The Department of Land Transport (DLT) has recently addressed circulating media reports alleging an overpowering surge of Chinese companies buying out struggling Thai transport businesses. They steadfastly reassured the public that licenses granted to one business are non-transferable, even in the case of a takeover. Additionally, they emphasized, “More importantly, only Thai legal entities registered and headquartered in Thailand are eligible to hold the licenses.”
To ensure that Thai businesses remain protected, the DLT highlighted that at least 51% of a business’s shareholders must be Thai nationals to legally operate within the country. This rule is a cornerstone of maintaining local control over the transport business, and there’s mounting concern that some Thai citizens may be financially incentivized to hold shares as a workaround to this regulation.
In light of these developments, the Ministry of Commerce and the Ministry of Finance plan to convene next week to strategize on tightening measures. These discussions aim to ensure that foreign companies masquerading as local businesses do not gain any unfair advantages over genuine Thai operators, according to a DLT statement.
In addressing the noticeable increase of Chinese lorries operating on Thai roads, the DLT clarified that vehicles from any country can legally function in Thailand, provided they meet import and other legal requirements. As of now, over 8,400 vehicles made in China are registered for Thailand’s transport sector. Interestingly, many of these vehicles are assembled by a Chinese car manufacturer with production facilities based in Thailand. This fact underscores the growing complexity and interconnectedness of the global transport industry.
On a broader scale, the DLT reiterated its commitment to international agreements, such as the Memorandum of Understanding (MoU) signed by six countries in the Greater Mekong Subregion (GMS), including Thailand, in 2016. This MoU, part of the Early Harvest Implementation of the Cross-Border Transport Facilitation Agreement (CBTA), has been extended until December 31, 2026. The DLT emphasized that this agreement also brings benefits to Thai transport operators, fostering a more collaborative regional transport ecosystem.
Currently, 11 Thai companies have successfully applied for licenses, allowing them to operate a combined total of 458 trucks under this regional agreement. Operations are set to begin on September 1, providing new opportunities and enhancing the cross-border transport landscape in the region.
However, the private passenger transport sector is not without its challenges. On Saturday, a source within this sector disclosed that numerous Chinese companies are actively negotiating to acquire more Thai passenger transport businesses. With about half of the local operators having gone out of business, these Chinese enterprises see immense potential. They are particularly focused on the introduction of more electric vehicles, viewing this as one of several key strategies to rejuvenate and return the sector to profitability.
As Thailand navigates these complex dynamics, the synergy between local regulations, international agreements, and market innovations will undoubtedly shape the future of its transport sector. Both the DLT and related ministries remain vigilant and proactive in ensuring a fair, competitive, and evolving transport landscape that ultimately benefits the Thai economy and its citizens.
This seems like a clear attempt by the government to placate growing concerns while not addressing the loopholes in their own laws. Just because licenses are non-transferable doesn’t mean Chinese companies won’t find ways around it.
I agree! The line about Thai citizens being financially incentivized to hold shares is a huge red flag. It’s a loophole waiting to be exploited.
Exactly! These so-called ‘Thai’ companies end up being controlled by foreign interests anyway. The government needs tighter regulations.
And it’s not just about regulations—it’s about enforcement! How can we be sure the rules they put in place are actually followed?
That’s the crux of the issue. If the enforcement agencies are underfunded or understaffed, then these regulations mean nothing.
But are Chinese companies really that interested in our transport sector? Seems like a scare tactic to me.
It’s not a scare tactic if it’s true. Chinese investments are increasing globally, and Thailand is no exception.
It’s definitely happening. Just look at the number of Chinese vehicles on our roads.
This move is almost a necessity in today’s interconnected world. We can’t close our borders to foreign investment; it would stifle growth!
Yeah, but at what cost? Letting foreign companies take over our transport sector doesn’t seem like a good idea.
We need investment, but not at the cost of losing control over our own industries. Balance is key.
The introduction of more electric vehicles is a promising development. Why not embrace this change and focus on making it work for everyone?
Absolutely! Electric vehicles are the future, and this could be a win-win situation for Thailand if handled correctly.
Easier said than done. How many Thai businesses can afford the switch to EV vehicles without foreign investment?
Why must we always view foreign investment as a threat? Work together and it could be beneficial for all.
I’m worried about foreign influence. Too much of it and we’ll lose our cultural identity in the business space.
Cultural identity is important, but you can’t ignore economic realities. We need a strong economy to maintain our cultural heritage.
Exactly! Collaborations don’t have to erase cultural identity. It’s about finding a balance.
The DLT talks a lot, but do they actually understand the ground realities? Electric vehicles sound great, but what about the infrastructure?
These cross-border agreements are fantastic. They enhance trade and economic growth. Why are people so scared?
You must consider the local businesses that can’t compete against foreign giants. It’s not a level playing field.
I think Thai operators should look at these challenges as opportunities. Partner with foreign companies, innovate, and grow!
Too many Chinese lorries on the roads already! Is this what we want? Crowded streets and foreign dominance?
More vehicles mean more congestion regardless of where they come from. Let’s focus on better traffic management.
But we should prioritize local transport companies instead of letting foreign ones take over.
The cross-border facilitation agreement is more beneficial than harmful. It promotes regional cooperation.
Seems like a mixed bag. While regional cooperation sounds good, local companies need protection from being overshadowed by foreign giants.
Local companies will adapt. Competition brings out the best in everyone.
Or it wipes out small businesses that can’t keep up. It’s not always positive.
Exactly! Not all local companies have the resources to compete on an international scale.
DLT’s focus on regulations is crucial, but they need to engage more with industry experts to formulate effective policies.
Could the Ministry of Commerce and Ministry of Finance really tighten those measures? Their past record isn’t confidence-inspiring.
All this talk, but will these changes make my daily commute any better? I doubt it.