BANGKOK — Thailand has accelerated efforts to combat nominee businesses that have caused economic damages of $468 million, while authorities have also pursued nearly 40,000 cases of illegal online products with damages exceeding $63.5 million over the past nine months.
Commerce Minister Pichai Naripthaphan revealed the results of the fifth meeting of the Committee for Managing Foreign Business and Product Violations held today (May 21). During the past nine months, relevant agencies under the committee have prosecuted over 39,186 cases involving substandard and illegal products, amounting to damages of more than 2.074 billion baht ($63.5 million).
Authorities have collected VAT on imported goods valued under 1,500 baht, totaling 1.796 billion baht. Additionally, they have implemented Notice and Takedown measures, removing more than 10,378 illegal products from online platforms.
Regarding the crackdown on nominee businesses, legal action has been taken against 857 entities across seven high-risk business sectors: tourism, real estate and related businesses, land transportation, warehousing, construction, agricultural land trading, and other businesses. The total business damage from these cases amounts to 15.288 billion baht ($468 million).
“Prime Minister Paetongtarn Shinawatra has placed great importance on this issue and has instructed the Ministry of Commerce to take proactive measures. Amid rapid changes in the global economy, there is a high risk of illegal and substandard products flooding into Thailand, which inevitably affects Thai SMEs,” Pichai stated.
The meeting also approved the appointment of Deputy Commerce Minister Suchart Chomklin and Police Lieutenant General Pittaya Sirirak as additional advisors to two subcommittees: the Subcommittee for Preventing and Suppressing Foreign Nominee Businesses and the Subcommittee for Promoting Thai SMEs and Addressing Substandard Foreign Products.
Deputy Commerce Minister Napintorn Srisunphang disclosed that data shows there are approximately 46,918 companies considered at risk. Provincial-level working committees will be established in every province, chaired by a deputy governor appointed by the provincial governor, with the provincial commerce office serving as secretariat, working alongside relevant agencies to conduct rigorous fact-checking on funding sources, business operational capabilities, and connections to foreigners.
For new companies registering in the future, there are proposals to amend laws to increase penalties for nominee businesses, including asset seizure. The draft legislation will be submitted to the Cabinet for prompt advancement to Parliament.
“We have instructed each province to work proactively, requiring them to complete the investigation of all high-risk companies within three months. Provinces with a large number of potentially non-compliant companies may need more time but must report progress every three months,” he added.
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