Alternate Dispute Resolution Law at Laos
In the Lao People's Democratic Republic (Lao PDR), Alternative Dispute Resolution (ADR) is primarily governed by the Law on the Resolution of Economic Disputes (No. 51/NA, 22 June 2018), which replaced the previous 2010 law. This legal framework facilitates the resolution of economic disputes through mediation and arbitration, aiming to provide fair, efficient, and accessible mechanisms outside the formal court system.
1. Legal Framework for ADR
The Amended Law on the Resolution of Economic Disputes outlines the principles, regulations, and procedures for resolving economic disputes, which include conflicts arising from production and business operations between organizations and individuals, both domestic and international. Key provisions include:
Article 1: Establishes the purpose of the law to ensure economic disputes are resolved fairly and speedily to promote business and socio-economic development.
Article 2: Defines economic disputes as conflicts related to production and business operations between organizations and individuals
Article 3: Specifies that economic disputes shall be resolved through amicable settlement, mediation, or arbitration.
Article 4: Outlines conditions for dispute resolution, including mutual agreement of the parties and the dispute not being under the jurisdiction of the People's Court.
Article 5: Mandates impartiality of mediators and arbitrators.
Article 7: Requires confidentiality in the resolution process.
Article 8: Specifies the use of the Lao language in proceedings, with provisions for translation if necessary.
These provisions aim to create a structured and reliable ADR environment in Laos.
2. Institutional Framework
To implement ADR mechanisms, Laos has established the following institutions:
Centre for Economic Dispute Resolution (CEDR): A central-level body responsible for overseeing ADR processes and ensuring compliance with the law.
Office of Economic Dispute Resolution (OEDR): Provincial-level offices that handle ADR cases and support the CEDR in implementing dispute resolution procedures
These institutions are gaining attention from local investors as alternative mechanisms to the court system, with a preference for mediation over arbitration in most cases.
3. Arbitration and Mediation Procedures
Under the Amended Law, both arbitration and mediation proceedings are subject to specific procedures
Arbitration: Parties must agree to submit disputes to arbitration, and the process is conducted in accordance with the law.
Mediation: The law encourages amicable settlement and mediation as primary methods for dispute resolution.(
The law also allows for ad hoc tribunals, providing flexibility in the dispute resolution process.
4. Enforcement of Arbitral Awards
The enforcement of both domestic and foreign arbitral awards in Laos is governed by the Civil Procedure Law, which aligns with international standards, including the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This framework facilitates the recognition and enforcement of arbitral awards, enhancing Laos' attractiveness as a destination for international business and investment.
5. Training and Capacity Building
To strengthen the ADR framework, Laos has engaged in various training and capacity-building initiatives:
Workshops on International Commercial Arbitration: Conducted in collaboration with the U.S. Commercial Law Development Program (CLDP), focusing on case studies and practices in arbitration.
Consultations on UNCITRAL Model Law: Planned consultations with UNCITRAL and the Ministry of Justice to enhance the legal framework for international commercial arbitration.
These initiatives aim to improve the understanding and application of ADR mechanisms among legal professionals and stakeholders in Laos.
Summary Table
| ADR Mechanism | Governing Law | Key Features | Institutions | Enforcement |
|---|---|---|---|---|
| Arbitration | Law No. 51/NA (2018) | Binding resolution, impartial arbitrators, confidentiality | CEDR, OEDR | Civil Procedure Law, New York Convention |
| Mediation | Law No. 51/NA (2018) | Voluntary, amicable settlement, confidentiality | CEDR, OEDR | Civil Procedure Law |
| Ad Hoc Tribunals | Law No. 51/NA (2018) | Flexible, tailored dispute resolution | CEDR, OEDR | Civil Procedure Law |
Laos' ADR framework provides a structured and reliable system for resolving economic disputes, promoting a favorable environment for business and investment. If you require further information or specific details on any aspect of the ADR process in Laos, feel free to ask.
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