National —
On August 10th, 2024, Thai business insiders reported that several local bus operators are facing severe financial difficulties, with rising costs and continued losses forcing many to consider selling their businesses.
In response, Chinese companies, both bus manufacturers and operators, began negotiations to acquire these struggling Thai firms as a means of expanding their market into Thailand.
A source revealed that the Chinese are particularly interested in introducing electric buses, noting that half of Thailand’s bus fleet has already vanished from service due to the ongoing business crisis.
The situation in the Thai restaurant industry is similarly dire. Ms. Prapatsorn Rangsiroj, President of the Thai Restaurant and Street Food Association, stated that the influx of Chinese capital is disrupting the entire tourism supply chain, including local eateries.
“Chinese investors are reportedly setting up their own restaurants, similar to the ‘zero-based tours,’ where tourists dine only at Chinese-owned establishments,” said Prapatsorn.
She expressed concerns about the rapid decline in the number of Thai-owned restaurants, with closures now at 50% due to economic challenges. Prapatsorn warned that by the end of 2024, the situation could worsen, leading to further acquisitions by foreign investors, particularly from China, in key areas like Ratchada and Huai Khwang in Bangkok.
Concerned business owners are asking for the Thai government to investigate illegal foreign nominees and properly enforce Thai laws around business ownership to avoid fully foreign ownership.
