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April 19, 2011

State Procurement Challenges

Bangkok Post, Corporate Counsellor Column

When governments contract for products and services, they enter into what is commonly known as “procurement” contracts. Normally, regulations are enacted to ensure that such contracts are entered into fairly and transparently, and indeed Thailand has such a procurement law. As these are contracts with governments, the question will arise as to what can be expected when there is a change of government. How can companies best deal with changes in government and what effects can such changes have on procurement contracts? This article explores the situation.

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October 2, 2026
On July 24, 2026, a new 12.5% Section 301 tariff took effect on most imports from Thailand into the United States. The tariff was imposed by the Office of the US Trade Representative (USTR) under Section 301 of the Trade Act of 1974, following a finding that Thailand had failed to impose and effectively enforce a prohibition on imports of goods produced with forced labor. The new tariff replaced the temporary 10% Section 122 surcharge that had applied since February 24, 2026, following the US Supreme Court’s invalidation of the prior tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The 12.5% tariff is not the only potential source of additional US duties on Thai-origin goods. Thailand is also subject to a separate Section 301 investigation concerning structural excess manufacturing capacity, which could result in additional duties. Unlike the Section 122 surcharge, which was capped at 15% and limited to 150 days, Section 301 provides a more flexible framework for imposing and maintaining trade measures. Section 301 actions are generally subject to a four-year termination rule but may continue following a review if continuation is requested. The new tariff therefore represents a potentially longer-term change in the tariff treatment of Thai-origin goods entering the US market. This article explains the legal and policy developments that led to the new tariff, how the Section 301 tariff differs from the tariff regimes that preceded it, Thailand’s response and ongoing negotiations with the United States, and the practical implications for businesses that manufacture, export, import, or distribute goods between Thailand and the United States. From IEEPA to Section 122 to Section 301 IEEPA Era (April 2025–February 2026) Beginning in April 2025, the US administration imposed sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), invoking national emergencies relating to trade
September 30, 2026
On September 23, 2026, the Trade Competition Commission of Thailand (TCCT) launched a one-month public consultation period on a proposed notification that would overhaul how antitrust offenses under the Trade Competition Act B.E. 2560 (2017) are settled and penalized. The draft notification would replace the existing 2019 settlement framework with more detailed procedures, introduce offense-specific methods for fine calculation, and add tiered deterrence multipliers. Comments may be submitted until October 22, 2026. Restructured Settlement Procedures and Timelines The proposed notification formalizes the settlement process with clearer terminology and mandatory procedural steps. Once the TCCT determines that an accused party has committed an offense that does not warrant imprisonment, the commission would fix the settlement fine amount. The accused would have 15 days from receipt of the summons to appear before the TCCT, though this period may be extended if necessary. If the accused confesses, consents to settlement, and pays the fine within the prescribed period, the criminal case would be closed and the settlement recorded. Refusals would also be recorded for further arrangements, and failure to appear, pay, or consent would result in the TCCT forwarding the case file and its recommendation—along with the accused’s fingerprints—to the public prosecutor. Notably, the draft allows accused parties to request settlement even after the TCCT has recommended prosecution but before the public prosecutor files charges, subject to prosecutorial consent. The draft preserves TCCT discretion to decline settlement where the accused has committed more than three prior offenses or where the violation has substantially impaired free and fair competition, directing such cases directly to prosecution. Fine Calculation Frameworks The proposed notification establishes different fine calculation approaches depending on the type of Trade Competition Act violation. For the most serious offenses (such as abusing market dominance, making anticompetitive agreements, or forming hardcore cartels) the
September 28, 2026
Thailand has expanded the mandatory use of the Electronic Government Procurement (e-GP) system to cover submissions of procurement appeals to all government agencies subject to the Public Procurement and Supplies Administrative Act B.E. 2560 (2017) (Government Procurement Act). The expansion, which was set out in an official circular dated September 16, 2026, from the Public Procurement and Supplies Administrative Ruling Committee, takes effect on October 1, 2026. Notable Changes Under the expanded framework, bidders challenging an e-bidding or selective-method procurement result must file their appeal exclusively through e-GP within seven working days of the result being announced by the Comptroller General’s Department. While the system accepts filings around the clock during that window, submissions on the final day must be fully completed by 16:30 according to the e-GP system clock—merely starting a draft or uploading materials before the cutoff does not count as a confirmed submission. Government agencies that disagree with an appeal, in whole or in part, will also report their findings and supporting documents to the Appeals Committee through e-GP using the prescribed Appeal Opinion Report, also within seven working days of receipt. Withdrawals of appeals must likewise follow prescribed e-GP steps that vary depending on whether the matter is still under agency review, has been forwarded to the Appeals Committee, or has already been resolved. Excluded Categories Certain categories of procurement are not subject to the new guidelines on filing appeals electronically. These include: Procurement of supplies for confidential government use. Procurement conducted by government agencies operating overseas where the bidder is a foreign legal entity with no legal representative in Thailand, or where the bidder is a non-Thai national. Consulting service procurement under chapter 7 of the Government Procurement Act Design or construction supervision procurement under chapter 8 of the Government Procurement These exclusions apply
September 28, 2026
On July 22, 2026, the government of Vietnam issued Decree No. 292/2026/ND-CP detailing the implementation of the Law on Foreign Trade Management (Decree 292). Decree 292 came into effect on September 5, 2026, replacing Decree No. 69/2018/NND-CP, and introduces several important changes to Vietnam’s foreign trade regime. Of particular relevance is the addition to the list of goods prohibited from importation of “products and goods extracted, produced, or manufactured wholly or partly through forced labor by enterprises, countries, or territories in accordance with relevant international treaties to which the Socialist Republic of Vietnam is a party.” This new prohibition introduces forced-labor considerations into Vietnam’s import compliance framework and may have practical implications for how businesses manage related risks across their operations and supply chains. Implementation of the New Prohibition According to Decree 292, the minister or head of the relevant ministerial-level agency is responsible for publishing the detailed list and corresponding harmonized system (HS) codes for each category of goods prohibited from export or import under its purview. Goods involving forced labor fall under the purview of the Ministry of Home Affairs. However, as of the date of this article, no corresponding list has been published specifying the goods to which the forced-labor prohibition applies, leaving businesses without official guidance on how the prohibition will be applied or enforced in practice. Nevertheless, this absence does not suspend the prohibition’s application. As Decree 292 has already taken effect, goods involving forced labor remain subject to the general legal framework applicable to goods prohibited from importation. In particular, Decree 169/2026/ND-CP provides for administrative penalties for the importation or transportation of prohibited goods into Vietnam. Depending on the nature and circumstances of the violation, criminal liability may also arise under the Criminal Code. In practice, enforcement is likely to depend on the