Economy Senate Steps Up to Tame Foreign Dominance in Thai E-Commerce

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Picture courtesy of Wiki Finance

 

The Senate committee is draughting the Platform Economy Act, planning to tackle the overwhelming presence of foreign entities in Thailand's bustling e-commerce sector.

 

Eakachai Ruangrat, the committee's first vice-chairperson, emphasised the necessity of reclaiming Thailand's digital sovereignty amid the surge of overseas products, particularly from China.

 

Local brands are reportedly struggling against the influx of foreign goods that often evade taxation and standards.

 

Thailand's e-marketplace, valued at a whopping 1.8 trillion baht, is predominantly populated with international merchandise, raising concerns over the impact on domestic trade. The Senate's proposal includes mandatory registration and distinct financial reporting for businesses operating offline and online, extending to foreign companies selling through the internet. This measure is to ensure accountability and fair play, aiming to curb unfair advantages possessed by foreign competitors.

 

Eakachai suggested revisiting tax frameworks to better support local businesses, proposing income tax exemptions for SMEs utilising Thai platforms and different value-added tax rates for products sold offline (7%) versus online (15%). He also recommended setting a minimum quota, where at least 20% of all goods sold on e-commerce platforms should be domestically produced, to boost local production.

 

Pawoot Pongvitayapanu from the Thai E-Commerce Association highlighted the dependency on foreign e-marketplaces, noting that over 100 million Chinese items were available in 2024 on these platforms. He warned against over-reliance on these foreign giants, suggesting policy changes or shutdowns could heavily impact local traders.

 

Pawoot also filed a complaint with the Trade Competition Commission, accusing dominant foreign e-marketplaces of violating competition laws and obstructing local businesses.

 

Advocating for a national e-marketplace, Pawoot envisions a digital infrastructure that serves all parties equally. Meanwhile, Theeratat Nudum from La Glace Cosmetics spotlighted the threats posed by Chinese brands. These brands exploit their vast resources and online expertise, utilising Thai influencers to deepen their infiltration into the Southeast Asian markets, thereby overshadowing local players.

 

The committee's draft and recommendations might herald a significant shift in the Thai e-commerce landscape, offering a lifeline to local sellers overwhelmed by foreign dominance. As the discussion progresses, it remains crucial for the act to align with both consumer needs and business interests in the rapidly evolving digital trade arena.

 

  Adapted by ASEAN Now from Bangkok Post 2025-05-19