Vietnam’s Experiences with International Investment Agreements Governance: Issues and Solutions

Abstract

Vietnam’s major economic reforms of Doi Moi (Renovation) was launched in 1986 by the Communist Party of Vietnam (CPV) to boost the country’s underperforming economy and restore international ties. Under the Doi Moi policy, the Soviet centrally-planned economy was replaced with a socialist market mechanism, which promoted the concept of a multi-sectoral economy, opendoor policies towards international trade and investment, and recognized private property rights. The leadership of Vietnam has identified investment treaties to be significant for the transition, therefore putting them at the forefront of national economic policy. Vietnam has been active in negotiating and concluding Bilateral Investment Treaties (BIT s), with the view that the treaties would help to attract foreign investments. In addition, the BIT s were also regarded by the government as a diplomatic instrument to foster integration and break the international isolation caused by the US trade embargo.1 Over time, the International Investment Agreements (IIA s) became an important basis to protect Vietnamese investors overseas. The expansion of the IIA network during the last decade is regarded as an important aspect of Vietnamese investment policy. As of 1 January 2019, Vietnam has entered into 67 BIT s other states.2 Among these 67 BIT s, 49 are in effect.3 Additionally, 9 out of 12 free trade agreements (FTA) to which Vietnam