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Concerns Over New Thai Retail Laws

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Tourism and shopping are a large part of Thailand's economy, and where the government in some areas has very effective Thailand laws to help protect the interests of the country, this area of business law in Thailand has caused much debate, and stalled for many months.
Everyone has an opinion on this new law, business advice in Thailand has been preoccupied with these changes for many months. The UK cabinet has its own opinion, small store holders are anxious to see it pass, and larger retailers oppose the Thai law, in their understandable self-interest. We look at several sides of the debate.

Operators of small stores have been calling for years for the government to legislate to regulate the growth of chain convenience stores, hypermarkets and other large operators. South East Asia's largest shopping mall is located in Bangkok, and it is far from the only large chain retailer, which small operators feel are taking money away from them - and Thailand itself.

Many Thai law companies see the Thailand law as a necessary part of the country's economic protection measures - however there are also many parties with differing views.

Late in 2008, the British Ambassador voiced concerns over the influence of the new retail laws in Thailand, saying that the country's investment climate would be negatively impacted as a result of them. The expression of concern came after the draft Thailand law was sent back to the Commerce Ministry for revision, as the Cabinet felt that it was not balanced enough to allow the efficient operation of all retail businesses.

The British Ambassador was worried that the new law would block the expansion of modern retail shops, and that Thailand would see a resulting downturn in investment, especially from his country. The ambassador mentioned Big C, Carrefour and Tesco Lotus as business that should be consulted before this new Thai business law is finalized.

Where smaller retailers see this new Thai law as a savior, they see the delays before it is enacted as a curse. Large retailers have consulted legal services in Thailand for Thai business law advice, and seem to have found that the delay period is one of their last remaining windows to expand their operations in the lucrative tourism market in the country.

The senior vice-president of Tesco Lotus commented in the Bangkok Post on this issue, saying that "the law's objectives and provisions should be based on well-researched and reliable information about the current state of the retail and wholesale business."

"The law's provisions should also clearly spell out the roles and responsibilities of manufacturers, wholesalers and modern retailers. There should be clear measures to enhance the competitiveness of mom and pop shops, if the law's aim is to assist them. And, most importantly, the law should be able to explain how Thai consumers and the Thai economy as a whole would benefit from the retail law, he said.

The stalling to long awaited changes may be something that small retailers feel is harming them, yet serious concerns over the efficacy of the new Thailand law would mean that if it were enacted tomorrow as it stands, it may not be any help at all.

Much consultation of law firms in Thailand and legal services in Thailand would be undertaken by large retailers, but smaller operators may not truly be helped. Despite the delays, it is vital that the government get this new Thai business law right.

Article Source: http://www.articlekingpro.com

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. We provide international standards of legal services while retaining the customs of the Thai business culture

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