At least 15 multinational retailers, including Tesco Lotus, Carrefour, Robinson, Big-C and 7-Eleven will jointly sign the MoU to stop new projects.

The ministry and related government agencies met with big retailers yesterday to brainstorm for a way to help ease small retailers' problems.

The move follows protests by provincial shop owners on Tuesday, who submitted a petition to the ministry asking it to take action - or hundreds of them would blockade the ministry on September 20.

Preecha Laohapongchana, caretaker Deputy Commerce Minister, said yesterday that all big retailers should stop expansions before the ministry implements the Retail Business Law.

"The government will exercise authority given to provincial administrators to control the expansion of giant retailers in community areas while the draft [law] is amended," he said.

Provincial governors had the authority to conduct a public poll before allowing a company to set up in their province.

Preecha noted that before the ministry could finalise the law, provincial administrators had to conduct polls to seek people's opinions before allowing companies to set up in their areas. If any firm disobeyed the order, their representatives could be jailed for up to 10 years or fined up to Bt50,000, as per the Commodity Act.

The Internal Trade Department said there were 3,709 superstores, supermarkets and mini-marts in the Kingdom. The figure is up almost 100 per cent from 2001, and is tipped to rise to 4,629 supermarkets by 2009.

Boonchai Chokwatana, chairman of the Chamber of Commerce's committee on wholesale and retail business, said the government must speed implementation of the Retail Business Law to control the spread of superstores in the Kingdom.

Several flaws have appeared in regulations issued by the government to control multi-national retail business expansion since 2001. The City Plan Act and the authority that the government gives to provincial administrators was a two-edged sword that could easily allow foreign retailers to settle in local communities, he said.

Boonchai has called for the Commerce Ministry to be directly responsible for the controlling the spread of large multinational retailers, saying the government should have a central agency to limit the problem.

Currently, several government agencies are responsible for retail business expansion, including the Department of Public Works and Town and Country Planning, the Interior Ministry, and provincial administrations.

Boonchai said one retail giant had got approval to establish another six branches this year. And plans for about 10 branches were waiting go-ahead from the government.

"I have been contacted to meet with a large retail group. However, as I am a representative of the Chamber of Commerce of Thailand and all local retailers, I will be neutral to protect the Kingdom's benefits," he said.

Petchanet Pratruangkrai

The Nation