You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

November 22, 2013

Arbitration of Commercial Disputes: Myanmar’s Evolution

T-AB: Thai-American Business, Journal of the American Chamber of Commerce in Thailand

Myanmar is in the throes of substantial political and economic reform. Investors are eager to engage in the economic opportunity Myanmar has on offer, but are understandably concerned about the lack of certainty in the legal process and particularly when it comes to the resolution of commercial disputes. One reason for such caution is the fact that during its extended period of isolation, there has been a substantial and near total absence of large scale commercial litigation in the Myanmar courts. There are also concerns that domestic court procedures are time consuming, unpredictable and may not ultimately lead to recovery.

Alternative Dispute Resolution – Arbitration

Contracting for arbitration offers a means by which investors may limit the uncertainty of the dispute resolution process. Historically, the use of arbitration in Myanmar contracts has been limited. This is due, in part, to the fact that enforcement of foreign arbitral awards has not been generally recognized by the Myanmar courts. Further, Myanmar’s current arbitration law, the Arbitration Act of 1944, while laying down clear guidelines for reference of disputes, conduct and appeals of arbitral award, also allows the courts the discretion to oversee the arbitration itself.

These rules, while offering a means for arbitration of disputes, can encumber the ability of parties to an investment contract to adequately tailor private arbitration of commercial disputes to an international standard. A fundamental relaxation of the arbitration rules and of the domestic enforcement process is a requisite for open and committed foreign investment.

Myanmar Accedes to the New York Convention

Recognizing the necessity for reform, on July 15, 2013, Myanmar formally acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”). The New York Convention will require Myanmar’s courts to recognize and enforce foreign arbitral awards. It also requires the courts to recognize the agreements of parties to privately contract for the resolution of commercial disputes through agreed arbitration mechanisms. Such recognition is a requirement, subject to some limited exceptions permissible on mostly due process or public policy grounds.

Myanmar’s accession to the New York Convention is an essential development to encourage and provide stability for interested foreign investors, as it provides parties with the freedom to contract for arbitration conducted in a jurisdiction and forum of their choice, under agreed upon organizational rules and applying local or foreign law. This is critical, as it allows investors to reduce risk components and to control some of the variables in the dispute resolution process. It should also be noted that the recently enacted Foreign Investment Law specifically recognizes the rights of foreign investors to contract for dispute resolution.

While Myanmar has acceded to the New York Convention, it has yet to introduce domestic legislation that will give effect to its obligations as signatory to the New York Convention. Until such time that the domestic legislation is implemented, Myanmar is not subjected to its obligations under the New York Convention. This essentially means that the Myanmar courts do not yet recognize and will not enforce foreign arbitral awards, regardless of the contractual intent of parties to a dispute.

The good news is that a draft Arbitration Act is currently in the works and is expected to be passed within the next several months. This will provide the much needed domestic legislation required to give effect to Myanmar’s obligations as signatory to the New York Convention.

In the interim period before full recognition of Myanmar’s obligations under the New York Convention, investors should be mindful of the need to account, not only for the current dispute resolution framework provided under the Arbitration Act of 1944 and those provided in applicable multilateral and bilateral investment treaties, but for arbitration mechanisms permissible under the New York Convention.

Given the complexities in structuring agreements that straddle the fence between the current arbitration regime and that supporting Myanmar’s commitments under the New York Convention, it is advisable that parties seeking to invest and contract in Myanmar seek advice of counsel on how best to minimize risk in contracting for desired dispute resolution mechanisms.

RELATED INSIGHTS​ 

August 11, 2026
Cambodia’s Ministry of Justice has launched a new platform on its official website to publish notices of forced sales issued by each municipal and provincial court of first instance. The platform’s stated purpose is to inform the public and facilitate greater participation in forced-sale auctions conducted in connection with court-ordered enforcement proceedings. How the Platform Works The platform publishes forced-sale notices from courts of first instance across Cambodia’s municipalities and provinces and includes a link where the public can view properties currently subject to forced sale. To participate in a forced-sale auction, individuals can download Khmer-language bidding application forms through links provided on the platform. The form typically requires the applicant’s name, sex, year of birth, identity card number and issue date, and address, together with details identifying the immovable property (including its ownership certificate number), the relevant enforcement case number and date, and the reference to the public auction or tender announcement issued by the court. Completed application forms must be submitted directly to the specific municipal or provincial court that issued the forced sale. For further inquiries about a particular forced sale, interested parties should likewise contact the relevant municipal or provincial court. Forced Sale of Immovable Property in Cambodia The publication of these notices relates to the forced sale procedure for immovable property under Cambodia’s Code of Civil Procedure (CPC). Unlike property seizure by a court, a forced sale is a compulsory execution proceeding—a subsequent enforcement step that arises only after an underlying dispute has been adjudicated and a debtor fails to pay the debt or outstanding amount due under a final and binding judgment or other enforceable title of execution. For the purposes of this procedure, the term “immovable property” under the CPC refers to land, registered buildings, jointly held shares of such property, registered
August 6, 2026
Every month, VAT-registered businesses in Thailand calculate their output and input VAT and file a return to pay the net amount due or claim a refund. Yet a common and costly dispute arises when a business that has paid input VAT to its supplier—and done everything asked of it—later finds that input VAT rejected on the grounds that the tax invoice was issued by “a person not entitled to issue tax invoices.” In these cases, a buyer may have confirmed the supplier’s VAT registration on the Revenue Department’s website, paid through the banking system, received a complete tax invoice, and kept full payment and inventory records. Even so, if the Revenue Department later determines that the supplier did not genuinely make the sale or collected the VAT without remitting it, the department can disallow the input VAT and assess additional tax, surcharge, and penalty—often more than a year after the transaction. A new article from tax and dispute resolution specialists at Tilleke & Gibbins in Bangkok examines how the Revenue Department and the courts approach these disputes, including two recent Supreme Court (Tax Division) decisions confirming that the taxpayer bears the burden of proving a supplier genuinely sold and delivered the goods and received payment. It considers why the VAT registration system offers no legal safe harbor, why the evidentiary burden falls hardest on online and cross-border transactions where buyers and sellers never meet, and how the Revenue Department’s own digital infrastructure could detect non-remitting suppliers at the source rather than shifting the loss to good-faith buyers. The article also sets out practical guidance: how to build a comprehensive “know-your-supplier” file at the time of a transaction, the procedural steps and strict deadlines for challenging a VAT assessment, and why dispute readiness belongs alongside tax planning at the center
June 29, 2026
Thailand’s cabinet has approved the draft Act on Liability for Defective Goods, commonly called Thailand’s “Lemon Law.” The Draft Act is currently pending consideration by Parliament. The draft law aims to strengthen buyers’ position in pursuing cases against sellers. While the Civil and Commercial Code offers provisions governing liability for defective goods, it is difficult in practice for buyers to successfully make a claim against sellers, particularly where defects are latent and not discoverable at the time of sale or delivery. By introducing product-specific rules and clearer remedies, the new law is intended to modernize Thailand’s consumer protection framework and align it more closely with international standards, and to help relieve the buyer’s burden of proof against the seller in product liability cases. If enacted, the draft act will take effect 180 days after publication in the Government Gazette, giving businesses a transition period to assess their compliance obligations. This article provides an overview of the key provisions of the draft act and highlights some practical considerations for businesses operating in Thailand. Scope and Key Definitions The draft act applies to sellers—defined as persons who sell goods in the ordinary course of business—and protects buyers, a term defined broadly to include not just the original purchaser but also transferees and successors in title. This expands the class of people who can bring claims. The law does not apply to used goods, live animals, or goods exempted by future ministerial regulation. It also leaves intact any separate warranties, promises, advertisements, or other guarantees a seller has given; those remain enforceable alongside the new statutory rights. General Liability for Defective Goods Sellers are liable for defects that exist at the time of delivery, regardless of whether the seller knew about them. Liability arises where a defect reduces: The benefit intended under
June 22, 2026
Arbitrator independence and impartiality form the cornerstone of a legitimate arbitral process. Under section 19 of the Thai Arbitration Act B.E. 2545 (2002), prospective arbitrators must disclose circumstances likely to give rise to justifiable doubts as to their impartiality or independence, and existing arbitrators must do so throughout proceedings. This mirrors article 12 of the UNCITRAL Model Law. Yet despite this clear mandate, practical implementation varies significantly across Thailand’s arbitration landscape. Background Thailand’s two principal arbitration institutions, the Thai Arbitration Institute (TAI) and the Thailand Arbitration Center (THAC), both maintain procedures for addressing arbitrator challenges and require compliance with the statutory disclosure obligation. Under both sets of rules, any party wishing to challenge an arbitrator must submit a challenge application within fifteen days of becoming aware of the relevant facts, and a committee is appointed to consider the matter on a case-by-case basis. The TAI additionally prescribes its Code of Ethics and Conduct for Arbitrators to further emphasize the expectation of impartiality and transparency. However, Thailand’s arbitration ecosystem extends well beyond the TAI and THAC. Several sector-specific institutions also administer arbitral proceedings, including the Thai Commercial Arbitration Office under the Board of Trade of Thailand, the Arbitration Centre of the Office of the Insurance Commission, the Arbitration Centre of the Securities and Exchange Commission, the Office for the Prevention and Resolution of Disputes regarding Intellectual Property, and the Arbitration Centre of the Thai General Insurance Association. These institutions each operate under their own procedural rules, which were developed to serve particular industries and dispute profiles. The procedural mechanisms for securing and documenting an independence declaration are not uniformly established across these forums. Consequences of Procedural Inconsistency This creates a notable gap. Not all arbitration bodies have a formalized procedure requiring written independence statements before proceedings commence. Some tribunals proceed