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The Role of Arbitration in Resolving Commercial Disputes in Thailand

Arbitration has grown in popularity as a means of settling economic disputes in Thailand, and for good reason. As compared to regular court processes, it provides a quicker, more efficient, and more flexible method of resolving disputes. The purpose of this article is to discuss the role of arbitration in resolving business disputes in Thailand, including the benefits of utilizing arbitration, the procedure of initiating and conducting arbitration, and the legislative framework that controls arbitration in Thailand.

Benefits of Arbitration

One of the primary advantages of arbitration is that it gives the parties more influence over the dispute settlement process. The parties have the option of selecting the arbitrators, the location, and the language of the proceedings. This flexibility can save parties time and money by avoiding the lengthy and costly judicial processes associated with traditional litigation.

Arbitration is also private, which implies that parties can keep their disagreements private. This is especially critical for businesses that wish to prevent the negative publicity that might result from a disagreement. Furthermore, arbitration rulings are often final and binding, giving the parties involved assurance.

Initiating and Conducting Arbitration

To begin arbitration in Thailand, parties must agree in writing to submit their dispute to arbitration, often in the form of an arbitration agreement. This agreement can be incorporated into a contract or executed separately.

The arbitration agreement should include information on the number of arbitrators, the location of the arbitration, and the language of the proceedings. It should also include the norms that will govern the arbitration, such as those of the Thai Arbitration Institute or a foreign arbitration organization.

The arbitrators will be chosen by the parties after the arbitration agreement is in force. This can be accomplished via mutual agreement or by appointing a third party, such as an arbitration institution.

The arbitration process will then begin with an initial hearing at which the arbitrators will be sworn in and the parties will submit their case. The parties will be able to present evidence and cross-examine witnesses. Following the conclusion of the hearing, the arbitrators will consider and give an award.

Legal Framework Governing Arbitration in Thailand

The Thai Arbitration Act B.E. 2545 serves as the primary legislative framework governing arbitration in Thailand (2002). This legislation, which is based on the UNCITRAL Model Law on International Commercial Arbitration, establishes a complete framework for the conduct of arbitrations in Thailand.

Domestic and foreign arbitrations are permitted under the Thai Arbitration Act. It states that the arbitration agreement is binding and enforceable, and that the arbitrators’ judgment is final and binding on the parties.

Parties can also petition to Thai courts for interim measures such as injunctions or orders to safeguard assets under the Act. Furthermore, parties may seek to have the arbitration judgment enforced by Thai courts or in other countries that have signed the New York Convention on the Recognition and Enforcement of International Arbitral Awards.


Arbitration has grown in popularity in Thailand as a means of settling business disputes since it provides parties with greater flexibility, secrecy, and certainty than traditional litigation. Parties can save time and money by agreeing to submit their disputes to arbitration rather than going through the lengthy and costly judicial processes of traditional litigation. Moreover, Thailand’s legal framework for arbitration offers a comprehensive and effective foundation for the conduct of arbitrations.