Ceramic manufacturers in Lampang are struggling amid a surge of cheaper Chinese goods flooding the market.
The availability of low-cost Chinese ceramics, particularly knock-offs of traditional items like the “rooster” bowl, priced at just 5 baht, threatens the survival of local businesses. A “rooster” bowl made in Thailand costs about 20 to 30 baht.
Preecha Srimala, president of the Lampang Ceramic Association, expressed concerns on Tuesday about the industry’s dire situation. Before the Covid pandemic and the influx of Chinese imports, the northern province had 328 ceramic factories, but that number has now dropped to 89 due to closures and suspended operations as manufacturers evaluate the market.
Local ceramic producers are unable to compete with the rock-bottom prices of the imported items, which could lead to the extinction of Lampang’s ceramic industry.
“Today, we (factories in Lampang) are still waiting for the government’s help,” Mr Preecha said. “The ‘rooster’ bowl not only represents a local tradition but also uses local raw materials that are at risk of disappearing.”
The recent surge in Chinese imports has been driven by the challenges China faces selling products in European markets. This has resulted in Chinese manufacturers shifting their focus more toward Asean markets, including Thailand.
On Sunday, Commerce Minister Phumtham Wechayachai insisted that the Thai government would never respond to the influx by imposing trade barriers or tariffs for the sake of Thai and Chinese relations.
He said that if Thailand imposes trade barriers against Chinese products, Thai agricultural products imported to China might end up facing retaliatory measures.
Last week, Payong Srivanich, chairman of the Joint Standing Committee on Commerce, Industry and Banking, said: “If the government has no new measures to better protect Thailand against Chinese products, more companies are likely to shut down.”
From January to June, the value of imports of Chinese products increased by 7.1% year-on-year to $37.5 billion, leading to a trade deficit of $9.9 billion, a year-on-year increase of 15.6%.