FTI calls for fair e-commerce platform playing field

The Federation of Thai Industries (FTI) is urging the government to enforce stricter regulations on foreign e-commerce platforms and control the influx of low-cost products into Thailand.

This call to action comes after a recent survey revealed that 35.1% of local entrepreneurs experienced a decline in sales due to inexpensive imports sold online. Vice-Chairman of the FTI, Peekthong Thongyai spoke on the shift in product trends, and areas with a higher degree of impact from the competition.

“The impact is clearly seen in garments, furniture, plastic products, and packaging.”

The survey, which included 175 entrepreneurs and FTI members, also found that 47.4% of respondents had not yet experienced a drop in sales, while 17.5% reported an increase. Despite these mixed results, a significant portion of respondents (67.4%) advocated for the government to ensure e-commerce platforms are registered as legal entities, facilitating value-added tax collection.

Additional recommendations include enforcing consumer protection laws and simplifying the complaint process for substandard products (46.9%). Respondents also suggested that e-commerce platforms should be required to display state certification for products meeting safety standards (45.1%) and called for the inspection of online financial transactions (26.3%).

In response to these concerns, the Industry Ministry has directed the Thai Industrial Standards Institute (TISI) to collaborate with the Customs Department to inspect the quality of imported goods, particularly those under TISI’s supervision. This initiative aims to curb the entry of low-cost, substandard products into the market.

Despite these efforts, the FTI notes that many low-quality items continue to be imported into Thailand. The federation has previously expressed concerns about the entry of Chinese online retailer Temu, which draws in customers with its low prices. The FTI attributes Temu’s competitive pricing to lower operating costs in China, including cheaper energy and wages compared to Thailand.

The federation fears that the increasing competition from such platforms could lead to more local factories shutting down, reported Bangkok Post.