Bilateral Investment Treaty (BIT)

A Bilateral Investment Treaty (BIT) is an international agreement between two countries designed to promote and protect investments made by investors from each state in the other’s territory. A BIT typically covers key provisions such as fair and equitable treatment, protection against expropriation, free transfer of capital, most-favored-nation (MFN) treatment, dispute settlement mechanisms (often via international arbitration like ICSID), and duration/termination terms. These treaties aim to create a stable legal framework that encourages foreign direct investment (FDI). From 2022–2024, Vietnam maintained over 60 BITs and investment-related agreements, supporting its role as an attractive FDI destination in sectors such as manufacturing, energy, and technology. Forecasts for 2025–2030 suggest that BITs will continue to play a central role in global investment flows, with reforms expected to align with sustainable development and environmental, social, and governance (ESG) standards. Download the standard Bilateral Investment Treaty (BIT) reference template and receive expert consultation with step-by-step drafting guidance via hotline 0977 523 155.