The massive growth of transnational e-commerce is putting local micro, small and medium enterprises (MSMEs) in a tight corner and is likely to have an impact on employment in the retail and related sectors, a seminar was told on Saturday.
Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce, told the 37th TCC annual meeting in Lampang attended by more than 2,000 members that the business community has voiced concerns about overseas online shopping by Thai consumers.
Estimated at up to 100 billion baht in value, most online purchases are made from China, he said, noting that even though cross-border online shopping allows Thai consumers access to cheap goods and services, its negative impacts are being felt by local merchants and MSMEs who operate traditional stores.
"Merchants are complaining about how slow their businesses have been. Overseas online shopping has a role in this," he said.
Moreover, it is feared this disruption may have wider repercussions on retail employment as the government is unable to collect value-added tax (VAT) from transnational e-commerce transactions, he said.
According to Mr Thanavath, the business community is concerned this may also contribute to the country's economic slowdown.
Merchants should be encouraged to place their products on international e-marketplaces, and the government should invite giant e-commerce companies to set up distribution centres in Thailand, which will allow it to collect VAT and offset the impact, he said.
Meanwhile, the TCC also pledged to spearhead a campaign to see the Clean Air Act become law at the annual meeting.
TCC chairman Kalin Sarasin said the proposed law seeks to establish a new agency to handle air pollution and coordinate with authorities in neighbouring countries in tackling open burning.
In the opening session of the 37th annual meeting titled "Thaitay in Action", Mr Kalin said the forum will explore how to prepare from challenges from tech disruption.
He said that although the domestic economy is bearing the brunt of the persistent trade war between China and the United States, the stronger baht and the sharing economy, there is still an opportunity to apply "Thaitay in Action" to shore up the economy.
The sharing economy is based on acquiring, providing or sharing access to goods and services often facilitated by a community-based online platform.
Launched in 2015, the Thaitay concept involves solutions to stimulate local economies by mixing innovation and technology with storytelling. An increase in income in local communities will help reduce income disparity.
He said the TCC will take the lead in applying the concept, together with the bioeconomy, circular economy and green economy (BCG) models, to drive the economy.
The BCG model, developed by the Ministry of Higher Education, Science, Research and Innovation, has a goal of raising Thailand's GDP by one trillion baht over the next five years.
The Minister of Higher Education, Science, Research and Innovation, Suvit Maesincee, said yesterday the BCG master plan has been proposed to the prime minister and the government is expected to hold a meeting with the private sector and farmers' council in two weeks.