Probe ordered into launch of China’s Temu E-commerce platform in Thailand

Prime Minister Srettha Thavisin has ordered the Ministry of Digital Economy and Society, the Revenue Department and the police to determine whether the China-based Temu E-commerce platform is complying with the Thai law and is paying required taxes.

The prime minster said that the arrival of foreign-based E-commerce platforms has posed a problem for the Thai retail sector, because they are well-funded and equipped with new technology to an extent which makes it difficult for Thai companies to compete.

He also warned that any Thai officials who help these foreign-based platforms to evade taxes will be dealt with harshly.

The Temu E-commerce giant has quietly launched its operations in Thailand, with discounts on some Chinese-made items of up to 90%.

According to Momentum Works, a Singapore-based business consultancy, the Temu E-commerce platform, a subsidiary of Pinduoduo, China’s major E-commerce company and key rival to JD.com and Alibaba, launched its service in Thailand on July 31, the third country in Southeast Asia after the Philippines and Malaysia.

The most outstanding feature of the service is its fast delivery of products from China’s Kwong Cho province, which take no more than five days.

According to the E-commerce in Southeast Asia 2024 report, by Momentum Works, the E-commerce sector in Thailand last year was worth about US$19Bn, a growth of 34.1% over the previous year and the second largest in Southeast Asia, after Indonesia. E-commerce market share in Thailand is currently dominated by Shopee (49%), Lazada (30%) and TikTok Shop (21%). No local platforms hold any measurable market share.