Chinese Steel Firms in Samut Prakan Probed for Nominee Links

Pictures courtesy of ThaiRath 

The Department of Business Development (DBD) has launched an inspection of two Chinese-owned steel trading firms in Samut Prakan, uncovering possible nominee operations and unlicensed foreign directors. The investigation, led by the DBD’s nominee suppression task force, follows complaints alleging illegal activities and violations of Thailand’s Foreign Business Act B.E. 2542.

DBD Director-General Poonpong Naiyanapakorn said the operation was conducted by a joint task force including the Samut Prakan Provincial Commerce Office, the Department of Internal Trade’s Weights and Measures Division, the Department of Special Investigation (DSI) and the Thai Industrial Standards Institute (TISI). Officials inspected two companies sharing the same business address after receiving reports of suspicious conduct suggesting Thai nationals were acting as proxies for foreign investors.

Preliminary findings revealed that both companies had two foreign directors, neither of whom held valid work permits. The directors, assisted by interpreters, told officials the businesses imported and sold galvanized steel sheets, with sales in September 2025 exceeding 58 million baht. Investigators also found that the Thai shareholders of both firms were connected and held stakes in several other companies, raising further suspicions of nominee structures.

The Weights and Measures Division discovered a 5,000-kilogram digital hanging scale that had not been certified by the national authority. The company was fined 20,000 baht and the scale was seized for inspection. Meanwhile, the DSI collected statements and transaction documents from the Chinese directors and identified several irregularities indicating potential nominee activity. The TISI examined the steel products, specifically zhongpu-brand aluminium-zinc coated steel sheets and found no immediate violations but will summon the companies for further clarification.

Deputy Director-General M.L. Phoothong Thongyai, who led the on-site operation, confirmed that all evidence and testimonies would be compiled for legal review. If violations of business or labor laws are confirmed, the findings will be forwarded to enforcement agencies for prosecution.

Mr. Poonpong emphasised that holding shares on behalf of foreign nationals is illegal and undermines Thailand’s economic stability. He urged the public to report any suspected nominee activities through the DBD website at www.dbd.go.th under the section “Nominee Complaint Submission.” The DBD plans to continue nationwide inspections to eliminate unlawful proxy operations and ensure transparent and fair trade practices.

Key Takeaways

• Two Chinese-owned steel companies in Samut Prakan are under investigation for possible nominee structures and unlicensed foreign directors.

• Authorities seized uncertified weighing equipment and found irregular business links among Thai shareholders.

• The DBD will submit findings to legal agencies and intensify nationwide nominee crackdowns.

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  Adapted  by  Asean  Now from Thairath 2025-11-05