Thailand

A large number of Japanese companies, especially manufacturing companies, have expanded their business into Thailand for quite some time, using the country as their production base. The number of cases of export to various countries of the products manufactured in Thailand by Japanese companies, such as electronic parts and automobile parts, is also increasing, utilizing AFTA (ASEAN Free Trade Area) and bilateral free trade agreements, to which Japan is a party. Despite the fact that Thailand has experienced floods and political uncertainty in recent years, it still has a secure position as a production base in South East Asia for Japanese companies.

The Foreign Business Act of Thailand divides foreign business into three different categories and imposes restrictions thereon depending on the category. Although special attention is required when companies engaged in service industries intend to expand their business into Thailand, generally speaking, Thailand promotes business expansion of foreign manufacturing companies. Foreign manufacturing companies can establish production bases in industrial parks and investment promotion zones that exist in several parts of Thailand, receiving various preferential treatments. Also, Thailand has adopted a legal system that derived from continental law, and its judicial system is relatively stable compared to other countries in South East Asia. As a result, Thailand is sometimes designated as a venue to resolve disputes arising in Thailand and other neighboring countries.

Experience

We have assisted our clients in various cases such as the establishment of local subsidiaries, acquisition of Thai companies, drafting of various contracts concerning joint ventures in Thailand, office regulations and employment contracts of Thai companies, transaction agreements and license agreements with Thai companies, handling of flood-related cases, and research of various Thai laws.

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