The Permanent Court of Arbitration (PCA) has opened an office in Hanoi, Vietnam to strengthen the country's reputation as a stable investment destination and make the PCA's services more accessible in Vietnam and the region.
Vietnam has been party to eight investor-state disputes (ISDs) so far, with three being decided in favor of the state, one in favor of the investor, one settled, one abandoned, and two pending.
Some of the notable ISDs involving Vietnam include: Recofi SA v. Vietnam, where the French company claimed that it had not been paid in full for contracts with Vietnamese companies and was seeking $66 million in compensation under the France-Vietnam Bilateral Trade Agreement (BIT), but the arbitrators ruled that the contracts did not constitute an 'investment' in Vietnam and the PCA did not have jurisdiction to settle the conflict; Dialasie v. Vietnam, where the French company claimed that Vietnam was in breach of the Fair and Equitable Treatment clause of the France-Vietnam BIT due to its dialysis clinic in HCMC being held to the standards of a hospital instead of a clinic, but the PCA ruled against Dialasie and costs were split between the two parties; McKenzie v. Vietnam, where an American investor claimed that Vietnam had breached the national treatment and expropriation provisions of the US-Vietnam BIT by not allowing him to build a resort on land allocated to another company, but the PCA ruled that Vietnam had not breached its obligations under the BIT.
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