Whilst the draft Act will makes it more convenient for foreign arbitrators to sit as arbitrators in Thailand it is unlikely foreign arbitrators will be willing to accept appointments by Thai arbitration institutions as this is not economically viable given the low level of fees the TAI and THAC currently pay arbitrators. Currently the fees paid to arbitrators by the TAI are less than 10% of the fees paid by the Singapore International Arbitration Centre (SIAC) and the fees paid by THAC are less than 20% of the fees paid by SIAC. Clearly if the Thai arbitration institutions wish to attract more foreign arbitrators they will need to substantially increase the level of fees they pay to arbitrators.
Summary The draft Act should be applauded as it will substantially improve the arbitration environment in Thailand. It should increase the willingness of foreign parties to invest in Thailand and allow Thailand to benefit from arbitration tourism and increased familiarity of international arbitration. Whilst the effects of the draft Act cannot be understated the arbitration environment in Thailand can still be improved if the other issues affecting arbitration in Thailand are also addressed. The Thai government, the judiciary and the Thai arbitration institutions are actively encouraged to address these issues.
About the author
Victor is recognised as one of the leading arbitrators in Thailand. He graduated from Kingston Polytechnic with a BSc Degree in Quantity Surveying and from Northumbria University with an LLM in International Commercial Law (Distinction).
He has worked in the construction industry in Europe, the Middle East, Africa, South America and Asia. He regularly sits as an arbitrator in both international and domestic arbitrations and assists parties in arbitration proceedings.
To request the appointment of Victor Smith contact the Registrar: [email protected]