Thailand govt addresses TEMU’s impact on local SMEs
Thailand’s Deputy Prime Minister and Minister of Commerce raised concerns over the impact of the global e-commerce platform TEMU on Thai SMEs. Immediate protective measures are being discussed with eight agencies to curb the influx of online goods into the country.
Phumtham Wechayachai shared his views on Facebook, stating that while international e-commerce platforms bring opportunities, they also present significant challenges. The entry of TEMU into Thailand’s market is a phenomenon worth noting, as it greatly influences the e-commerce landscape.
TEMU’s powerful competitive capabilities pose a substantial threat to small and medium-sized enterprises (SMEs) in Thailand. According to Phumtham, this situation offers both opportunities and challenges for Thai entrepreneurs, particularly those operating SMEs.
The changing global trade trends necessitate a keen understanding and adaptability, especially in an era where technology and the Internet play a crucial role in business operations.
Phumtham emphasised that the new e-commerce trade model significantly impacts small businesses. Adapting to these changes is crucial for the survival and growth of SMEs in a highly competitive market. The Ministry of Commerce, responsible for overseeing and promoting fair and sustainable online trade, remains proactive.
Meetings have been held with representatives from the Ministry of Finance, Ministry of Digital Economy and Society, Ministry of Industry, Ministry of Public Health, Department of Special Investigation (DSI), Board of Investment (BOI), Office of the Consumer Protection Board (OCPB), and the Electronic Transactions Development Agency (ETDA).
Legal standards
These discussions focus on assessing the impact of e-commerce on consumers and businesses, ensuring that online products meet Thailand’s legal standards, such as those set by the Thai Industrial Standards Institute (TISI) and the Food and Drug Administration (FDA).
The aim is to prevent the import of substandard or hazardous goods that could harm consumers. Additionally, the possibility of imposing e-commerce taxes on international platforms is being explored to ensure fair competition.
Appropriate tax policies would ensure that these companies pay their dues correctly, preventing damage to the domestic economy.
Phumtham also mentioned the need to simultaneously promote and support SMEs by enhancing their potential and helping them access new markets. The Ministry of Commerce is actively focusing on penetrating major markets like China.
Initiatives include hosting a Live-Commerce event in September, where international influencers will select Thai products to sell live to Chinese consumers. Over 500 Thai products have been identified as desirable by Chinese consumers, aiming to generate over 1.5 billion baht in export revenue.
Phumtham highlighted the necessity of implementing self-protection measures alongside developing entrepreneurs’ competitiveness. Rather than resorting to countermeasures, seeking cooperation is a more suitable approach for current global trade dynamics.
Consumer protection
The entry of international e-commerce platforms into Thailand prompts the government to expedite measures to protect Thai businesses and address the impacts while fostering opportunities.
By balancing consumer protection, SME support, and the promotion of free trade and innovation, the presence of international e-commerce platforms can ultimately benefit Thailand’s economy and society in the long run.
Rest assured, the government, through the Ministry of Commerce, will urgently coordinate with all relevant parties to address the arising issues promptly, reported Khaosod.
