The ministry previously urged all hypermarket retailers to sign tomorrow's MoU, which would suspend their new-outlet expansions for 30 days while solutions were sought that would address negative effects on small and traditional retailers. The move is aimed at avoiding serious conflict between giant retailers and small shops.

"Until now, we have yet to receive any contact from Tesco Lotus on whether they would sign the MoU on Wednesday," said Preecha, adding that his ministry had already been contacted by hypermarket operators Carrefour, Siam Makro and Big C Super Centre. They all confirmed they would sign the MoU tomorrow.

Fifteen multinational retailers will meet tomorrow with the commerce minister to sign the MoU, while about 1,000 provincial shop owners will rally at the ministry, asking it to take immediate action against multinational retailers to stop their new outlet expansions.

The ministry rushed to draft the MoU after facing complaints by the giant retailers that they could not sign it without seeing it. Under the draft, the ministry wants these retailers to suspend all expansion activities - stores already under construction and near-future investments - for 30 days. In addition, the ministry will hold talks to find compromises between big and small retailers.

"The ministry will implement stringent punishment by inspecting companies to determine whether or not they are undertaking good governance in terms of tax payments, balance of accounts and administration," Preecha said.

Darmp Sukontasap, corporate and legal affairs director of Ek-Chai Distribution System Co Ltd, which operates Tesco Lotus in Thailand, said the company had not yet received or seen any draft of the MoU.

"We are ready to support the ministry in providing information from our side, but how can we make a decision without seeing any details of the MoU?" asked Darmp, adding that so far only two hypermarket retailers had received the draft: Carrefour and Siam Makro.

Darmp said the MoU set would have an impact not only on the companies themselves, but also other stakeholders, particularly their suppliers and individual tenants who rented retail space in the stores. Tesco Lotus deals with more than 40,000 individual suppliers.

"We have stores that have received legal approval from the authorities to be constructed and opened. We also have stores being constructed and waiting to be opened. We have stores being constructed. We even don't know what kinds of stores are to be suspended under the MoU," said Darmp.

Internal Trade Department director-general Siripol Yodmuangcharoen said that big retailers should suspend all expansion. The government may need to conduct a public hearing before allowing any retail store to be established in a community.

Siripol said the ministry had nearly finished an amendment to the Retail Business Act that would regulate the expansion of giant retail outlets. This would control modern retail outlets established in certain communities by addressing population ratio, distance between stores and the impact on both the environment and retail market share.

The ministry reported there would be a committee meeting on competition, led by caretaker Commerce Minister Somkid Jatusripitak, on September 29. The meeting will consider the implementation of retail guidelines that control business expansion during the period of the Retail Business Act's draft-amendment process and also regulations on market dominance.

Petchanet Pratruangkrai,

Kwanchai Rungfapaisarn

The Nation