Tuesday, November 21, 2006

Thai-Cambodian goal to double trade and investment [and also double trade between Cambodia and VN]

BANGKOK, Nov 21 (TNA) - Thailand and Cambodia have set a common target to increase their level of bilateral trade and investment to US$2 billion within three years, from US$1 billion at present, according to top officials of both countries.

Speaking after a meeting on investment cooperation between the two countries, Chutima Bunyapraphasara, Director-General of Thailand's Trade Negotiations Department, said both countries agreed to cooperate in doubling their bilateral trade and investment value in the next three years.

Currently, she said, Cambodia enjoys political stability, continued economic growth, and an appropriate currency exchange rate.

The Cambodian delegation comprising top officials and executives in both the public and private sectors visited Bangkok, giving Thai investors information on investment, including establishment of a special economic zone.

Chutima conceded that Thai investors had been reluctant to invest in Cambodia (in part, because of the legacy of anti-Thai riots in Cambodia in early 2003, when some US$50 million of damage was done). But given recent cooperation, she believed, Thailand's investment in the Cambodian economy, particularly in the textile, tourism and fishery industries, investment will continue to increase.

Cambodian Commerce Minister Cham Prasidh said Cambodia had recently enjoyed more political stability than in the past several years and continued economic growth is anticipated.

In 2005, the country's economy expanded at least 13.4 per cent. It is expected the economy this year would grow no less than 5 per cent despite the global economic slowdown.

He said Cambodia had in recent years enjoyed economic growth based on international investment from the country's political stability and impoved adherence to international rules and procedures.

The minister said Cambodia had encouraged foreign investors to invest in the country by offering tax incentives such as an exemption of import tariffs.

Such an approach had attracted investors from around the world.

But, Thailand, which is its neighbour, had a very low portion of investment in Cambodia while South Korea and Japan are top investors. So, he viewed, Thailand had more opportunities to invest in Cambodia.

No comments: