Should The Cap On Foreign Ownership End

Thai laws preventing foreigners holding the same rights and positions as citizens are widespread throughout Thailand, and eminently understandable in a country with a unique economy, high percentage of English speakers and vast natural assets. However, loopholes that allow foreigners to circumvent these Thai laws are also fairly widespread. End Quote

(1888PressRelease) October 20, 2010 - Bangkok, Thailand - The Thai Development Research Institute (TDRI) has recently advised the government to scrap the Thai law preventing majority foreign-owned telecom companies operating in the country, on the basis that this would prevent the widespread use of nominees. However, there are other legal issues to consider, say Thailand corporate legal service BSA Law.

Thai laws preventing 'foreign dominance' exist in many sectors, not only telecommunications, according to Apisakde Kongkangwanchoke of Thai corporate legal service BSA Law. "Foreign dominance is of specific concern in Thailand, and in many sectors the Thai laws that prevent it are without doubt in the public interest," Mr. Kongkangwanchoke said.

"However, in the case of telecommunications this is not necessarily proven," Mr Kongkangwanchoke continued.

Mr Kongkangwanchoke noted several issues that must be considered before any changes to Thai law are made:
• In other sectors, there has not been an appreciable difference in service levels between Thai-owned companies and foreign-owned companies demonstrated
• OECD data shows that 17 developed countries allow 100% foreign holdings in the telecommunications industry, and that their sectors (in the United Kingdom, Germany and France, among others) are highly competitive

"The harm minimization strategy that the TDRI recommends is not necessarily the most legally defensible position. We should first determine that a Thai law is in the public interest, then take action against those who contravene it, by whatever means," Mr. Kongkangwanchoke finished.

About BSA Law:

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.

For more information please contact:

Jim Byrne
Business Advisor, BSA Law.
Email: jim ( @ ) bsalaw dot co dot th
http://www.bsalaw.co.th

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