Thailand Intensifies Crackdown on Nominee Businesses and Illegal Online Trade

Thailand has intensified its crackdown on nominee businesses and illegal online trade, addressing economic misconduct that has caused nearly $531.5 million in damages over the past nine months.

Key takeaways

• Thailand has launched a major crackdown on nominee businesses and illegal online trade, addressing over $531 million in economic damages.
• Authorities have prosecuted over 39,000 cases and removed thousands of illegal products from e-commerce platforms.
• Legal action is underway against 857 nominee businesses, with new investigative teams and stricter laws planned to protect local industries

Commerce Minister Pichai Naripthaphan reported the outcomes of the fifth meeting of the Committee for Managing Foreign Business and Product Violations. 

The meeting revealed that authorities have prosecuted over 39,000 cases involving illegal or substandard products, with damages estimated at 2.074 billion baht ($63.5 million).

As part of the enforcement effort, the government has begun collecting VAT on low-value imported goods, generating 1.796 billion baht from items priced under 1,500 baht. It has also implemented Notice and Takedown protocols, resulting in the removal of more than 10,378 illegal products from e-commerce platforms.

A major focus has been the suppression of nominee businesses, companies registered under Thai names but operated by foreign entities. Legal action has been taken against 857 such businesses across seven high-risk sectors: tourism, real estate, transportation, warehousing, construction, agricultural land trading, and others. 

These cases have caused an estimated 15.288 billion baht ($468 million) in economic harm.

Commerce Minister Pichai stressed that Prime Minister Paetongtarn Shinawatra has prioritized this issue and directed the Ministry of Commerce to take proactive steps. 

As global markets continue to evolve, the rise of illegal and substandard products poses serious risks to Thai small and medium-sized enterprises.

To support these efforts, the committee appointed Deputy Commerce Minister Suchart Chomklin and Police Lt. Gen. Pittaya Sirirak as advisors to subcommittees focused on preventing foreign nominee activity and supporting local SMEs.

Deputy Commerce Minister Napintorn Srisunphang reported that around 46,918 businesses are currently flagged as high-risk. In response, provincial-level investigation teams will be formed across the country, led by deputy governors and coordinated through provincial commerce offices. 

These teams will examine company finances, ownership structures, and any foreign links.

Future measures may include legislative amendments to impose stricter penalties and allow asset seizures in confirmed nominee cases. The proposed laws are expected to advance quickly through Cabinet and Parliament.

Provincial authorities have been directed to complete investigations into all high-risk businesses within three months. Regions with heavier caseloads must submit progress reports quarterly.

This nationwide initiative is part of Thailand’s broader strategy to safeguard domestic industries, ensure fair competition, and curb foreign exploitation through unlawful business practices.