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The principal legislation is the Law on Commercial Arbitration (2006).
The law governs:
- arbitration agreements;
- appointment of arbitrators;
- arbitral proceedings;
- issuance of awards;
- recognition and enforcement of awards;
- judicial assistance.
One of the law's central objectives is to minimize unnecessary court intervention while preserving judicial oversight where necessary.
The law recognizes that arbitration awards are final and binding upon the parties, subject only to limited judicial review.
The Code of Civil Procedure (2006) provides procedural rules relating to judicial recognition and compulsory execution of arbitral awards.
Where the losing party voluntarily complies with the award, court involvement may not be necessary. However, if the debtor refuses to comply, the successful party must apply to the competent Cambodian court to obtain recognition and enforcement before compulsory execution measures can begin.
Execution measures may include seizure of assets, attachment of bank accounts, sale of property, or other lawful enforcement mechanisms available under Cambodian procedural law.
Cambodia acceded to the:
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958)
(commonly known as the New York Convention) in 1960.
The Convention is widely regarded as one of the most successful international commercial treaties, with more than 170 Contracting States, making it one of the most broadly adopted international commercial instruments worldwide.
The Convention obliges member states to recognize and enforce qualifying foreign arbitral awards, subject only to limited exceptions.
Cambodia's participation significantly enhances investor confidence because arbitration awards rendered in many foreign jurisdictions may be recognized and enforced by Cambodian courts.
Statistic
According to the United Nations Commission on International Trade Law (UNCITRAL) and the United Nations Treaty Collection, the New York Convention has over 170 State Parties, making it one of the most successful international treaties facilitating cross-border commercial dispute resolution.
- SingaporeIf the losing party owns assets located in Cambodia, the successful party may seek enforcement before the Cambodian courts.
- Hong Kong
- Paris
- London
- Tokyo
- Seoul
Cambodia has made significant strides in establishing a modern legal framework for commercial arbitration. Through the Law on Commercial Arbitration (2006), the Code of Civil Procedure, the development of the National Commercial Arbitration Centre, and its participation in the New York Convention, Cambodia has demonstrated its commitment to providing businesses with an effective mechanism for resolving commercial disputes and enforcing arbitral awards.
Although judicial recognition remains a necessary step where voluntary compliance is not achieved, Cambodian courts are generally expected to respect the finality of arbitration awards and limit their review to the narrow grounds prescribed by law. This approach is consistent with international best practices and enhances legal certainty for both domestic enterprises and foreign investors.
Businesses entering into commercial contracts in Cambodia should not view arbitration clauses as routine boilerplate provisions. A carefully drafted arbitration agreement, combined with an understanding of the enforcement process, can significantly reduce legal risk and improve the likelihood of successful recovery should a dispute arise. Seeking legal advice at the contract drafting stage and during enforcement proceedings can help ensure that arbitral awards achieve their intended commercial effect.