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Published on November 1, 2007

The move is to ensure they do not damage small local operators.

Four types of retail business are targeted for control under the ministerial regulations: discount stores, hypermarkets, supermarkets and cash-and-carry stores.

Retail businesses to be exempted from the regulations include department stores, "category killers" and speciality stores.

The ministerial regulations are part of the country's first-ever retail business law, the bill for which is expected to be passed soon and the Act then implemented by this government.

Internal Trade Department director-general Yangyong Phuangrach said the regulations would ensure that the legislation could be implemented quickly if the Act was approved by the National Legislative Assembly (NLA).

Under a draft of the regulations, the four types of retailer and wholesaler will be regulated under the Act, because they are major players that could affect small retailers' operations.

Retail giants like Tesco Lotus, Macro, Big C and Carrefour will fall under the ministry's rules. They will be required to follow all regulations, including prescribed distances from other shops, operating hours and the need for a licence from the ministry whenever they set up new branches.

Speaking after the meeting with an NLA panel, Yangyong said the government would encourage the NLA to complete its reading within a month. The first reading is on Tuesday.

After the announcement of the Act's implementation, the draft of the regulations will facilitate the urgent control of retail firms. This is because there is no effective law to regulate retail business at the moment, he said.

Yangyong said department stores were not included in the four categories as their target group was upper-class buyers, whereas category killers like PowerBuy and stores selling special products, such as drug stores and jewellery shops, are too specialised to be controlled. However, the regulations could be amended by the central committee after implementation.

Afraid of delays in implementation, because the Act requires 60 days after its announcement before it can take effect, some NLA members said they would ask the NLA panel to lower the implementation period to between 30 and 45 days.

Petchanet Pratruangkrai

 The Nation