International investment dispute settlement under next-generation free trade agreements: Lessons and recommendations for Vietnam

Next-generation free trade agreements are reshaping investment protection and investor–State dispute settlement by narrowing jurisdiction, clarifying substantive standards, increasing procedural transparency, and preserving States’ regulatory powers. This study compares two major models relevant to Vietnam. The CPTPP retains investment arbitration but imposes more precise limits on jurisdiction and State responsibility, while the EVIPA establishes a two-tier Investment Court System aimed at greater independence and consistency. Based on this comparison, the study identifies legal and institutional priorities for Vietnam in preventing and managing international investment disputes. It proposes six groups of measures: developing early-warning mechanisms, standardizing inter-agency coordination, improving records and evidence management, developing specialist expertise, strengthening negotiation and mediation, and improving the quality of treaty negotiation and implementation.