It is estimated that Vietnam needs around 70-80 billion US$ investment in the infrastructure sector in the coming 5-10 years alone. Developing its infrastructure will be one of Vietnam’s major tasks to reach regional competitiveness and be further integrated into global supply chains. A major challenge will be to synchronize the different infrastructure types in order to increase the flow of goods throughout the whole supply chain. We believe that involvement of both financial and technical expertise of the foreign private sector will be key to keeping up with the massive demand in the infrastructure area. Public Private Partnerships (PPP) projects will be of key importance to upgrade Vietnam’s infrastructure as the country integrates further into the world economy. The Vietnamese Government and the Ministry of Planning and Investment (MPI) have in recently introduced new regulations to develop and refine the regulatory framework governing PPP projects and contracts.
Why arbitration makes sense
This article shows foreign businesses the necessity of dispute resolution clauses quite plainly and provides assistance in choosing appropriate alternatives to the
Vietnamese civil courts.
Disadvantages of Vietnamese courts
Most contracts in North America and Europe specify in detail all of the parties‘ obligations and will be closely watched for the effectiveness of its clauses.
The contract’s legal enforceability, however, is widely regarded as a given.
By Oliver Massmann
Did you know? New framework for indirect investment activities in Vietnam!
On 12 March 2014, the State Bank of Vietnam issued Circular No. 05/2014/TT-NHNN guiding the opening and use of foreign portfolio investment (FPI) accounts for indirect investment activities in Vietnam. The nouveau Circular is effective from 28 April 2014 and replaces Circular No. 03/2004/TT-NHNN dated 25 May 2004.