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According to Article 14, Clause 1, of the Investment Law 2020, disputes related to business investment activities in Vietnam are resolved through negotiation and mediation.
In cases where negotiation and mediation are not successful, disputes are settled through arbitration or court proceedings as stipulated in Clauses 2, 3, and 4, Article 14, of the Investment Law 2020 (Section 2).
Jurisdiction for Resolving Disputes Related to Business Investment Activities in Vietnam
The jurisdiction for resolving disputes related to business investment activities in Vietnam, as specified in Clauses 2, 3, and 4, Article 14, of the Investment Law 2020, is as follows:
(1) Disputes between domestic investors, economic organizations with foreign investment, or between domestic investors and economic organizations with foreign investment involving state authorities with relevant jurisdiction over business investment activities within the territory of Vietnam are resolved through Vietnamese arbitration or Vietnamese courts, except as provided in (2) of this section.
(2) Disputes between investors, at least one of whom is a foreign investor or economic organizations as defined in points a, b, and c, Clause 1, Article 23, Investment Law 2020, are resolved through one of the following entities:
- Vietnamese courts
- Vietnamese arbitration
- Foreign arbitration
- International arbitration
- Arbitration is agreed upon by the disputing parties.
Economic organizations defined in points a, b, and c, Clause 1, Article 23, Investment Law 2020, include:
- Those with over 50% charter capital held by foreign investors or having a majority of members in a joint-stock company are foreign individuals.
- Those meeting the condition in point a, Clause 1, Article 23, Investment Law 2020, with over 50% charter capital held.
- Those with both foreign investors and economic organizations meeting the condition in point a, Clause 1, Article 23, Investment Law 2020, holding over 50% charter capital.
(3) Disputes between foreign investors and state authorities with relevant jurisdiction over business investment activities within the territory of Vietnam are resolved through Vietnamese arbitration or Vietnamese courts, except in cases of other agreements under contracts or international treaties of which the Socialist Republic of Vietnam is a member with different regulations.
Provisions on Ensuring Business Investment Activities
Provisions on ensuring business investment activities under Article 11, Investment Law 2020, are as follows:
The state does not compel investors to:
- Prioritize purchasing and using goods or services domestically or purchase from domestic producers or service providers.
- Achieve a certain ratio of exports of goods or services; limit the quantity, value, and type of exported or domestically produced and supplied goods and services.
- Import goods in a quantity and value corresponding to the quantity and value of exported goods or independently balance foreign currency from export sources for import needs.
- Achieve a certain level of localization for domestically produced goods.
- Achieve a certain level of value in research and development activities within the country.
- Supply goods or services at a specific location, either domestically or internationally.
- Establish their headquarters at a location as required by the competent state agency.
Based on economic and social development conditions and the need to attract investment in each period, the Prime Minister decides to apply state forms of guarantee to implement investment projects under the approval authority for investment policy by the National Assembly, the Prime Minister, and other important infrastructure development projects.
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