The fair and equitable treament clauses in Vietnam’s international investment agreements

Abstract

Fair and equitable treatment (FET) is one of the important standards of investment protection in international investment agreements (IIA) and is frequently invoked by foreign investors in claims against host states. Due to the ambiguity of the wording, the interpretation and application of FET clauses in arbitral practice vary and create legal uncertainties for the parties involved. This study reviews FET clauses and reveals their legal implications in Vietnam's IIA system. The article makes some recommendations for Vietnam to formulate FET clauses in the future to promote clarity and better protection of state interests.