Thailand tightens scrutiny of Temu
Thai authorities are tightening regulations on bargain shopping site Temu, which entered the market last month, to protect local merchants from the influx of low-priced, direct-to-consumer Chinese products, according to the Bangkok Post.
Prime Minister Srettha Thavisin had directed the Ministry of Digital Economy and Society, the Revenue Department, and police to ensure that Temu, operated by Chinese e-commerce giant PDD Holdings, complied with local laws and paid taxes appropriately, the newspaper reported.
Discussions were under way to impose stricter import measures, Srettha said.
In July, Thailand introduced a 7 per cent value-added tax (VAT) on imported products priced below 1,500 baht (HK$330), effective till the end of December. Next year, a new law will allow the Revenue Department to continue collecting VAT on such products.
Temu did not immediately respond to a request for comment yesterday.
The firm launched its platform in Thailand on July 31, marking its third market in Southeast Asia after the Philippines and Malaysia. It is offering discounts of up to 90 per cent on some products and promises fast delivery directly from China, with shipping in under five days.
The e-commerce market in Thailand was worth around US$19 billion last year, a year-onyear increase of 34.1 per cent, making it the second-largest in Southeast Asia after Indonesia, according to industry consultancy Momentum Works.
The Thai market is currently dominated by Sea Group’s Shopee with a market share of 49 per cent, and Alibaba Group Holding’s Lazada with 30 per cent. Alibaba owns the Post.
Temu, which operates in more than 70 countries and regions worldwide, reported a gross merchandise value of US$20 billion in the first half of the year, according to Chinese media outlet 36Kr.