E-commerce is on the rise, Thailand is worried about cheap Chinese goods 'landing'

Thai unions believe that if the government does not take timely measures to limit cheap Chinese goods, many manufacturing factories face the risk of bankruptcy.

The Federation of Thai Industries (FTI) warned that Thai manufacturers may not be able to withstand the new wave of cheap products from China if the government does not take measures to deal with the entry of China. Temu online retailer (China).

According to FTI, with Temu planning to reduce prices by up to 90% on products sold on its platform, it is likely that more Thai factories will have to close because their products are less competitive than their competitors. Chinese capital.

The online shopping rate of Thai people is currently high. As Chinese imports continue to increase, some manufacturers in Thailand have stopped production and decided to change their business activities by importing goods from China for sale.

Mr. Apichit Prasoprat, FTI Vice President, said Temu will attract customers with low-cost products because operating costs in China, including energy prices and wages, are lower than in Thailand. He also admitted that the emergence of new e-commerce platforms will increase competition in the Thai market as cheap Chinese imports are expected to increase.

According to FTI, China tends to export goods to member countries of the Association of Southeast Asian Nations (ASEAN), including Thailand, especially after the US-China trade war broke out. to the country's international trade.

Mr. Apichit said that the government's recent move to impose a 7% value-added tax (VAT) on imported goods with a value not exceeding 1.500 Baht may not be enough to prevent the influx of Chinese products. enter.

Meanwhile, Director General of the Industrial Economics Office Warawan Chitaroon said that industry officials are closely monitoring the situation and continue to request the Thai Industrial Standards Institute (TISI) to carry out strict inspections. restrict imported products from neighboring countries.

Source: Vietnam.vn