Evaluation Of The Case That Vietnam Violated Chinese Enterprises' Right To Invest In 2014

Since the reform and opening up, China's economic globalization and enterprise internationalization process continues to accelerate, experienced a progress of from “bringing in” to “bringing in” together with “going out”, to making “going out” faster.In the long run, “going out” strategy and expand oversea interests is still a trend. In the process of the rise of great nation, we surly will face a lot of obstructions come from other nations. Furthermore, in recent years, protection of trade still prevails among districts, and conflict between countries emerges every day, China's overseas investment interests is being challenged from time to time. Especially in some developing countries.This paper introduces and analyzes the case that Vietnam violently infringes the legal rights of the Chinese enterprises which invest in Vietnam in 2014. The reason of this case is that Vietnam has been coveting China's sovereignty and the oil resources over the South China sea. Then this paper deeply analyzes the background of the case, tracks the following progress of the event, and investigates the respectively measures of the governments of China and Vietnam. The nature of the case belongs to the international investment disputes, and the core issue dealing with the international investment disputes is the prevention before the case and relief after the dispute occurs. In this case, the private relief that victim seeks is limited, and some of the enterprise don't have enough measures to deal with the investment risk, many reasons increased the difficulty of seeking for relief. As the home country of the enterprise, Chinese government's attitude is tough, it protects the firms through diplomatic measures. However, the attitude of Vietnam government is quite ambiguous, hasn't provided complete and adequate compensation from beginning to end.This case is attributed to the conflict of interests between countries, and then evolved into a political event, resulting in the damage to the economic interests of the enterprise. Therefore, how to use legal means to avoid the political risk that caused by the host country, has become a problem worth considering. The main way to deal with overseas investment disputes can be divided into two aspects: advanced relief and relief after the case. The point of remedy in advance is investigation and analysis of the domestic atmosphere of host country, and make prevention of possible disputes. Afterwards relief relies on the remedy rules of bilateral and multilateral investment agreements between countries and overseas investment relief lead by international organizations.This event also exposed some imperfections in the China-Vietnam bilateral investment agreements and in the CAFTA investment agreement, the revision of the China-Vietnam BIT should be put on agenda in the future because the investment range's breadth and depth is increasing day by day.