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

January 24, 2024

IAPP Global Legislative Predictions 2024 – Thailand

International Association of Privacy Professionals

Thailand’s Personal Data Protection Act came into full effect on 1 June 2022 and various subordinate regulations have since been issued by the Personal Data Protection Committee. These include regulations on security measures to be implemented by data controllers, data breach notification requirements, a mandatory obligation to appoint a data protection officer when the processing activity requires regular monitoring of personal data or a system due to the large scale of personal data, administrative measures and data processors’ record of processing activities.

As some areas under the PDPA still require further clarifications, a series of public consultations for the remaining draft subordinate regulations is anticipated in 2024. Potential areas include data protection impact assessments and cross-border transfers of personal data, which are crucial for organizations and particularly for entities with establishments in other jurisdictions.

PDPA enforcement by Thai regulators was silent until the last quarter of 2023, when the PDPC published details about complaints that have been lodged to the Expert Committee. The committee is designated by virtue of the PDPA and has the power to make determinations related to imposing administrative fines and other penalties. Enforcement in 2024 is expected to become more active and potentially more serious, which means organizations should pay closer attention to ensure compliance with the PDPA.

Similar to the GDPR, the PDPA also has extraterritorial effect. Once the subordinate regulation on international cooperation has been issued by the PDPC, this should clarify how PDPA enforcement against organizations located outside of Thailand will be conducted by Thai regulators.

With respect to sector-specific data protection legislation, in September 2023, Thailand’s National Broadcasting and Telecommunications Commission issued the Notification of the NBTC Re: Measures to Protect Telecommunications Service Users’ Rights in regard to Personal Data, Privacy Rights, and Freedom of Telecommunications, which replaces the previous notification. The notification aims to enhance the protection of personal data and privacy rights for telecommunication users and to align its data protection requirements with the provisions of the PDPA. The development of specific data protection laws for other sectors is still silent.

 

Athistha (Nop) Chitranukroh and Gvavalin Mahakunkitchareon provided this update as part of the “IAPP Global Legislative Predictions 2024” from the International Association of Privacy Professionals. Tilleke & Gibbins also provided the Vietnam update.

RELATED INSIGHTS​ 

January 22, 2025
Tasked with implementing the Politburo’s policy outlined in Notice No. 47-TB/TW dated November 15, 2024, the prime minister of Vietnam issued Decision No. 1718/QD-TTg on December 31, 2024, appointing himself as the head of a steering committee dedicated to the establishment of an international financial center in Ho Chi Minh City and a regional financial center in Da Nang by 2025. The Ministry of Planning and Investment has subsequently drafted an outline for the National Assembly’s Resolution on the Establishment of Regional and International Financial Centers in Vietnam (“Draft Resolution”). This Draft Resolution introduces two key policy groups: (i) policies governing the quantity, location, structure, organization, functions, and responsibilities of the financial centers; and (ii) policies applicable to various areas and matters within the financial centers. Notably, under the Draft Resolution, fintech has been identified as a key sector, with a specific focus on the implementation of a “controlled sandbox” policy for business models involving virtual assets and cryptocurrencies. Under this framework, transactions related to virtual assets and cryptocurrencies will be permitted from July 1, 2026, subject to licensing, management, impact assessment, and risk oversight by the financial centers’ Management and Operations Committee. Scope of Application and Key Principles The Draft Resolution applies to a wide range of stakeholders, including investors, regulatory agencies, organizations, and individuals involved in the establishment, organization, and operation of regional and international financial centers in Vietnam. These financial centers will have clearly defined geographical boundaries and specific locations, which will be further specified and detailed by the People’s Committees of Ho Chi Minh City and Da Nang. Companies successfully registered as members of these financial centers will benefit from special investor-friendly policy principles, which may differ from the general legal and regulatory framework applicable in other parts of Vietnam. Most notably, the state will
January 21, 2025
Vietnam’s Ministry of Information and Communications has released the latest version of its draft Law on the Digital Technology Industry (DTI Law), marking a significant step toward comprehensive regulation of digital technologies and notably addressing artificial intelligence (AI). The draft law was deliberated in the National Assembly on January 6, 2025, and is expected to be adopted in May 2025. Once in effect, the law will modernize Vietnam’s existing information technology regulatory framework. Background Vietnam has been steadily building its regulatory framework for AI since January 2021, when the prime minister issued Decision No. 127/QD-TTg on the National Strategy for Research, Development, and Application of Artificial Intelligence until 2030. While various ministries have been tasked with issuing guidance documents and technical standards, Vietnam still lacks a comprehensive legal framework specifically addressing AI and digital technologies. The draft DTI Law aims to fill this gap by providing a structured approach to regulating the digital technology industry. Scope and Definitions The draft DTI Law establishes a broad framework governing digital technology industry activities, initiatives for developing the digital technology sector, and rights and obligations of organizations and individuals in the industry. The draft law also proposes the creation of various incentives, primarily in the form of tax benefits, for encouraging foreign direct investment, talent acquisition and development, and industry growth. The draft law introduces several important definitions, particularly around AI, which is defined as digital technology that simulates human intelligence to generate content, forecasts, suggestions, and decisions based on human-determined goals. The draft distinguishes between different categories of AI systems: High-risk AI systems: Those posing risks to health, safety, rights, and legitimate interests. High-impact AI systems: Distinguished by their broad scope, large user base, and significant computational resources for training. Standard AI systems: Basic systems that apply AI for automated analysis
January 20, 2025
Thailand’s official draft Platform Economy Act (PEA) was released on January 15, 2025, for public comment until February 15, 2025. The draft PEA is positioned as a general or overarching law for digital intermediary services and digital platform service businesses. The official release of the draft came after the sharing of the set of principles that would form the basis for the official draft PEA in November 2024. The draft PEA incorporates those principles and adds more detailed provisions. Especially notable is that the draft PEA requires all intermediary service providers and online platform operators—both Thai and foreign—to appoint a point of contact to liaise with the Electronic Transactions Development Agency (ETDA) if they have any users in Thailand. However, the draft PEA does not mandate establishment of a local entity in Thailand. Types of Intermediary Services The draft PEA sets out a three-tiered classification system for different types of service providers, ordered from fewest obligations to most: Intermediary services. Intermediary services are further divided into three subcategories: mere conduit, caching, and hosting. Each type of intermediary service has different safe harbor provisions, which define their scope and limitations. Online platform services. Online platform services are defined as involving “the provision of intermediary services in the hosting category that involve facilitating the matching of various types of users to enable transactions or interactions, whether or not a fee is charged. Additionally, such services may include other provisions to facilitate these transactions or interactions.” Key obligations for online platform providers include: Informing users of their rights and duties under relevant laws Implementing a notice-and-action mechanism Disclosing advertising information Publishing T&Cs, including details such as service fees, algorithms, and complaint management mechanisms. Very large online platform services. Very large online platform services (VLOPs) have extra duties beyond regular online platform services,
January 16, 2025
On January 13, 2025, Thailand’s cabinet approved in principle the draft Entertainment Complex Act, as proposed by the Ministry of Finance. This landmark legislative proposal, which would allow casinos as part of larger “entertainment complexes,” will now proceed through further parliamentary review and approval. Key provisions of the draft act are described below. Corporate structure: Entertainment complexes must be operated by Thai-registered limited companies or public limited companies with a minimum paid-up capital of THB 10 billion. Directors of the licensed entity must be individuals and have the qualifications and none of the prohibited characteristics specified in the draft act. The draft act does not impose restrictions on foreign-majority ownership structures; however, it is worth monitoring whether any amendments addressing this matter are introduced during the legislative process. Operating conditions: Each entertainment complex must be located in an area designated under a royal decree. It must also include at least four types of entertainment businesses listed in the annex to the draft act (e.g., shopping mall, hotel, sports stadium, amusement park), along with a casino. The allocation of casino space must comply with regulations to be specified at a later date. Licensing conditions: Licenses will be valid for 30 years, renewable in increments of up to 10 years. The license issuance fee is THB 5 billion, the annual fee is THB 1 billion, and the renewal fee is THB 5 billion. The Entertainment Complex Policy Committee, chaired by the prime minister, will review and approve applications. Online gambling restrictions: Licensees are prohibited from offering gambling through internet-connected systems or electronic devices that allow access from outside the casino premises. Labor requirements: Thai and foreign employee ratios must adhere to prescribed regulations. Land privileges: Lease agreements for land use are limited to 50 years. Renewal is permitted for up to