Resolving Disputes in Business Investment Activities

Dispute Resolution in Business Investment Activities - Illustrative Image.

Specifically, according to Article 14 of the Investment Law 2020, the resolution of disputes in business investment activities is regulated as follows:

- For disputes related to business investment activities in Vietnam, resolution can be achieved through negotiation and mediation. If negotiation and mediation fail, the dispute shall be resolved at Arbitration or Court.

- For disputes between domestic investors, foreign-invested economic organizations, or between domestic investors, foreign-invested economic organizations and competent state agencies related to business investment activities within Vietnamese territory, the disputes shall be resolved through Vietnamese Arbitration or Vietnamese Courts, except for cases where at least one of the parties is a foreign investor or economic organization specified in Clauses a, b, and c, Clause 1, Article 23 of this Law, specifically:

- Having foreign investors holding over 50% of charter capital or having the majority of general partners being foreign individuals for economic organizations that are partnerships;- Having economic organizations specified at point a of this clause holding over 50% of charter capital;- Having foreign investors and economic organizations specified at point a of this clause holding over 50% of charter capital.

For these cases, when disputes arise, they shall be resolved through one of the following authorities or organizations:

- Vietnamese Court;- Vietnamese Arbitration;- Foreign Arbitration;- International Arbitration;- Arbitration established by agreement between the disputing parties.

Additionally, Clause 4 of this Article stipulates that disputes between foreign investors and competent state agencies related to business investment activities within Vietnamese territory shall be resolved through Vietnamese Arbitration or Vietnamese Courts, except where there is another agreement according to the contract or international treaties of which the Socialist Republic of Vietnam is a member and which have different provisions.

See the detailed contents at Investment Law 2020 effective January 01, 2021.

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE