A study into business cases in Vietnam has found that economic and institutional factors are main factors to induce a rise of business cases to be filed at courts.
RMIT Vietnam Law Lecturer Dr Quach Thuy Quynh presented the findings from her study at a recent law conference hosted by the Stanford Law School in the United States.
The study found while individuals remain hesitant to pursue legal action, there has been an upward trend since 2003 of business cases heard in Vietnamese courts.
Based on data of ten years from 2003-2012, Dr Quynh has challenged the notion that cultural factors, such as maintaining harmony and saving face, having an impact on decision of Vietnamese to bring a case to the court.
Dr Quynh said: "The rise of business cases appears as a paradox to those whom conventionally hold the view that Vietnamese business people often do not give real credence to the court system.
"It also refutes assumptions that any increase of business cases is just a consequence of a growth of caseload in general," Dr Quynh added.
"In fact, in the litigation bandwagon, business people are not followers as they came at the forefront and became more litigious than disputants at any other civil disputes."
Dr Quynh's study contributes to current discussion on the role of law in transition economies as well as the enforcement debate of company law in Vietnam and the choice of enterprises to enforce contracts.
At the conference hosted by the Stanford Law School held in May 2014, Dr Quynh and other researchers from the United States, Germany, Japan, Hong Kong, Norway and Israel presented their findings to explore the limits of law and legal systems across the world.
Topics covered the ways society functions when there is a lack of formal legal structures and order is maintained through social norms, customs, or other informal rules of behaviour.