Thai retailers propose 3 urgent measures, urging the government to strictly control cheap goods entering Thailand - adjust tax structure - solve nominee problem

Thai retailers point out that they are facing pressure from unfair competition, propose 3 urgent measures, urge the government to strictly control cheap products entering Thailand - adjust the tax structure - solve the nominee problem

March 10, 2568 Mr. Nat Wongpanich, ChairmanThai Retailers Association It states that Thai retailers are facing pressure from unfair competition, with cheap imported products flooding into the Thai market without control.

As multinational e-commerce platforms gain market share by exploiting legal loopholes, Thai retailers, especially small ones, are saddled with higher costs while competing with low-priced products that do not reflect their true costs. If this issue is not addressed urgently, Thai retailers may be forced to permanently lose their economic space.

“Foreign products are rapidly invading the Thai market and exploiting legal loopholes. As a result, Thai entrepreneurs, especially small and local businesses, are severely affected by unfair competition. The main problems include low-priced imported products that do not reflect true costs, making it difficult for Thai businesses to compete. Exploitation of legal loopholes paves the way for the use of… “Nominee” Engaging in gray business, B2C marketing of cross-border e-commerce platforms, which Thai law still does not fully control, has resulted in Thai entrepreneurs losing market share and many businesses having to close down," said Mr. Nat.

However, the impact is not limited to Thai entrepreneurs, especially SMEs, which number more than 3.3 million, of which 2.8 million or almost 90% are in the retail and service sectors. Thai consumers are also at risk because many imported products do not have quality and safety standards, such as electrical appliances, cosmetics, and substandard products or products that do not have Thai labels.

This not only damages Thai businesses, but also directly impacts consumer safety. If this situation is allowed to continue, not only will Thai retail businesses be forced to downsize or close down, but it may also affect the country's overall economic stability.

By suggesting 3 urgent approaches to create a competitive balance and protect the Thai economy as follows:

1. Strictly control the quality of imported products to protect Thai consumers:

• Many cheap products from abroad may be of low quality and do not pass safety standards, which directly affects consumers, such as substandard electrical appliances and cosmetics, especially those without Thai language labels.
• The government should improve regulations to be in line with the current situation and increase the strictness of inspection of imported goods from the beginning, such as the Customs Department changing from a random inspection system to a 100% inspection system, increasing the use of technology to enhance the efficiency of inspection for accuracy.
• Close legal loopholes regarding dumping, such as minimum price controls for imported goods that must show the true cost to prevent undercutting.
• Accelerate the role of the government sector, such as the Office of the Trade Competition Commission (OTCC), which should tighten trade competition laws in cases of setting prices below cost and improve the rules to be more comprehensive.

2. Adjust the tax structure to be fair and reduce inequality in competition:

• Equitable taxation of e-commerce platforms to create fairness for entrepreneurs and benefit consumers and the country in the long term.

3. Solve the nominee problem, close the loopholes for foreign businesses:

• There should be measures to check the establishment of companies that may be faked by foreigners to prevent the circumvention of the Foreign Business Act, which requires foreigners to have no less than 51% Thai shareholders. Businesses that are at risk of using this loophole include restaurants and supermarkets. This is to allow money to flow back into Thailand.
• Set standards for applying for business licenses, such as hiring an appropriate proportion of Thai workers to reduce the unemployment rate among Thais, and specifying areas or zones for foreign businesses.

The Thai Retailers Association believes that improving trade measures and supporting Thai entrepreneurs to compete fairly will help strengthen the retail sector, protect consumers, and strengthen the Thai economy in the long run.

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