# Thailand Intensifies Crackdown on Zero-Dollar Factories

- Link: https://www.thailand-business-news.com/china/222395-thailand-intensifies-crackdown-on-zero-dollar-factories
- Published: 2025-05-26T16:38:34+07:00
- Author: Vivian Wei

Thai authorities intensify crackdown on illegal imports and nominee businesses, 
uncover hazardous waste smuggling in free zones, and enforce stricter controls to
protect local industries and promote fair competition.

Thailand’s crackdown on “zero-dollar factories” targets foreign-owned operations,
particularly Chinese, that exploit investment privileges but contribute little to
the local economy. These factories, often in industries like steel and electronics,
are accused of illegal practices such as producing substandard goods, evading taxes,
and causing environmental harm.

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For instance, a Chinese steel factory in Rayong faced scrutiny for alleged illegal
operations and environmental violations, with authorities planning inspections to
address these issues.

The government is intensifying efforts to combat illegal foreign trade and protect
local consumers by investigating high-risk companies and enforcing stricter regulations
on imports.

 * Authorities are increasing actions against substandard imports to safeguard local
   consumers and businesses.
 * **Over 46,000 high-risk nominee companies are currently under investigation nationwide.**
 * In the past nine months, more than 39,000 legal cases have been filed against
   substandard imported goods, amounting to significant financial damages.
 * The government is enhancing controls on illegal foreign trade, particularly focusing
   on nominee businesses and low-quality imports.

The Ministry of Industry is intensifying efforts to combat illegal imports, particularly
focusing on hazardous electronic waste found in free zones, which poses significant
health and environmental risks.

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 * **The Ministry emphasizes the need for proper labeling of products to ensure 
   fair market competition.**
 * Authorities have increased inspections in free zones following the discovery 
   of illegal electronic waste smuggling.
 * A special task force was deployed to inspect a company where contaminated materials
   were found, revealing serious violations of hazardous waste regulations.
 * The Department of Industrial Works has mandated the return of all seized hazardous
   items to their country of origin within 30 days.

This crackdown follows a broader economic concern, with over 5,000 factories closing
since 2021 due to cheap Chinese imports and rising costs, prompting calls for stricter
regulations and economic reforms to protect local industries. The term “zero-dollar”
refers to operations that generate minimal economic value for Thailand, often rerouting
profits abroad or using Thailand as a conduit for cheap exports.