Analysis of Vietnam’s

business opportunities
CCIE Ho Chi Minh City
EVIPA
The EVIPA, EU-Vietnam Investment Protection Agreement, is an agreement aimed at the
protection of investments between the European Union and the Socialist Republic of Vietnam. It
guarantees a high level of investment protection, ensuring that European investors and their
investments in Vietnam are fairly and equitably treated. In particular, ensuring the
non-discrimination principle against Vietnamese’s investments under similar conditions. European
investments will also be protected against expropriation, except for cases of public interest, for
which there will be a compensation system through the payment of an indemnity. A dispute
settlement mechanism for investment disputes established under the EVIPA will comply with the
rules of the agreement itself.
Together with EVFTA, the EU-Vietnam Free Trade Agreement, the EVIPA highlights the Union's
interest in Vietnam and the rest of the South East Asian region. The EU is in fact the first direct
investor of ASEAN, the Association of Southeast Asian Nations, with an investment volume of
about €263 billion in 2016 (European Commission). Among the ASEAN members, after Malaysia
and Singapore, Vietnam is the preferred destination for European investments. This is confirmed by
the fact that EVIPA is the third EU agreement incorporating an investor-State dispute settlement
jurisdiction system for investment, after the previous EU-Canada and EU-Singapore agreements.
Italy invested, in 2019 alone, $13.8 million in 16 projects. The cumulative total of projects still
active in 2019 amounts to 110 projects worth about $403 million. (GSO Vietnam); the total FDI
of the European Union amounts to about $23.5 billion. According to ASEANstats statistics, Italy
has contributed only 0.1% of FDI to Vietnam; nevertheless, considering the constant economic
growth of Hanoi and the dependence on foreign investments, EVIPA can represent a springboard to
this country with increasing opportunities.
The EVIPA will replace all bilateral treaties previously concluded between Vietnam and EU
Member States. This includes the Agreement on Investment Promotion and Protection signed by
Italy and Vietnam on 18th May 1990.
The Investment Protection Agreement between the European Union and the Socialist Republic of
Vietnam:
● It will ensure compliance with the principle of most-favored-nation treatment, according
to which European investments would be treated no less favorably than third country
investors.
● It will allow all transfers involving regulated investments to be made in a freely
convertible currency, without restrictions or delays and at the market exchange rate
applicable on the date of the transfer
● It will protect from expropriation, except for instances of public interest.
● It acknowledges the right of one of the parties to subrogation, where one of them has made
a payment under an indemnity obligation, guarantee or insurance contract
● It will set up a mechanism to resolve disputes that may arise between the parties.
● It will allow the transfer and repatriation of funds related to an investment.
● It will set up a committee which will meet annually to ensure the proper functioning of the
Agreement.
The abovementioned committee will be chaired by the Minister of Planning and Investment of
Vietnam and the Member of the European Commission responsible for Trade. It will meet once a
year, or in urgent cases at the request of either Party, and will ensure the proper functioning of the
Agreement, facilitating its implementation and promoting its overall objectives. It will examine
matters referred to it by either Party, managing the settlement of disputes, between investors and the
Parties, making binding decisions on the Parties and taking measures necessary for their
implementation.
Investors should be aware of some exceptions to investment protection, so that they can better
plan a strategy for Vietnamese market penetration. The principle of most-favored-nation
treatment, according to which European investments would enjoy treatment no less favorable than
that of investors from a third country, does not apply to investments in the following areas:
● Communications;
● Recreational, cultural, sports services;
● Fishing and aquaculture, forestry and hunting;
● Mining, manufacturing and processing of nuclear materials;
● Manufacturing or trade of weapons, munitions and war material;
● National maritime cabotage;
● Domestic and international air transport services, whether scheduled or non-scheduled,
services directly related to the exercise of traffic rights;
DISPUTE RESOLUTION
With regard to the disputes that may arise in the context of the interpretation and application of the
treaty, EVIPA includes numerous provisions aimed at their resolution. Overall, these give rise to a
standard procedure that applies in all circumstances.
• RESOLUTION OF DISPUTES BETWEEN THE PARTIES
In this case, the first possibility of preventing or resolving disputes lies in the instrument of
consultations. With EVIPA, a Committee is set up to which a request for consultations can be sent,
the timing and procedures of which are specified in the agreement, during which the dispute can be
terminated if an agreement is found. However, in the event that consultations are not sufficient (or
that they do not take place, also due to the negligence of one of the Parties consisting in failure to
respond to their request), the complaining Party may request the establishment of an arbitration
panel with a written and legally motivated request. The panel is therefore called upon to give its
opinion on the basis of the reasons contained in the Interim Report and in the Final Report produced
by it.
The panel is made up of three arbitrators: two are chosen by the Parties and one is neutral (not an
EU citizen nor of Vietnam) and is its president. If within 10 days from the receipt of the request for
arbitration by the respondent party no shared arbitrators are chosen the Committee proceeds to draw
by lot among the possible arbitrators indicated by the Parties. The seat of the arbitration is Hanoi if
the complaining Party is the EU; Brussels if it is Vietnam (unless otherwise agreed). Hearings are
open to the public, while internal discussions are confidential.
The interim report must be submitted to the Parties within 90 days, subject to increase (due to the
complexity of the case) or decrease (caused by particular urgencies such as the perishable nature of
the goods in question). The Parties may send observations, on the basis of which the Board can
modify its report wholly or partially in view of the final report which, in the same way, provides for
a maximum time frame (120 days) which can be modified up to 150 or 60 days where necessary .
The respondent Party shall take the necessary measures to implement the final report without delay
and in good faith. If it is not possible to obtain immediate execution, the Parties shall endeavor to
decide by mutual agreement the period of time necessary to implement the final report. Finally, if
the contents of the final report are not implemented, the respondent party is required to pay
monetary compensation.
• RESOLUTION OF DISPUTES BETWEEN INVESTORS AND THE PARTIES
This paragraph deals with disputes that may arise between a claimant of one party and the other
party due to any measure (or omission) that violates the investment protection as provided by the
EVIPA and causes damage to the claimant.
Clearly, the first mechanism envisaged and desired is an amicable resolution through negotiations.
Where this is not possible, the Consultations tool is envisaged, the request of which must be made
within 3 years (subject to exceptions) from the damaging measure. They take place in Hanoi if they
relate to Vietnamese measures; in Brussels, if they relate to EU measures; in the capital of an EU
Member State if it is the only one to have adopted the disputed measures. Consultations must
usually take place within 60 days of the request. It is also possible to resort to mediation, without
prejudice to the legal position of the subjects and by freezing the terms of the Consultations, by
appointing a mediator by mutual agreement.
If a solution has not been found within 6 months of submitting the request for consultations, the
procedure provides for the formation of a Court to end the dispute. The plaintiff can announce his
intention to do so from the ninetieth day after the request for consultations. The Tribunal is made up
of 3 EU members, 3 members from Vietnam and three independent ones (based on citizenship). It
determines its own procedures and decides by majority by secret vote. There is also a Court of
Appeal, made up of six members (2 for each Party and 2 neutral) with proven knowledge and
experience in the field of international law. It re-examines, in divisions of three, the judgments of
the Tribunal, if an appeal has been lodged against one of them. Also in this case the operation is by
majority.
The Court applies, as the source of the law of its competence, first of all EVIPA and international
law; in secundis they take into account national laws, but the Court itself excludes the competence
of the Court itself in judging a potential violation of national laws. For the interpretation of EVIPA,
the Vienna Convention on the Interpretation of the Treaties of 1969 applies. The Court may
request an expert report, whose opinion contributes to the drafting of the provisional sentence, to be
issued within 18 months. It can order financial compensation and / or the return of goods. In any
case, the sentence can never be punitive. An appeal can be presented within 90 days and, if this
request is well founded, the final sentence must be issued within (as a rule) 180 days. It binds the
Parties to its execution, being legally equivalent to a sentence of an internal judicial body.
FINAL PROVISIONS
The provisions of EVIPA are without prejudice to the rights and obligations of the Parties
arising from tax treaties between Vietnam and one of the EU Member States. In the event of a
conflict between EVIPA and a tax agreement, the latter prevails limited to incompatible provisions.
No interpretation of this Agreement may prevent a Party from taking measures for prudential
reasons, such as the protection of investors, depositors or policy holders or persons with respect to
whom a financial service provider has a fiduciary obligation, as well as the safeguarding the
stability of a Party's financial system. Furthermore, no EVIPA provision can impose on a Party
the obligation to disclose information relating to the business and accounting of individual
consumers or confidential information held by public entities.
SERVICES OFFERED BY THE CCIE VIETNAM 
The Italian Chamber of Commerce in Vietnam (CCIE Vietnam) is a private association whose
The Italian Chamber of Commerce in Vietnam (CCIE Vietnam) is a private association, whose main
purpose is to carry out activities aimed at promoting trade with Italy. The Chamber aims to develop
contacts between organizations, bodies, associations, and operators operating in Italy and Vietnam
in order to facilitate relations in the economic and commercial field and to work to facilitate the
internationalization of Italian companies in the country. The Chamber carries out a series of
activities aimed precisely at achieving these objectives: the analysis work presented here (EVIPA)
and the indication of potential partners in the country are just some of the actions that the Chamber
can carry out support/service to Italian operators. The two activities mentioned were offered by
UBIBanca by virtue of a collaboration agreement between the Group and Assocamerestero (with
which the Chamber is associated). The purpose of the agreement is to promote and spread the
opportunities offered by the furniture sector in Vietnam. We remind you that the Chamber can offer
a series of specific services to support Italian companies in their internationalization processes.

Specifically, the Chamber can:

- Organize B2B meetings: Organize, plan and schedule Italian firms to B2B meetings after
having researched the perfect local partner. Also provide interpreter and other logistics services. 
- Offering a Follow up service: Support Italian firms in contacting, reminding and following up
with the Vietnamese partner after the B2B meeting. 
- Organize seminaries on specific themes: Promote Italian products or tech from a technical
point of view for defined sectors. 
- Organize visits in firm: Both to the producer or the importer\retailer’s company. 
- Provide consultancy service for investments: Follow the investor during its whole investment
path, from the first step to the opening of its branch. 
- Lobby: Providing lobby services with the government or local authority. 

Contacts

For further information, please visit www.icham.org or send an email to:

- officer@icham.org
- madeinitaly@icham.org
- info@icham.org