLP, U.S. Embassy & Consulate in Vietnam
2Student at Faculty of Law, College of Economics, Law and Government, UEH - CELG
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(*) The article has been published in the Proceedings of the International Conference: “The 2nd International Conference on Science, Technology and Society Studies” (STS 2021), pp.545-555. ISBN: 978-604-67-2053-9.
Abstract:
CISG is the most successful international convention in the field of content law of international justice, with 94 member states. The research objective focuses on understanding and evaluating the current situation of the application of CISG in the settlement of international goods sale and purchase contracts disputes in Vietnamese enterprises. Research data was collected through questionnaires for businesses in Vietnam with 175 responses meeting the statistical standards. Research results show that currently most Vietnamese enterprises choose the Law applied in negotiation is Vietnam Law, value of the contract dispute in the international sale of goods between parties of big value and the willingness to learn and apply CISG in businesses in Vietnam is very high. Thereby, proposing a number of recommendations on encouraging Vietnamese enterprises to apply CISG in the settlement of international goods sale and purchase contracts disputes in the coming time.
Keywords: CISG, dispute settlement, enterprises, international sales contracts, Vietnam.
- INTRODUCTION
The United Nations Convention on Contracts for the International Sale of Goods - Vienna Convention (1980) (abbreviated as CISG) is one of the conventions that Vietnam has recently acceded to to contribute to the elimination of barriers. legal barriers to international trade and promote the development of international trade. In the ASEAN region, three countries have joined the CISG, including: Singapore, Vietnam and Laos. Joining CISG brings the consistency between the law on international goods trading of Vietnam and many countries around the world. Up to now, CISG is the most successful international convention in the field of content law of international justice, with 94 member countries. Nine out of the ten largest economies in the world are members of the convention, with the only exception being the United Kingdom. The CISG convention covers more than 80% of global trade.
In practice, international contract disputes for goods are often caused by a variety of reasons, but most often a breach of contract by the buyer or the seller or both the buyer and the seller. Based on relatively clear provisions on the rights and obligations of the parties, the CISG presents flexibility in allowing states to sign exceptional options, typically such as the application or the exclusion of application. However, Vietnamese enterprises applying CISG in resolving disputes in international goods sale and purchase contracts are not really widespread.
Many previous studies have studied the application of CISG in their country such as Schwenzer (2010) study on the application of CISG under the provisions of national law, Eunice's (2019) study on the university. The parties of the contract cannot be based on the freedom to choose to use the CISG as the law governing the contract if the countries of the other party are not a CISG signatory or Dawwas & Shandi (2011) in assessment of the applicability of the CISG for in Arab.
In Vietnam, there are not many studies on CISG, especially research on application of surveys in enterprises. A typical study is that of Trinh (2018) examining the international nature of contracts for international sales of goods and the scope of application of the CISG. Therefore, with the survey of enterprises in Vietnam, this study will focus on understanding and evaluating the current situation of applying CISG in the settlement of international goods sale and purchase contract disputes in enterprises. Thereby, giving some recommendations on encouraging Vietnamese enterprises to apply CISG in the settlement of international goods sale and purchase contracts disputes in the coming time.