In other words, if a company's sales or stock go above a stipulated level it would not be allowed to open new outlets in community neighbourhoods.

Caretaker Deputy Commerce Minister Preecha Laohapong-chana said yesterday that the plan was aimed at creating a level playing field and protecting local small retailers from bigger players.

Members of the ministry will meet 15 retail operators this Wednesday to discuss the control guidelines. In addition, a meeting is being set up next week with the committee of trade competition to consider the use of retail and wholesale guidelines and market-dominating guidelines.

Preecha said a public poll would be held to find out whether

communities agree with the proposal.

He said the ministry had found that opening one branch of a retail business in a community area affected the total trade volume of the area by at least 1 to 2 per cent. A giant retailer can affect community trading by more than 50 per cent.

"Many multinational retail operators have opened an average of three or four branches in districts nationwide.

"The ministry has to devise regulations to control these expansion projects," he said.

Siripol Yodmuangcharoen, director-general of the Internal Trade Department, said the ministry had almost completed the long-awaited amended draft legislation to control the retail sector.

Under the new law, multinational retailers will face more stringent restrictions when expanding their networks around the country, he said.

For instance, Siripol said the ministry might insist that all retailers request approval for each new store, instead of asking for only one license to operate numerous outlets.

He said the ministry had to find appropriate regulations to control the expansion of multinational and giant retailers in the Kingdom because the number of retail businesses has doubled in the last five years.

According to a ministry survey, the number of modern retail trade outlets has risen to 4,600 today from 1,800 in 2001.

Petchanet Pratruangkrai

The Nation