On September 13th 2018, the Ministry of Finance issued Circular No. 85/2018/BTC on guiding to make estimation, management, usage and settlement of state budget in service of prevention and settlement of international investment dispute.
This Circular stipulated the principles for estimation, management, usage and settlement of budget as follow: The expenses from the performance of duties of legal representation for the Government will be granted in the annual operational expenditure of the Ministry of Justice.
The expenses from doing other tasks in service of the prevention and settlement of international investment dispute will be granted to the responsible agencies, which if it were a central body then the budget would be covered by the central budget. If it were a local body, then the local budget would cover it according to the regulation on budget decentralization.
Regarding the contents of expenditures, during the period when foreign investors file a complaint and request consultation or send a notice of intention to file a lawsuit, the expenses include: The expense for researching the law, international treaties; seeking legal advice from experts (national and international); preparing consultation and negotiation with foreign investors.
Regarding the period when foreign investor files a lawsuit to the international arbitrator or a competent foreign tribunal, the expenses include: The expense for making plans and strategies to participate in the dispute settlement; preparation of documents, related evidence; composing a reply to the arbitration notice in accordance to the arbitration rules in the event that a consulting lawyer for the Government cannot be hired or have yet to hire one.
Regarding the period when settling the international investment dispute at the international arbitrator or at a competent foreign tribunal, the expenses include: the expenses for the representative lawyer and to hire experts (national and international); expenses for the witnesses to participate; and expenses for the translation at the hearing…
Although it only stops at the principle level, Circular No. 85/2018/BTC with the coordination regulation of international dispute settlement has partly reflect the effort of the Vietnamese Government in restricting international investment disputes, building an attractive investment environment for foreign investors.