THAILAND Law and Practice Contributed by: Phatsawat Siwawej, Piyachon Jiraratmethakorn and Ketsirin Wisetwatcharawong, Weerawong C&P
ment, including the use of expedited procedures. As a result, the original provision for three arbitrators was deemed superseded by the parties’ agreement to arbitrate under the SIAC Arbitration Rules. 1.2 Key Industries Based on the firm’s experience and observations, the following industries have experienced the most sig - nificant international arbitration activity in Thailand in recent years. • Construction and infrastructure: This sector con - tinues to account for a substantial proportion of international arbitration cases. Major infrastructure developments, industrial projects and engineer - ing, procurement and construction (EPC) contracts frequently involve foreign contractors, consultants and financiers. The technical complexity of con - struction disputes, coupled with claims relating to delay, variations, defects, extensions of time and cost overruns, makes arbitration a preferred dis - pute resolution mechanism. • Energy and natural resources: The energy sector, including conventional power projects, renew - able energy developments, liquefied natural gas (LNG) projects and cross-border power purchase arrangements, has also generated considerable arbitration activity. These projects typically involve long-term contractual relationships, significant capital investment and multiple foreign stakehold - ers. Disputes often concern project delays, pricing mechanisms, regulatory changes, performance obligations and force majeure. • Digital assets: This sector is closely connected with transactions conducted on blockchain technol - ogy, which can be accessed globally. As a result, participants in digital asset transactions are often located in multiple jurisdictions. Arbitration is there - fore particularly well suited to resolving disputes involving cross-border parties. The availability of arbitrators with expertise in digital assets and blockchain technology will also play a significant role in encouraging parties to choose arbitration. • Electric vehicles (EVs) and international distribu - tion: The rapid adoption of EVs has fundamentally transformed the automotive industry. This growing demand has encouraged many international EV manufacturers to invest in Thailand and appoint
local authorised distributors to market and service their vehicles. Notably, distribution agreements in this sector frequently contain arbitration clauses. As a result, any disputes in relation to the interna - tional distribution of EVs are increasingly likely to be resolved through arbitration. These industries experience more international arbi - tration than others because they typically involve high- value, technically complex and cross-border commer - cial transactions. The parties are often sophisticated commercial entities that negotiate arbitration clauses at the outset of their contractual relationship, recog - nising arbitration as a neutral and efficient mechanism for resolving international commercial disputes and enforcing awards across jurisdictions. 1.3 Arbitration Institutions Several institutions in Thailand provide arbitration services under their own arbitration rules to facilitate domestic and cross-border disputes that arise in Thai - land and other countries. This includes the TAI, the THAC and the Office of the Arbitration Tribunal of the Thai Chamber of Commerce (TCC). Arbitration proceedings are also conducted in spe - cial government institutions in Thailand, which include the Office of the Insurance Commission (OIC), the Thai General Insurance Association, the Department of Intellectual Property (DIP) and the Securities and Exchange Commission (SEC). However, when it comes to international commercial disputes, the TAI and THAC have emerged as the two most prominent arbitral institutions in Thailand. In recent years, the THAC has been actively promot - ing international arbitration through hosting the annual Thailand ADR week. Moreover, it has been engaging in collaborative relationships with a variety of stakehold - ers, both domestic and internationally. Some of these partnerships have resulted in the THAC establishing specialised centres and arbitration rules, such as the Thai-Chinese International Arbitration and Media - tion Center (TCIAC), the Thailand Center of ADR for Sport (TCAS) and the Thailand Logistics ADR Center (TLAC). Furthermore, its growing number of adminis - tered cases may also be attributed to the progressive admission of Thai and foreign arbitrators to its panel.
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