Resolving disputes in business activities between investors in which one side is a foreign investor must be done in Court?

Resolving disputes in business activities between investors in which one side is a foreign investor, must be done in Court?

Resolving disputes between investors in which one side is a regulated foreign investor in Article 14 of the Law on Investment 2020 as follows:

Dispute resolution in business investment activities

1. Disputes related to business investment activities in Vietnam are resolved through negotiation and mediation. In case no negotiation or conciliation is possible, the dispute will be resolved at Arbitration or Court according to the provisions of Clauses 2, 3 and 4 of this Article.

2. Disputes between domestic investors, economic organizations with foreign investment capital or between domestic investors, economic organizations with foreign investment capital and competent state agencies related to business investment activities in the territory of Vietnam shall be resolved through Vietnamese Arbitration or Vietnamese Courts, except for the case specified in Clause 3 of this Article.

3. Disputes between investors in which at least one party is a foreign investor or economic organization specified in Points a, b and c, Clause 1, Article 23 of this Law shall be resolved through one of the following agencies and organizations:

a) Vietnamese Court;

b) Vietnamese Arbitration;

c) Foreign Arbitration outside;

d) International arbitration;

dd) Arbitration established by agreement between the disputing parties.

According to this regulation, dispute resolution between investors in which at least one party is a foreign investor is resolved through one of the following agencies and organizations:

– Vietnamese Court;

– Vietnamese Arbitration;

– Foreign arbitration;

– International arbitration;

– Arbitration is established by agreement between the disputing parties.

Thus, dispute resolution between investors in which at least one party is a foreign investor is not required to be carried out in Vietnamese Court.

Disputes in business investment activities occurring between the State and foreign investors are resolved through which agency?

Resolving disputes in business investment activities between Article 14 of the Law on Investment 2020:

Resolving disputes in business investment activities

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4. Disputes between foreign investors and competent state agencies related to investment and business activities in the territory of Vietnam are resolved through Vietnamese Arbitration or Vietnamese Courts, unless otherwise agreed under a contract or international treaty to which the Socialist Republic of Vietnam is a member.

According to the above regulations, disputes between foreign investors and competent state agencies related to investment and business activities in the territory of Vietnam are resolved through one of the following two agencies, unless otherwise agreed under a contract or international treaty to which the Socialist Republic of Vietnam is a member and has other provisions:

– Vietnamese Arbitration;

– Vietnamese Court.

What agency does the authority to prevent disputes between the State and foreign investors belong to?

The authority to prevent disputes between the State and foreign investors is specified in Article 69 of the 2020 Investment Law as follows:

Responsibilities for state management of investment

1. The Government unifies state management of investment in Vietnam and investment from Vietnam abroad.

2. The Ministry of Planning and Investment helps the Government unify state management of investment in Vietnam and investment from Vietnam to foreign countries and has the following tasks and powers:

a) Submit to the Government and the Prime Minister for approval strategies, plans and policies on investment in Vietnam and investment from Vietnam to foreign countries;

b) Promulgate or submit to competent agencies for promulgation of normative documents law on investment in Vietnam and investment from Vietnam to foreign countries;

c) Issue forms for implementing investment procedures in Vietnam and investment from Vietnam to foreign countries;

d) Guide, disseminate, organize implementation, monitor, inspect and evaluate the implementation of legal documents on investment;

dd) Develop and submit to competent authorities to promulgate a mechanism to resolve investors’ problems and prevent disputes between the State and investors;

e) Synthesize, evaluate, and report on the investment situation in Vietnam and investment from Vietnam to foreign countries;

Accordingly, the authority to prevent disputes between the State and foreign investors belongs to the Ministry of Planning and Investment.