When international business deals go wrong, resolving disputes across borders can quickly become complex. Many foreign companies doing business with Thai partners face uncertainty about which country’s laws apply, where to file a lawsuit, and how to enforce a foreign court judgment.
This article explains how cross-border dispute resolution in Thailand works, highlighting key issues such as jurisdiction, foreign judgment enforcement, and practical strategies for international businesses.
At Lex Bangkok, our lawyers assist foreign companies in resolving trade and contract disputes involving Thai entities through negotiation, arbitration, and Thai court proceedings.
Understanding Cross-Border Disputes in Thailand
A cross-border dispute arises when one party is based outside Thailand but the dispute involves Thai laws, property, or business activities. Common examples include unpaid purchase orders, supply-chain disputes, franchise or distribution contracts, investment disagreements, and joint-venture conflicts.
Because each country has its own legal system, deciding which court has jurisdiction is often the first challenge. Thai courts will only hear a case if there is a sufficient connection to Thailand — such as the contract being performed in Thailand, the defendant residing here, or the damage occurring within Thai territory.
Foreign businesses should always review the jurisdiction clause in their contracts. If the contract specifies that disputes must be handled in Thai courts, then Thailand will have clear jurisdiction. However, if the contract is silent, the plaintiff must prove that Thailand has a legitimate legal interest in hearing the case.
Jurisdiction of Thai Courts over Foreign Parties
Thai courts have the authority to adjudicate civil and commercial cases involving foreign companies under the Civil Procedure Code of Thailand. When a foreign defendant is involved, the court must confirm it has territorial jurisdiction.
In practice, this means:
- If the defendant is a Thai company or individual, the Thai court will usually accept the case.
- If the defendant is foreign but has assets, business operations, or a representative in Thailand, jurisdiction can also be established.
- If none of these links exist, the plaintiff may face difficulty bringing the case in Thailand.
For foreign plaintiffs, Thai law requires the appointment of a local lawyer and, in most cases, a Power of Attorney notarized and legalized through the Thai embassy in the plaintiff’s country.
Enforcement of Foreign Judgments in Thailand
One of the most common questions from international clients is whether a foreign judgment can be enforced in Thailand. The short answer is that Thailand does not automatically recognize or enforce foreign court judgments.
However, a judgment issued overseas can still be used as evidence in a new Thai court case. This allows the Thai judge to consider the facts and reasoning from the foreign proceeding when issuing a local judgment. If the Thai court reaches the same conclusion, the creditor can then proceed to enforce the Thai judgment through the Legal Execution Department, which can seize assets or freeze bank accounts.
In contrast, arbitral awards made under the New York Convention (to which Thailand is a party) can be directly enforced in Thai courts. This makes international arbitration an attractive option for cross-border contracts.
Practical Strategies for Foreign Companies
To reduce risk and increase enforceability, foreign businesses should take several precautions when entering into contracts with Thai entities.
First, include a clear dispute resolution clause stating which law applies and which forum will decide any disputes. Choosing arbitration under a recognized international institution (for example, SIAC, ICC, or THAC) can make enforcement smoother.
Second, ensure that the contract is bilingual or at least has a Thai version. Thai courts generally prefer documents written or translated into Thai.
Third, if litigation becomes necessary, engage a Thai law firm experienced in cross-border disputes. Local counsel can guide you through the procedural requirements, translation standards, and asset-tracing steps that are critical for success.
Finally, even before formal action, sending a demand letter in Thai often encourages settlement and demonstrates good faith if the case proceeds to court.
How Lex Bangkok Can Help
Lex Bangkok provides full legal support for cross-border dispute resolution in Thailand. Our team represents foreign corporations, investors, and SMEs in contractual, trade, and investment disputes.
We combine international business understanding with deep expertise in Thai litigation and arbitration. Whether you need to assess jurisdiction, enforce a foreign judgment in Thailand, or protect your company’s assets, we ensure clarity, communication, and strategic execution every step of the way.
Our experience includes assisting clients from Singapore, Japan, Hong Kong, the UAE, and Europe in resolving complex disputes involving Thai suppliers, distributors, and partners.
Take Action Today
Cross-border disputes can quickly escalate without local guidance. Let Lex Bangkok help you navigate Thailand’s legal system with confidence.
Schedule a consultation with our dispute-resolution lawyers today and protect your business interests in Thailand.
📞 Contact Lex Bangkok: info@lexbangkok.com