The government needs to have foreign e-commerce platform operators registered as legal entities, as well as better control the influx of low-cost products into Thailand which is reducing sales among local manufacturers, says the Federation of Thai Industries (FTI).
The measures were suggested after the federation's latest survey of 175 entrepreneurs and members of the FTI found 35.1% of respondents saw their sales drop, following inexpensive imports sold via the online platforms.
"The impact is clearly seen in garments, furniture, plastic products and packaging," said ML Peekthong Thongyai, vice-chairman of the FTI.
Some 47.4% of respondents said they have yet to experience a fall in sales, while 17.5% said their sales rose.
ML Peekthong said most respondents (67.4%) wanted the government to better regulate e-commerce platform operators by having them registered as legal entities for value-added tax collection.
Other measures are the enforcement of laws to protect consumers and facilitate those who want to make complaints over substandard products (46.9%), followed by requiring e-commerce platform operators to show the state certification of products that meet safety standards (45.1%) and inspecting online financial transactions (26.3%), according to the findings.
The Industry Ministry instructed its Thai Industrial Standards Institute (TISI) to work with the Customs Department to inspect the quality of imported goods, especially those under the supervision of the TISI.
The move is aimed at stopping the influx of cheap substandard goods.
However, according to the FTI, many low-quality products are still imported into Thailand.
The federation earlier expressed a worry over the entry of Chinese online retailer Temu, which attracts customers with cheap products because operating costs in China, including energy prices and wages, are lower than in Thailand.
The FTI fears that intensifying competition will lead to more local factories shutting down.
