BANGKOK — Amid a sluggish economy, the Thai government is trying to address economic issues that have been hotly debated on social media. Concerns have been raised that foreign investment in Thai businesses is putting Thai people at a disadvantage and forcing many to close their businesses, particularly in the restaurant, transportation and e-commerce sectors.
On August 13, Mr. Chai Wacharong, spokesman for the Prime Minister’s Office, urged all sectors of society to consider the issue carefully, using principles and reasoning. Prime Minister Srettha Thavisin is concerned about the public’s morale in daily life and does not want their mood to be undermined by distorted news. He has also instructed the relevant authorities to strictly enforce the laws to ensure maximum benefit for the Thai people.
Regarding the claim that the entry of foreign capital into the restaurant business has led to the closure of up to 50 percent of restaurants, the government spokesman confirmed that this is not true. Although Thai entrepreneurs face many challenges, new Thai restaurant businesses are constantly being established.
According to the Department of Business Development, as of July 31, 2024, there are 23,414 legal entities operating a restaurant in Thailand, with the majority being small businesses (97.46 percent or 22,819 businesses).
In the first seven months of 2024 (January to July), 2,472 new restaurant businesses were registered, mainly in tourist provinces and major cities, including Bangkok (926 businesses), Chonburi (258 businesses), Phuket (192 businesses), Chiang Mai (165 businesses) and Surat Thani (122 businesses).
The Ministry of Commerce has supported the hospitality industry by strengthening the ability of Thai restaurateurs to adapt, seek opportunities and overcome new challenges, particularly through the use of digital technologies to better understand and reach consumers.
This support includes working with the private sector on activities such as the Smart Restaurant Plus program, which has developed more than 3,000 restaurants, raising Thai restaurant standards through Thai SELECT certification, boosting sales through the “Taste Thai SELECT” campaign, and connecting tourism routes with restaurants, which has been piloted in 10 routes such as Nakhon Ratchasima, Chiang Mai and Phuket.
As for the issue of zero-dollar tours, the Ministry of Economic Development is working with law enforcement agencies to investigate companies with nominee agreements where Thais hold shares in the name of foreigners to circumvent the 1999 Foreign Companies Act.
This law stipulates that foreigners who wish to operate service companies listed in the law and hold more than 50 percent of the shares must obtain proper authorization. Failure to do so could result in penalties including imprisonment of up to three years, fines of between 100,000 and 1,000,000 baht, or both.
As for the rumors that Chinese companies, both manufacturers and operators, are negotiating to buy coaches in Thailand, the Ministry of Land Transport has confirmed that this is not possible. The ministry stressed that licenses for regular and non-regular passenger transport services cannot be transferred from one legal entity to another.
The ministry also clarified the legal requirements of the Land Transport Act of 1979, which state that legal entities must be registered under Thai law, have their head office in Thailand and at least half of the directors must be Thai nationals. In addition, at least 51 percent of the share capital must be held by individual shareholders who are Thai nationals.
With regard to the intrusion of e-commerce companies, which was widely discussed in the Temu case, the Ministry of Commerce is working with the Ministry of Finance, the Ministry of Digital Economy and Society, the Ministry of Industry, the Ministry of Health, the Department of Special Investigation, the Board of Investment, the Office of Consumer Protection and the Electronic Transactions Development Agency to establish measures to regulate standards for imported goods both offline and online.
Customs will review the top 10 categories of products imported from overseas via online purchases. It is also considering measures to regulate online sales platforms in Thailand, such as requiring them to set up a representative office in Thailand or register their business.
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