Prime Minister Srettha Thavisin has directed Commerce Minister Phumtham Wechayachai to expedite measures this month to address the influx of Chinese goods into Thailand.
Speaking after the weekly cabinet meeting held on Tuesday, Mr Srettha said the cabinet had instructed the Commerce Ministry to take the lead in determining measures to prevent and suppress substandard goods produced in other countries from entering Thailand.
This task will be carried out in collaboration with other agencies, including the Finance Ministry, the Digital Economy and Society Ministry, the Industry Ministry, the Public Health Ministry, and the Royal Thai Police. The goal is to support small Thai businesses in adapting and competing in both offline and online markets, with the relevant measures to be proposed by the end of August.
Government spokesman Chai Wacharonke said complaints from small and medium-sized enterprises (SMEs) about abnormal trade practices by foreign businesses selling goods online and offline in Thailand led the premier to request Mr Phumtham to lead discussions with relevant agencies to establish clear and concrete measures, while supporting Thai SME in their efforts to adapt and compete in both online markets and offline in retail stores.
"There have been growing complaints from the [Thai] private sector about illegal 'grey' businesses. These businesses have affected SMEs that are impacted by e-commerce, both online and offline. It was found that there has been an unusually high influx of imported goods, with the e-commerce business valued at up to 1.53 trillion baht," said Mr Chai.
"The prime minister then ordered the Commerce Ministry to take the lead in coordinating this matter, which will involve checking business licences and ensuring businesses are properly registered as legal entities."
He said there will be inspections concerning product standards, including both the Food and Drug Administration (FDA) and industrial product standards, to protect Thai consumers.
The Consumer Protection Board will coordinate with the FDA, and there will also be checks on import licences to ensure import taxes and duties are paid in accordance with the law. Measures will also include factory establishment permits, with a focus on balancing and considering international trade agreements, Mr Chai said.
He said the Commerce Ministry is currently considering appropriate measures and has found that China currently has measures in place for e-commerce, such as limiting the number of imported items that can be purchased online per year and setting a maximum annual purchase value.
For imports, there is currently a 7% value-added tax (VAT) charged in Thailand on imported goods worth 1-1,500 baht, with additional VAT and import duties on items valued between 1,500-40,000 baht. Items valued above 40,000 baht are taxed according to the product classification.
In a related development, Mr Phumtham has a post on his personal Facebook page about the arrival of Temu, a major Chinese platform that sells cheap products directly from Chinese manufacturers without intermediaries. He noted that while it presents both opportunities and challenges, Temu's entry into Thailand is an interesting phenomenon that significantly impacts SMEs, as it is a large e-commerce platform with high competitive potential.
To prevent the import of substandard or dangerous products and to ensure fair competition, the government is nevertheless considering e-commerce tax measures to ensure international platforms are taxed appropriately and do not harm the Thai economy, he said.