THAILAND
Since November 2018
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Budgetary Procedures Act 2018
The Budget Procedures Act provides that the foreigner is not allowed to acquire shares exceeding 50 percent in publicly controlled firms or state-owned enterprises (SOEs) (Section 4).
Coverage State-owned enterprises
THAILAND
Since August 2011
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Notification of the National Broadcasting and Telecommunications Commission regarding Schedule of Prohibitions of Foreign Dominance Behavior 2011
The Foreign Dominance Notification in 2012 introduces foreign dominance criteria in the telecommunication sector by taking into account elements such as shareholding, management control and supply relationship. This Act is promulgated by the National Broadcasting and Telecommunications Commission (NBTC).
The Foreign Dominance Regulation provides restriction from performing any actions which are deemed as “foreigner dominance” as stated in the Regulation:
- holding voting shares in a company equal to one-half or more of all voting rights;
- having controlling power over the majority vote of a company shareholders’ meeting; or
- having the power to appoint or remove one-half or more of all of a company’s directors, among others.
The Schedule of Prohibitions of Foreign Dominance Behaviors includes the prohibited behaviors: dominance by shareholders, voting rights, controlling power, legal relationships with sources of funds and loans, intellectual property agreements, procurement agreements, joint business operations, and transfer pricing.
The Foreign Dominance Regulation provides restriction from performing any actions which are deemed as “foreigner dominance” as stated in the Regulation:
- holding voting shares in a company equal to one-half or more of all voting rights;
- having controlling power over the majority vote of a company shareholders’ meeting; or
- having the power to appoint or remove one-half or more of all of a company’s directors, among others.
The Schedule of Prohibitions of Foreign Dominance Behaviors includes the prohibited behaviors: dominance by shareholders, voting rights, controlling power, legal relationships with sources of funds and loans, intellectual property agreements, procurement agreements, joint business operations, and transfer pricing.
Coverage Telecommunications sector
THAILAND
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Thailand is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2015.
Coverage Horizontal
THAILAND
Since November 1999
Since November 2001, amended in January 2006
Since January 2006
Since November 2001, amended in January 2006
Since January 2006
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Foreign Business Act 1999
Telecommunications Business Act 2001 (amended in 2006)
Telecommunications Business Act (No.2) 2006
Telecommunications Business Act 2001 (amended in 2006)
Telecommunications Business Act (No.2) 2006
The Foreign Business Act (FBA) 1999 regulates foreign investment in Thailand. Section 4 of the Act defines "foreigner" as companies with at least one-half of capital or shares held by foreigners as well as a limited partnership or a registered ordinary partnership with foreigners as the managing partner or the manager. According to the FBA, foreigners are not allowed to operate in the business sectors listed in the Annexed List (3 Lists). These sectors include telecommunications. Therefore, the foreign equity share for these sectors is capped at 49%. Nevertheless, the foreigners can have shared more than 49%, if they receive a Foreign Business License (FBL) or Foreign Business Certificate from the Treaty of Amity and Economic Relations (this certificate only applies to American investors).
Regarding the telecommunications sector, the restrictions vary depending on the type of license required. While there are no ownership restrictions for Type 1 license (Telecommunications operators who provide telecommunications service without operating their telecommunications network), the Telecommunications Business Act 2001 sets a cap of 49% for Type 2 (Telecommunications operators who provide services to a specific group of customers with or without operating their own telecommunications network) and Type 3 (Telecommunications operators who provide their own telecommunications network, for the use of the general public) (Section 8 of the Telecommunications Business Act (amended)).
Regarding the telecommunications sector, the restrictions vary depending on the type of license required. While there are no ownership restrictions for Type 1 license (Telecommunications operators who provide telecommunications service without operating their telecommunications network), the Telecommunications Business Act 2001 sets a cap of 49% for Type 2 (Telecommunications operators who provide services to a specific group of customers with or without operating their own telecommunications network) and Type 3 (Telecommunications operators who provide their own telecommunications network, for the use of the general public) (Section 8 of the Telecommunications Business Act (amended)).
Coverage Telecommunications sector
Sources
- https://www.dbd.go.th/dbdweb_en/download/pdf_law/FOREIGN_BUSINESS_ACT_BE2542/act/1FBA-FINAL%5b1%5d.pdf
- https://www.dbd.go.th/dbdweb_en/more_news.php?cid=273
- https://www.krisdika.go.th/librarian/get?sysid=310691&ext=pdf
- http://web.krisdika.go.th/data/outsitedata/outsite21/file/Telecommunications_Business_Act_BE_2544_(2001).pdf
- https://krisdika.go.th/librarian/get?sysid=838193&ext=pdf
- http://thailaws.com/law/t_laws/tlaw0461.pdf
- https://www.nbtc.go.th/law/พระราชบัญญัติ/พระราชบัญญัติ/พรบ-การประกอบกิจการโทรคมนาคม-(ฉบั...
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THAILAND
Since January 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Ministerial Regulation Prescribing Supplies and Procurement Methods for Supplies that the State must Promote or Support 2020
Regarding the Ministerial Regulation, 'Products Promote Teaching and Learning' is defined as products or services manufactured under the scope of learning and teaching by the personnel of educational institutes (Clause 8). Clause 9(8) includes the list of promoted supplies in a particular sector: battery or service related to battery, by-products from manufacturing, and battery products of military and industry.
Regarding the procurement methods, the promoted supplies in Clause 9(8) require to adopt the 'Specific Procurement Methods' and with the exception that it is applicable for the government department to implement other procurement methods (Clause 10). The term 'Specific procurement methods' refers to the fact that the procuring entity invites only one specific qualified supplier to submit a proposal or participate in price-bargaining negotiations.
Regarding the procurement methods, the promoted supplies in Clause 9(8) require to adopt the 'Specific Procurement Methods' and with the exception that it is applicable for the government department to implement other procurement methods (Clause 10). The term 'Specific procurement methods' refers to the fact that the procuring entity invites only one specific qualified supplier to submit a proposal or participate in price-bargaining negotiations.
Coverage Battery-related goods
THAILAND
Since December 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Ministerial Regulation Prescribing Supplies and Procurement Methods for Supplies that the State must Promote or Support (No. 2) 2020
Chapter 7/1 of the Ministerial Regulation (No. 2) defines 'Promoted domestic manufactured supplies' as the domestic productions being certified 'Made in Thailand' by the Federation of Thai Industries (FTI). 'Made in Thailand' certification is only allowed for domestic manufacture. The Approval List certified by the FTI is published.
The procurement methods must be conducted in accordance with the Public Procurement and Supplies Administration Act 2017. In case the certified supplies are insufficient to meet the demand, or the imported manufactures or products are necessary, the government authority must propose particular issues to the head of the government departments for consideration. Moreover, the governmental department must spend at least 60% of their budgets procuring domestic supplies for construction work and some non-construction work (Clause 27/3).
The procurement methods must be conducted in accordance with the Public Procurement and Supplies Administration Act 2017. In case the certified supplies are insufficient to meet the demand, or the imported manufactures or products are necessary, the government authority must propose particular issues to the head of the government departments for consideration. Moreover, the governmental department must spend at least 60% of their budgets procuring domestic supplies for construction work and some non-construction work (Clause 27/3).
Coverage Products manufactured in Thailand including electronics and digital goods
Sources
- https://cado.mnre.go.th/th/download/?file=rRMjET1Dql5ZAT04Mmq0Z2x0rQqjZ204qmMZBT0jMmM0ZJxlrQSjZ20lqmOZZz0jMmW0YJx4rQSjBT01qmqZYJ1yM2k0nJyzrP9jMJ1fq2yZMz0iM3q0ozx2rQAjZJ0iq2EZLJ1iM2k0pTy1rP8weweb3Q&n=T...
- http://www.ratchakitcha.soc.go.th/DATA/PDF/2563/A/104/T_0001.PDF
- https://www.thaigov.go.th/news/contents/details/37841
- https://www.fti.or.th/mit/
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THAILAND
Since November 2015
Since October 2019
Since January 2020
Since October 2019
Since January 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Cabinet Resolutions 2015: NOR/ROR 0505/ 356, GOR/KOR 0421/21657 NOR/ROR 0913/228
Thai Innovation List
Ministerial Regulation Prescribing Supplies and Procurement Methods for Supplies that the State must Promote or Support 2020
Thai Innovation List
Ministerial Regulation Prescribing Supplies and Procurement Methods for Supplies that the State must Promote or Support 2020
The Cabinet Resolutions grant privilege to the products listed as Thai Innovative Product. Since 2016, the Budget Bureau has introduced the monthly report of 'Thai Innovation List' to develop domestic industrial capacity in several innovation-centered economic sectors. The Innovation List grants special government procurement privilege only to the products from authorized Thai majority-owned companies. The list covers the product from various sectors, including Electrical, Electronics, and Telecommunication.
The Innovation Products is prescribed in the Ministerial Regulation 2020. The products listed as Innovation Product are those that the state needs to promote or support (Clause 12). Thai governmental departments must spend at least 30% of their budget procuring the listed products (Clause 13).
The Innovation Products is prescribed in the Ministerial Regulation 2020. The products listed as Innovation Product are those that the state needs to promote or support (Clause 12). Thai governmental departments must spend at least 30% of their budget procuring the listed products (Clause 13).
Coverage "Thai Innovation List" including electrical products, electronics, and telecom equipment
Sources
- http://www.cabinet.soc.go.th/soc/Program2-3.jsp?top_serl=99316550
- http://publichearing.bb.go.th/innovation/PDF/การให้สิทธิพิเศษฯ.pdf
- http://publichearing.bb.go.th/innovation/preface.php
- http://publichearing.bb.go.th/innovation/privilege.php
- http://www.bb.go.th/topic3.php?sort=3&gid=527&mid=290
- http://publichearing.bb.go.th/innovation/07-electronic.php
- https://stip.oecd.org/stip/policy-initiatives/2019%2Fdata%2FpolicyInitiatives%2F14953
- http://www.gprocurement.go.th/wps/wcm/connect/2ed2d1bb-a83b-4607-b5c9-f69dbb04cb01/กฎกระทรวงพัสดุที่รัฐต้องการส่งเสริมหรือ...
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THAILAND
Since February 2017, entry into force in August 2017
Since August 2017
Since August 2017
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Public Procurement and Supplies Administration Act 2017
Ministerial Regulation Prescribing Criteria Concerning Persons Eligible for Registration of Business Operators 2017
Ministerial Regulation Prescribing Criteria Concerning Persons Eligible for Registration of Business Operators 2017
The Comptroller General's Department (CGD) maintains a mandatory registration system for business operators that wish to participate in Thailand's government procurement. By virtue of the provisions of Section 5 paragraph one and Section 53 paragraph three of the Public Procurement and Supplies Administration Act, the Ministry of Finance enacted the Ministerial Regulation Prescribing Criteria Concerning Persons Eligible for Registration of Business Operators. The Ministerial Regulation defines "Business Operator" as an operator of construction services. Under Chapter 1, those who eligible for the registration of business operators must be a juristic person registered and having an office located in Thailand (Clause 3 (1)), and half of the board directors must hold Thai citizenship (Clause 3(3)).
Coverage Horizontal
Sources
- http://www.gprocurement.go.th/wps/wcm/connect/cb6ae8e9-ddb3-4640-9393-04d9fc09b5af/PUBLIC%2BPROCUREMENT%2BAND%2BSUPPLIES%2BADMINISTRATION%2BACT%2C%2BB.E.%2B2560%2B%282017%29.pdf?MOD=AJPERES&CACHEID=RO...
- http://www.gprocurement.go.th/wps/wcm/connect/3d313a56-ff50-4c22-b4bf-e2d3a02e298d/3_Ministerial+Regulation_Prescribing+of+Criteria+Concerning+Persons+Eligible+for+Registration+of+Business+Operators.p...
- http://www.ops.moc.go.th/ewt_dl_link.php?nid=3918
- http://fad.tsu.ac.th/main/files_sec/020520193232PUBLIC%20PROCUREMENT%20AND%20SUPPLIES%202560.pdf
- http://www.ops.moc.go.th/ewt_dl_link.php?nid=3920
- http://documents1.worldbank.org/curated/en/991791530850604659/pdf/Thailand-Economic-Monitor-2018-Beyond-the-Innovation-Paradox.pdf
- https://www.wto.org/english/tratop_e/tpr_e/s400_e.pdf
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THAILAND
Since February 2017, entry into force in August 2017
Since August 2017
Since August 2017
Since August 2017
Since August 2017
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Public Procurement and Supplies Administration Act 2017
Ministerial Regulation Determining Rules, Procedures and Conditions on the Registration of Consultant, B.E. 2560 (2017)
Regulation of the Ministry of Finance on Public Procurement and Supplies Administration, B.E. 2560 (A.D. 2017)
Ministerial Regulation Determining Rules, Procedures and Conditions on the Registration of Consultant, B.E. 2560 (2017)
Regulation of the Ministry of Finance on Public Procurement and Supplies Administration, B.E. 2560 (A.D. 2017)
Section 73 of the Public Procurement and Supplies Administration Act 2017 provides restrictions on foreign consultants in public procurement. A consultant who may participate in bidding for work to a state agency must be the consultant registered with the Consultants Information Centre of the Ministry of Finance, unless there is a written certification from the Centre that there is no consultant offering services for such work or it is the consultancy work of a state agency in a foreign country.
By virtue of the provisions in Section 5 and Section 73 of the Public Procurement and Supplies Administration Act, the Minister of Finance issued the Ministerial Regulation Determining Rules, Procedures and Conditions on the Registration of Consultant. Clause 4 and 5 of the Ministerial Regulation state that both independent and juristic consultants must have Thai nationality. The law prioritizes the local consultant.
In addition, also under the provisions of the Public Procurement and Supplies Administration Act, the Minister of Finance prescribed a Regulation. Clause 101 states that the foreign consultant can only participate in the public procurement when it is necessary. Specifically, the Regulation specifies that foreign consultants must join the team with Thai personnel to convey knowledge and technologies to the Thai personnel, except when there is not Thai personnel in a certain field.
By virtue of the provisions in Section 5 and Section 73 of the Public Procurement and Supplies Administration Act, the Minister of Finance issued the Ministerial Regulation Determining Rules, Procedures and Conditions on the Registration of Consultant. Clause 4 and 5 of the Ministerial Regulation state that both independent and juristic consultants must have Thai nationality. The law prioritizes the local consultant.
In addition, also under the provisions of the Public Procurement and Supplies Administration Act, the Minister of Finance prescribed a Regulation. Clause 101 states that the foreign consultant can only participate in the public procurement when it is necessary. Specifically, the Regulation specifies that foreign consultants must join the team with Thai personnel to convey knowledge and technologies to the Thai personnel, except when there is not Thai personnel in a certain field.
Coverage Foreign consultants
Sources
- http://www.gprocurement.go.th/wps/wcm/connect/cb6ae8e9-ddb3-4640-9393-04d9fc09b5af/PUBLIC%2BPROCUREMENT%2BAND%2BSUPPLIES%2BADMINISTRATION%2BACT%2C%2BB.E.%2B2560%2B%282017%29.pdf?MOD=AJPERES&CACHEID=RO...
- https://www.pdmo.go.th/pdmomedia/documents/2019/Jan/8.%20%E0%B8%81%E0%B8%8E%E0%B8%81%E0%B8%A3%E0%B8%B0%E0%B8%97%E0%B8%A3%E0%B8%A7%E0%B8%87%20%E0%B8%97%E0%B8%B5%E0%B9%88%E0%B8%9B%E0%B8%A3%E0%B8%B6%E0%B...
- https://www.music.mahidol.ac.th/wp-content/uploads/2021/03/3-REGULA1.pdf
- http://www.ops.moc.go.th/ewt_dl_link.php?nid=3918
- http://fad.tsu.ac.th/main/files_sec/020520193232PUBLIC%20PROCUREMENT%20AND%20SUPPLIES%202560.pdf
- https://www.m-culture.go.th/legal/ewt_dl_link.php?nid=364
- http://www.gprocurement.go.th/wps/wcm/connect/3c1ec767-101e-4231-8322-d692851318b2/7_Ministerial+Regulation_Prescribing+of+Criteria%2C+Procedures+and+Conditions+for+Registration+as+Consultants.pdf?MOD...
- https://saraban-law.cgd.go.th/easinetimage/inetdoc?id=show_CGD.W.20803_1_BCS_1_pdf
- http://www.finance.rmuti.ac.th/pr/cgd-2560.PDF
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THAILAND
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Thailand is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
THAILAND
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Effective tariff rate to ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.87%
Coverage rate of zero-tariffs on ICT goods (%)
59.54%
Coverage: Digital goods
TAJIKISTAN
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Tajikistan has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
TAJIKISTAN
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the UN Convention of Electronic Communications
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Tajikistan has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
TAJIKISTAN
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Tajikistan has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
TAJIKISTAN
N/A
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection law applicable to online commerce
Tajikistan lacks a comprehensive framework for consumer protection that applies to online transactions.
Coverage Horizontal