Exposing the “Huai Khwang business model”: Chinese capital takes over with no Thai management, payments scan directly to employees' personal accounts. Labor officials warn of suspicious money laundering and plan a nationwide crackdown.
On 9 Aug 2026 GMT+7, operations targeted illegal hotels and foreign workers unlawfully employed in Huai Khwang, uncovering foreigners working in professions reserved for Thais.
Thairath Online’s special team questioned Mr. Surachart Thienthong, Secretary to the Ministry of Labor, about findings of nominee groups and illegal activities in Huai Khwang. Field inspections found 11 illegal foreign workers: 9 Myanmar nationals and 1 Chinese. Three types of violations were identified.
Employers did not match those reported—workers registered with one employer but actually worked elsewhere.
Workers with expired or unrenewed permits.
Foreigners encroaching on jobs reserved exclusively for Thais.
Recently discovered was a Chinese barber working in a barber shop serving Chinese clients, using a student visa to work in Thailand.
Random inspections in Huai Khwang covered diverse businesses, including hotels and 4-5 restaurants. Investigators found no directly responsible persons or Thai employees; all staff were Myanmar workers managing and running the businesses.
Additionally, shop signs linked via QR codes redirected to Chinese gambling websites. Payments made by customers scanning QR codes went directly into employees' personal bank accounts instead of corporate accounts, violating tax laws and indicating intent to evade audits.
Mr. Surachart added that although many foreign workers are in Thailand, laws strictly require valid reasons for changing employers, such as layoffs or business closure, with proper notification. However, unauthorized employer changes without reporting to the Department of Employment were found.
The “Huai Khwang business model” mainly involves Chinese owners employing Myanmar workers. Some services operate within Chinese communities serving Chinese clients, such as barber shops. Issues of nominees and shareholding fall under the Ministry of Commerce's detailed investigation.
The greatest concern involves tax audits with the Revenue Department, as many inspected Chinese restaurants had virtually no customers, suggesting two possibilities.
Tax evasion through concealment of actual income by directing payments to employees’ personal accounts.
Falsely inflating income to launder money.
Mr. Surachart believes tax evasion is concerning, but fabricating excessive income to pay taxes as a front for money laundering is more alarming. The Revenue Department and related agencies must verify whether reported incomes reflect reality.
Ordered local officials to submit reports and urgently investigate "Mr. Bo" suspicions.
This operation involved central task forces alongside the Ministry of Interior and multiple agencies, conducted without prior notice to local employment offices. Illegal foreign workers were found in nearly every inspected venue. Thus, the Ministry of Labor ordered local officers to report inspection frequency and coverage promptly.
Regarding rumors of individuals clearing cases with officials, the Department of Provincial Administration is investigating. Any involved officials or agencies receiving benefits will face strict legal action without exceptions.
Mr. Surachart stated that stricter inspections of establishments will follow. The Ministry of Labor appointed Mr. Polpeer Suwanchavee, Deputy Minister of Interior, to lead a task force combating illegal labor, integrating multiple agencies. Inspections will include not only small businesses but also suspicious factories linked to foreign-owned "zero-coin" industrial cycles employing foreigners instead of Thais, clearly encroaching on Thai jobs.
Especially skilled professions like construction contractors, engineers, and supervisors are staffed entirely by foreigners, while Thai workers or companies only sign documents. This issue is as concerning as illegal foreign labor.
There is a nationwide plan for inspections targeting these issues. Relevant agencies involved in social, labor, and business regulation, including Ministry of Labor units, will collaborate. All illegal foreign workers have been handed over to Huai Khwang Police Station for legal prosecution.