Asia Pacific Arbitration for Bangladesh Contracts 2026: KCAB, AIAC, VIAC, JCAA, ACICA and THAC

Asia Pacific arbitration Bangladesh contracts: the 2026 choices

Asia Pacific arbitration Bangladesh contracts now reach well beyond Singapore and Paris. A Korean garment investor, a Malaysian telecoms shareholder, a Vietnamese rice or cement supplier, a Japanese engineering contractor, an Australian commodity seller and a Thai construction partner will each propose their home institution, and the Bangladeshi side has to decide quickly whether KCAB International, AIAC, VIAC, JCAA, ACICA or THAC is an acceptable forum. Three of those six institutions brought new rules into force in 2026, and the High Court Division has spent 2026 tightening the rules on interim relief and enforcement at home.

This guide is written for both sides of the table: Bangladeshi companies negotiating with Asia Pacific counterparties, and foreign businesses contracting with Bangladeshi buyers, suppliers, lenders and state entities. It compares the six institutions on current rules, seats, fees, timelines and emergency relief, and then explains how the resulting award is enforced in Dhaka under section 45 of the Arbitration Act 2001 and the New York Convention. SIAC, ICC and BIAC, which remain the most common choices, are covered in separate TRW guides linked below rather than repeated here.

Summary: KCAB International, AIAC and VIAC all brought new rules into force in 2026, JCAA operates under its 2021 rules, ACICA under its 2021 rules and THAC under rules first applied in 2015. Each seat is in a New York Convention state, so an award made there is a foreign award enforceable in Bangladesh through one execution case before the District Judge, Dhaka. The real risks for Bangladeshi parties lie elsewhere: limited interim relief from Bangladeshi courts in support of a foreign seat, and a strict three-year limit for bringing the award into execution.

Key point: Pick the institution for its rules, but pick the seat for what happens afterwards. Bangladeshi courts will not set aside an award made in Seoul, Kuala Lumpur, Hanoi, Tokyo, Sydney or Bangkok, will not usually grant section 7A interim relief while that arbitration is running, and will refuse execution altogether if the award holder files more than three years after the award.

At a glance

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Table of Contents

Why Asia Pacific arbitration Bangladesh clauses are multiplying

Bangladesh's commercial relationships have shifted east. Investment, contracting and trade partners from Korea, Japan, Malaysia, Vietnam, Thailand and Australia increasingly arrive with standard-form contracts naming their own national institution. Accepting that clause is a concession on neutrality for the Bangladeshi side; refusing it may cost the deal.

The choice also matters because the established options are not always available. A counterparty may reject BIAC as a home forum for the Bangladeshi side, and may regard SIAC or ICC as too expensive for a mid-value supply contract. The six regional institutions fill that gap. Each sits in a New York Convention state and has rules that can be adapted to a Bangladesh-facing contract. For the leading alternatives, see our guides to SIAC arbitration, ICC arbitration and BIAC arbitration.

Institution, rules and seat are three separate decisions

An arbitration clause makes three choices that are often confused. The institution administers the case. The rules govern procedure, timelines and fees. The seat is the legal home of the arbitration, which decides which courts can set the award aside and what nationality the award has. For a Bangladeshi party the seat is the decision with the longest consequences, because it fixes where any challenge must be brought.

Choosing a seat for Asia Pacific arbitration Bangladesh contracts

Five practical questions decide most negotiations. First, where are the losing party's assets likely to be? An award against a Bangladeshi company will usually need to be enforced in Dhaka; an award against a Korean or Japanese parent may be enforced faster at home. Second, how supportive are the seat's courts of interim relief, and will a Bangladeshi court help? Third, what does the process cost relative to the amount in dispute? Fourth, are the language and counsel market of the seat workable? Fifth, does the counterparty state have a reservation under the New York Convention that matters?

The New York Convention position

Bangladesh acceded to the New York Convention on 6 May 1992, with effect from 4 August 1992, and recorded no reservations. Every seat discussed here is also a Convention state: Thailand since 1960, Japan since 1961, Korea since 1973, Australia since 1975, Malaysia since 1986 and Vietnam since 1995.[11] Japan, Korea, Malaysia and Vietnam apply the Convention only to awards made in another contracting state, and Korea, Malaysia and Vietnam only to disputes treated as commercial under their law.[11] Because Bangladesh is a contracting state, a Dhaka-seated award passes the first test; the commercial reservation is rarely a problem for trade and investment disputes but should be checked for regulatory or quasi-public contracts.

Balancing neutrality and enforcement

In Asia Pacific arbitration Bangladesh negotiations, where the counterparty insists on its home institution, the Bangladeshi party can still negotiate the seat, the number of arbitrators, the nationality of the presiding arbitrator, the language and a pre-arbitration negotiation or mediation window. Accepting a foreign institution while securing a neutral seat, or a three-member tribunal with a chair of neither party's nationality, often restores the balance. Our guide to drafting an arbitration clause in Bangladesh covers the wording.

KCAB International: the 2026 Rules

KCAB International, the international division of the Korean Commercial Arbitration Board, applies its 2026 International Arbitration Rules to arbitrations commenced on or after 1 January 2026, unless the parties agree otherwise; cases commenced earlier stay under the previous rules.[1] Absent agreement the place of arbitration is Seoul, although the tribunal may decide another place is more appropriate, and the tribunal fixes the language having regard to the language of the contract.[1]

Three tracks by value

The 2026 Rules create a tiered system. A new Fast-Track Procedure applies where the amount in dispute does not exceed KRW 500 million, with a sole arbitrator, no hearing unless the tribunal considers one necessary and an award due within three months of the tribunal's constitution.[1] The Expedited Procedure covers disputes above KRW 500 million and up to KRW 4 billion, with an award due within six months.[1] Both apply by default unless the parties opt out, and the Secretary-General may disapply them as inappropriate.

Transitional trap for older clauses

The higher thresholds depend on when the arbitration agreement was made. For an agreement concluded before 1 January 2026, the Expedited Procedure remains capped at KRW 500 million and the Fast-Track Procedure does not apply at all.[1] Many Korea-Bangladesh supply and joint venture contracts were signed under the 2016 regime, so the date of the clause, not the date of the dispute, decides the procedure.

Awards, interim measures and emergency relief

Draft awards in standard cases must be submitted for scrutiny within 60 days of the last hearing or last directed submission.[1] The tribunal may order conservatory and interim measures, including preservation of assets and evidence, and a party needing urgent measures before the tribunal is constituted may apply under the emergency arbitrator procedure in Appendix 3. Applying to a court for interim relief is expressly not a breach of the arbitration agreement, but must be notified to the tribunal and Secretariat.[1] KCAB International publishes its filing, administrative and arbitrator fees on a separate schedule with a cost calculator; check the current figures at the time of filing rather than relying on an older schedule.

AIAC: from KLRCA to the 2026 Rules

The Asian International Arbitration Centre in Kuala Lumpur was established in 1978 as the Kuala Lumpur Regional Centre for Arbitration, the first arbitration centre in Asia set up under the Asian-African Legal Consultative Organisation. It was renamed the AIAC on 7 February 2018.[3] Older Bangladeshi contracts that still refer to "KLRCA" or the "KLRCA Rules" should be read as referring to the same institution, but any amendment or new contract should use the current name and rules to avoid an argument over a defunct body.

The AIAC Arbitration Rules 2026

The AIAC Arbitration Rules 2026 took effect on 1 January 2026.[2] The fast track procedure now applies to international disputes below USD 3 million, with the award due within six months of the tribunal's constitution unless the parties agree otherwise.[2] A respondent has 30 days to answer the notice of arbitration, and where the amount in dispute is unquantified the provisional advance deposit for an international case is USD 50,000.[2]

Emergency arbitration at the AIAC

Emergency procedures now sit in the main rules. A complete emergency request must be determined within one day of receipt, the appointment notified within two days after the request is allowed, and the order or emergency award made within 14 days of the first procedural order.[2] The applicant must prove payment of the emergency request fee and the arbitrator's fees when filing.[2] That speed is useful against a Malaysian counterparty with assets in Malaysia; it is less useful against assets in Bangladesh, for reasons explained below.

VIAC: the Vietnam International Arbitration Centre

The Vietnam International Arbitration Centre, based in Hanoi, should not be confused with the Vienna International Arbitral Centre, which uses the same acronym. A clause that says only "VIAC" invites a dispute about which institution was meant, so name the Vietnam International Arbitration Centre, its city and its rules in full.

The VIAC Arbitration Rules 2026

New VIAC Rules took effect on 1 July 2026, replacing the 2017 Rules.[4] They allow the President to consolidate cases at a party's request, permit joinder of a party that is prima facie bound by the arbitration agreement, require disclosure of third-party funding and give tribunals express case management powers.[4] The reformed expedited procedure applies to arbitration agreements concluded after 1 July 2026 and requires the award within two months of the Centre notifying the tribunal's constitution, subject to extension; the value threshold had not been published when the rules were reviewed.[4]

Powers of attorney and set-aside risk

One 2026 change speaks directly to foreign parties. Vietnamese courts have set aside VIAC awards because a foreign party's power of attorney was defective, and the new rules let the Centre or tribunal fix the required form of authority and decide objections to it.[4] A Bangladeshi company appearing at VIAC should have its board resolution and power of attorney notarised and legalised at the outset. The stakes are real: between 2011 and June 2024 Vietnamese courts received 181 applications to set aside domestic awards and set aside 43, roughly 23.8 per cent.[5]

Interim relief and caseload

Vietnam's Law on Commercial Arbitration (No. 54/2010/QH12) is based on the UNCITRAL Model Law but contains no emergency arbitrator mechanism; a reform proposal would add one but had not reached the legislative agenda.[5] VIAC registered 424 new cases in 2023, up 46.2 per cent on 2022, with Chinese, Korean and Japanese parties making up 65.3 per cent of foreign users.[5] Courts refused recognition of 34 foreign awards between 2011 and June 2024, which matters if a Bangladeshi party ever needs to enforce in Vietnam.[5]

JCAA: Japan Commercial Arbitration Association rules

The JCAA's Commercial Arbitration Rules in their current form came into force on 1 July 2021 and apply to arbitrations commenced after that date.[7] The 2021 revision raised the ceiling for expedited arbitration from JPY 50 million to JPY 300 million, subject to opt-out, while allowing parties to opt in for larger claims.[7] JCAA data quoted at the time put the average duration of expedited cases at about three and a half months, against 12.8 months for ordinary cases.[7]

Emergency arbitrators and the 2024 Japanese reforms

Under the JCAA rules an emergency arbitrator is appointed within two days of the application and endeavours to decide within two weeks of appointment.[6] Japan's amended Arbitration Act, in force since April 2024, makes tribunal-ordered interim measures enforceable through Japanese courts, allows courts to dispense with Japanese translations of awards and other documents on enforcement, and gives the Tokyo and Osaka District Courts concurrent jurisdiction over Japan-seated arbitrations.[6] For a Bangladeshi supplier pursuing a Japanese buyer, that makes Tokyo an efficient seat in which to obtain and enforce urgent relief.

When JCAA suits a Bangladesh contract

JCAA clauses appear most often in contracts with Japanese trading houses, manufacturers and contractors. Japan applies the Convention only to awards made in another contracting state, which a Dhaka or third-country award satisfies.[11] Agree English as the language of the arbitration and a presiding arbitrator of neutral nationality.

ACICA: the Australian Centre for International Commercial Arbitration

ACICA's Arbitration Rules 2021 took effect on 1 April 2021.[8] If the parties have not agreed a seat within 15 days after the arbitration commences, the seat is Sydney.[8] The final award is due within nine months of the file being transmitted to the tribunal or three months after the tribunal closes the proceedings, whichever is earlier, unless ACICA extends the period.[8] A party may apply for expedited treatment where the amount in dispute is below AUD 5 million, where the parties agree, or in a case of exceptional urgency.[8]

ACICA emergency arbitrators and fees

ACICA uses its best endeavours to appoint an emergency arbitrator within one business day of an application, and the emergency arbitrator decides within five business days of referral, subject to extension.[8] The fee schedule effective 1 April 2023 sets a registration fee of AUD 2,500, an administration fee starting at AUD 1,500 for claims up to AUD 100,000 and capped at AUD 80,000, and an emergency arbitrator fee of AUD 10,000 plus a AUD 2,500 application fee, all exclusive of GST.[9] Arbitrators are paid at an hourly rate agreed with the parties or, failing agreement, fixed by ACICA.[8]

When ACICA suits a Bangladesh contract

ACICA clauses arise in commodity, education, mining services and agricultural trade with Australian counterparties. Australia has no reservation under the New York Convention.[11] For a Bangladeshi buyer, the distance and cost of a Sydney hearing are the main drawbacks, so press for remote or hybrid hearings when the procedural timetable is set.

THAC: the Thailand Arbitration Center

The Thailand Arbitration Center applies Rules on Arbitration B.E. 2558, issued under the Arbitration Center Act B.E. 2550 (2007) and applied to THAC arbitrations from 1 July 2015.[10] Unless the parties agree otherwise, Thailand is the place of arbitration, and the tribunal decides the language if the parties have not.[10] The tribunal must make the award within 45 days of declaring the proceedings closed.[10]

Expedited procedure and fees

Expedited proceedings are available where the amount in dispute, including counterclaims and set-off, does not exceed THB 100 million, where the parties agree, or in an emergency, normally before a sole arbitrator who must render the award within six months of constitution.[10] Under the published fee annex the claimant pays a non-refundable filing fee of THB 50,000, as does a respondent bringing a counterclaim; the institutional fee starts at THB 50,000 for sums up to THB 2.5 million and rises to THB 1.6 million at the top band, and each arbitrator's remuneration starts at THB 150,000.[10] Confirm the current schedule with THAC before budgeting.

No emergency arbitrator

The published THAC rules do not provide for an emergency arbitrator; "emergency" appears only as a ground for expedited proceedings.[10] A party needing urgent relief before the tribunal is formed must go to court, in Thailand or where the assets are. For a Bangladeshi party facing a Thai counterparty, that gap argues for a seat or institution with emergency arbitrator provisions where urgent relief is foreseeable.

Comparing rules, fees, timelines and emergency relief

The table below summarises the position under each institution's current rules. On a phone, scroll it sideways. Fee scales change, so treat any figure as a starting point and run the institution's own calculator before agreeing a clause or a budget. For cost planning across BIAC, SIAC and ICC, see our guide to the cost of arbitration in Bangladesh.

Reading the comparison

For low-value Asia Pacific arbitration Bangladesh disputes, KCAB's Fast-Track Procedure and AIAC's fast track offer the shortest published award deadlines. For urgent pre-tribunal relief, AIAC, JCAA and ACICA publish the tightest emergency arbitrator timelines. For a Bangladeshi party worried about cost, THAC's fixed scales and ACICA's capped administration fee are the most predictable, although arbitrator time remains the largest cost everywhere. VIAC's 2026 reforms are promising but untested, and its expedited track applies only to agreements made after 1 July 2026.[4]

Emergency relief and the Bangladesh interim measures gap

Emergency arbitrators are only half of the interim relief question. The other half is whether a Bangladeshi court will act in support of a foreign-seated arbitration when the assets, goods, guarantees or vessels are in Bangladesh. The current answer is generally no.

Accom Travels and the 2026 decisions

In Accom Travels and Tours v Oman Air SAOC, 27 BLC 596, a Larger Bench of the High Court Division held by a 2:1 majority that sections 7, 7A and 10 of the Arbitration Act 2001 do not apply to foreign-seated arbitrations, save that section 7A interim measures may be granted at the stage of enforcing a foreign award.[12] On 12 July 2026, in Legend World Tank Pte Ltd v Multinational Shipping Co Ltd, the High Court Division said it disagreed with Accom but was bound by it, dismissed an application in support of a Singapore-seated arbitration as not maintainable and vacated its own interim order.[12]

What this means for each institution

In Asia Pacific arbitration Bangladesh disputes the reasoning applies equally to Seoul, Kuala Lumpur, Hanoi, Tokyo, Sydney and Bangkok. A foreign claimant seeking to freeze a Bangladeshi respondent's assets before an award will usually be left with the emergency arbitrator or the tribunal. An emergency order is not an award under section 45, and nothing in the Act provides for its execution in Bangladesh, so its value against a Bangladeshi party depends on voluntary compliance, contractual consequences and the respondent's assets abroad. Our guide to SIAC arbitration for Bangladeshi parties analyses Legend World Tank and the open questions before the Appellate Division in more detail.

Practical responses

Where urgent relief in Bangladesh is foreseeable, consider a Dhaka seat with foreign institutional rules, which keeps section 7A available, or secure performance through bank guarantees, letters of credit or escrow rather than relying on interim orders. A Bangladeshi party facing a foreign emergency application should engage with it, because an adverse order may still bite on its assets overseas.

Enforcing the award in Bangladesh under section 45

Every Asia Pacific arbitration Bangladesh award made in one of the six seats is a foreign arbitral award. Section 45 of the Arbitration Act 2001 makes it enforceable by execution as if it were a decree of the court, and the application is filed as a money execution case before the District Judge, Dhaka.[13] [14] In July 2026 the High Court Division confirmed that the Act does not require separate proceedings for recognition and execution, and that the refusal grounds in section 46 must be construed narrowly.[14]

No challenge in Dhaka

The same judgment held that the Act confers no power on Bangladeshi courts to annul a foreign award; that power belongs to the courts of the seat.[14] A Bangladeshi party that loses a KCAB, AIAC, VIAC, JCAA, ACICA or THAC arbitration must therefore challenge the award in Korea, Malaysia, Vietnam, Japan, Australia or Thailand, within the seat's deadlines, or confine itself to a section 46 objection when execution is sought. The full mechanics are set out in our guides to foreign arbitral award enforcement in Bangladesh and enforcement of arbitral awards in Bangladesh.

The three-year limit

In Jess Smith & Sons Cotton LLC v Patriot Spinning Mills Ltd, decided on 26 February 2026, the High Court Division held that an application to execute a foreign award under section 45 must be filed within three years of the date of the award under article 182 of the Limitation Act 1908, and that section 5 of that Act cannot be used to condone delay.[13] The award holder there filed more than eleven years after a 2012 award and lost its right to enforce. Settlement negotiations after a KCAB or JCAA award do not stop the clock.

Documents to prepare at the seat

Prepare the enforcement file while the tribunal is still sitting. The High Court Division treats an authenticated award, the arbitration agreement and evidence that the award is foreign as the documents section 45 requires.[14] Add certified English translations of anything in Korean, Malay, Vietnamese, Japanese or Thai, and a properly executed power of attorney. Agreeing English as the language of the arbitration avoids most translation cost and delay.

Bangladeshi award holders enforcing abroad

The Convention works in both directions. A Bangladeshi exporter or contractor that wins an award can enforce it wherever the debtor has assets among the Convention's 172 parties.[11] Against a Korean, Japanese or Australian company, enforcing at home is often faster than anything achievable in Dhaka. Bangladeshi parties should still check the target state's own rules: Japan's 2024 reforms ease translation requirements, while Vietnam's courts refused 34 foreign awards between 2011 and June 2024.[5] [6]

Claims against state entities

Where a Bangladeshi state-owned enterprise is a party, foreign contractors frequently propose their home institution. Those contracts should include an express waiver of immunity from attachment and execution, and investors should also consider treaty protection. See our guide to ICSID investment arbitration and Bangladesh for the treaty route.

Asia Pacific arbitration Bangladesh clauses: a step-by-step plan

The sequence below reflects how we approach an Asia Pacific arbitration Bangladesh clause during negotiation and when a dispute arises.

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Two points apply throughout. Keep the institution's current rules and fee schedule on file from the date of signing, because transitional provisions now turn on the date of the agreement, and diary both the seat's challenge deadline and the three-year Bangladesh enforcement limit as soon as an award is made. Our international arbitration practice advises on clause negotiation, emergency applications and enforcement in Dhaka.

What to watch in 2026 and beyond

Three developments will shape Asia Pacific arbitration Bangladesh practice over the next year. First, the 2026 rule changes at KCAB International, AIAC and VIAC will produce their first awards under the new expedited and fast-track tracks, which will show whether the published deadlines hold. Second, the Appellate Division may yet resolve the conflict between Accom Travels and the reasoning in Legend World Tank, which would decide whether Bangladeshi courts can support foreign-seated arbitrations with interim relief.[12] Third, after Jess Smith, award holders will treat the three-year limit as a hard deadline and file in Dhaka early.[13]

For a Bangladeshi company, the best protection is a clause chosen with enforcement in mind. For a foreign party, it is an award that can be executed in Dhaka without delay. If you are negotiating an arbitration clause with an Asia Pacific counterparty or holding an award against a Bangladeshi party, contact TRW to discuss the options.

Frequently asked questions

Which Asia Pacific arbitration institution is best for a Bangladeshi company?

There is no single answer for Asia Pacific arbitration Bangladesh contracts. Choose the institution whose rules suit the dispute value and urgency, and the seat where the award will be easiest to enforce. KCAB, AIAC, JCAA and ACICA offer emergency arbitrators; THAC's published rules do not.[10]

Is a KCAB, AIAC or JCAA award enforceable in Bangladesh?

Yes. An award made in Korea, Malaysia, Japan or any other New York Convention state is a foreign award enforced by execution before the District Judge, Dhaka under section 45 of the Arbitration Act 2001.[11] [14]

When did the KCAB International Arbitration Rules 2026 take effect?

On 1 January 2026, for arbitrations commenced on or after that date unless the parties agree otherwise. The new Fast-Track Procedure does not apply to arbitration agreements concluded before that date.[1]

Is AIAC the same institution as KLRCA?

Yes. The Kuala Lumpur Regional Centre for Arbitration, established in 1978, was renamed the Asian International Arbitration Centre on 7 February 2018.[3]

What is the AIAC fast track threshold under the 2026 Rules?

Less than USD 3 million for international arbitration, with the award due within six months of the tribunal's constitution unless the parties agree otherwise.[2]

Which VIAC rules apply to a Vietnam arbitration in 2026?

The VIAC Rules 2026, in force from 1 July 2026, replaced the 2017 Rules. The new expedited procedure applies to arbitration agreements concluded after that date.[4]

How fast is a JCAA or ACICA emergency arbitrator?

A JCAA emergency arbitrator is appointed within two days and aims to decide within two weeks. ACICA aims to appoint within one business day, with a decision within five business days of referral.[6] [8]

Can a Bangladeshi court grant interim relief in support of a foreign-seated arbitration?

Generally not before an award. Under Accom Travels, followed in Legend World Tank in July 2026, section 7A relief is available for a foreign-seated arbitration only at the stage of enforcing the award.[12]

How long do I have to enforce a foreign award in Bangladesh?

Three years from the date of the award, under article 182 of the Limitation Act 1908, and the court cannot condone delay under section 5.[13]

Can a Bangladeshi party challenge a Seoul or Kuala Lumpur award in Dhaka?

No. Bangladeshi courts have no power to set aside a foreign award; any annulment application must be made at the seat. In Dhaka the debtor can only object to enforcement on the section 46 grounds.[14]