Currently, if the .cue file of a CD image contains Unicode characters, such as Chinese, VLC will read the file and displays the track names as messy characters. Since VLC only read the .cue file saving as an ANSI file, if there is a need of any Unicode characters, those information of Unicode will not be saved and thus causing the messy characters.
So, it is necessary for VLC to read the .cue file saving as Unicode text rather than ANSI text. Also, the display box has to be capable to display Unicode characters too.
I only have a Windows system. So, I am not sure if this happens to the other OSs.