Factory Due Diligence

Factory Due Diligence

After the COVID-19 pandemic, there was a huge increase in fraud cases in Thailand. Due to the pandemic, a lot of companies and suppliers overseas considered getting their supplies from Personal Protective Equipment (PPE) manufacturers in Thailand. There are a lot of PPE manufacturers in Thailand but only a few are registered and recognized and practicing safe transactions.

Fraud cases related to transactions between companies from overseas and companies in Thailand are constantly increasing since 2020. Many new Thai companies have been involved with Fraud cases related to medical mask and gloves (particularly nitrile gloves which is commonly used for medical purposes).

Juslaws & Consult have handled numerous fraud cases over the years and we can attest that such cases can be avoided if you only took precautionary measures before your transaction. For transactions with factories and manufacturers not only in Thailand but in other countries, you must make sure that you hire professionals to proceed with Due Diligence.

The Process of Factory Due Diligence

Juslaws & Consult usually perform factory due diligence revolving around the concept of legalities in Thailand. Factories of Gloves, Masks and other PPES in Thailand are usually situated between Bangkok, Chonburi, and Rayong Provinces. Factory Due Diligence usually is done by visiting the actual site of the Factory and checking at the relevant government offices regarding the legalities of the factory such as certificates, permits, and the company formation documents.

Juslaws and Consult’s Factory Due Diligence involves digging deep into the information of the factory, may it be case records of the company or its directors and shareholders to make sure that there are no pending or current cases related to any transactions of the company, or checking if any and all certifications and presented documents of the factory is legitimate or fake, and many more.

Our Factory Due Diligence further checks the legitimacy and authenticity of the products and transactions of the company and goes as far as checking every aspect of the company or factory’s transactions.

Benefits of Factory Due Diligence

Factory Due Diligence is for quality assurance purposes. In order to feel good about the transaction and to be able to work comfortably without worrying about losing money by fraud. As mentioned above, if you would like to avoid getting scammed then expenses related to the factory due diligence should be the least of your concerns.
There are three (3) main benefits of Factory Due Diligence in Thailand:

  • Assurance - Due diligence will validate the legality and authenticity of the factory or company you are dealing with. Nothing is better than comfort and trust when it comes to million-dollar transactions.
  • Reliability - Similar to assurance, the factory due diligence will also determine whether the factory or company is reliable with their service and with their product and to make sure that their claims (if any) and true.
  • Security - Of course, the main purpose of due diligence is security. If you have heard or read about the scams and fraud cases not just in Thailand but around the world related to PPE’s, chances are that they have trusted the company or factory too much and were relying on what they were told instead of checking further.

Summary

Juslaws & Consult is known for its intricate and detailed due diligence service. Our goal whenever we do due diligence for our clients is to make sure that we provide them with the best details and information they require and to make sure that their interest is our top priority.

Performing a factory due diligence may be a time-consuming process, however, with Juslaws and Consult we make sure that it is worth the wait. You can be assured that our due diligence service is at the highest standard.

If you need a consultation or if you need more detailed information about our Factory Due Diligence Service, then please do not hesitate to contact us. Our team of professionals is ready to assist you and proceed with the due diligence process anytime.