Thailand's government has agreed fresh legislation to curb the expansion of the world's retail giants in the country.

Under the new law, any expansion plans would have to go before regional Thai authorities. The Thai government has also proposed that a central body - the Retail and Wholesale Supervision Committee - is set up to oversee the retail sector.

"The new law approved today will decentralise authority to provincial regulators and allow greater hearing of public opinion," deputy commerce minister Oranuj Osathananda told the AFX news agency today (8 May).

Thailand's local shop owners have grown concerned about the impact of growing expansion from the likes of Tesco and Carrefour.

According to the AFX report, figures from the Thai commerce ministry show that over 100,000 small stores have closed in the last decade.

The Thai government's proposals will now go before legal exports and then head to the country's legislature for final approval.