DLT in Thailand addresses concerns of Chinese companies in transportation sector, clarifying licenses cannot be transferred to foreign entities. Thai government plans to tighten regulations on foreign companies.
The Department of Land Transport Addressing Chinese Influence in Thailand
The Department of Land Transport (DLT) in Thailand has recently responded to concerns over the growing presence of Chinese companies in the nation’s transportation sector. Reports of Chinese firms acquiring Thai transport businesses have raised alarms, prompting the DLT to clarify that licenses issued to local companies cannot be transferred to foreign entities through acquisition.
Key Takeaways on Thai Transport Regulations
- DLT has specified that only registered Thai legal entities based in Thailand are qualified to hold transport licenses.
- Currently, over 8,400 vehicles manufactured in China are registered for use in Thailand’s transport sector.
- The Ministry of Commerce and Finance will collaborate to establish stricter regulations for foreign companies in the Thai transportation market.
Challenges Facing the Thai Transportation Industry
In the upcoming years, the Thai transportation sector is anticipated to encounter significant challenges. Economic recovery post-pandemic has been sluggish, impacting the demand for transport services in both passenger and cargo segments. Updating railway infrastructure remains a major challenge, with the industry facing issues like outdated systems and frequent accidents.
Source : DLT addresses concerns regarding Chinese transportation companies