Thais warned against becoming foreigners’ nominees in businesses reserved for Thai nationals

[webfact]

 

Thai people who allow their names to be used by foreigners as nominees to open businesses reserved for Thai nationals may face prison terms of three years and/or a fine of between 100,000 baht and a million baht, said Thosapone Dansuputra, director-general of Business Development Department, today.

 

He said that foreigners are not allowed to open businesses selling food or drinks, as he responded to reports that Chinese businessmen had purchased a number of food shops in the Chinatown area.

 

He explained that foreigners who want to open a food shop must get a permission from the Business Development Department, adding that Thai people who co-invest with foreign partners in such business must show their bank accounts, to prove that they have the financial resources to invest and are not just acting as a nominee.

 

Full story: https://www.thaipbsworld.com/thais-warned-against-becoming-foreigners-nominees-in-businesses-reserved-for-thai-nationals/

 

-- © Copyright Thai PBS 2023-01-16

 

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[nigelforbes]

I don't know if this is xenophobia or just plain greed, or perhaps fear of competition from people more capable, but this exclusion of foreigners in almost everything becomes stifling after a while. I understand foreigners not being allowed to own land but even companies must be 51% Thai owned. Plus as the article says, there's a long list of professions and jobs that are closed to everyone apart from locals. Apparently, local Thai's need protecting from foreigners, that's why the country imports so little, to protect home grown industries. Without that competition, product and service quality is always going to remain very low and the investment in people, virtually non-existent. It is ironic that 11% of Thai GDP comes from foreigners who are actively sought to vacation here.

Edited January 15, 2023 by nigelforbes

[freedomnow]

47 minutes ago, nigelforbes said:

I understand foreigners not being allowed to own land

What do you understand about this ? They can own land in majority of developed world if they have the cash.

[ukrules]

I didn't realise operating a food shop is not allowed, are there not multiple people on this forum who have mentioned operating 7/11 or Family Mart franchises over the years?

[HappyExpat57]

36 minutes ago, ukrules said:

I didn't realise operating a food shop is not allowed, are there not multiple people on this forum who have mentioned operating 7/11 or Family Mart franchises over the years?

By definition, none of that is actually food. ????

[nigelforbes]

1 hour ago, freedomnow said:

What do you understand about this ? They can own land in majority of developed world if they have the cash.

I understand that''s the law, that's what I understand, whether or not I agree with it is a different matter!

 

If the only two choices are that foreigners can own land or they can't, on balance, I think I'm on the side that they shouldn't be allowed to. I think that's a ruling that prevents speculation by cash rich outsiders and keeps real estate prices affordable for locals. The reason the law was first introduced was because Indian speculator began to buy up large tracts of land and prices began to rise rapidly. That's just not appropriate or fair to people who until quite recently were still an emerging economy or third world country as some like to describe it. I do however think there might be a middle ground but I don't want to turn the thread into that discussion.

[BananaStrong]

Thais warned to stay away from dirty farang!

 

Enjoy your day in a country that plots against you!

 

bad, bad farang

[nigelforbes]

1 minute ago, BananaStrong said:

Thais warned to stay away from dirty farang!

 

Enjoy your day in a country that plots against you!

 

bad, bad farang

It's not just farang, it's all foreigners!

 

And locals are not being warned to stay away from them, that's stupid, they're just saying that shouldn't be allowed to own things of substance.

[realfunster]

1 hour ago, freedomnow said:

What do you understand about this ? They can own land in majority of developed world if they have the cash.

You classify Thailand as developed ?

If not, why make the comparison ?

[hotchilli]

2 hours ago, webfact said:

He said that foreigners are not allowed to open businesses selling food or drinks, as he responded to reports that Chinese businessmen had purchased a number of food shops in the Chinatown area.

Pure protectionism.... 

[realfunster]

2 hours ago, nigelforbes said:

I don't know if this is xenophobia or just plain greed, or perhaps fear of competition from people more capable, but this exclusion of foreigners in almost everything becomes stifling after a while. I understand foreigners not being allowed to own land but even companies must be 51% Thai owned. Plus as the article says, there's a long list of professions and jobs that are closed to everyone apart from locals. Apparently, local Thai's need protecting from foreigners, that's why the country imports so little, to protect home grown industries. Without that competition, product and service quality is always going to remain very low and the investment in people, virtually non-existent. It is ironic that 11% of Thai GDP comes from foreigners who are actively sought to vacation here.

Broadly agree with all of the above.

Thailand has poor population demographics and other significant societal challenges.

They have already, for many years, needed to import labour from surrounding countries.

This has tended to be in the lower-value sectors but if they are to fulfill Thailand 4.0 and escape the middle-income trap, I think it is likely at some point they will need to open up other industry sectors and the employment market. In the context of regional and global economies, you can only artificially manipulate your economy for so long before it starts to hurt.

Of course, when the chips are down, a bit of rampant nationalism can also be a great unifying cause and distraction for the people, let’s hope they don't go down that path even more…

[nigelforbes]

5 minutes ago, realfunster said:

Broadly agree with all of the above.

Thailand has poor population demographics and other significant societal challenges.

They have already, for many years, needed to import labour from surrounding countries.

This has tended to be in the lower-value sectors but if they are to fulfill Thailand 4.0 and escape the middle-income trap, I think it is likely at some point they will need to open up other industry sectors and the employment market. In the context of regional and global economies, you can only artificially manipulate your economy for so long before it starts to hurt.

Of course, when the chips are down, a bit of rampant nationalism can also be a great unifying cause and distraction for the people, let’s hope they don't go down that path even more…

I agree. But as with all these things there are different classes of foreigner, that's certainly true of the healthcare system where there are four classes, locals, ASEAN,  tourists and finally expats/retirees. The Thai fishing industry imports Burmese labour to work on the boats, a job that few Thai's will do yet foreigners are not allowed to own register commercial boats and participate.... it's very doubtful they would be allowed to crew, without a work permit, not that they would really want to. Ditto the construction industry. The common denominator of course is cheap labour versus experienced expensive labour, AKA operating company profit. So the model is, cheap labour, cheap poor quality home grown components and higher profit retained in country.

 

But of course, if Thailand were to open up the country to outside industry, that would mean a higher volume of quality imports. That in turn would erase the current account surplus and there goes the value of the Baht.

[ukrules]

44 minutes ago, nigelforbes said:

I understand that''s the law, that's what I understand, whether or not I agree with it is a different matter!

Do you understand that laws can and often are changed?

 

This is why they have parliaments

[nigelforbes]

1 minute ago, ukrules said:

Do you understand that laws can and often are changed?

 

This is why they have parliaments

Read my post again, all of it!

[Gknrd]

But by all means let the Thai woman be your nominee for buying a home and land in Thailand.   555. 

 

[nigelforbes]

7 minutes ago, Gknrd said:

But by all means let the Thai woman be your nominee for buying a home and land in Thailand.   555. 

 

Only if married is that legal and the wife buys in her name.

[Celsius]

2 hours ago, freedomnow said:

What do you understand about this ? They can own land in majority of developed world if they have the cash.

Not in Canada

[StayinThailand2much]

1 hour ago, HappyExpat57 said:

By definition, none of that is actually food. ????

You may be right, LOL. 

 

Perhaps franchise outlets have different rules. That would explain the popularity of 7-Eleven in Thailand.

[Orinoco]

It's just Thailand, thinking it's still special. 

 

[smedly]

4 hours ago, webfact said:

Thai people who allow their names to be used by foreigners as nominees to open businesses reserved for Thai nationals may face prison terms of three years and/or a fine of between 100,000 baht and a million baht, said Thosapone Dansuputra, director-general of Business Development Department, today.

now that is going to be a very busy department lol

[smedly]

1 hour ago, hotchilli said:

Pure protectionism.... 

is that the same as corruption................must be pretty close

[ikke1959]

Ancient outdated laws to protect the Thai people for ....??? yeah what???As a foreigner you only can make a business if 51% of the shares are Thai. Why should a foreigner invest if he will get the minorty in shares?? A foreigner is not allowed to do anything that a Thai can do too... So shopkeeping can do all Thai  people, so not allowed by foreigners... Protecting their country and protecting the rich of the country..That is all about it......Suppose it would be the same all over the world... Where would the Chinese be?  where would the Thai massage shops all over the world be? 

Time to enter the 21st century Thailand instead of staying behind in the 19th century......... Times changes

Edited January 16, 2023 by ikke1959

[RandolphGB]

Thais are not able to compete with foreigners so the government has to legislate to give them an advantage. 

Edited January 16, 2023 by RandolphGB

[SoilSpoil]

1 hour ago, Gknrd said:

But by all means let the Thai woman be your nominee for buying a home and land in Thailand.   555. 

 

Everything in the name of my children, who have 2 passports.

[thaibeachlovers]

5 hours ago, nigelforbes said:

I don't know if this is xenophobia or just plain greed, or perhaps fear of competition from people more capable, but this exclusion of foreigners in almost everything becomes stifling after a while. I understand foreigners not being allowed to own land but even companies must be 51% Thai owned. Plus as the article says, there's a long list of professions and jobs that are closed to everyone apart from locals. Apparently, local Thai's need protecting from foreigners, that's why the country imports so little, to protect home grown industries. Without that competition, product and service quality is always going to remain very low and the investment in people, virtually non-existent. It is ironic that 11% of Thai GDP comes from foreigners who are actively sought to vacation here.

As one that lives in a country where IMO just about everything important is owned by foreigners I support the Thais 100%.

Why should foreigners be allowed to own anything in LOS anyway? If they want to they should become citizens.

 

Without that competition, product and service quality is always going to remain very low and the investment in people, virtually non-existent.

Competition isn't everything and the Thais have managed quite well so far. I'd rather live in LOS than in a western country which is all about greed profit over people.

 

Edited January 16, 2023 by thaibeachlovers

[thaibeachlovers]

22 minutes ago, RandolphGB said:

Thais are not able to compete with foreigners so the government has to legislate to give them an advantage. 

So what? Why does everything have to be a competition? Life should be about more than greed.

[nigelforbes]

3 minutes ago, thaibeachlovers said:

As one that lives in a country where IMO just about everything important is owned by foreigners I support the Thais 100%.

Why should foreigners be allowed to own anything in LOS anyway? If they want to they should become citizens.

 

Without that competition, product and service quality is always going to remain very low and the investment in people, virtually non-existent.

Competition isn't everything and the Thais have managed quite well so far. I'd rather live in LOS than in a western country which is all about greed profit over people.

 

I KNOW that you think that Thai's need to up their game and competition is one way to do that, that's all.

[thaibeachlovers]

45 minutes ago, ikke1959 said:

Ancient outdated laws to protect the Thai people for ....??? yeah what???As a foreigner you only can make a business if 51% of the shares are Thai. Why should a foreigner invest if he will get the minorty in shares?? A foreigner is not allowed to do anything that a Thai can do too... So shopkeeping can do all Thai  people, so not allowed by foreigners... Protecting their country and protecting the rich of the country..That is all about it......Suppose it would be the same all over the world... Where would the Chinese be?  where would the Thai massage shops all over the world be? 

Time to enter the 21st century Thailand instead of staying behind in the 19th century......... Times changes

If anyone dislikes the Thai system they are free to take their money elsewhere. Surprisingly, many do despite the "rules". I guess they like Thailand then.

 

I hope Thailand never becomes like a western country. If that's a problem for a farang, they know where the exit is.

[thaibeachlovers]

1 minute ago, nigelforbes said:

I KNOW that you think that Thai's need to up their game and competition is one way to do that, that's all.

Actually, while I think Thailand has many problems and is far from perfect, I've always liked it far, far more than any western country I've lived in.

I'd rather live there than anywhere else I can live.

Most of the problems I had there were of my own making.

I don't like competition as there are always losers in any competition.

 

The only thing I'd really like to see change is immigration. I hated going there. I'd rather pay $XXX. 00 per year for a visa extension without the paperwork ( paperwork only for initial visa ), and forget all the BS 90 days and having to q at 4 am if one wants to extend oneself.

[Gottfrid]

5 hours ago, freedomnow said:

What do you understand about this ? They can own land in majority of developed world if they have the cash.

Suggestion! Move to the majority of the developed world!