Vietnam’s Commitments Under the European Union – Vietnam Investment Protection Agreement (EVIPA): Some Noteworthy Points

The Investment Protection Agreement among Vietnam, the European Union (EU) and each of the EU’s member states (EVIPA) was signed by Vietnam and the EU on June 30, 2019, in Ha Noi. While the Free Trade Agreement between Vietnam and the EU (EVFTA) promotes trade liberalization between Vietnam and EU countries, EVIPA establishes legal safeguards for outward investment activities of investors from EU countries into Vietnam and vice versa. The EVIPA has not yet come into effect as it needs to be approved not only by the EU Council and the National Assembly of Vietnam, but also by the Parliaments of all EU’s member states. Even so, with the EVFTA in place, Vietnam hopes to attract more investment from the EU as Vietnam has committed to provide investors from the EU with certain protection some of which have not been available in any other investment protection agreements to which Vietnam is a party. Investors with EU nationalities undoubtedly are interested in how Vietnam could implement its commitments under the EVIPA. The paper discusses key commitments of Vietnam under the EVIPA along the lines of relevant provisions of Vietnam law and addresses some noteworthy points for investors from the EU planning to invest in Vietnam. It argues that understanding how domestic law and regulations facilitate international commitments would help investors from the EU prepare for their investments in Vietnam.