Abstract
International investment significantly contributes to economic development by fostering hunger eradication, poverty reduction, job creation, and the introduction of new technologies and services. However, it also presents challenges, including resource degradation, environmental decline, waste generation, and human rights violations. This article emphasizes integrating sustainable development principles into international investment law to balance investor and host country interests while safeguarding the environment and human rights for long-term sustainability. In Vietnam, a nation increasingly integrated into the global economy, legal frameworks stipulate sustainable development principles for foreign-invested projects, aligning with international standards to protect the environment and people alongside economic and social progress. Despite these efforts, Vietnam’s regulations exhibit limitations and unpredictability, hindering effective responses to potential international investment disputes. This study examines Vietnam’s approach to these principles and its practical implementation toward achieving sustainable development goals through investment, using case studies and conceptual analysis of international investment agreements. The central research question explores how Vietnam can leverage international investment benefits while ensuring sustainable development. The article analyzes the interplay between sustainable development and investment promotion, identifies key principles in investment agreements, and highlights challenges for host countries like Vietnam in managing expropriation disputes tied to public interest criteria. Findings underscore the need to prioritize sustainable development in attracting investment, proposing legal enhancements to strengthen state remedies against investor violations, and minimizing expropriation lawsuits. By addressing these gaps, Vietnam can better enforce sustainable practices, balancing economic gains with environmental and human rights protections. The research advocates for refined legal provisions to enhance Vietnam’s capacity to resolve disputes and uphold sustainable development commitments, offering actionable recommendations to perfect its legal framework in this domain.
References
Agreement Between Canada and the Hashemite Kingdom of Jordan for the Promotion and Protection of Investments. June 6, 2009. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/617/download.
Agreement Between Canada and the Republic of Peru for the Promotion and Protection of Investments. November 11, 2006. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/626/download.
Agreement Between Japan and the Government of the Socialist Republic of Vietnam for the Liberalization, Promotion, and Protection of Investments. November 14, 2003. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/1738/download.
Agreement Between Japan and the Republic of Peru for the Promotion, Protection, and Liberalisation of Investments. November 21, 2008. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/1733/download.
Agreement Between the Government of Australia and the Government of the Republic of Chile on the Reciprocal Promotion and Protection of Investments. July 7, 1996. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/146/download.
Agreement Between the Government of Canada and the Government of the Czech and Slovak Federal Republic for the Promotion and Protection of Investments. November 15, 1990. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/607/download.
Agreement Between the Government of Canada and the Government of the People's Republic of China for the Promotion and Reciprocal Protection of Investments. September 8, 2012. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/3476/download.
Agreement Between the Government of Canada and the Government of the Republic of Latvia for the Promotion and Protection of Investments. May 5, 2009. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/618/download.
Agreement Between the Government of the Kingdom of Sweden and the Government of the Russian Federation on the Promotion and Reciprocal Protection of Investment. July 7, 1995. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2226/download.
Agreement Between the Government of the People's Republic of China and the Government of the Socialist Republic of Vietnam Concerning the Encouragement and the Reciprocal Protection of Investments. December 2, 1992. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/795/download.
Agreement Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Socialist Republic of Vietnam for the Promotion and Protection of Investment. August 1, 2002. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2376/download.
Agreement Between the Swiss Confederation and the United Mexican States on the Promotion and Reciprocal Protection of Investments. May 5, 1995. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2006/download.
Bear Creek Mining Corporation v. Republic of Peru. ICSID Case No. ARB/14/21 (2017). https://www.italaw.com/cases/2848.
Chi, Manjiao. Integrating Sustainable Development in International Investment Law: Normative Incompatibility, System Integration and Governance Implications. 1st ed. London: Routledge, 2017. https://doi.org/10.4324/9781315642840.
Coleman, Jesse, Kevin Y. Cordes, and Lise Johnson. CCSI Working Paper 2019 Human Rights Law and the Investment Treaty. New York: Columbia Center on Sustainable Investment, June 2019. https://ccsi.columbia.edu/sites/default/files/content/docs/publications/Coleman-Cordes-and-Johnson-Human-Rights-Law-and-the-Investment-Treaty-Regime.pdf.
Copper Mesa Mining Corporation v. Republic of Ecuador. PCA No. 2012-2 (2016). https://www.italaw.com/sites/default/files/case-documents/italaw7443.pdf.
Cotula, Lorenzo. Foreign Investment, Law and Sustainable Development. London: International Institute for Environment and Development, 2016. https://www.iied.org/sites/default/files/pdfs/migrate/12587IIED.pdf.
Draft Norwegian BIT Model. 2015. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/3350/download.
Environment and Labor Chapter of the EU-Vietnam Free Trade Agreement. June 20, 2019. http://evfta.moit.gov.vn/data/7d80034a-9a2a-4c93-8046-9df701661850/userfiles/files/EVFTA_en19-final.pdf.
Gazzini, Tarcisio. “Bilateral Investment Treaties and Sustainable Development.” Journal of World Investment and Trade 15, no. 5–6 (2014): 929–963. https://doi.org/10.1163/22119000-01506008.
General Agreement on Tariff and Trade. October 30, 1994. https://www.wto.org/english/docs_e/legal_e/gatt47.pdf.
Gordon, Kathryn, and Joachim Pohl. OECD Working Papers on International Environmental Concerns in International Investment Agreements. OECD Working Papers on International Investment. Paris: OECD Publishing, 2011. https://doi.org/10.1787/18151957.
Gordon, Kathryn, Joachim Pohl, and Marie Bouchard. “Investment Treaty Law, Sustainable Development and Responsible Business Conduct: A Fact Finding Survey.” SSRN Electronic Journal. 2014. https://doi.org/10.2139/ssrn.2469662.
Investment Promotion and Protection Agreement Between Morocco and Nigeria. December 3, 2016. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/5409/download.
Ministry of Natural Resources and Environment. Report on the Current State of the Environment in 2016. Hanoi: Vietnam Environment Administration, 2016. http://vea.gov.vn/Documents/bao%20cao%20moi%20truong%20quoc%20gia/BCMTQG2016_BTNMT-nen.pdf?csf=1&e=fli306.
Model of Bilateral Investment Agreement of the Republic of Colombia. 2017. https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/6082/download.
North American Free Trade Agreement. August 12, 2012. https://www.italaw.com/sites/default/files/laws/italaw6187%2814%29.pdf.
Office of the High Commissioner for Human Rights (OHCHR). Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework. New York: United Nations, 2011. https://www.ohchr.org/sites/default/files/documents/publications/guidingprinciplesbusinesshr_en.pdf.
Office of the High Commissioner for Human Rights (OHCHR). Land and Human Rights: Standards and Applications. New York: United Nations, 2015. https://www.ohchr.org/Documents/Publications/Land_HR-StandardsApplications.pdf.
Pham, Thi Thu Bien. “Sustainable Development in Vietnam: Evaluation Criteria and Development Orientation to 2030.” Banking Review, no. 24 2019. https://tapchinganhang.gov.vn/phat-trien-ben-vung-o-viet-nam-tieu-chi-danh-gia-va-dinh-huong-phat-trien-den-nam-2030.htm.
Pham, Thi Van Linh. “Fast and Sustainable Development in Vietnam and Some Issues Raised.” Financial Journal, June 2, 2022. https://tapchitaichinh.vn/su-kien-noi-bat/phat-trien-nhanh-ben-vung-o-viet-nam-va-mot-so-van-de-dat-ra-352889.html.
Posts, Sarah and Yohannes Tamiru. “Environmental Protection under Bilateral Investment Treaties.” Unpublished manuscript, 2019.
S.D. Myers, Inc. v. Government of Canada. UNCITRAL 2002. https://www.italaw.com/cases/969.
Schacherer, Stefanie, and Rhea Tamara Hoffmann. “International Investment Law and Sustainable Development.” In Research Handbook on Foreign Direct Investment, edited by Markus Krajewski and Rhea Tamara Hoffmann, 563–595. Cheltenham, UK: Edward Elgar Publishing, 2019. https://doi.org/10.4337/9781785369858.00029.
The Comprehensive Economic and Trade Agreement Between Canada and the European Union and Its Member States. October 27, 2016. https://www.international.gc.ca/trade-commerce/assets/pdfs/ceta-rm-01-eng.pdf.
The Government Electronic Newspaper. “The Ministry of Natural Resources and Environment Proposed to Temporarily Suspend the Production Activities of Vedan Company.” October 7, 2008. https://baochinhphu.vn/print/bo-tai-nguyen-va-moi-truong-de-nghi-tam-thoi-dinh-chi-hoat-dong-san-xuat-cua-cong-ty-vedan-1022004.htm.
United Nations Viet Nam. ONE STRATEGIC PLAN 2017 - 2021 Infographic Between the Government of the Socialist Republic of Viet Nam and The United Nations in Viet Nam. Hanoi: United Nations, 2017. http://www.un.org.vn/images/170706_UN_Vietnam_OSP_booklet_EN_Final.pdf.
US Bilateral Investment Agreement Model. 2012. https://ustr.gov/sites/default/files/BIT%20text%20for%20ACIEP%20Meeting.pdf
Recommended Citation
Tran Thang, Long and Pham, Anh Le Tram
(2025)
"The Principle of Sustainable Development in International Investment Law: A Study from Vietnamese Perspective,"
Indonesia Law Review: Vol. 14:
No.
4, Article 3.
Available at:
https://scholarhub.ui.ac.id/ilrev/vol14/iss4/3
Included in
Comparative and Foreign Law Commons, Environmental Law Commons, International Law Commons, International Trade Law Commons
