This chapter provides an overview of the legal system and key laws for foreign companies doing business in Thailand. Presented in a question-and-answer format, the chapter examines the rules governing foreign investment, business vehicles, employment, tax, competition, intellectual property, marketing agreements, e-commerce, data protection, and product liability.
November 1, 2022
Background Thailand’s Personal Data Protection Act 2019 (‘PDPA’) is the country’s first unified data privacy legislation for personal data protection. Coming at a time when people around the world are increasingly aware of the risks and negative consequences of their personal data being compromised, the PDPA seeks to align with international standards, such as the General Data Protection Regulation (Regulation (EU) 2016/679) (‘GDPR’). Prior to the enactment of the PDPA, privacy rights were recognised in the Constitution of the Kingdom of Thailand. Beyond this, the handling of personal data was governed by specific regulations for a handful of sectors, such as telecommunications, financial institutions, securities, and life sciences. The PDPA was announced in the Royal Gazette of the Kingdom of Thailand on 27 May 2019, with an exemption for the enforcement of its requirements in relation to the collection, use, disclosure, and transfer (‘process’ or ‘processing’) of personal data, as well as its provisions on data subjects rights. After some delays caused by the impact of the COVID-19 pandemic over the past two years, the PDPA finally came fully into force on 1 June 2022. Unlike most legislation in Thailand, the PDPA has an extraterritorial aspect whereby data controllers and data processors outside Thailand may be subject to the PDPA if the processing activities they undertake fall under the criteria prescribed in the PDPA. The basics The PDPA defines personal data as any data pertaining to a living natural person that enables the identification of that person, whether directly or indirectly, such as phone number, address, email address, or anything else that might enable the data subject’s identification. The PDPA applies to personal data in any form, whether digital or otherwise. The PDPA introduces two main roles relating to the handling of others’ personal data: the data controller and the