Laos - Part I - Arbitration in Asia - 2nd Edition

Recourse to the Lao PDR court system by foreign and domestic investors to resolve commercial disputes is not often utilised and non-judiciary methods of dispute settlement are the preferred option. While the arbitration system in the Lao PDR is in a state of development, an increasing number of commercial disputes are presently being submitted for resolution through mediation and arbitration.

[1.1] Domestic arbitration

Mediation and arbitration proceedings that take place in the Lao PDR are governed by the Law on Resolution of Economic Disputes (No. 51/NA, dated 22 June 2018) (“Economic Dispute Resolution Law”).

[1.2] International arbitration

The Economic Dispute Resolution Law allows contracting parties to choose foreign arbitration as their dispute resolution mechanism, and, in fact, foreign parties commonly choose foreign arbitration for dispute resolution in commercial agreements. With respect to international contracts to which the government is a party, Lao PDR law does not specifically provide for nor prohibit foreign arbitration to resolve disputes between a foreign entity and a governmental entity. The Law on Investment Promotion (No. 14/NA, 17 November 2016) (“Investment Promotion Law”) provides that dispute resolution relating to investment may be undertaken in accordance with any of the following forms:

1. Amicable resolution;

2. Administrative dispute resolution;

3. Dispute resolution by the Economic Dispute Resolution Authority in the Lao PDR or overseas authority to which Lao PDR is a party; or

4. Filing of a claim or litigation to the courts of Lao PDR or an overseas court to which Lao PDR is a party.

Table of Contents:

[1] INTRODUCTION

[1.1] Domestic arbitration

[1.2] International arbitration

[2] LEGISLATION

[2.1] Arbitration law

[2.2] Application

[2.3] Scope of arbitration

[2.4] Arbitration organization

[2.5] Requirements for arbitration commissions

[2.6] Foreign-related arbitration commissions

[3] ARBITRATION AGREEMENT

[3.1] Requirements

[3.2] Types of arbitration agreements

[3.2.1] Contract clause

[3.2.2] Submission agreement

[3.2.3] Incorporation by reference

[3.2.4] Parties to the arbitration agreement

[3.2.5] Defective arbitration agreements

[3.2.6] Separability/autonomy of the arbitration agreement

[3.2.7] Effect of arbitration agreement

[4] ARBITRATION AND THE ARBITRAL TRIBUNAL

[4.1] Qualifications

[4.2] Selection

[4.3] Number of arbitrators

[4.4] Replacement of arbitrators

[5] ARBITRATION PROCEDURE

[5.1] Preliminary meetings

[5.2] Interim relief

[5.3] Fact-finding

[5.3.1] Written submissions

[5.3.2] Site visits and experts

[5.4] Hearing

[5.4.1] Necessity of a hearing

[5.4.2] Hearing date

[5.4.3] Location of the hearing

[5.4.4] Required forms

[5.4.5] Records of the hearing

[5.4.6] Fast track

[5.4.7] Concluding the arbitration process

[6] AWARDS

[6.1] Settlement agreement

[6.2] Types of awards

[6.2.1] Consent awards

[6.2.2] Interim or interlocutory awards

[6.2.3] Partial awards

[6.2.4] Final awards

[6.3] Form of the award

[6.3.1] Content of the awards

[6.4] Issuance and revision of awards

[6.4.1] Scrutiny of awards

[6.4.2] Correction of awards

[6.4.3] Additional awards

[6.5] Setting aside of awards

[6.5.1] Domestic awards

[6.5.2] Foreign-related awards

[6.5.3] Time limits

[6.5.4] Effect of setting aside

[6.5.5] Re-arbitration

[7] JUDICIAL ASSISTANCE AND INTERVENTION

[8] RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS

[8.1] Enforcement pursuant to domestic law

[8.2] Enforcement pursuant to international agreements

[8.3] Enforcement of awards abroad

[9] PRACTICAL INFORMATION

[9.1] Visa requirements

[9.2] Foreign counsel

[10] APPENDICES (see book table of contents)

[10.1] Law on Resolution of Economic Disputes (in English)

[10.1] Law on Resolution of Economic Disputes (in Lao)