| Cambodia’s National Arbitration Center (NAC) has officially been launched this month, offering the domestic and international community a viable alternative to the courts for the settlement of disputes. This is perceived to be an important step for the country in terms of enhancing Phnom Penh’s business environment and paving the way for disputes to be resolved in a more cost effective and expedient manner.
Though the NAC was established by the government in 2010, it only became fully operational at the start of this month. The NAC aims to provide a reliable substitute for the resolution of disputes particularly because of the difficulties associated with enforcing judgments through the courts there. At present, parties who become embroiled in disputes can either look to the courts, the Ministry of Commerce, the Cambodian Chamber of Commerce or other similar institutions to expedite negotiations. However, with remedies not always proving sufficient, and frequent delays taking place, investors sometimes have to cut their losses and walk away. The NAC has been established with a view to providing a more robust, independent and effective mechanism through which commercial negotiations and mediation can be finalised. |
