SMEs call on govt to protect Thai manufacturers from dumping of cheap Chinese goods

Saengchai Teerakulvanich, president of the federation, said the group recently spoke with the Commerce Ministry and proposed some measures to deal with the flood of Chinese goods.

As part of the proposal, Saengchai said the federation has asked the ministry to review import tax rates on the types of goods affecting Thai SMEs directly.

The federation also called on the Commerce Ministry to have the Board of Investment review the privileges granted to Chinese companies, whose investments do not really benefit Thailand and Thai SMEs.

Saengchai said his federation has also asked for the Finance Ministry to slap a value-added tax on imported Chinese products.

On Friday, a source said the Finance Ministry was planning to start collecting VAT on products sold via online platforms with price tags starting from 1,000 baht, instead of 1,500 baht like before.

The Finance Ministry has, however, refused to scrap the VAT exemption on overseas products on grounds that it would violate free-trade agreements.

Saengchai said his federation had also asked the Commerce Ministry to find ways to support Thai farmers and SMEs by encouraging Chinese manufacturers to use local materials instead of importing raw materials from China.

The federation also asked the Commerce Ministry to support online sales of Thai products while enforcing strict laws against the smuggling of cheap goods from China.

Saengchai added that the federation had also proposed that a public-private partnership organisation be set up to work with other organisations and relevant government agencies to create a bargaining platform for Thai SMEs and help them reduce manufacturing costs.

He said the federation has also asked the Commerce Ministry to encourage the government to launch subsidies that help reduce the living costs for workers at SMEs, who are members of the Social Security Fund. The subsidies could come in the form of discounted e-coupons from major consumer brands.