The rapidly growing middle class in Southeast Asia is bringing with it increased household wealth, increased consumption, and increased investment. As a result, the commercial banking sector has seen a boom in the more economically developed countries of the region—especially in Thailand. A select few foreign banks have also been very successful in Cambodia, Laos, Myanmar, and Vietnam for many years, but as other banks seek to replicate their Thai success in these new markets, the field looks likely to become much more crowded in coming years. Six major Thai banks are active in at least one other jurisdiction in mainland Southeast Asia, with some already operating across them all, and many larger international banks also beginning to take note. Amid that background, this guide examines the legal frameworks for foreign banks seeking to operate in these jurisdictions, and addresses some current and upcoming developments that investors should note. The full guide is available as a PDF through the button below.

Experts on Vietnamese real estate law from Tilleke & Gibbins provided the chapter on Vietnam for Practical Law’s Commercial Real Estate Global Guide 2022, a high-level comparative overview of commercial real estate laws and regulations in 31 jurisdictions worldwide. The main topics include the following, among others: Real estate investment structures, including REITs Sale of real estate Liability Due diligence Warranties Real estate tax, including VAT and stamp duty/transfer tax; Climate change targets Restrictions on foreign ownership Real estate finance Commercial leases Planning law The chapter also highlights recent trends in the condominium, office, and retail sectors of the Vietnam real estate market. To read the Vietnam chapter, please visit the Practical Law website or click on the link below.

Lawyers from Tilleke & Gibbins’ labor and employment team have written the Vietnam chapter of Practical Law’s Employment and Employee Benefits Global Guide. The 2022 edition of the handbook provides a high-level comparative overview of employment laws and regulations across 46 jurisdictions around the world. Tilleke & Gibbins also contributed the Myanmar chapter of the guide. The Vietnam chapter covers a wide range of typical employment matters, such as limitations on working hours, paid leave requirements, minimum wage, and health and safety obligations. In addition, the guide provides insight on a number of topics of special interest to foreign investors doing business in Vietnam, including the following: Mandatory contents of a labor contract; Visas and permits required for expatriate employees; Employers’ obligations for protecting employees’ privacy and personal data; Procedural requirements for the dismissal of an employee; Employer and parent company liability. To read the Vietnam chapter, please visit the Practical Law website or click on the link below.

Thailand’s Department of Intellectual Property (DIP) has continued its strategy of enlisting the support of stakeholders from various sectors in the fight against infringement of intellectual property rights (IPRs) by introducing a memorandum of understanding (MOU) on advertising practices. This follows the success of last year’s MOU on Online IP Protection, which aimed to tackle issues of intellectual property (IP) infringement on various e-commerce marketplace platforms. That MOU represented Thailand’s efforts in bringing together relevant stakeholders to address online IP infringement issues in a unified and collaborative manner. The DIP’s latest such cooperative initiative is the MOU on Online Advertising and IPRs. A signing ceremony for the MOU was held on October 28, 2022. The DIP, three advertising associations, and various IPR owners all participated in the event, which took place at the Ministry of Commerce. Tilleke & Gibbins joined to sign the MOU as one of the founding signatory parties. The major parties to this MOU are: the DIP; advertising business operators (online advertisement producers and advertisement providers); associations related to advertising and media; IPR owners—particularly those experiencing IPR infringement problems in Thailand; and law firms. Objectives of the New MOU The objective of the new MOU on Online Advertising and IPRs is to build and enhance collaboration among IPR owners, advertising business operators, associations, and the DIP, with the goal of preventing and suppressing the production, distribution, and circulation of online IP-infringing advertisements and halting the income flowing to infringers from advertisements posted on IP-infringing websites or applications. This MOU addresses different issues in comparison to last year’s MOU on Online IP Protection. The latter addressed IP infringing merchandise on e-commerce platforms, whereas the new MOU tackles the issue of IP-infringing advertisements, as well as IP-infringing websites and applications, with more focus on infringing content than on infringing merchandise. Highlights of the New MOU A noteworthy practice introduced under

On November 11, 2022, Myanmar’s Ministry of Commerce (MOC) announced a pilot period for importing electric vehicles into Myanmar, which came into force with MOC Order No. 62/2022, issued under the Import and Export Law. A separate order (No. 61/2022) issued on the same day specifies rules for importation of motorcycles by companies that do not have a certificate to open a showroom, as well as rules for opening motorcycle showrooms. Electric Vehicle Importation According to the order, which takes effect January 1, 2023, “electric vehicles” includes only battery electric vehicles (BEVs) for both personal use and passenger use. In order to import electric vehicles into Myanmar without having a certificate to open a showroom, companies must: Be registered as a company, either wholly owned by nationals or a joint venture, at the Directorate of Investment and Company Administration (DICA); Be able to present the purchase and sales agreement for each brand of imported electric vehicles; Receive approval from the National Steering Committee for Development of Electric Vehicles and Associated Businesses, and import according to the quality and quantity of electric vehicles permitted by the committee; Arrange the necessary warranty, spare parts availability, and after-sales service for the imported electric vehicles; Deposit a bank guarantee of MMK 50 million at a bank recognized by the Central Bank of Myanmar; and Apply for a purchase permit at the MOC, for the purpose of registering the imported vehicles with the Road Transport Administration Department. BEV Tax Exemption Following MOC Order No. 62/2022, BEVs and their batteries are now exempted from commercial tax and special goods tax, which came into force with the Law Amending the Union Tax Law 2022 (State Administrative Council Law No. 48/2022) dated November 17, 2022. These tax exemptions will be effective from October 1, 2022, to March 31, 2023. Motorcycle Showrooms In addition to fulfilling the last three items

Cambodia’s new Sub-Decree on the Management of Commercial Advertising of Products and Services, issued November 4, 2022, is a notable step in ensuring that advertisers comply with advertising regulations, advertise ethically and legally, and avoid deceiving or misleading consumers. The sub-decree regulates both traditional advertising (e.g., print, broadcast, display, etc.) and digital forms (e.g., social media, online, mobile, etc.), and also includes provisions that address advertising alongside rewards—a popular method of advertising in Cambodia. The Ministry of Commerce is the authority tasked with issuing certificates of advertising compliance (more below) and is responsible for monitoring and assessing the compliance of advertisements with this sub-decree and related regulations. The ministry also enforces against unfair advertising through its Consumer Protection, Competition and Fraud Repression Directorate-General (CCF). Key Issues The sub-decree addresses a range of key issues relevant to companies advertising products and services in Cambodia. Licensing The sub-decree does not appear to set new licensing or permit requirements, but it requires advertisements for products and services to comply with the sub-decree, any existing regulations (unless they contradict the sub-decree), and future regulations. If regulations require a license for advertising, this should be obtained from the relevant authorities. One example is advertising of pharmaceuticals, which requires a license from the Ministry of Health under existing regulations. Types of Advertisement Under the sub-decree, advertising is divided into two types: advertisements with rewards and advertisement without rewards. Rewards may include souvenirs, lucky draws, and other rewards attached to the purchase of products and services. Forms of Advertisement Forms and means of advertising specified in the sub-regulation include the following: Advertising via audiovisual media such as TV, electronic broadcasting media (including both satellite and cable TV), and so on; Electronic advertising, such as websites, e-mail, electronic messages (in written, voice, or image form), ringtones, social networks, computer applications, and advertisements displayed on a phone

On November 24, 2022, Secretary-General of the Permanent Court of Arbitration (PCA) Marcin Czepelak and leaders of Vietnam’s Ministry of Foreign Affairs chaired the opening ceremony of the PCA’s Representative Office in Hanoi. Beyond its headquarters in The Hague, the PCA has opened offices in other cities to make its services more accessible in different regions. The Hanoi office will be the PCA’s fourth office outside its headquarters. The PCA, established in 1899, is an intergovernmental organization which provides resolution services for disputes involving states, state entities, international organizations, as well as private entities. It provides and administers arbitration, mediation, conciliation, and fact-finding commissions of inquiry. The PCA’s services are primarily used in Europe and Asia. In cases administered in 2021, approximately 47% of the disputing parties were from the Western European and Others Group of the United Nations Regional Groups, and 40% from the Asia Pacific Group. The majority of disputes resolved by PCA are state-related disputes; however, the PCA’s scope of settlement is also extended to the private sector. The PCA’s Hanoi office is staffed to administer PCA hearings and meetings and will provide administrative services in support of parties and arbitrators conducting arbitral proceedings under the PCA’s auspices, serving as the official channel of communications and ensuring safe custody of documents. The PCA can also provide such services as financial administration, logistical and technical support for meetings and hearings, travel arrangements, and general secretarial and linguistic support. Currently, Vietnam has some active members of the PCA. The opening of the PCA representative office is a step toward realizing commitments between Vietnam and the PCA in their protocol signed in 2021, and serving the evolving dispute resolution needs of states and other entities in the coming years. With the new office in Hanoi, it is expected that parties in the

The delisting of cannabis as a controlled narcotic in Thailand on June 9, 2022, was a breakthrough moment for the industry.  Not only are farmers and others in the industry elated that such a step was taken, it has triggered the establishment of an abundance of cannabis dispensaries in Bangkok and other popular domestic and international tourist destinations in Thailand, including Chiang Mai, Pattaya, Phuket, and many islands. Vulnerable populations, such as children, accessing cannabis has also become a hot-button issue. Thailand’s Ministry of Public Health (MOPH) was initially criticized by some for its policy of allowing cannabis to be sold with few restrictions. On June 17, 2022, the MOPH followed up with the Announcement Re: Controlled Herbs (Cannabis) under the Thai Traditional Medical Knowledge Act, which seemed to implement a viable mechanism to regulate cannabis dispensaries. This announcement contained prohibitions on selling cannabis to vulnerable populations (minors, expectant women, and breastfeeding mothers) and on smoking cannabis in public. Furthermore, the draft Cannabis and Hemp Act includes provisions related to sales and distribution channels and advertisements for particular dispensaries. However, the draft act has been delayed due to disagreements among some political parties during the reading of the legislation, and is unlikely to be implemented in 2022 as had been widely expected.  The tug-of-war among the political parties has caused concerns about whether the country’s recent liberalized cannabis policy will be revisited and cannabis relisted as a narcotic. With this uncertainty over when the draft Cannabis and Hemp Act will be implemented, the MOPH has focused on identifying gaps in current regulation that might allow the misuse of cannabis. The minister of the MOPH has announced that the MOPH announcement of June 17, 2022, will be repealed and replaced by the November 11, 2022, Announcement Re: Controlled Herbs (Cannabis). Unlike the