Manual on the Prevention and Settlement of International Investment Disputes

By December 31, 2016, Vietnam had signed 66 bilateral investment treaties, regional investment agreements, and bilateral and multilateral trade agreements that include regulations on investment protection. Most international treaties with investment regulations allow foreign investors to sue the Government of Vietnam at international tribunals, including international arbitral tribunals. In addition, Vietnam's laws and regulations allow foreign investors to initiate lawsuits against State agencies as specified in signed investment contracts or international investment treaties. The fast growth of foreign investment flows in Vietnam has been attributed to the improved domestic legal framework. Foreign investment projects in Vietnam have become more diversified in terms of investment types, sectors, and the nationality of investors. In recent years, multinational corporations have increased their strategic investment projects in Vietnam. However, besides serious investors who are qualified and act in compliance with the law, others are violating local laws and regulations or abusing investment promotion policies. Vietnam is in the process of finalizing its legal framework, and government officers' capacity in implementing laws and working with investors is limited. Training and capacity building for these officials is still required in the context of international integration. To address these challenges, the Prime Minister issued Decision 04/2014/QD-TTg on the promulgation of regulations on coordinating the resolution of international investment disputes. The coordination of State agencies in settling international investment disputes at an international arbitral tribunal is divided into three stages: the pre-dispute stage, the dispute settlement stage, and the tribunal's award enforcement stage. The pre-dispute stage involves complaints, consultation, and negotiation with foreign investors, while the dispute settlement stage involves foreign investors initiating a lawsuit at a tribunal. The tribunal's award enforcement stage involves the enforcement of international arbitral awards. The Ministry of Justice, in cooperation with the USAID Governance for Inclusive Growth Program and lawyer Dinh Anh Tuyet, has developed a "Manual on the Prevention and Settlement of International Investment Disputes." The handbook aims to help government officials and other stakeholders improve their understanding of international investment disputes, increase awareness of the negative impact of these disputes on socio-economic development and the foreign investment environment in Vietnam, and show the importance of international investment dispute prevention. The handbook focuses on increasing knowledge and developing skills for government officials in three categories: general legal knowledge on international investment disputes, knowledge and skills about preventing international investment disputes, and knowledge and skills about resolving international investment disputes. International investment disputes are mainly classified into three categories: disputes over investment activities between the host country and foreign investors of another State arising from international investment treaties, disputes between a foreign investor and a specific State agency with regards to investment activities arising from a contract, arrangement, or provision of domestic law of the host State, and disputes among countries regarding the explanation and implementation of international investment treaties. Depending on the regulations of the international investment treaties or relevant agreements between disputing parties, international investment disputes are usually handled through international arbitration, mediation, or other dispute resolution mechanisms.