Fourteen teams took part in the competition. This included the hosts Thailand and the defending champions North Korea. The teams were split into 3 groups, with the each team playing all the others in the group in a round robin format. At the end of the group stage the four teams with the best results from all the groups who qualified in the 1st 2 spaces in each group qualify to the knockout stage. This is played in the format of a semi-final, a 3rd/4th place match, as well as a final.
The winners and runners-up of the competition automatically qualify for the FIFA Women's World Cup 2003. The 3rd place team has to compete against a CONCACAF team over home and away matches for a final place in the FIFA Women's World Cup.