Thailand plans e-commerce laws to curb foreign dominance
PLatform Economy Act penciled down to lend a helping hand to Thai SMEs
A Senate committee is set to propose guidelines in the draft of the Platform Economy Act to tackle the dominance of foreign companies in Thailand’s e-commerce sector.
Eakchai Ruangrat, the first Vice-Chairman of the Senate committee on commerce and industry, stated that this initiative aims to restore the country’s digital sovereignty. He made these comments during a recent e-commerce seminar.
Thailand’s e-commerce sector is valued at 1.8 trillion baht, with a significant portion of products originating from abroad. The country currently faces challenges from an influx of counterfeit, non-standard, and illegal imports from China, which compete with local brands and often avoid tax obligations.
Eakachai indicated that the committee plans to propose a bill to the Senate addressing these issues. The proposal suggests that businesses operating both online and offline should register as separate entities and submit individual financial reports.
This requirement would apply to foreign operators selling products online. Furthermore, the proposed law aims to establish new standards for online products and services.
The legislation also seeks to support small and medium-sized enterprises (SMEs) by encouraging them to sell on Thai e-commerce platforms. For instance, SMEs could benefit from income tax exemptions for products sold through local platforms during their first five years of use.
Additionally, Eakachai suggested the implementation of variable value-added tax rates, such as 7% for offline sales and 15% for online sales. Regulations should also specify the proportion of domestically produced products sold in Thailand, with at least 20% of all goods sold annually on e-commerce platforms being locally produced.
Pawoot Pongvitayapanu, honorary Chairman of the Thai E-Commerce Association and a Senate committee member, noted that e-marketplaces are the main shopping channels for Thai consumers. In 2024, over 100 million items on major foreign e-marketplaces in Thailand were from China.
Pawoot warned that heavy reliance on foreign e-marketplaces could lead to difficulties for local merchants if these platforms change policies or cease operations.
The chairman has filed a complaint with the Trade Competition Commission, claiming that dominant foreign e-marketplaces contravene Sections 50(2) and 57 of the Trade Competition Law by engaging in unfair market dominance, restricting service opportunities, and obstructing business operations. He proposed the establishment of a national e-marketplace as a digital infrastructure accessible to all parties, reported Bangkok Post.
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