One of the amended sections will require retailers to report their expansion plans on a quarterly basis, which will allow the ministry to keep closer tabs on multinational companies.

The ministry will hold a meeting in response to complaints from small retailers that they were being forced out of business by multinational juggernauts.

The retail business law was first drafted in 2003. However, the draft never became law because the Cabinet never approved it.

The law's goal is to protect local retailers. It promises more revenue to local administrations of neighbourhoods where giant retailers open branches.

Siripol Yodmuangcharoen, director-general of the Internal Trade Department, said yesterday that the ministry would have to revamp the law because the original draft did not foresee how rapidly the hypermarkets would spread over the past few years. According to a ministry survey, there are now 3,999 retail businesses operating in Thailand, up 119.6 per cent from 1,821 outlets five years ago. The retail market was worth Bt335.39 billion in 2004, up 60 per cent from Bt208 billion in 2001.

Of all the foreign retailers, 7-Eleven has the most branches, with 3,200 shops nationwide.

The new draft of the retail law will likely contain measure to control the spread of foreign retail business in the country.

Siripol said the Internal Trade Department would work with officials from the Interior Ministry's Public Works and Town and Country Planning Department to come up with guidelines to control the spread of giant retailers into residential areas.

The department is currently the only body with the authority to check the spread of retail businesses.

Siripol said the two departments would cooperate to find the best means of helping small retailers.

The new rules should be in place early next month.

Siripol said the Commerce Ministry would use the rules laid out in the new law to determine what kind of expansion projects would be allowed to go forward.

Petchanet Pratruangkrai

The Nation