The EVIPA and its Investment Tribunal System
The EVIPA aims to focus on protecting investors of a Party
(“Investor”) and their investments in the territory of the other
Party (as the host country of the investments). Besides
commitments on fundamental principles such as fair and
equitable treatment applicable to Investors and the covered
investment, the EVIPA provides dispute settlement procedures
and for the first time introduces its Investment Tribunal System.
Key points include:
• Dispute settlement procedures are split into two categories:
(A) those for settling disputes between Parties and (B) those
for settling disputes between Investors and the host
countries.
• Disputes between two Parties can be resolved through
consultation, mediation and/or arbitration as usual.
• For disputes between an Investor and a host country, in case
they cannot be settled via amicable resolution, consultations
and/or mediation, they can be resolved by an independent
dispute resolution authority, referred to as the “Tribunal”. The
Tribunal will be established under the EVIPA to hear claims
submitted by an Investor against a host country in
accordance with procedures under the EVIPA.
• Hearings will be handled by a three-member team from the
Tribunal, with one member each from the EU, Vietnam and a
third country. A claimant can appeal the decision of the
Tribunal to a permanent Appeal Tribunal within 90 days.
Otherwise, the decision of the Tribunal will be deemed as
final.
• The Tribunal itself comprises nine members, being appointed
for a four-year term (renewable once), of which the EU and
Vietnam will each appoint three members and the remaining
three members will be appointed by a third country. The
Appeal Tribunal consists of six members, two each from the
EU, Vietnam and a third country.