Macau Company's Assets Confiscated in Laos, Why Did Arbitration Only Win Half?

澳门公司在老挝被没收资产，仲裁为何只赢了一半？

ບໍລິສັດມາກາວຖືກຍຶດຊັບສິນໃນລາວ, ເປັນຫຍັງການອະນຸຍາໂຕຕຸລາການຈຶ່ງຊະນະພຽງເຄິ່ງດຽວ?

Published: 2026-09-02 · LaoPaniti legal guides

Imagine: you invested in a casino in Laos and suddenly it was confiscated by the government. You initiate arbitration based on the bilateral investment treaty between China and Laos, but you are told that the tribunal only handles expropriation, not other grievances. This is not a fictional plot, but a real case that happened to a Macau company.

Tribunal's Jurisdiction: Only Recognizing 'Expropriation'

This Macau company, based on the 1993 China-Laos BIT and the 2010 UNCITRAL Arbitration Rules, sued the Lao government at the Permanent Court of Arbitration. The Lao government initially challenged the tribunal's jurisdiction, but the tribunal ruled on December 13, 2013 that the China-Laos BIT applies to the Macau Special Administrative Region, and this company constitutes a protected Investor. However, the key turning point came - the tribunal only had jurisdiction over expropriation claims, not other claims (such as fair and equitable treatment). In other words, the company wanted to seek justice for being 'unfairly treated', but the tribunal directly said 'this is not within my jurisdiction'.

Parallel Arbitration: Not an Abuse of Process, but No Extra Points

This company also initiated parallel arbitration elsewhere, and the Lao government argued that this constituted abuse of process or res judicata defense. However, the tribunal held that parallel arbitration does not constitute abuse of process. Nevertheless, this does not mean the company can have it both ways - the tribunal's jurisdiction has been defined, and other claims remain without recourse.

Three Reminders for Investors in Laos

1. Check the BIT's Scope Before Investing: The China-Laos BIT applies to Macau, but not all claims can be arbitrated. If you register a company in Macau and invest in Laos, you must first confirm whether your claim type is covered by the arbitration clause.
2. Keep Evidence for Expropriation Claims: Since the tribunal only handles expropriation, you must preserve all documents, assessments, and notices regarding the confiscation or expropriation of assets, otherwise you cannot even enter the threshold.
3. Don't Expect Arbitration to Resolve All Disputes: Claims such as fair and equitable treatment may not be within the scope of arbitration, and you need to seek other avenues, such as local courts or diplomatic protection.

If you encounter similar problems investing in Laos, don't rush. Ask LaoPaniti AI for free, input your situation, and quickly clarify the path to protect your rights. Click https://www.123laoai.com to start consultation.

Related Reading: Want to know other red lines for investing in Laos? See 'Foreign Investment in Laos: Which Industries Are Off-Limits? How to Check the Negative List?' and 'Foreigners Buying Apartments in Laos: What's the Relationship Between Property Rights and Land?'.

This article is compiled by LaoPaniti for reference only and does not constitute legal advice.

FAQ

Does the China-Laos BIT apply to Macau?

According to this case, the tribunal ruled that the China-Laos BIT applies to the Macau Special Administrative Region, and a company registered in Macau can be considered a protected Investor.

Which claims does the tribunal have jurisdiction over?

In this case, the tribunal only had jurisdiction over expropriation claims, not other claims (such as fair and equitable treatment).

Will parallel arbitration be considered an abuse of process?

In this case, the tribunal held that parallel arbitration does not constitute an abuse of process, but each case must be analyzed on its own merits.

Legal basis

《中国-老挝BIT》第8条
《维也纳条约法公约》第29条

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