Firms should leverage e-commerce to boost shipment of goods to key market, minister says

Thailand should seize opportunities arising from the burgeoning e-commerce industry to sell more products into the Chinese market, while also strengthening cooperation with Beijing to help boost the kingdom’s exports, Thai Commerce Minister Pichai Naripthaphan said.

Following a recent meeting with the Chinese ambassador to Thailand, Pichai said that China and Thailand enjoy a historical long friendship, and that economic and trade collaboration will bring long-term benefits to both sides.

He dismissed concerns among some Thai people about an influx of Chinese goods into Thailand, pointing out that nearly 80 percent of China’s exports to Thailand are capital and intermediate goods, which are essential for local manufacturing and exports from Thailand. 

“Those products are mostly exported from Thailand to other countries after further processing; which includes electronic circuit boards, SIM cards and smartphones. It boosts our economy and enhances the employment,” Pichai said.

He said that Chinese investment in Thailand has surpassed that from Japan.

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Also, Chinese tourists — the Thai government has targeted about 8 million Chinese visitor arrivals this year — contribute a lot to the kingdom’s economic growth, Pichai said. 

Meanwhile, Thai tropical fruits have become a big draw among Chinese consumers, the minister said, noting that fruit trade with China brings Thailand substantial income annually.

“I call for a rational perspective from Thai media and public (in regard to) our trade with China. E-commerce, which has swept the globe, may impact Thai small businesses, (but) it can create more opportunities for Thai products going outside,” Pichai said.

He revealed that Thailand has used Chinese influencers for e-commerce live-streaming to sell Thai products to China at a recent international commerce expo, generating about 320 million baht ($9.86 million) worth of transactions in a single day.

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“China will continue to assist Thailand to expand its trade … via traditional channels and online platforms. Furthermore, we are also happy to give professional training and help the kingdom to boost its talents on e-commerce,” said Han Zhiqiang, China’s ambassador to Thailand.

He stressed that the so-called cheap Chinese goods, which have attracted a great deal of public attention in Thailand, mainly consist of daily chemical products, food, health products, clothing accessories, etc, and account for less than 10 percent of China’s total exports to Thailand.

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He said that Beijing has always instructed Chinese enterprises to do overseas business in accordance with local laws and regulations. China will continue to support efforts to strengthen supervision, and take action in case there are any rule violations.

China has been Thailand’s largest trade partner for several years. Last year, bilateral trade reached $126.3 billion, with China having a trade surplus of $25.1 billion, according to the statistics from the Chinese embassy in Thailand.

“We don’t see trade surplus to Thailand as our target. Instead, we always welcome Thai products to enter Chinese market,” Han said, adding that trade flows bring “mutual benefits”.

Criticism that only focuses on single cases while disregarding the overall picture can jeopardize the interests of people from both China and Thailand, the envoy said, as he urged further close cooperation to ensure a healthy and fair trading environment.

“We hope to share the development opportunities with Thailand for common prosperity,” he said, adding that the big market of China, with over 1.4 billion people, offers “great potential for Thailand to boost its exports”. 

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Narongsak Putthapornmongkol, president of the Thai-Chinese Chamber of Commerce, said outcomes from Sino-Thai trade should not be overlooked.

For example, the Thai-Chinese Rayong Industrial Zone has contributed substantially to Thai exports last year and provided jobs for more than 55,000 Thai people, he said.

“Instead of taking jobs from Thais, Chinese enterprises in Thailand helped to boost employment in Thailand, as they have to hire four Thais to gain add one job for a Chinese employee,” Narongsak said.

“Government sectors should help to enhance the competitiveness of Thai enterprises in global trade and strengthen law enforcement on illegal activities,” he said, adding that his chamber will assist in providing information on local laws and regulations to Chinese enterprises.