Vietnam Enterprise Investments Limited (VEIL or the Fund) is a closed-end investment fund which has been in operation since 1995.  The Fund has a capital base of just over US$500 million  and is managed by Dragon Capital Management Ltd., a subsidiary of Dragon Capital Group (DCG).  IFC has invested US$16.4 million in the Fund. The Fund aims to invest in publicly or privately issued securities of Vietnamese companies, with the stated aim to provide incentives for the development of Vietnamese capital markets by increasing liquidity of Vietnamese securities. One of the companies DCG invests in through the Fund is Hoang Anh Gia Lai (HAGL). 

In February 2014, local members from 17 villages in Ratanakiri Province in Cambodia lodged a complaint with CAO, with the support and assistance of five Cambodian civil society organizations (CSOs). The complaint raised a range of environmental and social concerns about HAGL’s Cambodia operations, including impacts on water sources and fish resources, loss of land, lack of compensation, lack of information disclosure and engagement with the people, threat to spiritual, cultural, and indigenous practices, as well as use of child labor. The complaint alleged non-compliance with IFC policies and procedures and with Cambodian laws.

In May 2014, CAO conducted an assessment. During this process, the parties agreed to engage in a voluntary CAO-led dispute resolution process, and the case was transferred to CAO’s Dispute Resolution function. The Assessment Report is available in English and Khmer.

In March 2015, the parties adopted a mediation agreement (available in English & Khmer) and began issuing joint statements to report on progress. Between 2016 and 2018, several joint statements recorded agreements with affected villages, both within and outside HAGL’s concessions. These included commitments not to clear additional land, to carry out joint field visits to identify and demarcate land, to establish a grievance mechanism, and to address issues related to community land.

Joint field visits were conducted with community representatives, government officials, CSOs advisors, and CAO to identify disputed areas, with support from a government working group. Additional agreements were reached over time, including the return of spirit mountains, restoration of water sources and roads, and verification of land boundaries. Where company development on community land was identified, HAGL agreed to negotiate compensation or return the land.

In January 2019, HAGL withdrew from the CAO-led process and sought to resolve remaining issues through the government. At the government’s request, CAO continued monitoring the implementation of land return agreements.

In late 2019, the parties indicated willingness to re-engage. In January 2020, CAO issued a Progress Report (available in English and Khmer) summarizing the dispute resolution process and actions taken.

In February 2020, given the overlap of parties involved in the mediation and the issues under discussion, the case was merged with the Cambodia: VEIL II-01/Ratanakiri Province case / Cambodia: TPBank and VPBank-01/Ratanakiri.

In June 2024, the parties signed a Memorandum of Understanding, agreeing to return over 700 hectares of land to affected communities and to address remaining issues, including compensation related to an additional area of land.

CAO continues to facilitate bilateral and joint meetings between the parties, as well as with the Government of Cambodia, as part of the dispute resolution process.