LAMPANG — The President of the Lampang Pottery Association laments that the province’s ceramic market has been severely impacted by Chinese competition in online markets. Only 89 factories remain in actual production. He pleaded with the government to urgently control Chinese imports.
There are currently reports of various products being sent directly from China, directly competing with Thai goods. Lampang ceramic entrepreneurs say their businesses have not been spared, causing over 200 out of more than 300 small and medium-sized ceramic factories to cease operations.
On August 13, Mr. Preecha Srimala, President of the Lampang Pottery Association, stated that the situation for ceramic entrepreneurs is the worst it has ever been. Even though they survived the COVID-19 crisis with help from local government officials, the past 2-3 months have seen intense competition from China.
Entrepreneurs have found that online orders for Chinese products are being delivered to customers at very low prices. This is because China cannot sell its products to Europe, so it has shifted focus to the ASEAN market, especially Thailand. The products being dumped are at extremely low prices, directly affecting medium and small-sized ceramic factories, which are now slowing down or stopping production to avoid further losses.
“Before COVID, we had 328 ceramic factories. A survey at the end of 2023 found that only 89 factories remained in actual operation among our association members. The ones that disappeared either stopped their operations or paused to observe market conditions. We’re still waiting for government policies to revive the economy,” he said.
The Association President added that Lampang ceramic entrepreneurs, already weakened by COVID, are now struggling to survive. Despite full support from local government agencies, it’s not enough. He argues that the government should do something to protect local handicraft industries, especially Lampang ceramics, which have a long history and high-quality kaolin sources in Ban Pang Kha, Chae Hom district. Otherwise, Lampang ceramics will surely become extinct.
“Now we’re being hit hard by outside products, especially Chinese goods entering the Thai market. The ‘Rooster Brand’ bowls, a GI product of Lampang province using local clay and featuring symbols of a rooster, banana tree, and peony flower to represent Lampang’s identity, cost about 20 baht to produce. Some sell at cost or slightly above. But similar Chinese bowls are being sold online for just 5 baht, with free delivery,” Preecha stated.
Many other handicraft industries unique to the province are similarly affected because the government allows unrestricted Chinese imports. He urges the government to address this issue urgently to prevent a chain reaction of impacts.
“How can the government be proud when it gives all benefits to foreign investors to set up factories in Thailand and claims that Thailand’s economy is growing? These industries are killing SMEs and domestic industries. The economy is growing by destroying the country’s small-scale economic system,” Preecha concluded.
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