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Posted in: Inward Investment
To mitigate or avoid the risks of investor claims, the Government of Vietnam has introduced various measures under various new laws issued in 2014 and 2015. These measures certainly make it more difficult for foreign investors to use Vietnamese law against the Government of Vietnam in case of an investment dispute. Below are some of these measures:
Under Decree 118/2015, if a foreign investor is subject to multiple international treaties on the same industry or business line then the foreign investor is entitled to select one of the applicable international treaty. And if the foreign investor has selected to follow one international treaty then the investor will need to comply the provisions of such international treaty as a whole. In other words, under Decree 118/2015, a foreign investor may not be able to cherry pick the most favourable provisions of different international treaties in its favour.
After months of delay, the long-awaited Decree 118/2015 implementing the Investment Law 2014 was finally issued on 12 November 2015. Set out below are certain important points of Decree 118/2015:
The table below tries to compare the existing commitments of Vietnam under WTO Agreement with the commitments under TPP for financial services. This post is contributed by Tran Thi Thu Thao, a VILAF associate. Pdf version of the table can be downloaded here.
Notes: