Foreign Business Act Amendments Worry Foreign Businesses in Thailand
“Panama Business and Investment” by thinkpanama is licensed under CC BY-NC 2.0
The government has proposed amendments to the Thailand Foreign Business Act that would restrict foreign control over joint-venture companies and limit the use of Thai nominees by foreign companies, reports the Bangkok Post.
The Business Development Department of Thailand’s Commerce Ministry proposed the amendments which are being backed by the Thai Chamber of Commerce (TCC), as confirmed by Business Development Department director-general, Pongpun Gearaviriyapun, according to the Bangkok Post.
A document detailing the draft FBA amendments was reportedly sent to foreign embassies and business chambers—several which have expressed concerns about the proposal. The Bangkok Post reports one embassy said the proposal seems aimed to suppress competition from foreign companies to benefit local business.
According to the Bangkok Post, Chatchai Mongkolvisadkaiwon, a TCC chair member, “confirmed that Thai businesses have requested an amendment to the FBA to limit foreigners having the majority say in company boards, mainly in the service sector.”
According to the Bangkok Post, the Commerce Ministry is expected to organize a public hearing for foreign and local chambers of commerce and businesses, the first of which Gearaviriyapun said would be this week.
The draft amendment has not yet been finalized, and there may be additional changes prior to the enactment of the new regulation.
Keep reading for all the details:
Bangkok Post – Foreign firms fear tighter restrictions
1 Comment