A wave of shady Chinese-owned factories is wreaking havoc on Thailand’s economy — and the environment — as the government launches a crackdown on so-called “grey businesses” operating illegally under the radar for years.
Industry Minister Akanat Promphan declared war on unlawful foreign-owned industrial operations, particularly in the steel and recycling sectors. Under his “Sud Soi” campaign — meaning “all the way” — a growing number of rogue businesses are finally being brought to justice.
“This isn’t a new policy. It’s what should have been the norm,” Akanat said, referring to years of weak law enforcement.
The crackdown targets foreign investors — mostly Chinese — accused of abusing lax oversight to set up illegal factories. Many churn out low-grade steel using outdated technology, flooding the market with cheap imports that undercut Thai businesses.
“These factories dump poor-quality steel at rock-bottom prices,” Akanat said. “It’s killing our local industry, and the profits are shipped overseas, while we’re left with the pollution.”
The ministry uncovered a network of illegal recycling and waste-handling plants, most operating without proper environmental controls. Communities in provinces like Rayong, Chon Buri, Prachin Buri, and Chachoengsao have been hit hardest, becoming dumping grounds for toxic waste.
Worse still, the roots of the crisis trace back to when the now-defunct National Council for Peace and Order (NCPO) exempted these operations from zoning laws, effectively giving them a green light.
“These grey businesses generate tens of billions of baht,” Akanat said. “Money that should be circulating in our economy is being repatriated, leaving us with the environmental bill.”
One high-profile case involves Sin Ker Yaun Steel, accused of producing substandard materials linked to the collapse of the State Audit Office building during an earthquake. Over 1,000 complaints have now been filed against the company, reported Bangkok Post.
But the minister insists this is just the beginning. His team is now drafting tougher regulations covering steel, plastic, and rubber, while working to attract high-quality, sustainable investment from countries like the US, EU, and even Chinese firms seeking legitimacy.
“This is the start of a new industrial revolution for Thailand,” Akanat declared. “We want technology transfer, green manufacturing, and real accountability. Even if I’m no longer in office, these reforms will outlast me.”
The story Chinese grey businesses under fire in Thailand over steel scam as seen on Thaiger News.
