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Summary of Directions and Future of Arbitration in Thailand
THAC (Thailand Arbitration Center) and Dr. Jatuphum Ketchatturat, Assistant Professor in the Faculty of Education at Khon Kaen University, have made a collaborative effort to develop a perception index for arbitration in Thailand. The collaboration aims to promote and disseminate the knowledge necessary to enhance arbitration practices to meet international standards.
On February 1st, 2023, THAC hosted a seminar on “Directions and Future of Arbitration in Thailand.” The seminar was attended by many participants, including professors, lawyers, government officials, and individuals interested in arbitration who all came together to exchange ideas and develop the arbitration process. Details are as follows:
At the start of the seminar, Dr. Jatuphum Ketchatturat presents a report regarding the development of the perception index, explaining the scope of the study, research methodology, research findings, and future trends in arbitration. The study was made using geographic information data THAC collected between 2019 – 2020 and analyzed through the geometric mean. The study found that the arbitration perception index in 2019 had an index value of 59.35. While the year 2020 has an index value of 59.61, which indicates an increase of approximately 0.44% from 2019. From the analysis and arbitration trends, it is concluded that the situation of arbitration within the country would move in a positive direction, provided that the awareness of the general public, the rate of arbitration enforcement, recommendations of arbitrations, and the overall number of arbitration cases increase. This means that the civil law legal system and the general public support and accept the arbitration process.
On the contrary, if the revocation rate of arbitral awards and the average duration of proceedings for cases related to arbitration decrease, it could negatively affect the credibility of the Thai Arbitration system.
Therefore, in order to develop and promote a reliable and standardized arbitration system for foreign investors, it is necessary to develop knowledge in the field of arbitration, enforce compliance with awards, recommend the use of arbitration processes, and increase the rate of arbitration cases. Conversely, the withdrawal rate and the average time of arbitration cases must decrease. This is because the arbitration process is a vital tool to help promote the development of the country’s economy. Therefore, building confidence, promoting the image, and encouraging the arbitration process are all considered extremely essential.
| Index | 2019 | % | 2020 | % | Meaning |
| 1. The overall public awareness rate of arbitration | 33.88 | 100 | 21.77 | 64.30 | The perception rate in 2020 has decreased compared to 2019, indicating a decrease in people’s awareness of arbitration. |
| 2. The rate of withdrawal of allegations by the arbitration committee. | 18 | 100 | 27.27 | 151.50 | The lower the withdrawal rate, the better, as it means the allegations of the arbitration committee is stable and not withdrawn by the court. |
| 3. The rate of enforcement of arbitration committee’s orders. | 75 | 100 | 90 | 120 | The higher the rate of enforcement, the better, as it means the court accepts the orders of the arbitration committee. |
| 4. The rate of recommendation to use arbitration in dispute resolution.*Calculated from the group of people who are familiar with the arbitration process. | 72 | 100 | 76.11 | 105.70 | The higher the rate of recommendation to use arbitration, the better, which means people have more confidence in the arbitration process. |
| 5. Average duration of an arbitration in case consideration | 3Y 2M | 100 | 3Y 5M | 107.90 | The shorter the duration, the better, meaning the arbitration process is faster. |
| 6. Overview of the number of arbitration cases | 4,192 cases | 100 | 3,229 cases | 77 | The more arbitration cases there are, the higher the rate of using the arbitration process. |
Statistics table of indicators related to the perception of arbitration in Thailand in 2019 and 2020.
Recommendations from seminar participants
In order to develop an understanding of arbitration in Thailand, more practitioners need to be educated, and the entire legal ecosystem needs to be developed. This means providing knowledge about alternative dispute resolution to undergraduates so that they gain a deeper understanding of the subject, which may lead them to pursue a career in the legal field, increasing the number of people who understand and are aware of arbitration.
THAC should pursue a more proactive role. Meaning it ought to visit various provinces, government agencies, or universities to distribute the knowledge of alternative dispute resolution. Due to the high number of disputes received at the center, if THAC implements a more proactive methodology, it would create more awareness of arbitration for the public.
Finally, there is a suggestion from the seminar participants that THAC should strive to push for the recognition of arbitration as a national agenda and to make the government realize the significance of arbitration. If arbitration becomes a national agenda, the legislation or amendment of laws relating to arbitration or alternative dispute resolution will be implemented much faster. This will transform Thailand into an arbitration-friendly nation.
