The private sector has urged the government to accelerate implementation of the Retail Business Act to control giant retailers' expansion and save small operators from being forced out of business. There are fears that although UK firm Tesco Lotus, the largest retailer in the Kingdom, recently agreed to halt expansion of its small outlets, it might open more large stores in community areas.

And they believe the law would be the best way to control expansion by giant operators.

The Business Development Department reported that 60,529 retail and wholesale companies had closed between 2001 and last month.

Speaking at a seminar entitled "Retail and Wholesale Problems and the Trade Competition Act", Jit Siratranont, chairman of the Thai Chamber of Commerce's Retail and Wholesale Committee, said the government must closely monitor Tesco's actions. He said Tesco might continue to expand its larger outlets because some flaws can be seen in such laws as the Foreign Business Act and the Trade Competition Act.

Tesco agreed last Friday to halt expansion of its smaller Lotus Express shops. Previously, it had insisted on doubling the number of such outlets to 200 this year.

"The government must seek a short-term solution to help small retailers while enforcing the retail business law as soon as possible to solve the long-term problem," Jit said.

Meanwhile, the Commerce Ministry's retail and wholesale business-monitoring committee will by December 25 wrap up its study in response to the government's policy to protect local retailers while helping multinational investors.

Sompob Amartayakul, vice president of the Thai Chamber of Commerce, said the committee would conclude its suggestion for amendment of the draft retail business law on time. It wants to find a safety net to improve local retailers' efficiency and ensure foreign investor confidence.

The panel was set up last month by the interim government in response to the conflict between small retailers and multinationals.

Petchanet Pratruangkrai

The Nation