13-8-2024 (BANGKOK) Thai Prime Minister Srettha Thavisin has called for heightened scrutiny of imports, particularly those arriving through online channels. The directive, announced during a cabinet meeting on Tuesday, comes as local producers grapple with the increasing impact of foreign goods flooding the market.
Mr Thavisin has tasked government agencies with implementing more stringent measures by month’s end, including intensified inspections of licences, registrations, payments, and quality control. While the Prime Minister did not explicitly name China, it’s an open secret that cheap Chinese imports have been at the centre of growing concerns.
The government’s response to this perceived threat has been multi-faceted. Last month saw the extension of a 7% value-added tax to all imported goods priced below 1,500 baht, previously exempt from such charges. Discussions about potential increases in customs duties are also underway.
Government spokesman Chai Wacharonke revealed that the Ministry of Commerce is considering imposing annual caps on the quantity and value of goods imported via online channels. However, specific details of this proposal remain undisclosed.
The Federation of Thai Industries and the Thai Chamber of Commerce have been vocal about the detrimental effects of Chinese imports on local producers. Mr Chai emphasised the severity of the situation, stating, “There is an influx of imported products online at an abnormally high level. This is severely hitting our local producers, especially SMEs. We are not complacent about this.”
This issue isn’t unique to Thailand. Neighbouring countries such as Indonesia, Malaysia, and Vietnam have also ramped up their vigilance against Chinese imports in recent months. Their countermeasures range from reviewing anti-dumping policies to initiating investigations and reimposing tariffs on a wide array of goods, including steel, textiles, plastics, and even consumer products.
The impact on Thailand has been particularly severe. According to a report by the local newspaper Thansettakij, over 3,500 factories have shut down in the past three and a half years. The recent entry of Chinese online shopping platform Temu into the Thai market has further fuelled anxieties about the future of local businesses.
Prime Minister Thavisin stressed the need to support small and medium enterprises (SMEs), enabling them to adapt and compete in both offline and online markets. However, the government faces a delicate balancing act. As Mr Chai pointed out, there’s a need to “strike a balance” between protecting local businesses and adhering to international trade agreements.
