Investment and business disputes in Vietnam are complex and sensitive matters involving multiple stakeholders with differing interests. In the context of increasingly deep international economic integration, both domestic and foreign enterprises seek to protect their legitimate rights and interests when participating in investment and business activities within Vietnam. However, conflicts and disputes between parties are often unavoidable, especially when there is interference from state authorities or social organizations. To effectively and fairly resolve investment and business disputes, it is essential to have a transparent and consistent legal system, a flexible and prompt dispute resolution mechanism, and a cooperative and respectful attitude among all involved parties.
I. Current situation of investment and business disputes in Vietnam
In recent years, investment and business disputes in Vietnam have tended to increase in both number and complexity. These disputes commonly occur among parties involved in investment and business activities, such as domestic and foreign investors, state management agencies, social organizations, and relevant individuals.
The causes of such disputes may stem from differences in legal regulations, business culture, economic contracts, tax policies, trade protection, environmental protection, intellectual property rights, and other issues.
Investment and business disputes not only affect the rights and interests of the involved parties but also have negative impacts on the business environment and Vietnam’s reputation and image in the global arena.
II. Legal provisions on investment and business disputes in Vietnam
1. What are investment and business disputes in Vietnam?
Investment and business disputes in Vietnam are understood as conflicts, disagreements, or differences of opinion related to investment activities.
2. Methods for resolving investment and business disputes in Vietnam
- Negotiable Disputes
There are two non-adjudicative methods of dispute resolution based on mutual goodwill:
+ Negotiation: A method whereby the disputing parties agree to discuss and resolve their differences through mutual agreement without the involvement or decision of any third party.
+ Mediation: A method where a third party acts as a mediator to support and persuade the disputing parties to find a mutually acceptable solution to resolve the dispute.
- Non-Negotiable Disputes
If negotiation or mediation fails, the dispute will be resolved through arbitration or the court system.
3. Authorities competent to resolve investment and business disputes in Vietnam
The competent authorities to resolve investment and business disputes in Vietnam include Courts or Arbitration bodies.
III. Common questions about investment and business disputes in Vietnam
1. Is the Court the only competent authority to resolve investment and business disputes in Vietnam?
No. In addition to the Courts, Arbitration bodies are also competent to resolve investment and business disputes in Vietnam.
2. Is it possible to choose international arbitration to resolve a dispute between a domestic investor and a foreign-invested company?
Yes. In cases where at least one party is a foreign investor or an economic organization, the dispute may be resolved by one of the following authorities or institutions:
- Vietnamese Court
- Vietnamese Arbitration
- Foreign Arbitration
- International Arbitration
- Ad hoc Arbitration established by mutual agreement between the disputing parties in accordance with Clause 3, Article 14 of the Law on Investment 2020
IV. Legal consultancy services related to investment and business disputes in Vietnam
The above is information provided by NPLAW to address questions regarding investment and business disputes in Vietnam. If readers have any further inquiries related to the legal procedures or need further clarification, please contact NPLAW via the following contact information:
