By Petchanet Pratruangkrai
The Nation
Despite continued controversy about Preah Vihear Temple, Thai companies yesterday vowed not to withdraw their investment from Cambodia.
Somsak Rinruengsin, chairman of the Thai Business Council of Cambodia, said Thai businessmen were still operating in Cambodia as usual.
"Private enterprises believe that the conflict should not be brutal. All transactions are still on track. I believe that Thai companies will not withdraw investment as most are in heavy industry and have spent huge investment capital," said Somsak.
Many large Thai companies have invested in Cambodia, including PTT, ThaiBev, Mitr Pol, CP, SCG and Imperial Group.
Somsak said about 100 Thai SMEs such as restaurants and retailers were still operating normally in Cambodia. Most Cambodian people still have a positive attitude towards Thailand and Thai products.
However, Thai exports to Cambodia slightly dropped in late July due to Cambodia slowing down consumption during its national election.
Jiranun Wongmongkol, minister counsellor (commercial) at the office of commercial affairs at the Royal Thai Embassy in Phnom Penh, said two-way trade was still running smoothly.
"Bilateral trade and investment are normal. But the anti-Thai goods and currency campaign that started on July 25 has slightly affected Thai goods," she said.
She believed the situation was returning to normal.
According to the Commerce Ministry, exports to Cambodia grew sharply by 71.8 per cent in the first half of the year, the highest growth rate in five years, thanks to rising demand for Thai goods and growing trade relations.
Exports to Cambodia reached US$1.08 billion (Bt36.19 billion), while imports jumped 133.79 per cent to $39.9 million.
Exports to Cambodia are expected to reach the target of $1.69 billion this year, an increase of 25 per cent.
At a seminar entitled "Investment overseas: Challenges for Thai Private Enterprises", companies were urged to strengthen trade and investment in neighbouring countries, particularly Cambodia.
Thai enterprises have the potential to invest in neighbouring countries, increasing win-win opportunities for both sides, the seminar was told.
Many investors from China, South Korea and Malaysia have invested in Cambodia.
Deputy Commerce Minister Viroon Tejapaiboon said the Asean Economic Cooperation would focus on strengthening relations with Cambodia, Laos, Burma and Vietnam (CLMV).
Thailand's aim will be to expand agricultural and industrial investment to those countries where cheap labour costs and abundant raw materials will reduce Thailand's production costs. In addition, Thai companies plan to develop manufacturing technology in those countries.
"These neighbouring countries have a rich supply of raw material for our production and lower labour costs. Thus, Thailand should move to invest in the countries," he said.
Narongchai Akrasanee, executive chairman of the Export-Import Bank of Thailand, said the bank supported the Thai private sector in investing abroad, particularly Cambodia.
"We should separate the dispute about Preah Vihear Temple from business. Cooperation between Thailand and Cambodia could generate a huge benefit for both sides," he said.
The bank has approved loans amounting to Bt13 billion for Thai investment in CLMV countries.
Somsak Rinruengsin, chairman of the Thai Business Council of Cambodia, said Thai businessmen were still operating in Cambodia as usual.
"Private enterprises believe that the conflict should not be brutal. All transactions are still on track. I believe that Thai companies will not withdraw investment as most are in heavy industry and have spent huge investment capital," said Somsak.
Many large Thai companies have invested in Cambodia, including PTT, ThaiBev, Mitr Pol, CP, SCG and Imperial Group.
Somsak said about 100 Thai SMEs such as restaurants and retailers were still operating normally in Cambodia. Most Cambodian people still have a positive attitude towards Thailand and Thai products.
However, Thai exports to Cambodia slightly dropped in late July due to Cambodia slowing down consumption during its national election.
Jiranun Wongmongkol, minister counsellor (commercial) at the office of commercial affairs at the Royal Thai Embassy in Phnom Penh, said two-way trade was still running smoothly.
"Bilateral trade and investment are normal. But the anti-Thai goods and currency campaign that started on July 25 has slightly affected Thai goods," she said.
She believed the situation was returning to normal.
According to the Commerce Ministry, exports to Cambodia grew sharply by 71.8 per cent in the first half of the year, the highest growth rate in five years, thanks to rising demand for Thai goods and growing trade relations.
Exports to Cambodia reached US$1.08 billion (Bt36.19 billion), while imports jumped 133.79 per cent to $39.9 million.
Exports to Cambodia are expected to reach the target of $1.69 billion this year, an increase of 25 per cent.
At a seminar entitled "Investment overseas: Challenges for Thai Private Enterprises", companies were urged to strengthen trade and investment in neighbouring countries, particularly Cambodia.
Thai enterprises have the potential to invest in neighbouring countries, increasing win-win opportunities for both sides, the seminar was told.
Many investors from China, South Korea and Malaysia have invested in Cambodia.
Deputy Commerce Minister Viroon Tejapaiboon said the Asean Economic Cooperation would focus on strengthening relations with Cambodia, Laos, Burma and Vietnam (CLMV).
Thailand's aim will be to expand agricultural and industrial investment to those countries where cheap labour costs and abundant raw materials will reduce Thailand's production costs. In addition, Thai companies plan to develop manufacturing technology in those countries.
"These neighbouring countries have a rich supply of raw material for our production and lower labour costs. Thus, Thailand should move to invest in the countries," he said.
Narongchai Akrasanee, executive chairman of the Export-Import Bank of Thailand, said the bank supported the Thai private sector in investing abroad, particularly Cambodia.
"We should separate the dispute about Preah Vihear Temple from business. Cooperation between Thailand and Cambodia could generate a huge benefit for both sides," he said.
The bank has approved loans amounting to Bt13 billion for Thai investment in CLMV countries.
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