Bangkok Post – Senator calls for action to support SMEs

It is said that Internet giants are flooding the market

Senator Nantana Nantavaropas is calling on the Ministry of Commerce to support SMEs affected by e-commerce platforms selling cheap, low-quality goods to Thai consumers.

During yesterday’s Senate meeting, Sen Nantana expressed the Minister of Commerce’s concerns about the overwhelming influence of international e-commerce platforms on local small and medium-sized enterprises (SMEs) in Thailand.

She highlighted the rapid growth of platforms such as Temu, which offer a wide range of products at extremely low prices, eliminating the need for intermediaries.

The senator pointed out that although consumers may enjoy lower prices, in return they receive very low quality products.

Products may be unsafe, contaminated or almost expired and then become waste, she added.

Sen Nantana noted that Thai sellers have suffered as more consumers order products directly from Chinese manufacturers through such a platform, leading to Thailand’s growing trade deficit with China.

According to it, imports from China in the first half of this year increased by more than 1.33 trillion baht, or 7.12%, compared with the same period last year, widening the trade deficit by 15.66%.

Sen Nantana asked what measures Trade Minister Pichai Naripthaphan would introduce to combat the dominance of transnational e-commerce and the influx of low-quality goods that are harmful to consumers.

She also asked how the ministry would support compensation for affected SMEs and end the trade deficit with China.

She asked whether the government would cooperate with other Asian countries to deal with the matter.

Pichai confirmed Sen Nantanas’ concerns, saying he discussed the issue with China’s ambassador to Thailand on Thursday.

He said the Chinese ambassador had stated that China was willing to comply with Thailand’s import regulations, and he would not allow the sale of imported goods that did not meet standards.

He added that China has also confirmed that it will invest more in Thailand.

When it comes to support for the SME sector, Pichai said more cooperation is needed.

He added that the Ministry of Finance and the Bank of Thailand (BoT) must work together to resolve the issue, suggesting that the BoT should help reduce SME debt by lowering interest rates.

The minister said the failure occurred when Covid-19 hit.