Thai authorities tackle surge in cheap Chinese imports

[webfact]

A surge in cheap Chinese products flooding Thai markets, particularly through e-commerce platforms, has prompted Thai authorities and organisations to seek measures to protect local producers. The influx has negatively impacted local small manufacturers of household goods and has boosted calls for the Revenue and Customs departments to expedite their efforts in controlling this wave of low-cost goods.

 

Prime Minister Srettha Thavisin recently advocated for tighter scrutiny on customs declarations, following numerous instances where importers under-declared the value of their goods to benefit from value-added tax (VAT) and import tariff waivers.

 

A key factor behind the flood of Chinese products is a tax and tariff waiver. To support local businesses, Thailand waived the import duty and VAT on imported parcels with combined prices and cost, insurance, and freight fees of no more than 1,500 baht (US$ 41) per piece. The limit was increased from 1,000 baht (US$ 27) in 2018. Approximately 30 million parcels are shipped into Thailand each year, with half of the importers claiming that the item price is lower than 1,500 baht.

 

The Federation of Thai Industries (FTI) revealed that around 20 industrial sectors, including steel, aluminium, plastics, ceramics, petrochemicals, and medicine, are battling increased competition due to these imports, with small and medium-sized enterprises (SMEs) being the hardest hit. Kriengkrai Thiennukul, chairman of the FTI, remarked that Chinese imports have led to a 50% decrease in production for some local manufacturers.

The industry body is calling for additional government assistance, while Industry Minister Pimphattra Wichaikul has directed the Thai Industrial Standards Institute (TISI) to collaborate with the Customs Department to examine the quality of imported goods, especially those overseen by the TISI. This move is designed to curb the influx of low-quality, inexpensive products that are currently saturating the market, reported Bangkok Post.

 

Surprisingly, some local businesses have temporarily ceased production at their factories and have instead become importers of Chinese goods. Large steel industry companies, such as Tata Steel Thailand Plc (TSTH), expressed concern over the cheap steel imports from China. TSTH stated that Thailand’s capacity utilisation in the steel industry continues to decline due to slow economic recovery and the influx of low-priced Chinese steel.

 

Chinese imports

 

Sanan Angubolkul, chairman of the Thai Chamber of Commerce, pointed out that China’s status as a major global manufacturing hub, with abundant raw materials and efficient supply chains, leads to lower production costs and cheaper products. These factors, in combination with the e-commerce boom, have resulted in an increase in cheap Chinese products in the Thai market.

 

While the local retail sector is expected to grow this year, according to the Kasikorn Research Centre, it will face stiff competition from imported products, particularly those from China. In 2022, Thailand imported consumer goods worth 470 billion baht (US$ 13,088,461,300) from China, a 2.8% increase year-on-year. Electrical appliances account for 43.3% of total imports, followed by fruit and vegetables at 10%, as per the Commerce Ministry’s data.

Despite the challenges, solutions are being explored. The Finance Ministry is considering a 7% VAT on imported goods worth less than 1,500 baht, while keeping the import tariff waiver, to reduce the tax gap between Chinese and domestic manufacturers. Other potential measures include enforcing anti-dumping and anti-circumvention measures, enhancing customs inspections of imported goods, and speeding up the establishment of standards for industrial products.

 

Thailand’s e-commerce gross merchandise value reached 980 billion baht (US$ 27,289,687,600) in 2023, making it the second-largest market in Southeast Asia. As the Thai e-Commerce Association (THECA) continues to strategise on ways to tackle the influx, they are also discussing opportunities with Wuhan city in China to bring local SMEs to sell products in China, hiring Chinese influencers to promote Thai products through live commerce.

 

by Alex Morgan 

Picture courtesy of Bangkok Post

 

Source: The Thaiger 2024-02-22

 

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[retarius]

Well, stick a 60% import duty on all Chinese merchadise.....if you dare.

[harada]

Karma. 

[ignis]

Looking at the Ryzen Mini PC...... China = 11 - 12.000 baht + FREE delivery........... same mini PC make and  spec 21- 23,000 baht + delivery charge already in Thailand

 

Is the Thai sellers buying from China and doubling the price ?

 

Where would you buy ?

[ezzra]

Surly they're  joking right? most of the items on sale in this country are from China and they're

better quality, in most of the times, than the local one...

[mfinasi]

12 minutes ago, ignis said:

Looking at the Ryzen Mini PC...... China = 11 - 12.000 baht + FREE delivery........... same mini PC make and  spec 21- 23,000 baht + delivery charge already in Thailand

 

Is the Thai sellers buying from China and doubling the price ?

 

Where would you buy ?

 

Probably here but a Lenovo or 2nd hand NUC or other well known mini pc. A lot of garbage on aliexpress has doctored the firmware to report different chipsets. Tbf that's the same on thai marketplaces too with 800baht android boxes that claim a 8 core CPU, decent GPU, 4gb ram, and 2TB usb pens for 199baht, all garbage other than reporting initially that you got what you paid for, even the android version is often doctored.  If you're buying a 5k mini pc, just as a media PC, and don't care that the i3 really is a fake but underneath a legit celeron then that's probably fine but buying a high/mid end ryzen from a chinese marketplace no way. 

[Dogmatix]

They have no plan to make Thai manufacturers more competitive. They just want to protect Thai importers who mark up the prices with no value added. No helpful to Thai consumers.

[Will B Good]

Thought Baloo said this is fine (elephant pants?) and Thais just had to get their act together and stop whinging.

[hotchilli]

6 hours ago, webfact said:

A surge in cheap Chinese products flooding Thai markets, particularly through e-commerce platforms, has prompted Thai authorities and organisations to seek measures to protect local producers. The influx has negatively impacted local small manufacturers of household goods and has boosted calls for the Revenue and Customs departments to expedite their efforts in controlling this wave of low-cost goods.

But banning these goods might infringe on Free trade agreements.

Suck it up Thailand you can't ban all competition to sell your crap all the time.

[brianthainess]

Thais don't even make a lot of things, I just brought a pair of house slippers, where most of these 'ships from overseas' so I brought them from a Thai supplier printed on the bottom is "Made in China" as with many many things, Thailand just does not make them.

[Srikcir]

As an added strategy, the Thai government should stop accepting Chinese loans for financing infrastructures and allowing Chinese state-owned enterprises to be included in bids for those projects.

[ignis]

8 hours ago, mfinasi said:

 

Probably here but a Lenovo or 2nd hand NUC or other well known mini pc. A lot of garbage on aliexpress has doctored the firmware to report different chipsets. Tbf that's the same on thai marketplaces too with 800baht android boxes that claim a 8 core CPU, decent GPU, 4gb ram, and 2TB usb pens for 199baht, all garbage other than reporting initially that you got what you paid for, even the android version is often doctored.  If you're buying a 5k mini pc, just as a media PC, and don't care that the i3 really is a fake but underneath a legit celeron then that's probably fine but buying a high/mid end ryzen from a chinese marketplace no way. 

 

not a very good answer if you want Thai..

 

Lenovo Group of China is the world's largest maker of personal computers. 

 

NUC also has the address Shenzhen, Guangdong, China.

 

So what are   - 'other well known mini pc'.  ?

 

As a matter of interest     the CPU Ryzen 7600X is made in china   !!!! as are many others. 

AMD in 2022 took the made in in Taiwan labels off.

 

? Maybe try the USA  guess make in Mexico via USA website?

Edited February 22 by ignis

[mfinasi]

1 hour ago, ignis said:

 

not a very good answer if you want Thai..

 

Lenovo Group of China is the world's largest maker of personal computers. 

 

NUC also has the address Shenzhen, Guangdong, China.

 

So what are   - 'other well known mini pc'.  ?

 

As a matter of interest     the CPU Ryzen 7600X is made in china   !!!! as are many others. 

AMD in 2022 took the made in in Taiwan labels off.

 

? Maybe try the USA  guess make in Mexico via USA website?

 

Wow... missed the point.  Marketplace.  

 

[ignis]

1 hour ago, mfinasi said:

 

Wow... missed the point.  Marketplace.  

 

 

No idea what Marketplace is,,,,,  looked it uo Google says Marketplace Thailand, for second-hand items also Shopee ..

 

I am not looking for 2nd hand stuff  + would never buy 2nd hand electrical stuff

 

from  Advice : Computer Set AMD RYZEN 5 7600  which is the New 7000 series  with AM 5 motherboard + DDR 5

the full Computer set with same day delivery is very little more + 3 year warranty 

[Emdog]

If they think things are bad now, just wait til that new fast railway line to China begins operation!

[ravip]

On 2/22/2024 at 7:11 AM, retarius said:

Well, stick a 60% import duty on all Chinese merchadise.....if you dare.

Has any country dared to do that yet?