Thailand's Competition Commission Sets Payment Terms to Boost SME Liquidity

Key summary

The Thai Ministry of Commerce, led by Deputy Prime Minister and Commerce Minister Supachai Jaturapattarapong, has advanced a new trade fairness initiative following the announcement by the Competition Commission (กขค.). The commission published its guidelines in the Royal Gazette on October 2, 2026, effective November 2, 2026. These rules establish maximum payment terms of 30 days for agricultural products and initial processed goods with simple production processes, and 45 days for general trade, manufacturing, and services. The guidelines also prevent unreasonable delays in payment without cause and require at least 60 days' notice for changes to credit terms or contract conditions. The Thai SME Council estimates that reducing payment periods from 90 days to 45 days could increase circulating capital by approximately 750 billion baht, benefiting over 3 million businesses. Previously, the council noted a reduction from 60 to 45 days would free up about 250 billion baht. The guidelines include mechanisms for large buyers to present evidence to the Competition Commission regarding information within their knowledge to reduce the burden of proof on SMEs. Concurrently, the Ministry is addressing platform business costs through meetings held on October 21, 2026, chaired by Mrs. Supachai, focusing on fees and commissions to support fair competition in the digital economy.