PUBLISHED: 14 Aug 2024 at 05: 21
The Department of Land Transport ( DLT) downed media reports that Chinese companies are increasingly monopolizing the domestic transportation industry by acquiring Thai transport companies, saying that even in a takeover, one business’s licenses cannot be transferred to another.
” More significantly, only Thai legitimate companies registered and headquartered in Thailand are eligible to hold the licensing”, the district’s statement continued.
The ministry said that at least 51 % of a corporation’s shareholders must be Thai for it to work legally.
Next week, the Ministry of Commerce and Finance may address the issue of Thai citizens being paid to carry shares in order to avoid breaking this law.
According to the DLT launch, they may work together to find better ways to manage these unusual businesses operating in disguise and prevent them from losing any ground to local Thai business owners.
Any country’s vehicles may be used in Thailand as long as they are legally imported and comply with another related requirements if they are used in the transportation industry, according to the office, which includes the numerous Chinese lorries that have been seen in Thailand.
At present, over 8, 400 vehicles produced in China are registered for use in the travel industry in Thailand, many of which were assembled by a Chinese car manufacturer with a manufacturing center in Thailand, said the division.
The DLT stated that in addition to all the Thai laws, it is committed to adhering to the Memorandum of Understanding ( MoU) signed in 2016 by the six countries of the Greater Mekong Subregion ( GMS ), including Thailand, regarding the Early Harvest Implementation of the Cross-Border Transport Facilitation Agreement ( CBTA ), which has been extended to December 31, 2026.
Additionally, the ministry claimed that Thai transportation companies gain from this arrangement.
11 Thai businesses have so far applied for a license to operate a total of 458 vehicles under this local agreement, and they now anticipate starting operation on September 1.
A resource in the personal customer transportation business reported on Saturday that many Chinese businesses were negotiating to buy more Thai passenger transportation companies.
These Chinese businesses are eager to enter a market where they see the introduction of more electric cars as just one of a number of steps that would bring the business back to revenue, according to the source, who said about half of the Thai companies have already shut down.