Regulations on disputes settlement with foreign investors in Vietnam

by QuynhHuong

In investment activities, conflicts are often unavoidable. Therefore, to solve this problem, the Vietnamese legal system has set up some regulations to apply; in case of disputes in investment activities. In this article, LSX will give you a brief on the regulations on disputes settlement with foreign investors in Vietnam

  • 2020 Investment Law

Regulations on disputes settlement with foreign investors

Initially, disputes related to business investment activities in Vietnam are resolved through negotiation and conciliation. In case the subjects can not negotiate or conciliate is possible, the dispute shall move on to the following steps and settle at arbitration or court according to regulations.

Disputes between domestic investors and foreign investors; or between the state and foreign investors

Hence the regulation, if there were disputes between domestic investors and foreign investors; or between the state and foreign investors; the Vietnamese Arbitration or the Vietnamese Court will be responsible for resolving the dispute. Especially, for disputes between the state and foreign investors, dispute settlement as the agreements under contracts or international treaties to which the Socialist Republic of Vietnam is a contracting party shall take precedence. However, these disputes settlement will minus the following cases:

  • Disputes involving one party being an economic organization with a foreign investor; holding more than 50% of the charter capital or having a majority of general partners being foreign individuals, for an economic organization being a partnership.
  • There are economic organizations and foreign investors, as above, holding more than 50% of charter capital.

Disputes between investors in which at least one party is a foreign investor or an economic organization

Accordingly, the subjects in this dispute are the cases listed above. In this type of dispute, the settlement method that the Investment Law offers is through one of the following agencies or organizations:

  • Vietnamese Courts
  • Vietnamese arbitration
  • Foreign arbitration
  • International arbitration
  • Arbitration established by agreement of the disputing parties

Thank you for paying attention. In case you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.

Who is a foreign investor?

Foreign investor means an individual with foreign nationality or an organization established under foreign law that conducts business investment activities in Vietnam.

What are the forms of foreign investment under Vietnamese law?

There are 04 forms of foreign investment under Vietnamese law, which is:
– Establishment of an economic organization
– Capital contribution, purchase of shares, purchase of contributed capital
– Investment in the form of PPP contracts
– Investment under BCC contract

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