Thai authorities have launched an investigation into fifteen companies with reported Chinese connections amid concerns they may have used local nominees to operate within the country’s highly profitable aromatic coconut export sector.

The inquiry, led by Thailand’s Department of Business Development and other regulatory agencies, focuses on whether the firms circumvented laws restricting foreign ownership in certain domestic industries.

Under Thai regulations, some agricultural businesses and land-related activities must remain under majority Thai ownership, and the use of nominees to conceal foreign control is prohibited.

Officials said the companies under investigation are suspected of establishing corporate structures in which Thai nationals were listed as shareholders while effective control and financial benefit may have remained with foreign investors.

Authorities are examining corporate filings, shareholder records and financial flows to determine whether nominee arrangements were used.

The aromatic coconut trade has become one of Thailand’s fastest-growing agricultural export sectors in recent years, driven by rising global demand for premium Thai coconuts known for their distinctive fragrance and sweetness.

China is among the largest markets for these products, and the trade has generated significant economic activity across coconut-growing regions.

Government officials emphasised that the investigation reflects Thailand’s commitment to ensuring fair competition and compliance with national business laws.

By safeguarding the integrity of domestic industries, authorities aim to protect Thai farmers, exporters and legitimate investors operating within the legal framework.

The probe is also part of broader efforts by Thai regulators to monitor foreign participation in sectors where nominee structures have occasionally been suspected.

Agencies responsible for commerce, agriculture and law enforcement are coordinating to review company registrations and business operations linked to the coconut trade.

If violations are confirmed, companies found to have used nominee arrangements could face penalties under Thai business legislation, including possible revocation of licences or legal action against individuals involved in the structures.

Officials stressed that Thailand remains open to international trade and investment, particularly in agriculture and food exports, while maintaining clear rules designed to ensure transparency and protect domestic economic interests.

The investigation continues as regulators analyse company records and supply-chain relationships within the aromatic coconut industry, a sector that has become an increasingly important contributor to Thailand’s agricultural export economy.