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December 23, 2011

PLC Doing Business in … Multi-Jurisdictional Guide 2012 – Thailand Chapter

Practical Law Company in association with Lex Mundi

This chapter provides an overview of the legal system and key laws for foreign companies doing business in Thailand. Presented in a question-and-answer format, the chapter examines the rules governing foreign investment, business vehicles, employment, tax, competition, intellectual property, marketing agreements, e-commerce, data protection, and product liability.

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February 3, 2025
On January 28, 2025, the Office of the Personal Data Protection Committee (PDPC) hosted Data Privacy Day 2025, bringing together over 1,000 participants from both the public and private sectors. The event underscored the importance of personal data protection and aimed to raise nationwide awareness while fostering a culture of compliance. During the event, the PDPC reaffirmed its commitment to strengthening Thailand’s data protection framework to align with international standards. The initiative also emphasized the collective goal of achieving zero data breaches. During the first session of the event, Mr. Prasert Jantararuangtong, deputy prime minister and minister of digital economy and society, delivered a speech highlighting the role of personal data protection in fostering Thailand’s digital economy. He emphasized that strong data protection measures enhance business credibility, build consumer trust, and attract foreign investment. He also addressed the PDPC’s “zero data breach” policy and the ongoing issue of data leaks, which have been exploited by call-center scam operations to deceive the public and cause financial harm. Additionally, Mr. Prasert announced that the Thai cabinet has approved a draft amendment to the Emergency Decree on Cyber Crime Prevention and Suppression B.E. 2566 (2023), commonly referred to as the “Cyber Crime Decree.” The draft will now proceed to the Council of State for review before its official enactment. Key provisions of the amendment include holding financial institutions, telecom providers, and social media platforms accountable for technology-related crimes; requiring compensation for victims; and enforcing stricter security measures. Cyber offenses, including personal data trading, face harsher penalties of up to THB 5 million in fines or five years of imprisonment. Authorities are also empowered to suspend suspicious SIM cards for committing illegal activities and expedite monetary refunds for victims without court approval. In the second session, the Office of the PDPC presented its
January 30, 2025
The Thai cabinet has approved a draft amendment of the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes as proposed by the Ministry of Digital Economy and Society to strengthen measures against technological crimes, particularly targeting call center scams and cyber fraud. Following the Council of State’s review, the emergency decree will be become effective immediately upon its enactment and publication in the Government Gazette. While the draft amendment is not yet publicly available, the government recently indicated that the emergency decree aims to empower authorities with decisive measures to combat cybercrime effectively. It underscores the shared responsibility among various sectors, including banking, telecommunications, and online platforms, in safeguarding against technological crimes. Key provisions of the draft amendment of the emergency decree include: Telecommunications provider obligations: Telecommunications service providers must suspend SIM cards associated with criminal activities. The National Broadcasting and Telecommunications Commission and mobile service providers themselves are authorized to temporarily suspend mobile phone numbers if there is reasonable suspicion of involvement in criminal activities. Banking responsibilities: Financial institutions are required to promptly report mule accounts to the Anti-Money Laundering Office to facilitate quick restitution to victims. The Anti-Money Laundering Transaction Committee is empowered to order the return of funds to victims without requiring a final court ruling. Penalties for noncompliance: The amended emergency decree introduces penalties for noncompliance by regulated entities that fail to prevent criminal activities for offenses related to technology crimes in the following cases: Digital asset services: Those engaged in the buying, selling, or exchanging of digital assets, such as cryptocurrencies and digital tokens, as well as digital asset businesses that launder money obtained from online crimes by converting it into digital currency, will be subject to imprisonment for up to one year, a fine of up to THB 100,000,
January 27, 2025
Thailand’s Ministry of Energy (MOE) has announced the launch of the 25th bidding round for petroleum exploration and production. This round offers nine greenfield onshore blocks—seven in northeastern Thailand and two in central Thailand—encompassing over 33,000 km². The bids can be submitted from July 1 to July 16, 2025. The sizes and locations of these blocks are: Northeast Thailand Block L1/66: 3,223.51 km² (Khon Kaen, Nong Bua Lam Phu, Udon Thani) Block L2/66: 3,917.03 km² (Kalasin, Sakon Nakhon, Udon Thani) Block L3/66: 3,918.22 km² (Kalasin, Khon Kaen, Maha Sarakham, Udon Thani) Block L4/66: 3,656.65 km² (Amnat Charoen, Mukdahan, Nakhon Phanom, Yasothon) Block L5/66: 3,436.01 km² (Chaiyaphum, Khon Kaen, Nakhon Ratchasima) Block L7/66: 3,438.51 km² (Buri Ram, Maha Sarakham, Nakhon Ratchasima, Roi Et, Surin, Khon Kaen) Block L9/66: 3,885.44 km² (Nakhon Ratchasima) Central Thailand Block L6/66: 3,966.86 km² (Chaiyaphum, Lop Buri, Phetchabun) Block L8/66: 3,957.41 km² (Kanchanaburi, Nakhon Pathom, Ratchaburi, Suphan Buri) Bidding Process Interested companies must submit their bids to the Department of Mineral Fuels (DMF) between July 1 and July 16, 2025. Bids should include: Application form (ChorThor/Por1) Proof of eligibility: Corporate documentation, audited financial statements, and proof of resources Technical and commercial proposals: Exploration plans, geological surveys, financial and work commitments, and special benefits such as signing bonuses of at least USD 100,000. There is a nonrefundable THB 50,000 application fee per block, and applicants must provide a bid bond of THB 3 million per block via an unconditional bank guarantee from a commercial bank with branches in Thailand, valid for at least one year from the bidding submission date. The guarantee will be returned to unsuccessful bidders upon request and to successful bidders upon the signing of the concession agreement. Eligibility Bidders must meet the following main eligibility criteria: Bidders must be limited companies with the following qualifications: The company must have the objective of
January 24, 2025
Following Vietnam’s adoption of the new Law on Data (“Data Law”) on November 30, 2024, there remained uncertainty as to what impact the new framework would have on businesses in Vietnam and abroad. The government has now released a package of four draft legal documents aimed at guiding the implementation of the Data Law: (1) a decree on the National Data Development Fund (“NDDF Decree”), (2) a decree related to regulations on scientific, technological, and innovation activities and data products and services (“Decree on Specific Activities”), (3) a decree detailing a number of articles and measures to implement the Data Law (“Implementation Decree”), and (4) a decision on the lists of important data and core data. This article will provide an overview of the draft legislation. 1. NDDF Decree The draft NDDF Decree relates to the establishment, management and use of a National Data Development Fund (“NDDF”), which is a non-profit and non-budgetary state financial fund established and managed by the Minister of the Ministry of Public Security (MPS). The NDDF has legal personality and is fully state owned, operating similarly to a single-member limited liability company. Its main objectives are to support, promote, and invest in artificial intelligence (AI), the Internet of Things (IoT), and other new technologies and innovation. The NDDF may lend to, invest in, or otherwise support eligible organizations. The draft NDDF Decree also proposes a series of regulations on donations to the NDDF and from the NDDF (through expense support), the lending activities of the NDDF to commercial banks, which will in turn lend to eligible organizations, the investment activities in data products and services innovative start-ups, and other kinds of support. The government commits to provide VND 1 trillion (approx. USD 40 million) to the NDDF, evidencing the importance the government places on