Steve Finch
The Phnom Penh Post
RECENT fighting on the border between Cambodia and Thailand has had a minimal impact on the country’s economic interests in a direct, measurable way. But the fallout comes from the fear factor generated as a result of the clashes, a much more difficult outcome to assess.
Speaking on the sidelines of a press conference on Wednesday confirming that a Thai trade fair would go ahead in Phnom Penh next week despite the fighting, representatives of companies including Thai Airways and Siam Cement Group said they had experienced little or no adverse effects.
Thailand’s national carrier has seen only 100 cancellations on outbound flights to Bangkok for this month as a direct result of fighting, said Narinthorn Purnagupta, Thai Airways general manager in Cambodia, which represents just 1 percent of traffic.
Inbound flights had seen even fewer cancellations, he added, just 40 so far.
Siam Cement Group (Cambodia) Managing Director Patham Sirikul said the company’s joint venture Kampot Cement had not seen any impact. SCG imports construction materials mostly through the Poipet border crossing which has remained open throughout.
A few cancelled holidays by Thai tourists does not represent a major dent to business ties between Cambodia and Thailand, but tensions translate into a lack of economic development in the border area around Preah Vihear and a lack of enthusiasm among Thai investors who may have otherwise considered Cambodia.
“The first thing is the feeling of their security,” Jiranun Wongmongkol, Thailand’s commercial counselor in Cambodia, said of the main impact on Thai investors here.
In August last year B-Quik, a Thai vehicle service chain, announced it planned to delay opening its first outlets in Phnom Penh until the end of this year because the company’s senior management were concerned about the attitude of Cambodians towards Thais in the wake of border clashes.
Whether or not other Thai companies have decided against expansion into Cambodia for the same reason is difficult to gauge, but clearly the current tense climate does not bode well for investment.
Cambodia’s trade with Thailand climbed 54 percent last year to US$2.6 billion, a sign that the Preah Vihear dispute has hardly had an impact, but clearly other countries in the region such as Vietnam and China have much better business relationships with the Kingdom than Thailand.
From Cambodia’s perspective this is unfortunate. As the second-largest economy in Southeast Asia, Thailand as a neighbour of Cambodia should be much more involved in the domestic economy than it is at the moment.
The reason behind this stuttering economic relationship is obvious. Reluctance in doing business derives directly from tensions at Preah Vihear.
8 comments:
CAmbodia military must be extexemly becareful as I am flight F16 at Iraq war. I have some experince over this kind of flight. In F16 has many super high resolution digital camera that can zoom extremlt long range and the camera has ability to cature extremly highly resolution over 100 Mega Pixel per photo. Thai F16 try to capture all the military movement and position on Cambodia side so they can set the accuracy coordination for their long rang rocket and arterries.
The good in the war like this if thai f16 flight close the border just use anti aircraft missile to destroy f16. Otherwise thai destroy you! Think about it
Hun Sen lost his ties with Vietnam as his son Hun Manet try to play a balance of powers with Korea and Japan business venture. Now that Thailand and Vietnam connection is lost.
Other players like Sam Rainsy can slay Hun Sen regime to end suffering of the people.
Yet HUN SEN YOU OWE ME MONEY YOU Son OF B***H...
Did you KNOW HUN MANET HAVE SEX WITH TEN GIRLS EACH NIGHT?
SOUNDS LIKE HE COULD DEFLOWER ALL THE VIRGINS IN CAMBODIA IN HIS LIFE TIME.... HHEHHEHEHh
PRAHA MAE BAESAIT!!!---AKA
3:57 PM
Your opinion about the F16 capability might be true. But your claim to be an American pilot at the war in Iraq is overblown. Just by reading your poor English writing, I can tell that you’re a liar and like to brag, shame on you!
You and 4:58 PM make a good couple.
7:27PM Thanks you for abusing me and my poor english skill but I am in service for 16 years for flying F16 and F18.
I have couple of friends that can fix Cambodia’s MIG21. They are in USSR Marine fixing F16 and F18 and any aircraft for over 15 years experince. We can fix all 700 MIG21 of Royal air force Cambodia if the prime minister invite us to do so.
We were born at Cambodia but we came to America at around the age of 20.
Once again thanks you for abusing us 7:27PM!
8:35 PM
Sorry for the misunderstanding, I did not know that you are just a F16 serviceman. I thought you were a pilot because you and I know that a F16 pilot has at least a bachelor degree to be qualified.
The 100 flight cancellations does not account for those who choose NOT to fly Thai' national carriers.
There are six people in my group that chose not to use Thai national carrier when we had to leave Phnom Pen right after the fighting stop.
Many Cambodian Americans prefer to avoid Thai national carriers. Instead they use Singapore, or Korean Airlines. These economic lost would never show on the statistic.
Goodbye Thai Airway, and Bangkok Airway.
There are Huge Egypt
people on the streets
today(02/11/2011);
the Mubarak dictator
stepped down.
Bravo! Egyptians!
Now Hun Sen,you can't
stay in power as long
as you can.
Hun Sen is an evil
man,he must step
down.
Khmer people dare to
die for their freedom.
Go out on the streets and protest!
the stupid siem did this to themselves, they deserved no businesses in cambodia, really!
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