Commercial mediation procedures and formalities pursuant to decree No.22/2017/ND-CP

Commercial mediation is one of the modern and popular methods for dispute resolution worldwide. In Vietnam, this method is also chosen by various parties to settle disputes. With the regulation of Decree No. 22/2017/ND-CP on commercial mediation, dated February 24, 2017 (“Decree No. 22/2017/ND-CP”), the legal framework for this method in Vietnam is relatively comprehensive and flexible. Accordingly, Decree No. 22/2017/ND-CP allows commercial mediation organizations to stipulate the detailed procedures for conducting mediation in the Mediation Rules issued by each organization.⁶ A draft of the Mediation Rules must be submitted to the Ministry of Justice before the commercial mediation organization completes its operational registration procedures.⁷ 

Pursuant to the provisions of Chapter III of Decree No. 22/2017/ND-CP and with reference to the Mediation Rules of the Vietnam International Commercial Mediation Center (“VICMC Mediation Rules”)⁸, the procedures and formalities for conducting commercial mediation are stipulated as follows:  

1. Step 1: Establishing the Mediation Agreement 

Based on the principles of equality and voluntariness, the commercial mediation process can only be conducted when the parties agree to participate. The mediation agreement must be recorded in writing. The parties can establish the mediation agreement as a clause within a contract or as a separate agreement.⁹ 

With an expanded regulatory approach, Decree No. 22/2017/ND-CP allows parties to a dispute to flexibly establish a commercial mediation agreement. Accordingly, under the VICMC Mediation Rules, in the event that the parties do not have a mediation agreement, the parties to the dispute may choose to send a Request for Mediation to a commercial mediation organization to request dispute mediation.¹⁰ The date the mediation organization receives the Request for Mediation is considered the date on which the mediation procedure commences. 

Thus, in a case where the parties do not have a mediation agreement, the Request for Mediation can be considered a form of establishing a mediation agreement between the parties. The commercial mediation organization will issue a Notice of Request for Mediation to the other party. The other party’s response by accepting the request can be considered a method of establishing the agreement through the commercial mediation organization. 

Please note that, in the event the parties establish a mediation agreement via a Request for Mediation at a commercial mediation organization, the parties must select a commercial mediator from the organization’s list of mediators. Alternatively, the parties have the right to request the commercial mediation organization to appoint a mediator with experience in the field of the dispute.  

2. Step 2: Paying the Mediation Service Fee 

In essence, the commercial mediation service fee is similar to the advance payment of court fees for dispute resolution at the People’s Courts at all levels. The parties are required to make an advance payment of the mediation service fee after a request for mediation and a response accepting the request have been made at the commercial mediation organization. 

In the event that one of the parties fails to pay the advance payment of the mediation service fee, the commercial mediation process will be terminated as per the notice from the commercial mediation organization. 

3. Step 3: Amending and Supplementing the Request for Mediation (If Applicable) 

After the commercial mediation organization issues a Notice of Request for Mediation to the other party, the party requesting mediation may amend and supplement the request if it is considered important and needs to be specified in the request. Accordingly, the commercial mediation organization will issue a notice regarding the supplemental request for mediation. Upon receiving the notice, the other party to the dispute must respond by accepting both the initial and supplemental requests for mediation. 

4. Step 4: Holding the Mediation Session 

After the parties have established the mediation agreement and fully paid the fees, the commercial mediation organization proceeds to notify the parties of the mediation session. The number of mediation sessions is currently not limited by any regulation. During the mediation process, the mediator has the right to communicate by any means or to contact the parties simultaneously or individually, before, during, or after the mediation session, to assist the parties in reaching an agreement. 

5. Step 5: Successful Mediation Outcome 

After the mediation sessions, when the parties reach an agreement to resolve the dispute, they have the right to request the mediator to draft a document regarding the successful mediation outcome. The document on the successful mediation outcome records the basis for conducting the mediation, basic information about the case, the main content of the case, and the dispute resolution content that the parties have agreed upon. 

The document on the successful mediation outcome serves as the basis for the competent People’s Court to consider recognizing the out-of-court successful mediation outcome as per the provisions in Chapter XXXIII of the 2015 Civil Procedure Code. 

Thus, when the parties achieve a successful mediation outcome, the mediation process at the commercial mediation organization will terminate. Alternatively, the termination of the mediation process will be conducted as per the cases stipulated in Article 17 of Decree No. 22/2017/ND-CP and according to the Mediation Rules issued by the commercial mediation organizations. 

^{(6) Article 14, Clause 1, Decree No. 22/2017/ND-CP} 

^{(7) Article 21, Clause 1, Decree No. 22/2017/ND-CP}

^{(8) Reference to the Mediation Rules of the Vietnam International Commercial Mediation Center, https://vicmc.vn/wp-content/uploads/2025/01/VICMC_QuyTacHoaGiai_Mediation-Rule_VN_EN_publication.pdf}

^{(9) Article 11, Decree No. 22/2017/ND-CP}

^{(10) Article 2 of the Mediation Rules of the Vietnam International Commercial Mediation Center, https://vicmc.vn/wp-content/uploads/2025/01/VICMC_QuyTacHoaGiai_Mediation-Rule_VN_EN_publication.pdf}

Date Written: 20/08/2025

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