Rough start for ‘new chinatown’

A parallel Chinese society has grown up in Bangkok’s Huai Khwang district as the number of Chinese expats has increased, deepening the reputation of Huai Khwang as the second Yaowarat, or Bangkok’s new Chinatown.

The area temporarily emptied during the pandemic when Chinese vendors exited the country. But after the pandemic subsided and the Chinese government announced it would reopen its borders in January, investors returned to Huai Khwang.

The surrounding area includes the Huai Khwang MRT station, located metres from Pracharat Bamphen Road, a hub for Chinese residents and vendors. Both sides of the 700-metre-long road, starting from the busy Huai Khwang intersection, are full of store signs in Chinese: restaurants, massage outlets, currency exchange counters, and shops. The area continues to draw newly arrived Chinese, locals and Chinese expats.

It is a clear sign that the Chinese are again making inroads in Thailand, but is it a good sign?

As they survey the crowds of Chinese walking the streets, locals reflect on a rapid change that is inevitably affecting their lives, while Chinese expats see the area as providing great opportunities to make a living.

The Bangkok Post interviewed locals and Chinese expats to get their insights on “Bangkok’s new Chinatown”.

Local impacts

Chanchai Suksabai, 60, a vegetable trader who has been living on the road for 50 years, said Chinese people started coming into the area about 10 years ago. Increased demand forced the median commercial rent price for houses and buildings in the area to rise from 10,000 baht a month back then to 40,000-50,000 baht per month today.

As a result, many Thai entrepreneurs who want to do business in the area have been forced out to cheaper places, he said.

Mr Chanchai said years of economic downturn coupled with the Covid-19 pandemic have led many locals to lease out their buildings to the Chinese to earn an income.

According to a study for the Thailand Research Fund (TRF) by Chada Triamvithaya et al in 2016, about 7,000 younger Chinese live in the Pracharat Bamphen Road area, mostly aged 25-40 years old, or those born after 1980.

This group is highly educated and often comes to study in Thailand or teach Chinese. Some were also tourists but found a way to do business and settle in Thailand.

The arrival of the Chinese has benefitted many Thai businesses. An owner of a Thai massage parlour said more than half of her customers are Chinese. The presence of Chinese businesses in the area also helps attract Chinese tourists.

She said the number of Chinese customers at her shop is increasing after the pandemic.

Amporn Phongpochai, in her 40s, an owner of a drugstore that has been trading on the road for over 50 years, said Chinese tourists used to buy Thai products from her such as balm, herbs, medicines, and beauty products in large quantities for resale in China.

However, Ms Amporn said the consumption behaviour of the Chinese has changed since the pandemic. Customers now buy smaller quantities and for personal use only.

Ms Amporn said Chinese people are also opening shops, many as Mala hotpot restaurants. She has seen Chinese ask about offers to rent or sell buildings in the area many times.

“Many Chinese come in every week or month asking if there is anywhere to rent or sell. They do not care about the price because they are always ready to invest,” she said.

She said she wasn’t worried about trade because her store is rarely affected by Chinese custom. However, she is worried that the arrival of Chinese may cause inconvenience to locals.

“Maybe Chinese don’t care about Thai rules. Sometimes the Chinese park their cars on the side of the road, blocking traffic in the alley. Some tourists walk with their luggage on the street instead of the sidewalk. There are also problems with loud noise, smoking in inappropriate areas, and quarrels. If that’s the case, how will our children live in this area?” she asked.

Some businesses only hire Chinese because few Thais can speak their language. Some also import raw materials or goods from China rather than sourcing locally.

 

Plight of Thai workers

Ms Amporn said she was aware some workers may not be here legally and had noticed that if labour officers mount an inspection, some stores close immediately before officials arrive.

Kittisak, in his 50s, a Thai grocery shop owner, said many Chinese shops sell below cost, resulting in fewer sales for everyone else.

Chinese customers tend to patronise businesses run by fellow Chinese. Coupled with a trend for Thais to consume Chinese products, this means Thai traders miss out.

“Nowadays, Thais love to eat Mala hotpot and line up at Chinese restaurants every evening,” Mr Kittisak said.

The kindness which Thais show guests, and the and government policies that benefit foreigners living here, attract many Chinese to invest.

The government should introduce more regulations to control Chinese businesses to minimise their impact on local traders, he said.

“The Thai government never focuses on controlling Chinese investment and refuses to promote the Thai business sector to compete with foreign businesses. This makes it hard for making Thai competition survive and means some are eventually replaced by Chinese businesses,” he said.

Under the Foreign Business Act (1999), any registered company must have at least one Thai national, and foreigners can own no more than 49% of the shares.

The Bangkok Post tried to talk to several Chinese shops in the area about the matter but no one was willing. They also insisted the shopkeepers are Thai.

One employee of a restaurant owned by Chinese said the store owner hired a law firm and an accounting firm to handle all the paperwork such as company registration, revenue documents, social welfare documents, and so on.

Every month, a policeman or state official pays a visit to inspect staff work permits. If they are found to be hiring people illegally, the business can be closed temporarily.

She said most restaurants in this area employ Thai or Shan people who can speak Mandarin; they rarely hire Chinese workers due to labour law restrictions.

City vows more action

Bangkok governor Chadchart Sittipunt has ordered the Huai Khwang district chief to strictly enforce regulations on Chinese-funded businesses in the district.

The order came after a Chinese expat posted on TikTok a review of living in Thailand.

He said it was easy to live here, even though he could not speak Thai.

The video showed a typical day in his life, saying he relied mostly on Chinese restaurants and supermarkets in the Huai Khwang area, and also used delivery apps to order food. The delivery driver was seen speaking Chinese fluently.

The video sparked criticism among Thai netizens, with some mockingly calling the area “Monthon Tai Guo (Thailand Province of China)”.

Some were concerned about the area being converted into “Thailand’s Little China” and being dominated by Chinese-backed businesses.

Mr Chadchart said the emergence of these businesses can help stimulate the economy if they receive appropriate support. But he also wanted to ensure Chinese-funded businesses follow laws and regulations, adding that some in the Huai Khwang area had been closed for violating the Food Act regarding imported food.

He had also ordered the district office to keep an eye on Chinese-backed businesses, especially restaurants and illegal businesses.

Chinese perspectives

Li Ping Xia, a property manager at a Sichuan overseas property management company, said Huai Khwang has drawn overseas property investors to invest because it is close to the Embassy of China, the Embassy of Korea and several world-class companies.

In addition to the presence of these nearby government offices, the wide range of businesses in Huai Khwang allows Chinese expats to overcome many communication barriers and other everyday problems, she said.

“This place is like a second Chinatown, and living in the Chinese community is convenient.

“And the MRT makes it very easy and convenient to travel,” said Guo, an expatriate living in Huai Khwang.

She dines mainly at Chinese restaurants or prepares her own food because Thai food is different from her dietary habits, although she says that “the ingredients from China here are much more expensive than buying them back at home”.

Zhang in her 20s, a Thai language student in Huai Khwang, said she has been travelling between Thailand and China for over five years and is currently self-employed.

As a condo owner in the district, she said it was easier to find tenants, and investment returns were steadier before Covid-19.

Fewer Chinese visitors are coming to Thailand since Covid-19 than forecast. According to Chinese social media posts, Thailand is tagged as dangerous due to scams, reports of Chinese nationals being abducted, and a growing number of “grey businesses”, which discourages Chinese from travelling here.