ส.อ.ท. เสนอรัฐกำหนดเงื่อนไขแพลตฟอร์มอีคอมเมิร์ซต่างชาติ ต้องจดทะเบียนในไทยFTI Proposes Regulations for Foreign E-commerce Platforms to Register in Thailand

On Monday, October 21, 2024, Mom Luang Pikthong Thongyai, Vice Chairman of the Federation of Thai Industries (FTI), revealed the results of the FTI CEO Poll No. 41 conducted in October 2024 under the topic "How Will the Industry Cope with the Influx of Foreign Low-Priced E-commerce Platforms?" The survey found that 35.1% of FTI executives reported a decline in sales due to the presence of foreign e-commerce platforms selling low-cost products, especially in categories such as clothing, furniture, plastic products, and packaging. Some products sold through these e-commerce platforms may not meet standards, lack quality, or be misrepresented, leading to consumer financial loss and risks regarding product safety. Therefore, FTI executives proposed that the government establish conditions requiring foreign e-commerce platform providers to register as legal entities and have offices in Thailand to facilitate the collection of value-added tax (VAT) and ensure strict enforcement of consumer protection laws. Additionally, they suggested that platform providers should be responsible for product returns in cases where the products do not meet quality standards or are misrepresented.

However, the survey results indicated that most FTI executives still believe that Thai products can compete with low-cost foreign products sold through e-commerce platforms. Nevertheless, Thai operators need to accelerate their adaptation to develop and reinforce their product strengths, particularly in enhancing product standards, integrating innovative technologies to upgrade production processes and products, and building business collaboration networks to promote locally produced goods and expand market access internationally.

The survey involved 175 FTI executives, covering management from 46 industry groups and 76 provincial industry councils. Here are the summarized results of the FTI CEO Poll No. 41 comprising six questions:

1) How does the influx of low-priced e-commerce platforms impact product sales?*
Rank 1: No impact 47.4%
Rank 2: Decreased 35.1%
Rank 3: Increased 17.5%

2) What positive impacts do low-priced e-commerce platforms have?
Rank 1: Provides consumers with greater access to products directly from manufacturers 65.7%, without intermediaries.
Rank 2: Accelerates the need for Thai operators to adapt and develop their businesses to remain competitive 64.0%.
Rank 3: Promotes the growth of e-commerce markets within the country while also supporting the digital economy 26.3%.
Rank 4: Helps reduce inventory management costs for operators importing products for domestic sale 13.1%.

3) What negative impacts will low-priced e-commerce platforms have?
Rank 1: Introduction of substandard and low-quality products into the country 61.7%, affecting consumer safety and resulting in waste management burdens.
Rank 2: Inability to compete on price, leading to a loss of market share 44.6%.
Rank 3: Risk of adverse effects on the domestic industry supply chain 41.7%.
Rank 4: Negative impacts on domestic operators' profits due to price reductions 26.9% and costs associated with competition.

4) How should the government regulate e-commerce platform providers?
Rank 1: Establish conditions requiring foreign e-commerce platform providers to register as legal entities and maintain offices in Thailand for VAT collection 67.4%.
Rank 2: Strictly enforce relevant consumer protection laws 46.9%, providing convenient complaint channels and holding platform providers responsible for managing product returns when products do not meet quality standards or are misrepresented.
Rank 3: Mandate e-commerce platform providers to display standard compliance marks 45.1%, including labels on online product listings.
Rank 4: Conduct audits of payment systems going to foreign countries 26.3%, requiring compliance with proper procedures under the supervision of the Bank of Thailand.

5) How should the private sector adapt to the arrival of low-priced e-commerce platforms?
Rank 1: Develop product standards and incorporate innovative technology 57.7% to enhance production processes and products.
Rank 2: Create business cooperation networks to promote domestically produced goods and open up market channels 48.6%.
Rank 3: Use creative design concepts to establish product identity while emphasizing patent registration 34.9%.
Rank 4: Build brand recognition and improve after-sales service 32.0%.

6) Can the industry compete with low-priced products coming through e-commerce platforms?*
Rank 1: Yes, can compete 80.7%.
Rank 2: No, cannot compete 19.3%.
Note: *Excludes industrial groups without products sold via e-commerce platforms.

...........................................................................................................
Released by the Corporate Communications Division, Federation of Thai Industries (Tel. 0-2345-1051)
Prepared by the Economic and Academic Division, Federation of Thai Industries (Tel. 0-2345-1111)