PUBLISHED: 4 Aug 2024 at 16: 21
Local truck operators claim that the use of Thai contenders and the flow of lorries from China are seriously hurting their businesses.
Thongyoo Kongkhan, the chairman of the Land Transport Federation of Thailand ( LTFT), demanded on Sunday that the government intervene in order to safeguard local truck operators. He intends to request a conference with Transport Minister Suriya Jungrungreangkit in order to address the issue.
Mr. Thongyoo claimed that Thai nominations helped Taiwanese businessmen run “full-scale” freight truck companies and construct stores.
According to the Asean-China Free Trade Agreement (ACFTA ),” the application of the Asean-China Free Trade Agreement has resulted in a significant increase in Chinese exports to Thailand and truck-imported goods are transported there. Nearly all of the cars are owned by candidate firms”, the LTFT chaiman said.
” It’s estimated that the Chinese trucks account for 1 % of total vehicle figures in Thailand, about 10, 000. The figure is anticipated to increase annually on average by 1 %.
According to Mr. Thongyoo, the majority of the vehicles that LTFT members own have been parked as a result of higher fuel prices, lower hiring rates, and a 3-9 % increase in transportation costs.  ,
He expressed concern about the Chinese truck operators ‘ pricing practices for distribution service charges.  ,
” Local logistics and truck entrepreneurs will suffer significantly if the government does n’t prepare but instead implements effective countermeasures.” The organization will send a letter to the travel agency representatives asking for a meeting.  ,
Other topics on the plan will be truck imports and the opening of large-scale warehouses by foreign companies, which are becoming increasingly frequent. This will significantly influence the ten-wheeler users in Thailand,” the LTFT key added.
Adherence required
In addition, the Department of Land Transport ( DLT) made a statement citing section 24 of the 1979 Land Transport Act, which requires any juristic person seeking to register with Thai law and have its head office established there. No less than half of the table members may be Thai immigrants, and no less than 51 % of the company’s capital may be held by owners who are Thai folks. According to the statement, the license programs have been thoroughly reviewed and approved in accordance with the laws.
Concerning concerns about Chinese import and export firms that are suspected of employing Thai nominations, the DLT will request from the commerce and finance ministries to coordinate and avoid any adverse effects to local truck companies ‘ business operations.
Regarding the issue of cars from China operating in Thailand, the DLT made it clear that they can work if their requirements and import laws are met and they are officially imported.
However, the ministry said that now there are some 8, 473 registered transport cars from Chinese companies, some of whom have established manufacturing outposts in Thailand.
Any company can be used by the shipping companies to match their budget and business needs. ” the statement said.
Each member nation ( except Myanmar ) has the authority to issue a maximum of 500 cross-border road transport permits in their country under the Memorandum of Understanding ( MOU) relating to the “early harvest” implementation of the cross-border transport facilitation agreement signed by transport ministers from six countries of the Greater Mekong Subregion ( GMS ) effective from April this year until 2026.
According to the DLT, 11 Thai transport companies with a combined 458 vehicles have submitted applications for the grants and are scheduled to start operating next month.  ,