HM&P's Managing Partner gave an interview to Vietnam Today channel about the mechanism for resolving international investment disputes

The deep participation in international investment agreements along with the increase in FDI inflows into Vietnam has led to higher requirements for the investment dispute settlement mechanism. Related legal issues are not only limited to the national scope but are increasingly expanding to international jurisdictions, requiring careful preparation from both the State and enterprises.

Source: Vietnam Today's Facebook

Recently, Managing Partner Nguyen Van Phuc represented HM&P Law Firm ("HM&P") in an interview on the national foreign television channel - Vietnam Today (under Vietnam Television - VTV), focusing on the analysis of the reality of international investment disputes in Vietnam and the orientations to improve the dispute settlement mechanism in the to come.

Dispute practice: Less in number, increased in complexity

In the interview, Lawyer Phuc said that the number of international investment disputes in Vietnam in recent years has not increased dramatically, but the nature of the cases is increasingly complex and the value of disputes tends to increase. Specifically, in the period from 2020 to 2025, Vietnam has resolved 04 international investment disputes and all of them have achieved favorable results for the State. This is a positive signal, reflecting that Vietnam's dispute handling capacity is gradually being strengthened. However, according to HM&P's analysis, it is worth noting not only the final outcome, but also the cost, time and potential legal risks throughout the dispute resolution process.

Causes of disputes: Focus on the post-investment stage

From the perspective of practice, Lawyer Phuc said that most international investment disputes arise in the post-investment period, especially when investors restructure, transfer or withdraw capital from the project.

Notably, many disputes stem from seemingly minor issues such as differences in the interpretation of contracts, delays in the performance of obligations or administrative problems. If not handled in time, these issues can escalate into disputes at the international level with a high level of complexity. Sharing more about this issue, Lawyer Phuc emphasized:

"In many cases, disputes do not stem from major problems from the beginning, but gradually accumulate from small deviations in the implementation of the project. If not identified and dealt with in time, these risks can completely develop into international investment disputes with a higher level of complexity."

Challenges in the coordination mechanism between state agencies

Regarding the draft Resolution on the mechanism for coordination in handling international investment disputes, Lawyer Phuc commented that one of the major bottlenecks today does not lie in the lack of legal regulations, but lies in the effectiveness of coordination in practice.

International investment disputes often involve a variety of regulatory bodies at different levels. Meanwhile, the lack of a clear identification of the focal point or a unified coordination mechanism can lead to information dispersion, delays in response and lack of synchronization in the handling viewpoint. Lawyer Phuc said:

"Strengthening the inter-sectoral coordination mechanism, especially enhancing the role of the focal point, will be a key factor to help improve the efficiency of dispute resolution in the coming time."

Lawyer Phuc gave an interview on VTVgo

Impact of the new policy on FDI inflows

How a country handles investment disputes has always been one of the important criteria in the decision-making process of foreign investors. Not only stopping at tax incentives or market size, Lawyer Phuc considers that the factor of "ability to predict legal risks" is increasingly becoming a key measure.

As noted, in the first quarter of 2026, Vietnam will continue to maintain its attractiveness with more than 15 billion USD of registered FDI. However, along with this increase is the increasing demand for transparency and consistency in the application of law and dispute resolution in practice. The completion of the dispute resolution mechanism not only means handling cases that have arisen, but also serves as a "tool to ensure trust" for investors. When risks are better controlled, FDI inflows not only increase in quantity but also tend to improve qualitatively, towards longer-term and more sustainable projects.

The contents exchanged in the interview on Vietnam Today TV channel have partly reflected the reality of international investment disputes in Vietnam today, and at the same time suggested appropriate approaches to control risks from an early stage. In fact, the completion of the coordination mechanism between state agencies, along with the initiative from businesses, will be an important factor in limiting disputes and improving the stability of the investment environment. With practical experience in consulting and resolving investment disputes, HM&P is always ready to accompany businesses in reviewing, building and optimizing legal risk management systems, thereby contributing to the prevention of disputes from the early stages.

Watch more an interview at: Vietnam Today's Facebook & VTV's Youtube