NIDA Survey: Thais See Corruption as the Main Driver of Illegal Foreign Business

A nationwide survey conducted by Thailand’s National Institute of Development Administration (NIDA) has found that most Thais believe corruption within the state system is the primary reason illegal foreign businesses are able to operate in the country.

The poll, titled "Illegal Foreigners", was conducted by telephone between July 13 and 15 and included respondents from across Thailand representing different regions, age groups, professions and educational backgrounds.

The findings show that 94% of respondents consider illegal foreign business activities to be a serious threat. However, the survey's most notable conclusion is that 67.10% believe corruption and misconduct by government officials are the main factors enabling these operations.

While concerns about illegal foreign businesses are widespread, respondents placed much of the responsibility not on foreign investors themselves but on weaknesses within Thailand’s own political and administrative system.

When asked about the main reasons such activities continue, respondents identified:

• 67.10% – corruption and misconduct by government officials;

• 59.31% – penalties that are not severe enough;

• 52.21% – legal loopholes that can be exploited;

• 50.46% – corruption involving politicians;

• 48.70% – Thai citizens seeking personal financial gain, including acting as nominee shareholders or assisting foreign businesses;

• 44.35% – insufficient enforcement by government agencies;

• 29.54% – public indifference or a lack of awareness about the scale of the problem.

The results indicate that most respondents view illegal foreign businesses as an issue sustained by domestic institutional weaknesses rather than by foreign actors alone.

Participants also ranked the activities they considered most dangerous.

The greatest concern was expressed over foreign investment in illegal businesses and companies allegedly used for money laundering, which 94.05% described as highly dangerous, while another 5.42% considered it somewhat dangerous.

Other activities viewed as significant threats included:

• foreigners acquiring land through Thai nominees (82.14%);

• registering Thai men as fathers of foreign children's offspring to obtain Thai citizenship (81.76%);

• so-called "zero-dollar tourism," where foreign investors control the entire tourism supply chain within their own communities (81.29%);

• nominee company structures used to conceal foreign ownership (81.21%);

• the growth of large, isolated foreign communities (77.48%);

• foreigners working outside the conditions of their work permits (72.98%);

• foreigners employed in occupations legally reserved for Thai nationals, including tour guides, tour operators and commercial drivers (65.42%).

Despite these concerns, respondents reported fewer personal encounters with such activities.

More than one-third (35.95%) said they had never personally encountered illegal business practices involving foreigners.

Among those who had, the most frequently reported situations were:

• suspected investment in illegal businesses or money-laundering companies (26.11%);

• nominee company ownership schemes (25.88%);

• nominee arrangements for land ownership (20.92%);

• large concentrations of foreigners in specific areas (18.85%);

• foreigners working in occupations prohibited to them (17.71%);

• violations of work permit conditions (14.35%);

• "zero-dollar tourism" (9.69%);

• registering Thai men as fathers of foreign children (8.70%).

NIDA emphasized that these figures reflect respondents' personal perceptions and experiences rather than verified criminal statistics. The institute noted that it did not independently investigate or confirm the legality of the incidents described by participants.