Phnom Penh Post, Issue 15 / 15, July 28 - August 10, 2006
The number of new Thai investors coming to do business in Cambodia has increased in 2006 compared with previous years, according to an official at the Thai Embassy in Phnom Penh.
Boonnam Kulrakampusiri, minister counselor of the Office of Commercial Affairs at the Royal Thai Embassy, said this year between 15 and 20 new Thai investors have been visiting his office every month to discuss doing business in Cambodia; in previous years only existing local Thai business people consulted him.
Boonnam said that now about 400 to 500 Thais are running businesses in Cambodia - both small and big. They come to Cambodia to pursue all kinds of business - including hotels, restaurants, and cement factories. He said that when he first arrived in Cambodia in January 2004, roughly 200 Thais were doing business in the country.
Many Thai business people left Cambodia when a dozen Thai-owned hotels and businesses were attacked and looted by protesters during an anti-Thai riot in January 2003.
Anti-Thai sentiment erupted in January 2003 amid rumors that the Cambodian embassy in Bangkok had been attacked and allegations that Thai actress Suwanan Kongying had claimed that Angkor Wat belonged to Thailand.
Protesters set fire to the Thai embassy in Phnom Penh and several businesses. The Thai embassy sacking made news around the world and left Cambodia with an estimated $45 million repair bill. Once-popular Thai movies disappeared from Cambodian public television channels, and have not returned.
Boonnam said the Cambodian government already paid the repair bill.
"Besides the films, everything now goes as usual," he said. "Today we have more Thai investments in Cambodia - now big companies are coming. Our government tries to help neighboring countries to have the same level of growth. We are not rich, but we have money to help neighboring countries, including Laos, Cambodia and Myanmar.
"Now, both our countries try to encourage [Thai investors] that the riot will not happen again; our government facilitates investors by persuading them to invest in Cambodia and the Cambodian government facilitates the investment environment."
He said security was important for potential investors: they would avoid countries that lacked security and put their money in countries where it would be safe.
"I don't know for sure whether investors are still concerned [about security in Cambodia] or not," he said. "But as we look at the figure of Thai investment in Cambodia now, it is increasing compared with previous years."
Boonnam said that last year the total Thai investment in Cambodia was about $100 million, including unregistered businesses, and he estimated that this year there would be more because big investors were coming.
In mid-July TCC Group, one of the biggest companies in Thailand, entered into a joint venture with Mong Reththy to establish a $50 million sugar factory and byproducts industry in Keo Phos village, Koh Kong.
Charoen Sirivadhanabhakdi, chairman of TCC Group, said as a foreigner he will hold 49 percent of the joint venture and Reththy, owner of Mong Reththy Group, will hold 51 percent.
"My wife and I are very happy to invest in Cambodia because the [Cambodian] government has managed the country to have better stability," Charoen said during a press conference on July 17 at Mong Reththy Group's headquarters after his meeting with Prime Minister Hun Sen.
"And I am very happy to join with Oknha [Mong Reththy], who is a good person," Charoen said. "And as the speech of Samdech Prime Minister told me, when he was staying in the pagoda, Oknha was the monk and Samdech was the pagoda boy.
"Samdech Prime Minister is one of the other good leaders. Samdech Prime Minister requested me to invest to help farmers to get rid of technological difficulty. I am very happy to invest in the agricultural field."
Reththy said Prime Minister Hun Sen had encouraged Charoen to enter into other joint ventures with him and urged him to plant oil palms, enlarge his port, plant sugar cane and build a sugar factory in Koh Kong. He had also pressed Charoen to develop Reththy's 100,000-hectare land concession in Stung Treng as soon as possible.
Reththy said when the sugar factory is running in 2008, about 10,000 people will get jobs.
"The sugar factory will be able to supply the local demand and also could export, because Mr Charoen has a lot of money," Reththy said.
Cambodia imports more than $70 million of white sugar each year, Reththy said. In 2005 it imported about 250,000 tons of sugar from Thailand.
Boonnam said Cambodia had three major fields to invest in: agricultural products, agro-industry like Charoen's sugar factory, and tourism. Charoen also owns a hotel in Siem Reap.
Boonnam Kulrakampusiri, minister counselor of the Office of Commercial Affairs at the Royal Thai Embassy, said this year between 15 and 20 new Thai investors have been visiting his office every month to discuss doing business in Cambodia; in previous years only existing local Thai business people consulted him.
Boonnam said that now about 400 to 500 Thais are running businesses in Cambodia - both small and big. They come to Cambodia to pursue all kinds of business - including hotels, restaurants, and cement factories. He said that when he first arrived in Cambodia in January 2004, roughly 200 Thais were doing business in the country.
Many Thai business people left Cambodia when a dozen Thai-owned hotels and businesses were attacked and looted by protesters during an anti-Thai riot in January 2003.
Anti-Thai sentiment erupted in January 2003 amid rumors that the Cambodian embassy in Bangkok had been attacked and allegations that Thai actress Suwanan Kongying had claimed that Angkor Wat belonged to Thailand.
Protesters set fire to the Thai embassy in Phnom Penh and several businesses. The Thai embassy sacking made news around the world and left Cambodia with an estimated $45 million repair bill. Once-popular Thai movies disappeared from Cambodian public television channels, and have not returned.
Boonnam said the Cambodian government already paid the repair bill.
"Besides the films, everything now goes as usual," he said. "Today we have more Thai investments in Cambodia - now big companies are coming. Our government tries to help neighboring countries to have the same level of growth. We are not rich, but we have money to help neighboring countries, including Laos, Cambodia and Myanmar.
"Now, both our countries try to encourage [Thai investors] that the riot will not happen again; our government facilitates investors by persuading them to invest in Cambodia and the Cambodian government facilitates the investment environment."
He said security was important for potential investors: they would avoid countries that lacked security and put their money in countries where it would be safe.
"I don't know for sure whether investors are still concerned [about security in Cambodia] or not," he said. "But as we look at the figure of Thai investment in Cambodia now, it is increasing compared with previous years."
Boonnam said that last year the total Thai investment in Cambodia was about $100 million, including unregistered businesses, and he estimated that this year there would be more because big investors were coming.
In mid-July TCC Group, one of the biggest companies in Thailand, entered into a joint venture with Mong Reththy to establish a $50 million sugar factory and byproducts industry in Keo Phos village, Koh Kong.
Charoen Sirivadhanabhakdi, chairman of TCC Group, said as a foreigner he will hold 49 percent of the joint venture and Reththy, owner of Mong Reththy Group, will hold 51 percent.
"My wife and I are very happy to invest in Cambodia because the [Cambodian] government has managed the country to have better stability," Charoen said during a press conference on July 17 at Mong Reththy Group's headquarters after his meeting with Prime Minister Hun Sen.
"And I am very happy to join with Oknha [Mong Reththy], who is a good person," Charoen said. "And as the speech of Samdech Prime Minister told me, when he was staying in the pagoda, Oknha was the monk and Samdech was the pagoda boy.
"Samdech Prime Minister is one of the other good leaders. Samdech Prime Minister requested me to invest to help farmers to get rid of technological difficulty. I am very happy to invest in the agricultural field."
Reththy said Prime Minister Hun Sen had encouraged Charoen to enter into other joint ventures with him and urged him to plant oil palms, enlarge his port, plant sugar cane and build a sugar factory in Koh Kong. He had also pressed Charoen to develop Reththy's 100,000-hectare land concession in Stung Treng as soon as possible.
Reththy said when the sugar factory is running in 2008, about 10,000 people will get jobs.
"The sugar factory will be able to supply the local demand and also could export, because Mr Charoen has a lot of money," Reththy said.
Cambodia imports more than $70 million of white sugar each year, Reththy said. In 2005 it imported about 250,000 tons of sugar from Thailand.
Boonnam said Cambodia had three major fields to invest in: agricultural products, agro-industry like Charoen's sugar factory, and tourism. Charoen also owns a hotel in Siem Reap.
2 comments:
I can't stand these fucken Thai people! These Thai people are very insidious! Here are the remedies to protect against these fucken Thai people!
1. All the fucken business contract must be written in Khmer language! This is make a whole lot of sense because these fucken Thai do business in Cambodia anyway(not in some other country!)
2. All the fucken business dispute must not be taken to the Thai court but to a Cambodian court since the fucken business transaction is in Cambodia!
3. The fucken Thai businessman must obey Cambodian law because the fucken Thai never obey Cambodian law and that is usually the case!
4. All the fucken Thai business transaction in Cambodia must be calculated in Cambodian currency not in Thai bath!
5. All the fucken Thai business transaction must be documented and no agreements are based on the word of mouth!
6. ...
I have such a bad experience with these fucken Thai businessmen and these fucken Thai tend to look down and view all Cambodian people as sucker! The fucken Thai think that they can do anything they want to Cambodian people even in Cambodia! What can I say thank to AH HUN SEN and the fucken Thai have their wish come true!
I agree fully that foreign investors, whether they are investing in hotels, resturants, or manufacturing sectors must respect Cambodian Law.
The fact that foreigners, the Thais and Viets does not obey Cambodia Law. Then I assume we may have to ask various reasons why is that occuring?
Could be the case that Cambodia ministers are not willingness to restrict misconduct?
Domestically, Cambodia can proper encouraging foreigners to act according what the law of Cambodia officially provided. However, the big question is wether Cambodia government is taking real obligation and accountability to keep an eyes on business activites that is operating in Cambdia.
We can change the working environment, just a matter of taking actions to combate problems.
Sok,
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