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

November 19, 2019

Thailand Relaxes Foreign Trading and Exchange Regulations

Subscribe to Updates

On November 5, 2019, the Bank of Thailand (BOT) announced further relaxations of foreign exchange (FX) control regulations on investment in foreign instruments, such as securities and derivatives, in order to facilitate capital outflows and cope with the strengthening of the Thai baht. The key relaxation will, for the first time, allow Thai retail investors to send money offshore to invest directly in foreign instruments. These relaxed FX regulations, which came into effect on November 8, 2019, are summarized below.

Investment in foreign securities and derivatives

Prior to the issuance of the new regulations, there were 11 types of investors who were permitted to invest directly in foreign instruments, including (1) most institutional investors, (2) high net worth investors, and (3) qualified investors (QI)—entities or natural persons that have investments in instruments, derivatives, or deposits worth THB 50 million or more. The new regulations make the following changes:

  • Qualified investors (QI)

In addition to the foreign instruments that QI were already eligible to invest in, the new regulations now also include OTC derivatives, endowment life insurance, unit-linked life policy, and universal life insurance. In addition, the new regulations also cancel the restrictions on countries where QI are allowed to make investments.

  • Retail investors

Retail investors are entities or natural persons that do not qualify as QI. They were previously only permitted to invest in foreign instruments through a Thai intermediary, but now retail investors are also permitted to invest directly in foreign instruments, with an annual cap of USD 200,000 per investor. The types of foreign instruments are similar to those for QI, and there is likewise no restriction on destination countries in which retail investors can invest. Any interested retail investor must first complete a one-time online registration with the BOT (www.bot.or.th).

  • Aggregate investment limit

The BOT has announced that the aggregate investment limit, which is allocated to all investors regulated by the Securities and Exchange Commission, will be increased from USD 100 billion to USD 150 billion.

Repatriation of export proceeds

Exporters that have proceeds below the threshold of USD 200,000 per bill of lading will be able to keep the proceeds abroad, without a time limit. This is a significant relaxation from the previous threshold of USD 50,000.

In addition, exporters with foreign currency proceeds exceeding USD 200,000 per bill of lading will be able to use the revenues to offset foreign currency expenses, without the need to repatriate the funds.

Outward transfers

When conducting outward transfers of foreign currency in an amount less than USD 200,000, the customer is no longer required to provide supporting documentation to commercial banks. This represents an increase from the previous threshold of USD 50,000.

Settlement of gold trading in foreign currency

Through foreign currency deposit (FCD) accounts, Thai investors are now permitted to trade gold in foreign currencies with certain gold trading companies that have received approval from the BOT. Previously, such transactions could only be conducted in Thai baht.

For more information on these relaxations, or on any aspect of doing business in Thailand, please contact Kobkit Thienpreecha at [email protected] or +66 2056 5534.

Related Professionals

Practices

Banking and Finance

Corporate/M&A

Location

RELATED INSIGHTS​ 

April 29, 2026
Vietnam’s education sector is entering a new regulatory era. On December 10, 2025, the National Assembly adopted a series of new and amended laws in the field of education, including the 2025 Law on Vocational Education, the 2025 Law on Higher Education, and the amended Law on Education No. 123/2025/QH15 (Amended Law on Education). These laws together took effect on January 1, 2026, marking a significant reform of Vietnam’s legal framework governing the education sector. The legislative package introduces a new lawmaking approach under which foundational and principle-based provisions are codified in the Amended Law on Education, while the Law on Higher Education and the Law on Vocational Education serve as specialized statutes providing supplementary, sector-specific regulatory detail tailored to their respective subsectors. The Amended Law on Education fundamentally restructures how educational institutions are established, governed, and licensed, with direct implications for private investors, foreign-invested entities, and education service providers operating in Vietnam. Below are several highlights of the key changes under the amended law, especially in the private sector, that stakeholders should understand: Change in the National Education System In addition to primary education, lower secondary (junior high school) education is now compulsory in Vietnam. Accordingly, diplomas are no longer awarded upon completion of lower secondary school but only for upper education levels. The national education system is also expanded through the introduction of vocational high school as a new level of vocational education. Such reform creates additional learning pathways that not only enable learners to pursue both further education and participate in the labor market, but also better align education and training with socioeconomic development needs. New Hurdle for Joint Investors: Mandatory Corporate Entity Requirement Where two or more investors jointly establish an education institution, the investors are no longer permitted to directly establish such an institution.
Read More
April 22, 2026
A new decree in Vietnam brings significant implementation clarity to the country’s existing extended producer responsibility (EPR) legal framework. An EPR mechanism was first codified in Vietnam in the 2020 Law on Environmental Protection amid ongoing challenges surrounding the collection and treatment of product and packaging waste. The mechanism was progressively detailed through Decree No. 08/2022/ND‑CP and its successive amendments, but the regulatory framework remained insufficiently developed, notably in terms of support mechanisms for waste collection, recycling, and treatment. The newly launched regulations in Decree No. 110/2026/ND-CP (Decree 110), issued on April 1, 2026, and taking effect on May 25, 2026, stipulate fully and clearly the responsibility of manufacturers and importers to recycle products and packaging and to treat waste. Some key provisions of Decree 110 for manufacturers, importers, and related stakeholders are presented below. Subjects of EPR The Law on Environmental Protection assigns responsibility to manufacturers and importers for product and packaging recycling (under Article 54) or waste collection and treatment (under Article 55), depending on the type of products and packaging they produce or import. Decree 110 elaborates on these EPR provisions by specifying the responsible entities and listing out the types of products and packaging subject to recycling and waste treatment responsibilities. Decree 110 clarifies the responsible entities in special cases, such as when products under the same brand are made by multiple manufacturers, when there is a contract manufacturing or entrusted import relationship, and when the manufacturer or importer is part of a corporate group. Notably, exemptions may be applied in some scenarios, such as for manufacturers and importers of products and packaging exclusively for export, temporary import and re-export, or research and testing purposes, as well as for entities with annual revenue from related products not exceeding VND 30 billion. Recycling Responsibilities Decree 110
Read More
April 15, 2026
On March 31, 2026, Vietnam’s government issued Decree 102/2026/ND-CP (Decree 102), which amends Decree 75/2019/ND-CP on administrative sanctions for competition law violations (Decree 75). Effective from May 20, 2026, the new decree introduces a number of significant changes aimed at strengthening enforcement, revising penalty structures, and broadening the range of remedial measures, primarily for violations related to economic concentration. Revised Penalties for Economic Concentration Violations Decree 102 significantly revises the penalties for violations related to economic concentration. Failure to notify an economic concentration; implementing an economic concentration before clearance Under the new framework, Articles 14 and 15 of Decree 75 have been amended to impose a range of monetary fines, rather than relying solely on percentage‑based penalties as under the previous regime, for violations involving the failure to notify an economic concentration or the implementation of an economic concentration prior to clearance. The fines range from VND 500 million to VND 1 billion for each enterprise participating in a concentration with combined assets, revenues, or purchase value below VND 3,000 billion in the preceding fiscal year, capped at 5% of the violating enterprise’s total turnover in the relevant market. For concentrations meeting or exceeding the VND 3,000 billion threshold across those same metrics, the fines increase to VND 1 billion to VND 2 billion per enterprise, also subject to the 5% cap. These differentiated thresholds allow penalties to better reflect the size of the transaction and its potential competitive impact. Non-compliance with conditional approvals Enterprises that do not implement or only partially implement the conditions specified in a conditional economic concentration approval decision face fines ranging from 1% to 3% of total turnover in the relevant market during the fiscal year preceding the violation. Decree 102 also adds a new remedial measure requiring enterprises to fully implement all conditions
Read More
March 31, 2026
Against the backdrop of Vietnam’s rapid economic and technological transformation and its ambition to build a knowledge-driven economy, the National Assembly of Vietnam adopted Law on Higher Education No. 125/2025/QH15 on December 10, 2025, The new law took effect on January 1, 2026, replacing Law on Higher Education No. 08/2012/QH13 of 2012 and its subsequent amendments after more than a decade of implementation. The new law reflects a significant policy shift toward enhancing the institutional autonomy of higher education institutions (“HEIs”)—universities and other university-level institutions. By granting broader autonomy, Vietnam aims to enable HEIs to operate more proactively, better respond to market needs, and improve the quality and efficiency of education and research activities. Comprehensive Institutional Autonomy in HEIs The new law marks a significant shift by granting HEIs comprehensive autonomy as a statutory right, within the bounds of the licensed scope of educational operation and the legal framework, rather than a conditional right as provided under the former law. Under the new law, HEIs are empowered to exercise autonomy over their academic expertise, training, scientific research, international cooperation, organizational structure, personnel, finance, and other higher education activities. The expansion of institutional autonomy is also accompanied by a correspondingly strengthened framework of institutional accountability. However, Vietnam maintains a certain degree of control and imposes restrictions on institutional autonomy in sensitive and strategically important areas. These controls and restrictions include limitations on training autonomy in the majors of teacher training, national defense, and security; and restrictions on financial and personnel management autonomy for HEIs under the administration of the Ministry of National Defense and the Ministry of Public Security. New Model for Curriculum Development The new law removes the concept of “opening a training major” and focuses regulation on how training programs are developed and delivered. Under the previous regime,
Read More