Foreign e-commerce operators will be mandated to establish registered offices in Thailand under the newly proposed digital platform service law, as stated by the Electronic Transactions Development Agency (ETDA).
The agency plans to issue the necessary notification after consulting with the Department of Trade Negotiations to ensure compliance with existing trade agreements, according to executive director Chaichana Mitrpant.
The ETDA is among several governmental bodies addressing the influx of inexpensive products from China available through e-commerce platforms in Thailand. The digital platform service law will require operators of specific sizes wishing to conduct business in Thailand to submit essential information to the ETDA before commencing operations.
Furthermore, the agency intends to include a provision in the law that compels these operators to register within Thailand.
Chaichana mentioned that the Chinese e-commerce giant Temu has already had its Singapore subsidiary register with the ETDA as a digital platform operator.
Currently, over 1,400 digital platform service operators have complied with these regulations.
Visanu Vongsinsirikul, the secretary-general of the Trade Competition Commission of Thailand, indicated that the commission is monitoring business practices and identifying potentially harmful conduct.
If any business is found to engage in risky or unfair trade practices, such as predatory pricing or selling goods at a loss, the commission will take action against them. Violators may face criminal and administrative penalties, which could include imprisonment for up to two years, fines up to 10% of their annual revenue, or both.
Pawoot Pongvitayapanu, a pioneer in the local e-commerce space, suggested that the Thai government conduct thorough assessments of the effects stemming from cheap imported products. Additionally, he recommended that policymakers utilize the Traffy Fondue city management platform to enable citizens to report issues related to the influx of low-cost imports, while also tracking the resolution process.
Pawoot emphasized that the surge of inexpensive items is a critical concern that necessitates impact evaluations to compare conditions before and after the implementation of new measures.
Recently, the cabinet announced the revocation of the value-added tax (VAT) exemption for imported goods valued at less than 1,500 baht, effective July 5. This decision aims to level the playing field between foreign imports, particularly those from China, and locally produced goods, especially from small and medium-sized enterprises.
Thanawat Malabuppa, honorary president of the Thai E-Commerce Association, noted that it will be crucial for policymakers to enforce this rule by requiring e-commerce operators to collect the tax.
Kulthirath Pakawachkrilers, president of the association, added that the government should focus on supporting Thai products and local sellers.
“While we remain welcoming to foreign investments, we advocate for fair competition and the promotion of Thai products, both at home and globally,” she stated. “This strategy will help bolster and sustain Thai products on the international market.”
