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.

Attorneys from Tilleke & Gibbins have provided the latest update to the Thailand contribution to Doing Business in…, a Q&A-style guide published by Thomson Reuters Practical Law that presents an overview of the legal framework for doing business in 63 jurisdictions worldwide. The Thailand chapter of the guide outlines Thailand’s legal system and key laws applicable to foreign companies doing business in the country. The chapter specifically covers the following main topics: Legal system: Thailand’s court system and codified legal system. Foreign investment: Lists of reserved business activities, restrictions on doing business with certain jurisdictions, exchange controls and currency regulations, and grants and incentives available to investors. Business vehicles: Ordinary partnerships, registered ordinary partnerships, limited partnerships, private limited companies, and public companies. Environment: Main laws and regulations, factory operation. Employment: Laws, employment contract requirements, work permits, and termination and redundancy. Tax: Taxes on employment, tax and nontax resident employees and businesses, corporate income tax, value added tax, special business tax, municipal tax, stamp duty, dividends, interest, intellectual property royalties. Competition: Important aspects of Thailand’s regulatory regime surrounding competition, centered around the updated Trade Competition Act. Antibribery and corruption: Laws, compliance requirements, regulatory authority. Intellectual property: Patents, trademarks, registered and unregistered designs, and copyright. Marketing agreements and advertising: Regulation of marketing agreements, Thailand’s Consumer Protection Act, direct marketing, role of the Consumer Protection Board and Food and Drug Administration. E-commerce: E-commerce laws and regulations, marketing and sales via online platforms. Data protection: An outline of Thailand’s Personal Data Protection Act. Product liability: Procedures and regulations for product liability and product safety, including the Unsafe Goods Liability Act and the Consumer Case Procedure Act. Product liability: Key regulatory authorities for trade competition, environmental issues, and financial services. To browse, download, or print the Thailand chapter, please visit the Practical Law website.

Michael Ramirez, a counsel in Tilleke & Gibbins’ dispute resolution group in Bangkok, has updated the firm’s contribution to the Global Attorney-Client Privilege Guide, published by Lex Mundi. The newly expanded guide provides information on what constitutes attorney-client privilege in over 70 countries around the world. The Thailand section of the guide contains in-depth information on the function and applications of attorney-client privilege in Thailand (or, as explained in the guide, an equivalent concept enshrined in Thai law), including coverage of the following topics: Privilege in corporations Common interest doctrine Litigation funding Crime-fraud exception Work product doctrine/litigation privilege Other privileges including mediation, accountant-client and settlement negotiation The interactive guide features expert contributions by Lex Mundi member firms from jurisdictions worldwide. Readers can browse the contributions, generate country-specific reports, and compare attorney-client privilege in multiple jurisdictions. For more information, please visit the Lex Mundi website.