Does Thailand Fulfill the ASEAN Requirements for Foreign Direct Investment under Partial Liberalization in Electricity Industry?

• Author: Sakda Thanitcul - Amonwalai Ninpanich
• Position: Professor of Law at Chulalongkorn University Faculty of Law; Member of the Thai Trade Competition Committee; Member of the Committee on Foreign Business Act. LL.B. (Chulalongkorn), LL.M./Ph.D. (U. Washington-Seattle), LL.M./ LL.D. (Kyoto Univ.) - Senior Lawyer at Bangchak Corporation Plc. LL.B./LL.M. (Chulalongkorn), LL.M. (Dundee)
• Pages: 293-294

Liberalization of Thai Electricity Industry 293

XI JEAIL 2 (2018)

Sakda Thanitcul

∗

& Amonwalai Ninpanich

∗∗

This paper explores Thailand’s partial liberalization of the electricity industry and to

what extent is a Foreign Direct Investment (FDI) allowed in the electricity sector. As

Thailand is an ASEAN Member State, the paper aims to review whether the partial

liberalization under the ESB model is consistent with the commitments of the ASEAN.

The paper examines both the ACIA and the AFAS, and it finds that Thailand has

no commitment under both agreements relevant to entry of a FDI in its electricity

sector. However, Thailand already allows the entry of a FDI in the power generation

business which is aligned with the principles of market access and National Treatment

that fulfill the obligations under the ACIA and the AFAS in case Thailand will

make any commitments in the future. It is noted that electricity transmissions and

the distribution and supply businesses are still prohibited for both Thai and foreign

investors.

Keywords

ASEAN, ACIA, AFAS, Electricity, FDI; Trade in Service, Thailand

∗ Professor of Law at Chulalongkorn University Faculty of Law; Member of the Thai Trade Competition Committee;

Member of the Committee on Foreign Business Act. LL.B. (Chulalongkorn), LL.M./Ph.D. (U. Washington-Seattle), LL.M./

LL.D. (Kyoto Univ.). ORCID: https://orcid.org/0000-0003-3498-6149. The authors would appreciate Professor Patthara

Limsira for his assistance in reviewing footnotes. The author may be contacted at: t.sak.da@hotmail.com /Address: Faculty

of Law, Chulalongkorn University Phayathai road Phatumwan Bangkok 10330 Thailand.

∗∗ Senior Lawyer at Bangchak Corporation Plc. LL.B./LL.M. (Chulalongkorn), LL.M. (Dundee). ORCID: https://orcid.org/

0000-0002-2782-7986. The author may be contacted at: aninpanich@gmail.com/Address: 160/8 Moo.5 Bangkruai-

sainoi Bangkruai Nonthaburee 11130 Thailand.

DOI: http://dx.doi.org/10.14330/jeail.2018.11.2.02

ARTICLES

Does Thailand Fulll the

ASEAN Requirements for

Foreign Direct Investment

under Partial Liberalization

in Electricity Industry?