Thai Commerce Minister Warns of New Inexpensive Chinese E-commerce Site Impact on Small Thai Businesses

Tuesday, 13 August 2024, 13:57

National —

On August 13th, 2024, Thai Minister of Commerce Phumtham Wechayachai posted on social media addressing concerns over the potential impact of the Chinese e-commerce giant TEMU on Thailand’s small and medium-sized enterprises (SMEs).

Phumtham described TEMU’s entry into Thailand as a significant development in the e-commerce sector, bringing both opportunities and challenges, especially for Thai local SMEs. He stressed the importance of understanding and adapting to global trade shifts driven by technology and the internet.

The rapid rise of e-commerce have notably impacted SMEs, requiring them to adapt to survive in an increasingly competitive market. The Ministry of Commerce is actively monitoring the situation to ensure fair and sustainable online trade practices, remarked Phumtham.

A key focus is on regulating foreign e-commerce platforms to ensure compliance with Thai legal standards, including product safety and consumer protection. The Ministry is also exploring fair taxation policies to level the playing field for domestic businesses, said Phumtham.

To support SMEs, the Ministry is working on enhancing their market access and competitiveness. This includes initiatives like the upcoming Live-Commerce event in September, where international influencers will promote Thai products to Chinese consumers, aiming for over 1.5 billion baht in sales, according to Phumtham.

Phumtham assured that the Thai government is taking swift action to protect Thai businesses while fostering innovation and free trade, ensuring that foreign e-commerce platforms contribute positively to the Thai economy and society in the long run.

There have also been concerns on Chinese businesses entry into other markets in Thailand recently, like restaurants and bus services, as we reported here.

Thailand has also been cracking down on Chinese markets and shops not properly labelling products in Thai language also, which is required by law.

A lot of recent concerns have come about recently also about illegal Chinese nominees involved in local businesses in Thailand, which stemmed from a controversial billboard we reported on here.

This article originally appeared on our sister website The Pattaya News.