Chinese companies are eyeing the struggling Thai bus and restaurant sectors for expansion, causing concern among local business owners. The financial difficulties faced by Thai bus operators and restaurant owners have opened the door for Chinese investors to step in, potentially reshaping these industries.
Key Takeaways
- Chinese companies are negotiating to acquire struggling Thai bus operators.
- The introduction of electric buses is a key interest for Chinese investors.
- The Thai restaurant industry is also facing significant challenges, with many closures.
- Chinese investors are setting up their own restaurants, impacting local businesses.
- Thai business owners are calling for government intervention to enforce business ownership laws.
Struggles in the Thai Bus Sector
On August 10th, 2024, reports emerged that several local bus operators in Thailand are grappling with severe financial difficulties. Rising costs and continued losses have forced many to consider selling their businesses. In response, Chinese companies, including bus manufacturers and operators, have begun negotiations to acquire these struggling Thai firms. This move is seen as a strategic effort to expand their market presence in Thailand.
A source revealed that Chinese investors are particularly interested in introducing electric buses to the Thai market. This interest comes at a critical time, as half of Thailand’s bus fleet has already vanished from service due to the ongoing business crisis.
Challenges in the Thai Restaurant Industry
The situation in the Thai restaurant industry mirrors the struggles faced by the bus sector. Ms. Prapatsorn Rangsiroj, President of the Thai Restaurant and Street Food Association, highlighted the disruptive impact of Chinese capital on the local tourism supply chain, including 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.
Calls for Government Intervention
Concerned Thai business owners are urging the government to investigate illegal foreign nominees and properly enforce Thai laws around business ownership. They believe that without proper intervention, the trend of foreign acquisitions could lead to fully foreign-owned sectors, undermining local businesses and the economy.
The Thai government’s response to these concerns will be crucial in determining the future landscape of the bus and restaurant industries in Thailand.
Sources
- Chinese Companies Eye Struggling Thai Bus and Restaurant Sectors for Expansion, Thai Business Owners Concerned – The Pattaya News, The Pattaya News.
