ส.อ.ท. กังวลสินค้าราคาถูกด้อยคุณภาพบุกตลาดไทยFTI Expresses Concern Over Low-Quality, Low-Cost Products Invading Thai Market

Mr. Montree Mahapruetphong, Vice Chairman of the Federation of Thai Industries (FTI), disclosed the results of the FTI CEO Poll No. 38 conducted in February 2024 under the theme “How is the Industry Coping with the Influx of Low-Quality, Low-Cost Products into the Thai Market?” According to the opinions of FTI executives, the influx of low-quality, low-cost products has adversely impacted Thai product sales, causing a decline of 10% to over 30% in some industries. This issue has raised concerns within the industrial sector regarding the competitiveness of domestic industries as many sectors cannot compete on price with the incoming low-cost products. Additionally, there are worries about consumer safety when selecting products of questionable quality and standards, particularly in sectors such as electrical appliances, food, cosmetics, textiles, clothing, fashion items, and construction materials.

In response to these impacts, FTI executives have proposed that the government increase measures to detect non-standard products and tackle fraudulent declarations entering through customs. Alongside this, there should be checks on non-standard products in the local market, both under the Industrial Standards Act (ISO) and the Food and Drug Administration (FDA). Moreover, it is essential to expedite addressing the issue of low-cost products entering through online e-commerce platforms by reconsidering the exemption of value-added tax (VAT) on online purchases not exceeding 1,500 THB and establishing measures to prevent false price declarations, as well as reviewing conditions for utilizing free zone warehouses to ensure fair selling practices within the country.

Furthermore, when asked about the competitive situation of Thai products in the ASEAN market, most FTI executives expressed that the rising production costs in Thailand, driven by electricity prices, raw material costs, labor wages, interest rates, and logistics expenses, have made it increasingly challenging for Thai products to compete in the ASEAN market, as evidenced by a decline of over 7.12% in the value of Thai exports to ASEAN in 2023 compared to 2022.

According to the survey of 234 FTI executives, covering managers from 46 industrial groups and 76 provincial industrial councils, the results of the FTI CEO Poll No. 38 outlined six questions as follows:

1. To what extent has the industrial sector been affected by low-cost and non-standard products entering the Thai market?
Rank 1: Sales down by 10% 20.9%
Rank 2: Sales down by 20% 19.7%
Rank 3: Sales down by more than 30% 17.9%
Rank 4: Sales down by 30% 7.3%
Rank 5: No impact 34.2%

2. What concerns does the industrial sector have regarding the impact of low-cost and non-standard products? (Multiple choices)
Rank 1: Domestic industries losing competitiveness 81.2%
due to an inability to compete on costs.
Rank 2: Consumer safety in selecting low-quality products 74.4%
and non-standardized items.
Rank 3: Waste management from non-standard products, especially electrical appliances 44.0%
Rank 4: Smuggling products that infringe on Thailand's export rights to other markets 42.3%

3. What strategies does the industrial sector plan to adopt in response to low-cost products entering the market? (Multiple choices)
Rank 1: Elevating product quality to meet standards such as ISO, FDA 65.8%
Rank 2: Building a recognizable brand and enhancing after-sales service 58.1%
Rank 3: Developing eco-friendly production processes and products 49.1%
that meet consumer trends.
Rank 4: Adjusting marketing strategies to target higher-income consumers seeking quality products 46.6%

4. What measures should the government implement to protect Thai operators from low-cost and non-standard products? (Multiple choices)
Rank 1: Increase strictness in detecting non-standard products and fraudulent declarations 78.2%
imported through customs, and checking non-standard products in the local market under ISO and FDA regulations.
Rank 2: Re-evaluate VAT exemptions on online purchases 66.2%
not exceeding 1,500 THB and implement measures to prevent false price declarations.
Rank 3: Review conditions for using free zone warehouses 54.7%
for selling products online.
Rank 4: Enforce measures against dumping and market subsidization 48.3%
(Anti-Circumvention: AC).

5. Which product categories should the government prioritize assistance for to mitigate the impact of low-cost and non-standard products? (Multiple choices)
Rank 1: Electrical appliances 70.1%
Rank 2: Food and cosmetics 55.6%
Rank 3: Textiles, clothing, and fashion items 49.6%
Rank 4: Construction materials 42.7%
Rank 5: Machinery 30.3%

6. How does the industrial sector view competition with the influx of products in the ASEAN market?
Rank 1: Thai products are struggling to compete due to high costs 57.7%
Rank 2: Thai products have lost some market share but can still maintain a presence 31.2%
Rank 3: Thai products remain popular and competitive 11.1%

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