Thailand vows crackdown on grey businesses, says industry minister
Industry Minister Akanat Promphan has vowed to crack down on grey businesses to prevent Thailand from becoming a transit point for illegal goods.
In an exclusive interview with Reuters, Akanat highlighted the government’s decisive enforcement measures to regulate Thailand’s industrial sector, aimed at ensuring economic and environmental sustainability.
He stressed the success of proactive operations under the “Shut the Door on Evil” campaign and the “Sud Soi” task force, both of which have played a key role in intensively inspecting factories and business premises nationwide.
The operations have produced concrete results:
- Closure of more than 38 illegal factories across the country.
- Screening of over 46,000 companies suspected of being nominee operators.
- Seizure of substandard goods worth more than 1 billion baht, with prosecutions underway.
- Prevention of hazardous e-waste imports, with immediate orders to return them to their country of origin.
Raising industrial standards alongside environmental responsibility
The ministry is not focused solely on enforcement but also on raising industrial standards across the board. This includes strict oversight to ensure factories comply with the law and encouraging entrepreneurs to adopt environmentally friendly production methods.
It has also been pushing for the serious enforcement of the polluter pays principle, making businesses accountable for addressing and remedying environmental and community impacts.
This approach also protects consumers from unsafe, substandard goods that could pose risks to life and property.
Preventing Thailand’s use as a transshipment route to evade tariffs
Akanat also raised concerns over transshipment — the use of Thailand as a transit point by grey businesses to bypass tariffs and trade barriers imposed by other countries.
Such activities not only damage the economy but also tarnish the country’s reputation and risk subjecting Thai exports to punitive tariffs of up to 36% in some markets.
To address the problem, the ministry has tightened law enforcement in cooperation with relevant agencies by:
- Inspecting suspicious cargo containers for false declarations.
- Seizing goods found to be falsely declared to circumvent regulations.
- Working with international agencies to exchange information and prevent Thailand from becoming a hub for dangerous or illegal goods.
