The Multilateral Investment Court project: Assessing the Contribution of the European Union – Vietnam FTA

In the EU-Vietnam FTA (EVFTA) the typical investor-State dispute settlement mechanism has been replaced with a different, new model. The paper will sketch out the main differences between the two mechanisms and suggest where the Vietnam government may expect certain difficulties with implementation of the new system. Moreover, the EVFTA mechanism is intended to be a mere first step toward a multilateral investment tribunal system (cf. EVFTA Article 8.31). In addition, EVFTA continues to permit the investor to challenge the Host state directly, and on the other hand restricts the Home state’s involvement in the process. Actually, the participation of Home State in ISDS in EVFTA is much wider than any bilateral treaties. They can receive documents from the proceedings and participate in the oral hearing. Whereas the basic investor-State dispute framework is continued, the institutional structure differs from the arbitration model.