Wiroj Duangjan, 35, originally from Nakorn Sri Thammarat province, was shot twice in the stomach outside a bar on Soi Tun in the south of Patong at about 5am on Sunday morning. He died later in Patong Hospital.
Witnesses told police that Mr Wiroj had visited a nightclub on Soi Tun to celebrate the New Year. It was there that he met another man, known as “Koa Chit”, and proceeded to have an argument.
As the two stepped outside to settle their disagreement, Koa Chit allegedly drew a 9mm pistol and shot Mr Wiroj.
Police believe that both the deceased and Koa Chit had been competitors while working for the same “influential” person.
Officers are still searching for Koa Chit.