Temu's Entry Rattles Thai SMEs; Govt Races to Protect Local Businesses

[webfact]

Picture courtesy: Thai Rath

 

The recent arrival of Temu, a major international e-commerce platform, has stirred up the Thai small and medium-sized enterprises (SMEs) sector. Phumtham Wechayachai, Deputy Prime Minister and Minister of Commerce, acknowledged on August 13 that while Temu's entry brings opportunities, it also presents significant challenges for local businesses.

 

Temu’s presence is a sign of the changing trade landscape, heavily influenced by technology and the internet. Phumtham pointed out that the entry of such a competitive platform is a wake-up call for Thai SMEs, who must adapt quickly to survive in this new environment. 

 

The Ministry of Commerce, keen to maintain fair and sustainable e-commerce, is taking swift action. In a proactive measure, they convened a high-level meeting involving multiple ministries and agencies.

 

The focus was on ensuring imported products meet local standards like TIS and FDA requirements and devising fair tax policies for transnational platforms. The goal is to prevent low-quality or hazardous products from entering the Thai market while ensuring fair competition, reported Matichon.

 

Additionally, the Ministry discussed measures to collect appropriate e-commerce taxes from international platforms. This move aims to create a level playing field for local businesses and shield the domestic economy from potential harm.

 

The Ministry also plans to bolster Thai SMEs by opening new markets, especially in China. An upcoming Live-Commerce festival in September will see foreign influencers promoting Thai products directly to Chinese consumers. This initiative targets generating around 1,500 million baht through export sales.

 

Enhancing SME capabilities is high on the agenda. The government is determined to fortify local businesses against the backdrop of an evolving global trade landscape. Rather than resorting to protectionist measures, Phumtham advocates for collaborative approaches that promote healthy competition.

 

The government remains committed to mitigating the adverse effects caused by the surge of international e-commerce platforms. Through coordinated efforts with relevant sectors, Phumtham assures that the Ministry of Commerce will find balanced solutions that safeguard consumer interests, support SMEs, and embrace innovation.

 

In summary, Temu’s entry has disrupted Thai SMEs, prompting the government to implement protective measures while capitalising on new opportunities. The overarching aim is to ensure that Thailand’s economy and society prosper in the wake of global trade shifts.

 

-- 2024-08-13

 

- Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

[lordgrinz]

When an entire country is built on corruption and greed, you shouldn't be too surprised when the Chinese show up to take part.

[watchcat]

26 minutes ago, webfact said:

The focus was on ensuring imported products meet local standards like TIS and FDA requirements and devising fair tax policies for transnational platforms.

 

but they don't, ban them.

[watchcat]

11 minutes ago, lordgrinz said:

When an entire country is built on corruption and greed, you shouldn't be too surprised when the Chinese show up to take part.

 

I blame it on cowardice....

[Pouatchee]

for years i had no recourse or options when i wanted to buy something. other than tesco, makro and other chains i had to do business with small/medium sized local shops usually owned by thai chinese. the quality was crap and if something broke they did nothing. now that all these online platforms are eating into their profits they arent happy... but i certainly am.

 

these small/medium shop owners had the monopoly long enough. will they improve their service, or warranties if the online shops have hurdles in their way...? certainly not... theyll just increase the prices, thai style

[Will B Good]

 

 

 

It might take some time, but the Thais will realise that what they are buying is absolute **** and only a quarter of the size compared to the  photos Temu post.

[ikke1959]

Never heard of free trade??? If the local product are too expensive make them cheaper....

[Will B Good]

2 minutes ago, ikke1959 said:

Never heard of free trade??? If the local product are too expensive make them cheaper....

 

 

Rather naive.....While the idea of free trade promotes the efficient allocation of resources, increased competition, and consumer benefits, in reality, trade between nations is influenced by a myriad of factors that prevent it from being entirely free. Most international trade operates within a framework of rules, regulations, and negotiations that reflect the complex interplay of economic, political, and social considerations.

 

[ikke1959]

1 minute ago, Will B Good said:

 

 

Rather naive.....While the idea of free trade promotes the efficient allocation of resources, increased competition, and consumer benefits, in reality, trade between nations is influenced by a myriad of factors that prevent it from being entirely free. Most international trade operates within a framework of rules, regulations, and negotiations that reflect the complex interplay of economic, political, and social considerations.

 

i agree with you but still free trade...even with rules and regulations, but the panicking here in Thailand because of some Chinese products is over the top, only to protect their own business, which also low quality. But Thailand protects everything that is why it is difficult to do anything as you need a workpermit for all and all jobs are protected and you can't protect everything  

[Will B Good]

1 minute ago, ikke1959 said:

i agree with you but still free trade...even with rules and regulations, but the panicking here in Thailand because of some Chinese products is over the top, only to protect their own business, which also low quality. But Thailand protects everything that is why it is difficult to do anything as you need a workpermit for all and all jobs are protected and you can't protect everything  

 

Lot of truth in that......👌

[SHA 2 BKK]

I brought some clothes through Temu as the sizes through Thai online and retail stores “no can - you too big”.   Everything fits just fine and the quality and price surprisingly good - not to mention free shipping.  
 

Saves me waiting to go back to Oz to some decent threads. 
 

Long live competition.  

[hotchilli]

3 hours ago, webfact said:

Temu’s presence is a sign of the changing trade landscape, heavily influenced by technology and the internet. Phumtham pointed out that the entry of such a competitive platform is a wake-up call for Thai SMEs, who must adapt quickly to survive in this new environment.

Welcome to the real world... 

[hotchilli]

3 hours ago, webfact said:

Additionally, the Ministry discussed measures to collect appropriate e-commerce taxes from international platforms. This move aims to create a level playing field for local businesses and shield the domestic economy from potential harm

I notice a similar trend in my local supermarket, anything foreign is priced out.

[Slocum]

First is 1) Protectionism, Than follow by 2) Globalisation ..3) Open Market Free Trade..4) Protectionism again...What is all these about...Changing System to suits their needs......These Scum Politicians all over the world are the same ,They changes their mind like we daily changes our underwear..there are no Morals, virtues, or Principals in what they say or do..Must have learn a lot from the Born Loser "USA" ...

[madmitch]

Most of the plastic junk on sale in Thailand markets and the 20 baht shops is imported from China and the quality is often poor. 

 

With Temu you're just cutting out the middleman. 

 

 

[FlorC]

Anyone know if Temu has COD ?

I don't want to register to find out it is only credit card.

[SHA 2 BKK]

2 minutes ago, FlorC said:

Anyone know if Temu has COD ?

I don't want to register to find out it is only credit card.

I used Apple Pay.  Not sure about COD sorry. 

[steven100]

4 minutes ago, FlorC said:

Anyone know if Temu has COD ?

I don't want to register to find out it is only credit card.

just tell them you'll pay the driver. 

[JimboB4]

With legalized cannabis you shouldn’t have to worry about the economy much with the billions of dollars it’s bringing in. 

[JimboB4]

Thank God they have the multi billion dollar cannabis industry. If it wasn’t for that not sure where their economy would be right now. 

[khunjeff]

4 hours ago, webfact said:

The focus was on ensuring imported products meet local standards like TIS and FDA requirements

 

Yes, because we know that Thai standards are the envy of other nations 🙄

 

4 hours ago, webfact said:

The goal is to prevent low-quality or hazardous products from entering the Thai market

 

Yes, we don't want any competition with hazardous, low-quality Thai products...

[FlorC]

23 minutes ago, SHA 2 BKK said:

I used Apple Pay.  Not sure about COD sorry. 

If you use Apple pay , you have a log in , so you can see the payment options , just like on lazada.

[Carlosm]

Got to laugh tho', Chinese online store that doesn't sell mobile phones !

[SHA 2 BKK]

32 minutes ago, FlorC said:

If you use Apple pay , you have a log in , so you can see the payment options , just like on lazada.

Yes correct.  Open a Temu account and put in your delivery address.   I just looked and they have a COD option.  Plenty of junk on the site but the clothes I ordered fit just fine.  

[FlorC]

^ Thanks ! If lazada locks me out again , I'll have an alternative.

[IamNoone88]

Temu is pretty good. its like an Alibaba without the large minimum order quantities. No problem on quality.

[Thingamabob]

Just another step along the path to a Chinese takeover of Thailand. Thai govt people expressing concern is BS given that it is they who have given the Chinese an open door to all things Thai. 

Edited August 13 by Thingamabob

[Graham8888]

4 hours ago, Pouatchee said:

for years i had no recourse or options when i wanted to buy something. other than tesco, makro and other chains i had to do business with small/medium sized local shops usually owned by thai chinese. the quality was crap and if something broke they did nothing. now that all these online platforms are eating into their profits they arent happy... but i certainly am.

 

these small/medium shop owners had the monopoly long enough. will they improve their service, or warranties if the online shops have hurdles in their way...? certainly not... theyll just increase the prices, thai style

But temu sells junk and long delivery timelines plus almost impossible to return items and get refunds, similar to shein

[BerndD]

TEMUs COD only here:

Cash on Delivery

Cash on Delivery is a payment option supported by merchandise partners for customers in Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Oman, Bahrain and Jordan, where customers can pay in cash upon delivery of the parcel.

[madmitch]

1 hour ago, FlorC said:

Anyone know if Temu has COD ?

I don't want to register to find out it is only credit card.

Certainly no COD in the UK. Maybe Thailand will be different but I doubt it. I've not loooked at the Thai site but in the UK it's free delivery on orders over £15, about 600 baht.