Reassessing environmental protection in international investment agreements: The case of Vietnam

The proliferation of international investment agreements reflects the tireless efforts of many governments in the world to attract foreign investment and significantly improve their investment environment, including Vietnam. However, investment overshielding without regard to public policy objectives also has negative consequences, such as indirectly and directly causing environmental pollution at investment sites. Vedan Vietnam and Formosa Ha Tinh Steel are prime examples of ecological incidents with long‐term damage to the host State. Using critical and case study approaches, this article examines the reasons behind those incidents and analyses Vietnam's improper response to the cases. More importantly, the article criticises the lack of alignment of the domestic legal system and international investment law. Finally, the article suggests the interconnected relationship between domestic and international law and recommends treaty‐making directions to avoid the risk of Vietnam and other ASEAN countries becoming a ‘new haven’ of environmental pollution.