Thailand seen a 20% decline in low-quality imports, primarily from China, following the implementation of measures aimed at reducing cheap Chinese goods that were negatively impacting the country’s economy, according to a government spokesperson on Monday.
Inexpensive products from China have disrupted local manufacturing and businesses, leading to numerous factory closures and job losses, prompting demands for governmental intervention.
Government spokesperson Sasikarn Wattanachan stated that after tightening regulations and inspections in July, the value of low-quality imports dropped significantly. New measures were enacted to combat imports that failed to meet local standards, specifically targeting agricultural, consumer, and industrial goods, she informed Reuters.
Additionally, the government seized imports worth 506 million baht, which included counterfeit items, shirts, shoes, and e-cigarettes, according to official statistics.
Furthermore, Thailand started charging a 7% value-added tax (VAT) in July for goods priced under 1,500 baht. So far, the Finance Ministry has reported collections amounting to 707 million baht.
According to senior customs official Kitjaluck Srinuchsart, the tax has not deterred consumers, as imports have continued.
Shipments of goods valued below 1,500 baht from e-commerce platforms more than doubled from the previous year, reaching 113.7 million units, based on unreleased customs data provided to Reuters.
These imports were valued at 24.9 million baht, representing a 50.4% increase compared to the previous year.
For some businesses, however, these measures may have been implemented too late.
Banchob Pianphanitporn, 56, the owner of Ben’s Socks, expressed that the response was too slow, as his sales declined by 80% from June to October compared to the previous year.
“Customers used to come for affordable socks—120 to 130 baht a dozen, but they have disappeared… Now they’re buying Chinese socks for 75 to 85 baht a dozen and reselling them for 10 baht per pair,” he said.
Ms. Sasikarn indicated that additional measures would be introduced to support Thai businesses, including requirements for foreign online businesses to establish a presence in Thailand and register for VAT payment.
