A Senate committee plans to propose guidelines in its draft of the Platform Economy Act to address the dominance of foreign players in Thai e-commerce.
Eakachai Ruangrat, first vice-chairperson of the Senate committee on commerce and industry, said the move addresses the country's loss of digital sovereignty.
He made the remarks on the sidelines of a recent e-commerce seminar.
The e-marketplace in Thailand is valued at 1.8 trillion baht, with most of the products from overseas.
The country is also dealing with an influx of fake, non-standard and illegal imports from China competing with local brands without paying tax.
Mr Eakachai said the committee plans to propose to the Senate a bill that addresses all these concerns.
According to the committee, businesses operating both online and offline should be required to register as two separate entities and submit distinct financial reports for each.
This requirement would cover foreign operators selling products online, he said.
In addition, the law should determine new standards for online products and services, said Mr Eakachai.
Special measures should support small and medium-sized enterprises (SMEs), encouraging them to sell goods on Thai e-commerce platforms, he said.
For example, income tax exemptions could be offered for products sold through local platforms for the first five years the SMEs use the platforms.
Meanwhile, Mr Eakachai said variable value-added tax rates should be issued, such as 7% for products sold offline and 15% on online channels.
In addition, regulations should define the proportion of products sold within Thailand, he said. For example, at least 20% of all goods sold annually on e-commerce platforms should be domestically produced, said Mr Eakachai.
Pawoot Pongvitayapanu, honorary chairman of the Thai E-Commerce Association and a member of the Senate committee, said e-marketplaces are the primary shopping channels for Thai consumers, and sellers nationwide must use them to remain competitive.
In 2024, more than 100 million items available on major foreign e-marketplaces in Thailand were Chinese products, said Mr Pawoot.
He said if Thailand relies heavily on foreign e-marketplaces, when they change policy or shut down, local merchants will suffer.
Mr Pawoot filed a complaint with the Trade Competition Commission, alleging dominant foreign e-marketplaces violate Section 50(2) and Section 57 of the Trade Competition Law based on unfair market dominance, restricting opportunities to sell or provide services, and unfairly using market dominance by obstructing or preventing businesses from operating.
He proposed Thailand set up a national e-marketplace as digital infrastructure open to all parties.
Theeratat Nudum, marketing and brand strategy consultant of La Glace cosmetics brand, said Chinese producers present two obstacles: counterfeit products and Chinese brands positioning themselves as global players by expanding into Southeast Asian markets.
These brands leverage economies of scale, specialised expertise and deep knowledge of online marketing, backed by substantial capital. They hire Thai influencers and content creators for affiliate marketing campaigns to drive rapid growth, he said.