As Thailand has paid more and closer attention to anticorruption issues, a number of measures have been introduced and implemented over the years, including the establishment of the Complaint Center for Foreign Investors (CCFI) in 2015. The CCFI was set up by the Office of Public Sector Anti-Corruption Commission (PACC) to promote transparency and integrity in the Thai public sector and enhance the confidence of foreign investors conducting business in Thailand. Though the CCFI has been in operation for many years, many foreign investors conducting business in Thailand have either remained unaware of it or have been reluctant to use it because of concerns that acting against Thai public officials could cause problems for their businesses or in their personal lives. However, recently the PACC has made a renewed push to promote the CCFI as a suitable channel for foreign investors to lodge complaints when they face unfair services or treatment, or face requests for benefits from Thai public officials. Lodging a Complaint with the CCFI The CCFI was established to administer the PACC’s responsibilities under Section 58/2 of the Executive Measures in Anti-Corruption Act B.E. 2551 (2008), which authorizes the PACC to notify the superior of any state agency appearing to have regulations or procedures that fail to comply with the Licensing Facilitation Act; are deemed by the PACC to cause a nuisance or damages to a public service clientele; or cause severe detriment to a government service. Practically, this means that when investors have a complaint that fits the scope described in the law, they can contact the CCFI, which will take action by getting the relevant agency or government authority to examine the issue. In cases concerning agency regulations and procedures, this will be the head of the relevant agency, but if the circumstances indicate malpractice

As many countries have experienced firsthand, corruption and bribery can have severe and far-reaching effects throughout a country’s political and economic systems. They not only impact the financial status and administrative ability of the countries involved, but at the same time, can also create and perpetuate a negative image of those countries to current or potential trade or investment partners. Recognizing the importance of minimizing or eliminating the damaging effects of bribery and corruption, many countries have made—and continue to make—efforts to strengthen their anticorruption and antibribery capabilities. Thailand has enacted relevant laws and enforced anticorruption measures in both the public and private sectors. Under Thai law, a bribe can take the form of property or a benefit. “Property” can be tangible (such as money, a car, a house, etc.) or intangible (such as copyrights, patents, etc.), while a “benefit” can be a gift, a discount, entertainment, healthcare costs, a job promotion, and so on. This article discusses the key provisions related to criminal offenses committed by private parties under three anticorruption laws in Thailand: Organic Act on Anti-Corruption B.E. 2561 (2018) Public Procurement and Supplies Administration Act, B.E. 2560 (2017) Act on Offenses Relating to the Submission of Bids to State Agencies B.E. 2542 (1999) Organic Act on Anti-Corruption The key provision of the Organic Act on Anti-Corruption (OAAC) is Section 176, which prohibits giving, offering, or promising property or a benefit to a public official, foreign public official, or official of a public international organization with the intent to induce the official to wrongfully perform his or her duty. Violations are subject to criminal liability, punishable by imprisonment for up to five years, a fine of up to THB 100,000 (approx. USD 3,000), or both. If the offender is a person associated with a company that does

As internet availability and speeds have taken off in Thailand, more and more consumers in the country have adjusted their behavior by purchasing products through websites and online applications. However, they sometimes find that not all transactions turn out as expected. As online sales have increased, the number of disputes over these transactions has also continued to grow. Local news outlets are now reporting on the latest official response to this trend: a new division of the Civil Court designed to cope with the growing number of disputes from online transactions. The Honorable Chief Justice Piyakul Boonperm, president of Thailand’s Supreme Court, is aiming to expand internet shoppers’ access to justice by setting up a special division to work on cases involving online transactions. The announcement of the formation of this division was published in the Government Gazette on December 20, 2021, and the Civil Court announced shortly after that it would start operating on January 27, 2022. The announcement does not affect cases filed prior to January 27, 2022, and does not revoke plaintiffs’ rights to file cases through alternative legal means. The special division handles only disputes between buyers and sellers in an online transaction over a legal right or obligation related to consumption of goods or services in accordance with section 3(1) of the Consumer Procedural Act B.E. 2551 (2008) on what the law called “consumer cases.” This also includes bodies that can act on a consumer’s behalf by law, such as a consumer protection commission, association, or foundation approved by the Consumer Protection Commission. Only cases that can be handled remotely through the court’s electronic system fall within the scope of this announcement—cases that cannot be completely handled online will not be taken up by the new special division. Accordingly, parties must utilize the court’s

Thailand and Vietnam are major destinations for foreign direct investment (FDI) in Asia, resulting in significant levels of cross-border transactions. According to the World Bank, in 2018 and 2019 Thailand attracted a combined net inflow of about USD 18 billion in FDI.  During the same period, net inflows to Vietnam were USD 31.62 billion. These high volumes of inbound investment inevitably lead to a higher risk of disputes with everyone from suppliers, contractors, joint venture partners, borrowers, and of course state-owned companies and government agencies. International arbitration is a viable means of handling such disputes. Both Thailand and Vietnam are contracting states to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), so arbitral awards from other member states are enforceable. With this in mind, an international arbitration award has to be enforced. This usually means filing cases in the local Thai and Vietnamese courts. As explained in this report, both Thailand and Vietnam have legislative frameworks in place to enforce arbitral awards, but in practice, enforcement can be a challenging and time-consuming endeavor. Before electing to pursue arbitration against private and state entities, foreign investors should be aware of how awards are actually enforced in these emerging Asian jurisdictions. To read the full article, please download the report through the button below.   This article was first published in September 2021 by the Practising Law Institute as part of their course materials for International Investment Law & Investor-State Dispute Settlement 2021.