Thailand's Ministry of Industry has significantly escalated enforcement against illegal factories, immediately shutting down 131 operations and identifying 767 total violations in 2026. The crackdown shifts from warnings to immediate closures, leverages AI/data analytics to target non-compliant plants, and accelerates legislative reforms to the Factory Act and waste management laws. Over 53% of violations were in EEC zones and neighboring provinces. This signals tighter industrial regulation, higher compliance costs for SMEs, and potential supply-chain disruptions—but also strengthens investor confidence in environmental standards.