Rayong: Entrepreneurs in Thailand are raising concerns about debt defaults by foreign companies, with reported losses exceeding 200 million baht. The issue has prompted calls for measures to safeguard the country’s economic supply chain from further damage by foreign investors.
According to Thai News Agency, Ms. Kamolthorn Kittisunthon, Second Vice Chair of the House Committee on Industry, received a formal complaint from Mr. Atiwat Wiangnon, who represents a subcontractor involved in building Unit 7 of the natural gas separation plant at the Map Ta Phut Industrial Estate in Rayong Province. The complaint highlights unpaid wages and expenses from China-Thai Communications Construction Co., Ltd., the primary contractor for the project.
Ms. Kamontarn Kittisunthonsakul noted that this is not the first time such an issue has been reported. In mid-2015, the Industrial Affairs Committee received a similar complaint from nine companies. At that time, the committee engaged China-Thai Communications Construction Co., Ltd. and relevant agencies to provide clarifications and solutions, leading to the full repayment of outstanding debts to the first group of companies.
Despite the resolution for the initial group, numerous other businesses have been adversely affected by the defaults of the joint venture company, with total damages surpassing 200 million baht. This situation is critical as it affects the financial stability of small businesses and workers, ultimately impacting the local economy and raising concerns about fairness. The complaint will be reviewed in an upcoming committee meeting, where China-Thai Communications Construction Co., Ltd., PTT Public Company Limited (the project owner), and other relevant parties will be summoned to discuss potential solutions.
Additionally, the committee plans to seek clarification on the inspection and control measures for contractors involved in various construction projects, especially those valued at 1 billion or 10 billion baht. The aim is to implement stricter measures and enhance transparency among regulatory agencies dealing with foreign traders, entrepreneurs, and investors. Future strategies will focus on maintaining a list of foreign entrepreneurs to evaluate their economic impact, imposing penalties on those responsible for economic disruption, and ensuring that foreign ventures genuinely contribute to the local economy. The committee will continue to gather information, seek clarifications, and monitor progress towards a comprehensive resolution of this issue.