Restaurant controversy draws national attention
The controversy with only RMB also reignited concerns over tax compliance, foreign ownership restrictions and the possible use of Thai nominee shareholders.
Following the incident, authorities inspected businesses in the area. Some restaurants and shops displayed stickers stating that they accept Thai baht and have been certified by Bangkok authorities.
The Department of Business Development (DBD) later announced that it had identified 53 foreign-linked companies in Huai Khwang as potential nominee-risk cases requiring further investigation.
The agency also took action against the restaurant at the centre of the controversy.
Nominee businesses not limited to Huai Khwang
Chaichana Detdacho, a member of parliament, said the issue extends far beyond Huai Khwang.
According to Chaichana, several provinces across Thailand are facing similar concerns involving foreign investors who may be using Thai nominees to circumvent ownership restrictions under Thai law.
He called on the government to strengthen the business registration process and improve screening mechanisms to detect suspicious shareholding structures before businesses are approved.
Chaichana also suggested creating a dedicated government centre that would bring together all relevant agencies to identify legal loopholes and improve enforcement efforts.
“The government needs to examine where the legal gaps are and close them before problems occur,” he said.
Government steps up enforcement
In response to growing concerns over nominee businesses, the Department of Business Development (DBD) has stepped up inspections in Huai Khwang and other parts of Thailand.
The agency recently identified 53 companies in Huai Khwang as potential nominee-risk cases and forwarded their information to the Anti-Money Laundering Office (AMLO) and other agencies for further investigation.
Authorities are also tightening company registration procedures by requiring stronger financial verification from shareholders in high-risk businesses.
Meanwhile, the Ministry of Commerce is considering amendments to the Foreign Business Act to close loopholes that may allow foreigners to use nominee arrangements to bypass ownership restrictions.
Balancing investment and enforcement
The debate surrounding Huai Khwang reflects broader questions about Thailand’s approach to foreign investment.
Chinese investment has contributed to economic activity, job creation and commercial growth in many parts of the country. At the same time, concerns over nominee arrangements and closed-loop business networks have prompted calls for stronger oversight.
As investigations continue, authorities face the challenge of encouraging legitimate investment while ensuring transparency and compliance with Thai laws.