Alternative Dispute Resolution in Thailand: TAI, THAC, and Sector-Specific Forums

February 24, 2023

Vietnam: Law on Organization of People’s Courts Under Review for Future Amendment

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

December 19, 2022

Thailand’s Draft Liability for Defective Goods Act Advances in Legislative Process

On November 22, 2022, the Thai cabinet approved in principle the draft Liability for Defective Goods Act (the “Bill”) proposed by the Office of the Consumer Protection Board. While Thailand’s Product Liability Act B.E. 2551 (2008) deals with liability to consumers arising from unsafe products, the draft Liability for Defective Goods Act aims to ensure that consumers are well protected from defects in appliances and vehicles that might not initially be easily visible or noticed. Key Definitions The Bill applies most notably to business operators and consumers. In the Bill, a “business operator” who may potentially be liable is: a manufacturer (or its hirer) of goods for sale; or a consignee or importer who brings goods into Thailand for sale; or a seller or a hire purchase provider who cannot identify the manufacturer (or its hirer) or the importer. As opposed to the Product Liability Act, which clearly provides that all business operators in the supply chain must be jointly liable, the Bill lacks such clear guidance. This could be interpreted as meaning that under the current Bill only the business operator at the top of the supply chain who is sued in the same case as other business operators is responsible. A “consumer” is defined as a purchaser or hirer of goods from a manufacturer, including an assignee or successor of the goods from the purchaser or hirer. Scope and Application The Bill is intended to govern purchase or hire-purchase contracts for: electric appliances; electronic devices; personal cars and motorcycles; other goods that may be set out in a future royal decree issued under the act. The Bill will not apply to any purchase or hire purchase of used products or as-is products when this is clearly stated by the seller or hire-purchase provider or the auctioneer in

November 24, 2022

Permanent Court of Arbitration Opens Representative Office in Vietnam

On November 24, 2022, Secretary-General of the Permanent Court of Arbitration (PCA) Marcin Czepelak and leaders of Vietnam’s Ministry of Foreign Affairs chaired the opening ceremony of the PCA’s Representative Office in Hanoi. Beyond its headquarters in The Hague, the PCA has opened offices in other cities to make its services more accessible in different regions. The Hanoi office will be the PCA’s fourth office outside its headquarters. The PCA, established in 1899, is an intergovernmental organization which provides resolution services for disputes involving states, state entities, international organizations, as well as private entities. It provides and administers arbitration, mediation, conciliation, and fact-finding commissions of inquiry. The PCA’s services are primarily used in Europe and Asia. In cases administered in 2021, approximately 47% of the disputing parties were from the Western European and Others Group of the United Nations Regional Groups, and 40% from the Asia Pacific Group. The majority of disputes resolved by PCA are state-related disputes; however, the PCA’s scope of settlement is also extended to the private sector. The PCA’s Hanoi office is staffed to administer PCA hearings and meetings and will provide administrative services in support of parties and arbitrators conducting arbitral proceedings under the PCA’s auspices, serving as the official channel of communications and ensuring safe custody of documents. The PCA can also provide such services as financial administration, logistical and technical support for meetings and hearings, travel arrangements, and general secretarial and linguistic support. Currently, Vietnam has some active members of the PCA. The opening of the PCA representative office is a step toward realizing commitments between Vietnam and the PCA in their protocol signed in 2021, and serving the evolving dispute resolution needs of states and other entities in the coming years. With the new office in Hanoi, it is expected that

October 27, 2022

Are Damages Arising Out of Termination of an Agreement “Determinable Debt”?

Under Thai bankruptcy law, a creditor can file a request for a debtor to be placed under an absolute receivership order and bankruptcy judgment. However, the debtor must be insolvent, and the debt owed to the creditor or creditors must be at least THB 1 million (for a debtor who is a natural person) or THB 2 million (for the debtor who is a juristic person). In order to know whether the latter requirement is met, the debt must be “determinable”—that is, known and monetarily quantifiable. More specifically, determinable debt is debt (up to the filing date) in an amount that can be calculated, whether the debt is payable immediately or in the future. The debt can be under a loan agreement or under a sale-and-purchase agreement. One question that sometimes comes up is whether damages arising out of termination of such an agreement are considered determinable debt. According to a number of Supreme Court precedents, if the debt (e.g., rent, fine or penalty) can be calculated as referred to in the agreement, the debt is determinable. Three of these cases are described below. Supreme Court Case No. 2653/2526 In this case, the defendant made a partial delivery of oil (i.e., not the amount fully expected) to the plaintiff, who claimed that the defendant owed them a fine of almost THB 14.9 million, calculated in accordance with the sale-and-purchase agreement for the oil. The defendant argued that the debt was not determinable because the plaintiff did not prove whether they suffered damage or not. The Supreme Court noted that the agreement for sale and purchase of oil stated clearly that if the defendant could not deliver oil to the plaintiff in full, the plaintiff had the right to terminate the agreement and fine the defendant 25 percent of the

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February 3, 2026