Refined dispute resolution standards to aid investors

Foreign investors in Vietnam will have future disputes solved by an upcoming dedicated resolution, further strengthening their confidence in the domestic business and investment arena.

- By Thanh Thanh

The Ministry of Justice (MoJ) is currently compiling a National Assembly (NA) resolution on coordination policies to improve the handling of international investment disputes, aiming to institutionalise Party guidelines and address practical shortcomings, and further protect foreign investors’ rights and benefits in relevant disputes.

Set to be adopted this year, the draft resolution embraces five chapters and 20 articles. It clearly defines the responsibility of the heads of agencies and organisations whose decisions or actions directly cause disputes.

The draft underscores the responsibilities of the lead agency, legal representative agency, and coordination agency. For example, the lead agency, or the MoJ, shall be accountable for directing, guiding, and organising the implementation of tasks related to the settlement of international investment disputes, ensuring efficiency, adherence to procedural timelines, and the safeguarding of national interests.

The MoJ has also proposed the establishment of a centre for the prevention and settlement of international investment disputes.

According to a governmental proposal on the draft resolution to the NA last week, such a resolution is essential as it would govern coordination throughout the entire process of preventing and resolving international investment disputes, not only among government bodies but also with nongovernmental institutions such as courts and procuracies.