Efficiency in terms of procedural time is considered one of the advantages of arbitration compared to court proceedings. According to the 2018 and 2021 surveys conducted by Queen Mary and White & Case, the length of proceedings is one of the top concerns of the parties involved in disputes. Therefore, time efficiency is becoming an important criterion for evaluating the quality of the arbitration process. Not only the disputing parties but also arbitration institutions and arbitrators must face the pressure to improve their time management skills to ensure fairness and efficiency throughout the proceedings. Studies on this issue include the ICC Arbitration Commission Report on Techniques for Controlling Time and Costs in Arbitration, first published in 2007 and updated on March 16, 2018 ("ICC Report").
According to the ICC report, the increasing complexity, often unnecessarily, of procedures seems to be the main reason explaining the prolonged duration and high costs of many international arbitration cases. The longer the procedure, the higher the costs.
✍ Through the Report on Reducing Time and Costs in Arbitration and based on the ICC Arbitration Rules, the ICC introduced techniques to assist arbitral tribunals, parties, and their counsel in constructing a suitable procedural framework for their cases. Key techniques include: Terms of Reference, Case Management Conference, Timetable, and Procedural Orders. In addition, the report guides how to manage time and cost efficiency during arbitration proceedings, covering document submission, evidence, correspondence, witnesses, experts, dispute resolution hearings, and post-hearing submissions.
In Vietnam, according to the 2024 Annual Report of the Vietnam International Arbitration Centre (VIAC), VIAC handled 478 disputes, marking a new record in the number of cases received and resolved in its over 30 years of operation. Currently, to develop arbitration procedures, VIAC is also working to improve the procedural process to enhance time efficiency for the parties involved. Article 38.5 of the VIAC Rules states: "For issues not covered by these Rules, the Centre and the Arbitral Tribunal have the authority to act in the spirit of these Rules and strive to resolve disputes fairly and efficiently." However, there are still cases where the arbitration process is prolonged due to various reasons, such as service of process to the defendant, formation of the arbitral tribunal due to frequent changes, or numerous adjournments. Therefore, referencing the ICC Report is necessary to manage arbitration proceedings, not only for the arbitral tribunal but also for the lawyers and the parties involved.
ADR Vietnam Chambers is pleased to present the translated report of the ICC COMMITTEE ON ARBITRATION AND ADR - WORKING GROUP ON CONTROLLING TIME AND COSTS IN ARBITRATION. The translation has been carried out by ADR Vietnam Chambers and is for reference purposes only, not an official translation of the ICC.
✍ Vietnamese translation: Link
✍ Original English text: Link
✍ Queen Mary Survey:
✍ VIAC 2024 Annual Report: Link
