On February 20, 2023, the Supreme People’s Court of Vietnam submitted a Practical Report on the Implementation of the Law on Organization of People’s Courts, as well as a Draft Amendment of the Law on Organization of People’s Courts to seek online comment from interested parties. Notably, the Supreme People’s Court has expressed a desire to establish specialized courts such as an IP court and a bankruptcy court. Practical Report on the Implementation of the Law on Organization of People’s Courts The Supreme People’s Court reviewed the implementation over the past eight years of the Law on Organization of People’s Courts (“LOPC”), which took effect in 2015. Some highlights of the implementation process, as set out in the Supreme People’s Court’s practical report, are as follows: Re-systematization of all levels of courts: The LOPC systematized the court system in Vietnam, including four levels: Supreme People’s Court Three Superior People’s Courts 765 first-instance trial courts (including 702 district courts and 63 provincial courts) 66 appellate courts (including 63 provincial people’s courts and the three Superior People’s Courts) In addition, the Supreme People’s Court established four adjudicating agencies for cassation and reopening (including three Judicial Committees of the Superior People’s Court and the Council of Judges of the Supreme People’s Court). Support departments for the court have been strengthened, and policies have been developed to train judges. Trial results: From June 1, 2015, to April 30, 2022, the courts have settled 3,187,285 cases of all kinds out of a total of 3,334,915 cases handled (95.57%). Most of the remaining cases are newly accepted and still within the time limit for settlement as prescribed by law. On average, the courts have had to deal with about 476,416 cases each year. Draft Amendment of Law on Organization of People’s Courts Despite the notable accomplishments of the past eight years, a number of weaknesses were found

Noppparat Lalitkomon, head of Tilleke & Gibbins’ data protection team in Thailand, has prepared the Thailand contribution for the Data Privacy Trends and Topics Report, published by Lex Mundi. The report provides brief overviews of recent and upcoming regulatory and legal developments concerning data privacy in the jurisdictions of Lex Mundi member firms in 53 jurisdictions around the world. Drawing on the expertise of Lex Mundi member firms from around the world, the report features local insights to help businesses handle cross-border data and cybersecurity challenges. Lex Mundi has also compiled a global overview of how firms in each region assess the likelihood of significant changes to the data protection landscape in 2023. Notably, Asia and the Pacific is identified as the region most likely to undergo changes, with 73% of reporting firms expecting significant developments in their jurisdictions. The report containing all 53 contributions—grouped by world region—is available on the Lex Mundi website or through the button below.

Many companies have moved to Southeast Asia to benefit from the advantages of this vibrant and diverse market. The region is already a manufacturing hub for a multitude of industries—computer and automotive products in Thailand, textiles in Cambodia, and footwear and electrical goods in Vietnam, to name a few—and an increasing number of companies worldwide are reconfiguring their supply chains to include regional suppliers. A key challenge is keeping up to date with employment law trends in these jurisdictions to ensure compliance with local regulations—and avoid costly, time-consuming business interruption. Here we outline trends and recent regulatory developments in Cambodia, Thailand, and Vietnam, and consider what they mean for employers. Cambodia The Ministry of Labour and Vocational Training (MLVT) is likely to pursue a more proactive enforcement strategy in 2023. Last May, the MLVT announced companies would be required to submit a twice yearly self-declaration on labour compliance through a new online system. The self-declaration form requires companies to confirm and upload evidence of compliance, and the MLVT online system—through which the ministry can easily determine if a company is compliant –generates a report that lists all fines. Companies should comply with the self-declaration requirement and carefully review the form to understand what fines will apply for non-compliance. On 1 October 2022, regulations relating to the National Social Security Fund (NSSF) pension system came into effect, and employers and employees began making NSSF pension contributions. Over the next five years, total compulsory pension contributions will amount to 4% of an employee’s wage, half of which is paid by the employer and half deducted from the employee’s salary. The contribution wage is capped at KHR 1.2m (USD 300). Employers are currently required to pay a relatively small amount (KHR 24,000, or around USD 6). This will increase to 10.75% over a ten-year period. Further, it is possible that

The Contract Committee of Thailand’s Consumer Protection Board has issued a new notification relating to home renovation business operations. The Notification of the Contract Committee Re: Services for Providing Renovations of Buildings for Residential Purpose as a Controlled Business in Relation to Details Regarding Payment Receipts B.E. 2566 (2023) (the “Notification”) was published in the Government Gazette on February 13, 2023, and will come into effect after 90 days (i.e., on May 14, 2023). Once the new Notification is effective, a contractor who provides residential building renovation services will be required to provide a receipt for the payment received from the customer which contains specific details, terms, and conditions as required under the Notification. Key Definitions Under the Notification, a “service for providing renovations of buildings for residential purposes” is defined as a business in which a business operator is engaged by a customer to make additions, modifications, alterations, repairs, or improvements to a building (including any house or any structure) which can be used for residential purposes, either in whole or in part. “Residential purposes” means for residing in the building (in whole, or in any part), whereby the building will not be sold, leased out, hire-purchased, or subject to other arrangements relating to the building with compensation or other benefits involved. Key Required Content The Notification requires that the payment receipt be provided by the business operator to the customer immediately upon receiving payment in whole or in part. The receipt must be clearly legible in Thai language, with a minimum font size, and include the following material terms and conditions: Details about the business operator, customer, and service, including contact information, milestones and payments, the daily penalty rate, and other related information. If the business operator is unable to complete the work within the agreed period, or there is any delay, without any fault

On December 28, 2022, the Ministry of Health of Laos issued Decision No. 3789/MOH on the Control of Hemp for Medication and Products (the “Decision”). The Decision approves the regulated cultivation, extraction, production, processing, storage, distribution, utilization, import-export, and transport of hemp. The Decision also authorizes the use of hemp and hemp-related products by the general population, although use of certain products is limited to those with medical prescriptions. Background In 2019, the Lao government established an ad hoc committee to consider the legalization of cannabis, as reported previously. The government permitted certain local companies to grow cannabis in specific zones under pilot programs, although it continued to strictly prohibit the use and commercialization, as well as consumption, of cannabis-related products, regardless of the level of psychoactive tetrahydrocannabinol (THC) in the products. Overview of the Decision The Decision was issued by the Ministry of Health (which led the ad hoc committee) and permits authorized companies to engage in certain activities involving the use of hemp and the consumption of hemp and hemp-related products. The Decision defines hemp (“porkeo” in Lao) as a “plant that belongs to the same family as ganja and bears the scientific name Cannabis Sativa L. (Cannabis sativa L. subsp. sativa var. sativa) which is a subspecies of ganja (Cannabis Sativa L.).” This definition aims at differentiating hemp from the general definition of ganja or marijuana, which continues to be listed as a prohibited narcotic in Laos. The Law on Narcotics (2007) and the Penal Code (2017) still prohibit the production, trade and use of all types of cannabis. These laws will need to be amended to ensure that they are aligned with changes set out in the Decision.  Authorized Hemp Activities The Decision allows approved companies to engage in the cultivation, extraction, production, processing, storage, distribution, utilization, import-export and transport of hemp.

On December 20, 2022, the Notification re: Rules, Procedures, and Conditions on Transfer of Energy Licenses of the Thailand Energy Regulatory Commission (ERC) became effective. The notification sets out the new standard and procedure for transferring licenses for energy industry operation. The notable changes in the notification are provided below. Anti-Competition Consideration and Impact Assessment Report In considering the transfer of a license, in addition to ensuring the transferee meets all the qualifications for an applicant for the license, the ERC will consider if the transfer would (1) create a monopoly, reduce or restrict competition, or result in market dominance; (2) affect the contracting parties of the transferors or energy users; or (3) affect energy security or the public interest. In this respect, the vetting process for an application for license transfer would be separated into two different approaches. If the ERC believes that the transfer of the energy license would affect competition, energy users, energy security, or the public interest, the transferor will need to submit an impact assessment report on the license transfer to the ERC. In this regard, the ERC may establish a sub-committee or an independent consultant to contemplate the transfer at the transferor’s expense. However, if the ERC believes that the transfer of license would not lead to any impact, the transferor will not be required to submit the impact assessment. Also, if the license transfer is related to any transactions specified under the ERC’s Regulation re: Rules and Procedures on Merger and Cross-Shareholding in Energy Businesses, B.E. 2565, the ERC can combine the license transfer application with the M&A application. After approval, the ERC might require the transferee to periodically report to the ERC and comply with measures stipulated by the ERC. Therefore, an energy license holder which plans to carry out M&A activity or cross-shareholding transactions, or

Thailand has issued a Royal Decree on the Supervision of Regulated Digital Identification Authentication and Verification Service Businesses B.E. 2565 (2022) (the “Royal Decree”), aimed at regulating business operators that provide digital identification authentication and verification services (“Digital ID Services”). The Royal Decree was published in the Government Gazette in December 2022, and will take effect 180 days from the publication date, i.e., on June 21, 2023. The key details and requirements of the Royal Decree are as follows: Regulated Digital ID Services Under the Royal Decree, the provision of the following Digital ID Services requires prior approval from the Electronic Transaction Development Agency: Identity verification service – Services for collecting and identifying information relating to the identity of a person, and verifying the connections between the person and the identity. Authenticator issuance and management service – Services relating to the connection between a person who has passed the identification process with an authenticator, and managing actions which are used to identify a person. Authentication service – A process to authenticate a person by inspecting his/her authenticator. Digital ID networks/systems – Provision of networks or systems used to exchange information for digital identification purposes, excluding services provided by an intermediary. Exempted Digital ID Services The Royal Decree also specifies a list of Digital ID Services that are exempted from supervision under the Royal Decree, as follows: Issuance of certificates to support the use of electronic signatures in accordance with the Electronic Transaction Act. Digital ID Services conducted for use within the operator’s own business only, and which do not involve the provision of such services to third parties. Other Digital ID Services as prescribed by the Electronic Transaction Committee. Qualifications of Business Operators The types of business operators qualified to operate Digital ID Services include (i) private limited companies; (ii) public limited companies; and (iii) other juristic persons as prescribed by the Electronic

On February 10, 2023, the government of Vietnam issued Decree No. 03/2023/ND-CP regulating the functions, rights and duties, and organizational structure of the National Competition Commission (“Decree 03”). The National Competition Commission (official English name Vietnam Competition Commission or VCC) was first mentioned in the updated Law on Competition of 2018 and is meant to be the leading authority responsible for the state management of competition matters in Vietnam. However, nearly five years later, no penalty decisions for competition violations under the Law on Competition 2018 have been issued, due to a lack of regulations on the functions of the VCC. Thus, the issuance of Decree 03 is an important milestone and is expected to increase the authorities’ enforcement against competition-related violations in Vietnam. The VCC is an agency under the Ministry of Industry and Trade (MOIT) and consolidates the previous Vietnam Competition Council and Vietnam Competition Authority. The VCC is mainly responsible for: (1) carrying out competition proceedings, (2) controlling economic concentration, (3) deciding on exemptions from prohibited anti-competitive agreements, (4) handling appeals of decisions on settlement of competition cases; (5) advising and assisting the MOIT in performing the state management of competition, protecting consumers’ interests, and managing multi-level marketing activities; and (6) other responsibilities as may be assigned by the MOIT. For each case of alleged anti-competition, the chair of the VCC will establish a Council for Handling Anti-Competitive Case, which will dissolve itself upon the fulfillment of its responsibilities. The VCC is made up of 15 members, including the chair and one or more vice chairs, and will also include the following departments: Competition investigation agency; Secretariat of Councils for Handling Anti-Competitive Cases; Competition Supervision Board; and Units perform the function of state management of competition, protection of consumers’ interests, and management of multi-level marketing activities. Decree 03 will take effect on April 1,