Federation of Thai Industries chief concerned with possible border trade closure

...in the first eight months of this year, border trade had declined by some 20 per cent to Bt36.70 billion due to global economic sluggishness

BANGKOK, Nov 7 (TNA) – Federation of Thai Industries (FTI) chairman Santi Vilassakdanont on Friday voiced concerns over the ongoing tension between Thailand and Cambodia, saying business people did not want to see the situation deteriorate and lead to the border trade closure.

Unless both countries are able to find a common solution on their own, they might be well-advised to accept a country with a neutral stance such as China or ASEAN to mediate a reconciliation of their differences.

He said that Thai nationals running businesses in Cambodia such as the hotel and hospitality industry, tourism, restaurants and textiles told him that they still do business in the country as usual.

However, they are afraid the tension between both neighbouring countries would heighten. In particular, it might lead to the border trade closure, which could benefit neither country.

At present, the border trade represents 80 per cent of the Thai-Cambodian trade value. Last year, the value of the border trade between the two countries reached Bt70 billion.

But in the first eight months of this year, border trade had declined by some 20 per cent to Bt36.70 billion due to global economic sluggishness. It is expected the trade value would be around Bt50 billion for this year.

Should the border trade be closed, he said, a large amount of goods would be smuggled into the country.

Consequently, he hoped the governments of both countries would accelerate talks to find a proper solution to the problem and believed they could settle it without a need to close bilateral trade.

Still, unless both countries are able to find a common solution, they might count on the country with a neutral stance such as China and ASEAN as a mediator to reconcile their conflicts.

Border dispute may hurt trade: Cambodian official

PHNOM PENH, Oct. 16 (Xinhua) -- With violence erupting on the Cambodia-Thai border, government officials and investors warned that the dispute could affect bilateral trade, tourism and investment between the two countries, the Phnom Penh Post reported Thursday.

"Imports of Thai goods have declined lately because many Thai business people fear they will not be able to collect payment from Cambodian whole sellers should the situation on the border deteriorate," Mao Thora, secretary of state at the Cambodian Ministry of Commerce, was quoted by the Phnom Penh Post as saying.

Kong Bunly, the trade director for Banteay Meanchey province, said cross-border with Thailand has remained largely unaffected by the dispute over territory around Preah Vihear, but that Thai tourists have stopped crossing into Cambodia.

Meanwhile, an employee at the Thai Plastic Company who asked not to be identified said she is concerned that any armed confrontation between the two countries could affect her company.

"I'm really worried about this because Cambodian people could stop buying Thai products if fighting breaks out," she told the Post.

"This crisis absolutely impacts Thai business in Cambodia and Cambodian employees employed by Thai companies," she said, adding that her manager had already returned to Thailand because of the border crisis.

Two Cambodian soldiers were killed and several Cambodian and Thai troops were wounded during Wednesday's gunfire exchange between the two neighbors.