International investment disputes are one of indispensable events during international business operations. When investing abroad, most enterprises are able to face potential risks regarding political, legal, cultural and environmental matters.
To protect enterprises’ interests, International Investment Agreements regulate principles, procedures and processes for resolving disputes between related parties. However, each international investment dispute has a specific nature and resolution, it is necessary for investors to understand, consider and analyze thoroughly before making any decision.
To protect enterprises’ interests, International Investment Agreements regulate principles, procedures and processes for resolving disputes between related parties. However, each international investment dispute has a specific nature and resolution, it is necessary for investors to understand, consider and analyze thoroughly before making any decision.
I. UNDERSTANDING OF INTERNATIONAL INVESTMENT DISPUTES
1. What is an international investment dispute?
An international investment dispute is the derivation of conflicts or disagreements related to parties’ rights, interests and obligations in international investment.
2. What regimes to resolve international investment disputes?
Pursuant to Clauses 2 and 3, Article 14 of Law on Investment 2020, there are regimes to resolve international investment disputes, as follows:
- Vietnamese Court;
- Domestic Arbitration;
- Foreign Arbitration;
- International Arbitration;
- Arbitration by parties’ agreement.
II. LEGAL REGULATIONS ON INTERNATIONAL INVESTMENT DISPUTES
1. Types of international investment disputes in current
In common, there are three types of international investment disputes:
- Disputes between the State (Government) and the State (Government): It is a type of dispute arising between member countries signed international treaties that are relevant to or regulate Investment provisions.
- Disputes between foreign investors and the Government of the domestic country: It often arises from international investment-related treaties, such as investment protection agreements (bilateral investment treaties) or investment contracts/agreements signed by two parties.
- Disputes between investors (traders) in international trade: It is considered an original and common status of most ones.
2. Processes for resolving international investment disputes
There are processes for resolving international investment disputes, as follows:
- Negotiations between parties: It is an initial and basic step during dispute resolution by direct negotiation method.
- Mediation/Conciliation between parties: If the negotiation is not possible, parties conduct the mediation/conciliation by agreeing to choose an agency, organization or individual as an intermediary party to support parties in making final decisions.
- Court or Arbitration: It is a final resolution if parties don’t still achieve an agreement.
III. QUESTIONS REGARDING INTERNATIONAL INVESTMENT DISPUTES
1. Which agencies have the competence to resolve international investment disputes
In common, parties shall agree and choose methods or competent agencies to resolve disputes stated in provisions of international investment contracts/agreements. Therefore, this matter will be based on parties’ will, volunteer and agreement when cooperating together.
2. Necessary notes when resolving international investment disputes
When resolving international investment disputes, investors need to consider some of following notes and matters:
- Understanding the litigation process: Filing a lawsuit is a first step investors need to clarify, helping them better prepare for dispute resolution.
- Choosing dispute resolution methods: There are many methods for resolving international investment disputes such as negotiation, mediation, or Court or Arbitration with different advantages and disadvantages, so investors should consider the best resolution method, limiting potential risks.
IV. CAN INVESTORS CONTACT LAW FIRMS TO OBTAIN SUPPORTS IN RESOLVING INTERNATIONAL INVESTMENT DISPUTES? HOW TO CONTACT SUCH LAW FIRMS?
International investment disputes are extremely complicated issues in both legal and economic contexts. Thus, it is important for investors to seek law firms protecting their best legitimate rights and interests.
NPLaw is proud of being a leading law firm with more than 10 years of experience, along with a team of professional lawyers and specialists, we will support Clients in advising and participating in negotiation, mediation or Court aiming to bring the best results to Clients. Please contact NPLaw via the following information if Clients need any legal supports:
