Underline menu menu close

FREE TRADE AGREEMENT BETWEEN VIETNAM AND KOREA (VKFTA)

Each party undertakes to protect the interests of investors and the investments of investors of the other party through the obligations specified in the Chapter on Investment, in which, there are 4 basic obligations:

    • National Treatment (NT): Each party shall accord to the investors and protected investments of the other treatment no less favorable than that it accords to investors and its own investment.
    • Most Favored Nation (MFN) treatment: Each party shall accord to the investors and protected investments of the other party treatment no less favorable than that it accords to investors and investments of any third party, except where such treatment is pursuant to agreements already in place with third parties or agreements between ASEAN members.
    • Scope of application: Investment dispute settlement mechanism in VKFTA applies only to disputes between one party and investors of the other party because that state violates a number of investment commitments in the Agreement which prejudice to an investor or an investor's investment of the other party in connection with the management, performance, operation, or sale or other disposition of such investment.
    • Dispute settlers: Investors have the right to bring disputes to settlement at:
      • Administrative Court of the investee country: the process and procedures will be according to the regulations and laws of that country.
      • Arbitration: according to the process and procedures specified in the Agreement.