Govt urged to get moving soon on draft retail and wholesale act

A parliamentary subcommittee tasked with amending the draft will soon call for a meeting with Commerce Minister Porntiva Nakasai and Deputy Commerce Minister Alongkorn Ponlaboot, at which they hope to be briefed on the progress of the process to amend the draft.   

A private-sector source said it is time for the government to make good on its policy of proceeding with amendments to the draft law in order to protect small local retailers.   

 "The government has promised that it will give priority to protecting small retail businesses by passing the act to regulate modern traders. After more than three months, the government has yet to respond to the issue," the source said.    

The source also urged the government to accelerate consideration of the act, and to adjust details of the legislation in accordance with the current situation to ensure that small retailers can compete with retail giants.    

The process of amending the draft could take about two years. The government should not waste time, the source said, as it is running out of time to protect small retailers.   

The number of outlets belonging to large modern retailers around the country has increased considerably to more than 7,800. The number is expected to exceed 8,000 by the end of this year.   

Retailers' incomes increased by a slight 3 to 4 per cent last year, but this was the result of an increased number of new modern retail outlets nationwide.   

 Jit Siratranont, deputy secretary-general of the Board of Trade of Thailand, said that renewed attention to the proposed law is essential if a fair and level playing field between retail giants and small stores is to be ensured.   

He added that newly elected Board of Trade and Thai Chamber of Commerce chairman Dusit Nontanakorn supports the act, as it would ensure fair practices for both small and large enterprises.    

Amid slowing economic growth, the government may have to address the issue of foreign investment. Any new regulation, including a plan to regulate retail businesses, could affect foreign investment in the Kingdom.    

However, Jit said the government must proceed with issuing a specific law to rein in the number of outlets of large retailers operating in each community.    

He said the government must consider ways to protect small retailers, who have been hurt by the rise of giant retailers in Thailand. He urged the government not only to concern itself more with foreign investment, but also to try to find fair regulations to protect local businesses.    

Jit said it was time the government changed the way it controlled the retail business, which generates between Bt4 billion and Bt5 billion in sales revenue a year.    

The government must also allow local administration agencies to participate in the decision-making process as to whether to allow large retail outlets to operate in all communities.