Draft retail law investment impact concerns

The ambassador made the comment after the Cabinet objected to the draft of the retail and wholesale business law, disappointing thousands of small Thai retailers which have been hit by the aggressive expansion of the retail giants.

Deputy Prime Minister Olarn Chaipravat said the Cabinet felt the draft law did not provide detailed measures that would ensure the effi¬cient operation of all retail businesses. It has therefore sent the draft back to the Commerce Ministry for revision, after which it will be reconsidered.

The failure to win Cabinet approval has raised serious concern among small retailers. They share the view that the large players have taken advantage of the vacuum period, whilst legislation is prepared, to rapidly expand the number of branches across the country.

The number of modern trade out¬lets has risen sharply from 6,191 last year to 7,031 at the end of September.

British Ambassador Quinton Quayle yesterday met Commerce Minister Chaiya Sasomsap to discuss trade and economic relations amid the looming world economic recession, as well as the draft retail law.

Quayle said he and the private sec¬tor did not object to the proposed law, but were worried that if the legislation obstructed the establishment of new modern retail shops, it would affect investment.

He urged the government to con¬sult large traders such as Big C, Tesco Lotus and Carrefour to ensure that the regulations are accepted by all concerned.

Quayle pointed out that United Kingdom firms were the biggest investors in Thailand among European countries, with a total investment of US$6 billion (Bt210 billion). Among the largest Britishowned companies in Thailand are Tesco Lotus, with more than 500 out¬lets, and Boots Retail.

The ambassador added that amid the global economic slowdown, he agreed with the government's policy to promote trade and investment.

Quayle also expressed concern over the Kingdom's political uncertainty, which would affect growth in trade and investment. He hoped the situation would be resolved soon.

Suthep Suleesatira, president of the Federation of Thais Opposing Foreign Retailers, said the federation would write to Olarn to ask for support in getting the draft law approved.