The government has been blamed for turning the country into a hub for grey business through an uncontrolled free visa policy, making it difficult for Thai local businesses to survive.

During the no-confidence debate on Tuesday (25 March), MP Sitthiphol Viboonthanakul of the opposition People’s Party stated that the government under PM Paetongtarn Shinawatra is destroying the country by allowing grey businesses to establish themselves without any control measures and compete with their local counterparts.

He mentioned Eastern Economic Corridor areas in Rayong, Chonburi, and Chachoengsao provinces, which are facing an influx of Chinese nationals in Chinese-owned factories. The MP said that according to local sources, most workers are Chinese. In addition, these factories intentionally refuse to hire local people and import workers from China instead.

The Ministry of Labour revealed that around 9,000 Chinese are currently working in these provinces. However, Sitthiphol said he was not convinced by the number and consultations with the Provincial Chamber of Commerce and local people in the area led to the conclusion that the actual number of Chinese workers must be more than this.

According to his survey, he found that in Rayong and Chonburi provinces approximately 15,000-16,000 Chinese workers are occupying jobs such as construction workers, drivers, or street vendors, that are legally reserved for Thai citizens.

Sitthiphol pointed out that the government's free visa policy is a major concern. A report from the media exposed how Chinese workers exploited a loophole in the system through what is called ‘visa cycling’, where they leave Thailand after their visas expire, only to re-enter shortly after. Each ‘visa run’ costs around 3,000 baht per person. According to a government report, an estimated 20,000–30,000 Chinese nationals have been involved in this practice.

The MP reiterated that the attempt to attract tourists to the country is inherently not an issue, but the government should implement strict enforcement. Currently, many foreigners exploit free visas to work in Thailand illegally, taking jobs from Thai citizens.

Apart from the impact on Thai people, local businesses are also hit by grey foreign businesses, which monopolise the supply chain. He said an obvious example is the real estate businesses. When foreign entrepreneurs enter the market, they neither use local materials nor hire local workers. Instead, they import all materials and workers from their countries of origin. The MP observed that the government must be aware of this, as it is making headlines everywhere.

The MP added that in 2024, the number of Chinese restaurants increased by over 8,000, with half of them owned by Chinese entrepreneurs.

In Rayong, Sitthiphol remarked that Thai SMEs could barely survive after Chinese entrepreneurs started businesses, such as fresh product stores, grocery stores, or karaoke bars. On top of that, products in those Chinese-owned stores are imported illegally.

He asserted that this phenomenon occurred in the government under Paetongtarn. He pointed out that if no restrictions are implemented, Thailand will attract only grey investors willing to pay to break the rules.

Sitthiphol also noted that these grey businesses could not survive in Thailand without a grey Thai bureaucracy to make it possible.