VICHAYA PITSUWAN
Bangkok Post
The Preah Vihear dispute has so far only marginally reduced cross-border trade with Cambodia, but business is likely to deteriorate further in the long run, said Sommart Khunset, deputy secretary-general of the Federation of Thai Industries (FTI).
Until now, the appeal of Thai personal-care products in Cambodia meant bilateral trade worth 20 billion baht had not changed due to the dispute, he said.
"Some products such as electronic appliances may see fewer sales in Cambodia since the conflict erupted. Some operators thought it may cause a boycott of Thai products. But I think the level is very minimal and cannot be officially recognised as a boycott of our products," said Mr Sommart.
However, he added that fears of personal safety and difficulty in distributing products had disrupted Thai investment in Cambodia.
For example, Khon Kaen Sugar Industry Plc (KSL), Thailand's fourth-largest sugar producer, has had to postpone the launch of a sugar mill in Koh Kong. This has now been put back to next year due to safety concerns, said Mr Sommart.
He added that delays to investment projects had also put cost pressure on operators.
The FTI reports that most Thai business ventures in Cambodia are in garment manufacturing, shoe-making, tourism and agriculture. Most investors have been attracted by cheap land and abundant cheap labour suited to labour-intensive industries, said Mr Sommart.
FTI labour chief Thaveekij Japurajarernkul - who has been active in Cambodia for over 20 years - said his hotel in Siem Riep, 150 kilometres from the Aranyaprathet border post, had felt the impact from the conflict.
"My hotel occupancy rate has dropped 20-30% as tourists fear for the security of their lives," he said.
Mr Thaveekij said the impact is not yet at a worrying level. But he expressed a fear that unless the Thai government engages in effective negotiations, Thai ventures in Cambodia will be affected more than by previous conflicts.
"I said this because the current dispute is an international matter that looks to be deeper and to affect citizens of both countries psychologically," he said.
Also taking into account the global economic slowdown and domestic political conflict, both Mr Thaveekij and Mr Sommart said the private sector may have to struggle twice as hard to survive.
Until now, the appeal of Thai personal-care products in Cambodia meant bilateral trade worth 20 billion baht had not changed due to the dispute, he said.
"Some products such as electronic appliances may see fewer sales in Cambodia since the conflict erupted. Some operators thought it may cause a boycott of Thai products. But I think the level is very minimal and cannot be officially recognised as a boycott of our products," said Mr Sommart.
However, he added that fears of personal safety and difficulty in distributing products had disrupted Thai investment in Cambodia.
For example, Khon Kaen Sugar Industry Plc (KSL), Thailand's fourth-largest sugar producer, has had to postpone the launch of a sugar mill in Koh Kong. This has now been put back to next year due to safety concerns, said Mr Sommart.
He added that delays to investment projects had also put cost pressure on operators.
The FTI reports that most Thai business ventures in Cambodia are in garment manufacturing, shoe-making, tourism and agriculture. Most investors have been attracted by cheap land and abundant cheap labour suited to labour-intensive industries, said Mr Sommart.
FTI labour chief Thaveekij Japurajarernkul - who has been active in Cambodia for over 20 years - said his hotel in Siem Riep, 150 kilometres from the Aranyaprathet border post, had felt the impact from the conflict.
"My hotel occupancy rate has dropped 20-30% as tourists fear for the security of their lives," he said.
Mr Thaveekij said the impact is not yet at a worrying level. But he expressed a fear that unless the Thai government engages in effective negotiations, Thai ventures in Cambodia will be affected more than by previous conflicts.
"I said this because the current dispute is an international matter that looks to be deeper and to affect citizens of both countries psychologically," he said.
Also taking into account the global economic slowdown and domestic political conflict, both Mr Thaveekij and Mr Sommart said the private sector may have to struggle twice as hard to survive.
5 comments:
Thailand, you are fighting a losing war with Cambodia. Khmer can survive without many things that Siam could not imagine. Khmer lived through hell while Siam living along the border fear for Khmer Rouge.
It is in the best interest for Thailand to stop encrouching and occupying khmer land along the border.
Your ecomony is not so good nowadays. This due to internal political chaos which chasing many investor away from Thailand.
You are fighting with a poor country which nothing to lose.
I am concurred with 8:39 am. Cambodia will continues to progress with or without Thailand. Cambodia never calculated Thailand as her main sources of products. Cambodia have so many friends and supporters in the international community. In facts Thailand depends on trade with Camboda because it's the only best trade route in her neighbouring country. I don't think Myammar (Burma) or Laos would import Thai's products if so, very minimal. It's a free market and lots of other business investors would love to do business with Cambodia.
Cambodia was once a great kingdom and shall rise once again in this century. Thailand is falling into a dark age at this moment.
So, Thailand is not a dependable nor trusted neighbor. I don't think Cambodia view Thailand as friend. For the majority, Cambodians and Cambodians oversea and the international community view Thailand as a thieve or bandit nation. Nation with no shame, principal, integrity and so forth.
Cambodia will be the next dominance in the region. Watch out Siem.
Cambodian New Generation - North America
I don't know why the Thai worry about their products.
Khmer can make it for ourselves. So work hard and be independent of the parasite neighbors.
I think you are all over estimating yourself. It's only improving in that small city centre. Take a look around the outer skirt of the city. No roads, no infrustructures, no jobs and many people are starving. People can't even go out to pick morning glories from any rice fields as they belong to someone else. Yes, it will take another 30 years may be to be the next dominant nation.
The border issue and trade with Thailand will only make Cambodia tougher and stronger as a nation. Cambodia has learned a lot from war to trade. Cambodia can only strive from now on... I urge Cambodians to initiate things that will enhance and enrich yourself and our country capacity.
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