FAQs: Commercial
and International Trade
General Contracts,
Human Resources, Communications, Arbitration and Mediation, General
Communication Services
Q.
Are written contracts generally enforceable in
Thailand?
A. Yes. Thai courts will
generally enforce written contracts, using principles of contract
law similar to those in western countries.
Q.
If I enter into a contract with a Thai company, can we agree to use the
law of another country (e.g., Singapore or the U.S.)?
A. Yes. The country chosen
should have some connection to the subject matter of the contract
or to at least one of the parties.
Q.
If I have a dispute with my Thai contracting partner, I'd rather not
have the dispute settled by a Thai court. Could we agree in our contract to use
a foreign court to solve disputes, or international arbitration?
A. A contract term specifying
use of a foreign court to resolve disputes will usually be enforceable,
but may not be prudent, because foreign court judgments are not
enforceable in Thailand. However, foreign arbitration awards are
enforceable by the Thai courts, so international arbitration may
be a better choice.
Q.
If my company starts doing business in Thailand, will I be able to bring
in staff from our home office to work in Thailand?
A. Probably some. Thai
law requires work permits for all foreigners working in Thailand.
A basic requirement is that foreigners can be hired only if there
are no qualified Thai persons available to perform the work.
Q.
Are general commercial services readily available in Thailand?
A. Commercial services
of every sort are available in Bangkok and its surrounding provinces.
Outside of Bangkok, it may be difficult to find services, except
for busy commercial centers like Phuket and Chiang Mai.
Q. Can
I reasonably expect to find the educated and talented staff I
will need to establish and maintain my business in Thailand?
A. In Bangkok, probably
so. In fact, since the Asian crisis struck Thailand particularly
hard a few years ago, many management and other higher level employees
have had difficulty in finding employment to match their abilities.
Q.
I want to try to sell my products in Thailand. What about the import/export
laws?
A. Free trade has a long
history in Thailand. There are the usual array of regulations,
duties, taxes, permits and requirements, but they are manageable.
Q.
How do I go about finding a source for the products I want to buy in Thailand?
A. Most foreign embassies
have trade or commercial offices with valuable information on
this subject. The various joint Thai/foreign chambers of commerce
are also a good source. The Department of Export Promotion and
the Department of Industrial Promotion, which operate under the
Ministry of Commerce, should also be helpful.
(March
17, 2009)
The
above is intended to provide general information only. The contents
do not constitute legal advice and should not be relied upon as
such. If legal advice or other expert assistance is required,
the services of competent professionals should be sought.
For further information, please contact Mr.
Santhapat Periera, Partner & Head of International Trade
Group (santhapat.p@tillekeandgibbins.com).
