Bangkok (VNA) - An influx of cheap imports from China is posing a serious threat to Thai manufacturers, according to Thai Kasikorn Research Centre (KResearch).

Last year, Thailand imported consumer products worth 469.5 billion THB (13 billion USD) from China – up 2.8% year-on-year, which accounted for 41% of all imports of consumer products, KResearch said, citing statistics from the Commerce Ministry.

Electrical appliances made up 43.3% of products imported from China, higher than other products that comprised fresh and processed fruits (10%), clothes and shoes (9.3%), furniture and home decorations (9.1%), and kitchenware (9%).

According to a Kresearch study, the Chinese imports have heightened the competition with domestic products, especially in segments where Chinese products are significantly cheaper because of lower production costs, including shoes, bags, vegetables and fruits.

The centre also found that Thai manufacturers have gradually reduced production capacity in the non-food sector that is heavily competing against Chinese counterparts, such as apparels and furniture, which are now using only around 30-45% of their capacity.

The retail industry is forecast to expand by 3% this year to approximately 4.1 trillion THB. The expansion will be driven mainly by spending by foreign tourists, while the price mechanism will prompt around 60% of retail operators to adjust their price up in the next three months, it said.

Earlier this week, the Thai Commerce Ministry announced that it was considering measures to combat the influx of cheaper products from overseas, include expanding the list of products legally required to have Thai Industrial Standard certificates and revising the tax break on imported products worth under 1,500 THB (41 USD) sold on online platforms./.

VNA