The Thai Retailers Association (TRA) is calling on the government to crack down on unfair trade practices to protect businesses and consumers.
Nath Vongphanich, president of the TRA, expressed concerns over the rapid influx of foreign products into the Thai market, which take advantage of existing regulatory weaknesses and pose a significant threat to local entrepreneurs, particularly small and medium-sized enterprises (SMEs) and local businesses.
He emphasised the urgent need to tackle this issue, warning that inaction could lead to permanent setbacks for the Thai retail sector.
He outlined the main challenges faced by local businesses, including a surge in imported goods at unrealistically low prices that do not reflect genuine production costs along with insufficient regulatory controls.
Additionally, foreign e-commerce platforms are leveraging legal loopholes to gain an unfair advantage in market share, while regulatory gaps allow nominees to operate without proper oversight.
This situation affects not only Thai businesses, especially the more than 3.3 million SMEs, with roughly 2.8 million of them, or about 90%, in the retail and service industries, but also raises risks for Thai consumers as many imported products, particularly electrical appliances and cosmetics, fall short of safety and quality standards.
To ensure fair competition and protect the economy, the TRA proposes three urgent measures the government should take.
First, the government should enhance regulatory frameworks to align with current market conditions and strengthen import inspections.
Mr Nath recommends moving from random inspections to 100% screening by the Customs Department, employing advanced technology for precise oversight.
Moreover, it is vital for the government to implement minimum pricing regulations that align imported goods with their actual costs and prevent predatory pricing practices.
The Trade Competition Commission of Thailand should enforce stricter laws against below-cost pricing and expand regulatory oversight.
Second, the authorities must ensure fair taxation practices for e-commerce platforms to create a level playing field.
Finally, the TRA highlights the importance of eliminating nominee business structures to close foreign business loopholes.
To achieve this mission, stringent measures must be introduced to scrutinise company registrations and prevent foreign nationals from circumventing business ownership laws, which require at least 51% Thai ownership in certain sectors.
High-risk industries include restaurants and supermarkets, where foreign entities often exploit regulatory gaps.
The TRA also emphasises the need for clear business licensing criteria, such as requiring appropriate Thai workforce employment ratios to mitigate local unemployment and introduce specific zones for foreign-owned businesses to ensure economic benefits remain within Thailand.