Nguyễn Hoàng Thái Hy

Ngô Nguyễn Thảo Vy

Lecturers, Faculty of International Law,

Ho Chi Minh City University of Law

The issue of whether investment treaties can cause a "regulatory chill," which is the reluctance to regulate environmental and social issues due to the fear of investment claims, has been a long-standing concern. Recent research has identified two possible outcomes of this problem. On one hand, these treaties can improve national governance and promote the rule of law for all. On the other hand, they can give excessive power to foreign investors and result in regulatory chill. Therefore, investment treaties are expected to both empower and constrain. Despite the critical role of national governance in implementing international investment treaties, it has received little research attention to date.

This article aims to investigate the relationship between international investment agreements and national governance, with a focus on Vietnam's renewable energy sector. Specifically, the study will examine the policies developed and implemented to encourage investment in this sector and determine whether a regulatory chill effect exists. Additionally, the article will consider the implications of the separation of powers between the Ministry of Industry and Trade, which oversees commercial activities with foreign elements, and EVN, which negotiates electricity prices, signs Feed-in Tariff (FiT) contracts, and collaborates directly with foreign investors.