Retail draft rules eased

Business News - Tuesday December 11, 2007

Retail draft rules eased

PHUSADEE ARUNMAS

A new draft of the Retail and Wholesale Business Act that is expected to go to the National Legislative Assembly next week, more than doubles the threshold for store sizes and sales for business operators.

On Nov 14, the NLA approved the draft law in its first reading with the condition that retail operators and chain stores with annual sales of more than one billion baht and retail space of more than 1,000 square metres would be required to seek permission for new store openings.

Yanyong Phuangrach, the director-general of the Internal Trade Department, said the new draft that would be submitted for second and third readings on Dec 19, would change conditions to cover firms with sales exceeding two billion baht and space of 2,000 square metres.

He said the change would still require large hypermart chains such as Carrefour and Tesco Lotus to seek regulatory approval for new stores. Chain stores, such as 7-Eleven and Tesco Express convenience stores, would also be covered.

The change falls short of proposals by the Thai Shopping Centres Association, which sought to increase the requirements for stores falling under the law to 10 billion baht in annual revenues and retail space of 4,000 sq m.

The association argues that the broad definition of the law would increase costs and bureaucracy and affect thousands of small shops and retailers.

The law requires businesses to seek permission from the director-general of the Internal Trade Department for locations and from provincial governors.

By : Bangkok Post