Module 6: ASEAN Legal Aspects
Table of Contents
Activities
Activity 5
Read the following information about Thailand and follow the instructions.
- Answer the questions.
- Select a section of your interest, list all the new vocabulary and look for the meanings in a dictionary.
Thailand
2. Investment Environment
2.1. Economic growth
From 2000 to 2007, Thailand had solid growth of more than 4% per year with exports accounting for more than half the GDP. In 2009, the economy contracted 2.3%, but in 2010, it expanded 7.8%, its fastest pace since 1995, as exports rebounded. With the severe domestic flooding that affected 60 of country’s 77 provinces in 2011, the economy contracted again which resulted in annual GDP growth of 1.1%. However, the industrial sector recovered in the second quarter of 2012, and GDP grew 5.8% in 2012.
Question: What was the GDP growth in 2012?
2.2. Openness to investment and incentives
Thailand encourages foreign direct investment as a means of promoting economic development, employment, and technology transfer. In recent decades, Thailand has been a major global destination for foreign direct investment, but avoids dependence on any one country as a source of investment. The Foreign Business Act of 1999 defines and regulates which business activities foreigners can participate in. Some activities are prohibited, some may need prior approval, and some don’t require any special approval. The Treaty of Amity and Economic Relations between the United States and Thailand exempts Americans from most restrictions on foreign investment and allows them to engage in business on the same basis as Thais. The 1977 Investment Promotion Act offers investment incentives for both foreign and domestic investment and is administered by the Board of Investment of Thailand (BOI). Companies which have been granted BOI status receive special privileges and exemptions from certain laws. The Industrial Estate Authority of Thailand (IEAT) was established to provide special facilities for industrial development.
Question: What is the law that controls business activities by foreigners?
Question: Which law grants special privileges and exemptions from certain laws, concerning investment in Thailand?
2.3. Banking and foreign exchange
Under the Financial Institution Act of 2008, Thailand’s bank sector is regulated by the Ministry of Finance and the Bank of Thailand. The Ministry of Finance sets fiscal and economic policy, and oversees public finances, taxation, and the treasury. The Bank of Thailand is the central bank which sets monetary policies, controls foreign exchange, and supervises all banks and financial institutions, and prints and issues all currency. All foreign exchange transactions must be done through commercial banks or authorized non-banks. Both direct and portfolio foreign investments are freely permitted. Repatriation of investment funds and repayment of overseas borrowing in foreign currency can be remitted freely upon submission of supporting evidences.
Question: What is the role of the bank of Thailand?
2.4. Intellectual property protection
In recent years, Thailand has vastly improved its intellectual property rights protection through determined political commitment, major legislative reforms, strengthened law enforcement, proactive actions to combat piracy and by raising awareness. The Central Intellectual Property and International Trade Court was established in 1996 where IP cases are decided by career judges and associate judges, separately recruited laymen, who possess competent knowledge and are experienced in intellectual property and international trade. The Department of Intellectual Property (DIP) at the Ministry of Commerce governs Thailand’s IP rights system and through its recordation and registration procedures offers IP protection for trademarks, patents, designs, plant varieties, and layout & design of integrated circuits. The DIP is also responsible for domestic Thai IP protection, facilitating mediation, and settling disputes. Thailand is a party to the Berne Convention, is a WTO member and party to Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, acceded to the Patent Cooperation Treaty in 2009, and is in the process of becoming a member of the Madrid Protocol Concerning the International Registration of Trademarks.
Question: What is the intellectual property rights protection situation in Thailand?
2.5. Labor
The Ministry of Labor and Social Welfare is responsible for implementing all labor laws, protecting workers from exploitation, skill development, and promoting employment in Thailand. Foreigners are allowed to work in Thailand and must comply with the country’s strict immigration and work-permit regulations.
Question: Which organization is responsible for all labor laws?
2.1 5.8%
2.2
- The Foreign Business Act of 1999 defines and regulates which business activities foreigners can participate in.
- The 1977 Investment Promotion Act offers investment incentives for both foreign and domestic investment and is administered by the Board of Investment of Thailand (BOI). Companies which have been granted BOI status receive special privileges and exemptions from certain laws.
2.3 The Bank of Thailand is the central bank which sets monetary policies, controls foreign exchange, and supervises all banks and financial institutions, and prints and issues all currency.
2.4 In recent years, Thailand has vastly improved its intellectual property rights protection through determined political commitment, major legislative reforms, strengthened law enforcement, proactive actions to combat piracy and by raising awareness.
2.5 The Ministry of Labor and Social Welfare is responsible for implementing all labor laws, protecting workers from exploitation, skill development, and promoting employment in Thailand.