The Commerce Ministry is drafting legislation aimed at strengthening the ability of local franchises to compete with international brands both domestically and overseas.

Suvit Maesincee, vice minister of commerce, said yesterday that the ministry would call a meeting with small and medium-sized enterprises (SMEs) that operated franchises to discuss details of the proposed legislation and how to improve Thai franchise business.

The legislation will likely focus on ways to let SMEs more easily access financial and technical support from the government and its agencies.

The ministry credits many successful Thai franchises with generating foreign income for the country.

"Although we have a high number of franchising businesses, most of theme fail to compete with foreigners. The law will also be designed to restructure their franchises to better compete in the international market," he said.

For instance, the Malaysian-based franchise Roti Boy is currently one of the most popular products in Siam Square. People stand in lines sometimes for more than 30 minutes to buy a bag of the company's buns. The Malaysian government supported the company in its quest to expand overseas.

Suvit said the ministry might ask for more cooperation from financing institutions and

the Board of Investment in a

bid to support SMEs and franchises.

As part of this endeavour the government will divide franchise businesses into two groups, those that concentrate on the domestic market and those with an international slant.

Suvit said businesses that should invest abroad included spas, hotels, restaurants, entertainment-providers and medical services.

Plans to improve franchising businesses include making the law more efficient, creating business opportunities and increasing the potential of Thai franchises to compete, he said. 

Petchanet Pratruangkrai

The Nation