Thailand’s nominee companies have caused a significant economic setback for the country, with an estimated loss of nearly $350 million in just three months. The Ministry of Commerce reported that the economic damage, totaling 11.72 billion baht ($348 million), resulted from measures taken against companies involved in various sectors, including tourism, real estate, transportation, and others.
The figures, disclosed on December 9, 2024, show that between September 1 and December 4, 2024, 747 cases were investigated, including 85 in tourism, 216 in real estate, and 10 in transportation. The remaining cases, totaling 436, span a variety of other industries. This represents a significant effort by the government to address the widespread impact of nominee businesses, which are often accused of bypassing regulations, creating unfair competition, and exploiting legal loopholes.
Commerce Minister Pichai Naripthaphan highlighted that the three-month crackdown had produced visible results, particularly in addressing the influx of goods from China through online channels. While this issue has been relatively minor, it has garnered attention due to the need for both countries to maintain sustainable trade relations.
One notable outcome of the measures was a sharp decline in the import value of Chinese goods through e-commerce platforms, dropping by 27 percent from January to October 2024. Imports fell from 18.68 billion baht to 9.12 billion baht, with the monthly average reducing from 3.11 billion baht to 2.28 billion baht.
The government’s efforts have extended to various agencies, with the Customs Department handling over 12,000 cases, totaling 529 million baht in losses. The Food and Drug Administration (FDA) processed over 30,000 cases involving 34 facilities, while the Thai Industrial Standards Institute (TISI) addressed 59 cases, resulting in losses of 33.6 million baht due to unauthorized imports and substandard goods.
In addition, other regulatory bodies like the Office of Consumer Protection Board (OCPB) and the Department of Intellectual Property handled cases related to misleading advertising and intellectual property violations, with losses totaling over 180 million baht. The Electronic Transactions Development Agency (ETDA) also processed a significant number of cases.
Looking ahead, the Committee on Foreign Goods and Business Law Enforcement has devised short-term solutions to address ongoing issues. These measures include increasing inspections and market surveillance across various sectors, including the expansion of regulated product standards, tighter FDA inspections of high-risk items, and a rise in container checks by the Customs Department.
Despite the enforcement actions, challenges persist in regulating the wide array of goods entering Thailand through various channels. Officials are committed to further strengthening enforcement mechanisms, ensuring that Thai consumers are protected from substandard products, and maintaining the country’s trade relations on a sustainable path.
