Cambodia's trade with Thailand up 8% [-Thailand is catching up with Vietnam?]

2011-10-17
Xinhua

PHNOM PENH - Trade between Cambodia and Thailand went up 8 percent in the first eight months of this year to $1.93 billion, according to the statistics provided by Thai Embassy in Phnom Penh on Sunday.

Cambodia's export to Thailand was 125.6 million dollars, down 17 percent, year on year, while Thailand's export to Cambodia amounted to 1.8 billion dollars, a 10 percent rise.

Jiranan Wongmongkol, director of the Thai embassy's Foreign Trade Promotion Office in Phnom Penh, said Cambodian and Thai trade has begun to see better recovery since the Pheu Thai Party led by Prime Minister Yingluck Shinawatra came to power in August.

"We project that through restoring good relations between the two nations, the bilateral trade will grow around 20 percent this year," she said.

BusinessCommerceDespite clashes, Thailand and Cambodia to hold business summit

February 18, 2011
Thailand Business News

Despite an ongoing border conflict which has caused bloody fighting sporadically along their frontier, Thailand and Cambodia have held their first ever business summit in the Cambodian capital of Phnom Penh.

Thailand’s Chamber of Commerce also suggested the creation of business information centres in border areas to aid economic development. The centres – termed SME clinics – would boost economic cooperation, said Thai Board of Trade Vice Chairman Niyon Wairatpining.

“Presently new investors, particularly SMEs, are afraid to invest into neighbouring countries, because of a lack of information [needed] for decision making,” he said yesterday. Cambodia Chamber of Commerce

Deputy Director, Sorn Sokna, said the suggestion could boost trade an added that the chamber already had some provincial representative offices.

Thailand, Cambodia hold first business summit in Phnom Penh

PHNOM PENH, Feb 18 (MCOT online news) -- Despite an ongoing border conflict which has caused bloody fighting sporadically along their frontier, Thailand and Cambodia have held their first ever business summit in the Cambodian capital of Phnom Penh.

Thai Deputy Prime Minister Trairong Suwannakhiri and Deputy Commerce Minister Alongkorn Ponlaboot held talks Thursday with Cambodia’s Deputy Prime Minster Keat Chhon and Commerce Minister Cham Prasidh in a cordial atmosphere with both sides agreeing that the border problem would not pose an obstacle to trade between the two neighbours.

Talks were focused on bilateral cooperation in trade, investment, agriculture, logistics, tourism and human resources development.

Cambodia, Thailand pledge to boost trade amid border conflict

PHNOM PENH, Feb. 17 (Xinhua) -- Cambodia and Thailand pledge to boost trade amid military confrontation at the border disputed areas near the temple of Preah Vihear, a World Heritage site.

In a meeting with Thai Deputy Prime Minister Trairong Suwankiri on Thursday, Cambodian Prime Minister Hun Sen said that Cambodia' s policy is to narrow dispute and expand resolution with Thailand.

"We have to control the dispute along the border, not to spread further and expand cooperation on other sectors such as economy, trade, investment, tourism, culture, among others," he said.

Trairong Suwankiri said that his one-day visit to Cambodia is to open the annual Thailand Trade Fair 2011 in Phnom Penh from Feb. 17-20.

Thailand-Cambodia To Carry On Bilateral Links Despite Border Dispute

BANGKOK, Feb 16 (Bernama) -- Thai Deputy Commerce Minister Alongkorn Ponlaboot said that the bilateral trade between Thailand and Cambodia will continue despite the ongoing border rows between the two neighbouring countries, Thai News Agency reports Wednesday.

Alongkorn has confirmed that he and Thai Deputy Prime Minister Trairong Suwannakhiri will pay an official visit to Cambodia from February 17 to 20, to open a Thai trade fair as well as to attend a meeting of the Thai-Cambodian Business Council.

The bilateral trade is held in parallel with attempts to resolve political woes related to unsettled border issues, he said.

Thai deputy PM to lead delegation to attend trade fair in Cambodia

February 16, 2011
Xinhua

Thai Deputy Prime Minister Trairong Suwannakhiri is scheduled to lead an economic and trade delegation to Cambodia on Thursday, Deputy Commerce Minister Alongkorn Ponlaboot said on Wednesday.

Trairong will be leading mostly Thai businessmen to join the first Thai-Cambodian business summit in Phnom Penh, Cambodia, Alongkorn said in an interview to a local Thai television.

The deputy Thai premier is also scheduled to meet Cambodian Prime Minister Hun Sen during his one-day visit, Alongkorn said.

A Thai Trade Fair 2011 will also be opened in Phnom Penh during Trairong's visit.

Analysis: Chinese investment galvanizes Cambodia's fiery premier

Thu Feb 10, 2011
By Robert Birsel

PHNOM PENH (Reuters) - Cambodian Prime Minister Hun Sen's ruffling of Thailand with threats of "war" shows how a growing alliance with China is allowing him to stand up to his neighbor and, in the process, boost his credentials at home.

This week's deadly border clashes between the two countries' armies have put Thailand's government under domestic political strain and given Hun Sen a chance to score points at home without much risk to Cambodia's fragile economy.

Two-way trade with Thailand is on the decline and a continued flow of investment from China, South Korea and Vietnam has left the long-serving strongman Hun Sen with very little to lose as he seeks to embarrass Thailand by internationalizing the spat.

"Hun Sen realizes he doesn't need Thailand for very much. Strong ties with China and investors in East Asia, and good relations with Singapore, all leave him in very different position than in the past," said Michael Montesano, a research fellow at Singapore's Institute of Southeast Asian Studies.

Thai Joint Private-Sector Committee urged Thai gov't to solve Cambodian border hostilities peacefully

Thai government urged to solve Cambodian border hostilities peacefully

BANGKOK, Feb 8 (MCOT online news) – Concerned with the heightened border conflicts between Thailand and Cambodia, the Joint Private-Sector Committee comprising the Federation of Thai Industries (FIT), the Thai Chamber of Commerce (TCC), and the Thai Bankers’ Association (TBA) has called on the government to cope with resolving the current tensions and hostilities through diplomatic means.

Speaking after a meeting of the tripartite committee held on Monday, TCC Chairman Dusit Nontanakorn said the border clash between troops of both countries had not yet adversely affected overall trade because Thailand’s border trade value with Cambodia accounts for only 10 per cent of exports to neighbouring countries including Myanmar, Malaysia, and Laos.

He said 24 per cent of Thailand’s exports are destined to ASEAN with 10 per cent each of the shipments going to the United States, Europe and Japan.

Thailand postpones goods exhibition in Phnom Penh indefinitely

BANGKOK, Feb 5 (MCOT) -- As fresh fighting at the disputed Thai-Cambodian border erupted, the Thai Commerce Minister Pornthiva Nakasai has decided to postpone a Thai goods exhibition scheduled to be held in the Cambodian capital of Phnom Penh for an indefinite period, a spokesman for the ministry said.

The spokesman said Ms Pornthiva had ordered the four-day exhibition–which was scheduled to start on February 17–to be postponed due to security concerns following deadly fighting at the disputed border which began on Friday.

The postponement of the exhibition, aimed at strengthening economic, trade and investment between the two neighbouring countries, has already forced some Thai manufacturers who were supposed to attend the fair to cancel their participation.

Poipet tax revenues fall by close to 50pc

Tuesday, 05 January 2010
Soeun Say
The Phnom Penh Post

CUSTOM tax revenues at the Poipet International Border Checkpoint fell by almost half in 2009 compared with a year earlier amid fallout from the global economic crisis, a reduction on duties on some products and political tension with Thailand.

Revenues fell 48.81 percent to US$40 million in 2009, down from $79 million in 2008, the checkpoint’s Chief Customs and Excise Officer Chuop En said.

“Imports of general goods has fallen a lot because of the influence of the global economic crisis and the Cambodian-Thai conflict,” he said.

A reduction in duties on cement imports from 15 percent to 5 percent in 2009 also contributed to the checkpoint meeting just 80 percent of its revenue target for the year, Chuop En said.

The setback came after the they exceeded targets in 2008, he added.

Cement imports through the border declined from 444,073 tonnes in 2008 to 385,385 tonnes last year as construction activity in the Kingdom fell significantly, their figures showed.

Imports of motorbikes fell 62 percent over the period from 196,241 in 2008 to just 74,313.

Chuop En said trade in the two goods were key indicators of the health of the local and regional economy.

Tim Daro, chief of police at the checkpoint, said about 5,000 Cambodian people crossed the border into Thailand every day to work or trade in goods. He said the political conflict with Thailand had had no impact on their activities.

“There is still good relations between Cambodian and Thai people in their business,” he said.

However, Sok Poy, a 38-year-old taxi driver at the border, said there were fewer customers since the Cambodia-Thai dispute. “Last year [2008] I could earn 40,000 riels per day, but this year I earned only 20,000 riels per day,” he said, “Customers are very scarce now. It is not like before.”

According to a local trader who has made a living from importing goods into Cambodia from Thailand since 1983, as economic conditions worsened, border officials were requiring more informal payments, asking for 20,000 riels ($4.80) per cart of goods imported.

Seung Ny said her profits had decreased from around 60,000 riels per day to between 30,000 and 40,000, making it harder to afford the informal charges. She also needed to pay police and Ministry of Agriculture, Forestry and Fisheries officials to verify the health of imported animals, she added.

Border trade not yet affected

November 14, 2009
By Petchanet Pratruangkrai
The Nation

Cross-border trade with Cambodia is holding up despite the diplomatic row between the countries.

"There has been no disruption yet in border trade with Cambodia. The conflict is likely to affect new investment projects, rather than existing ones. Most new projects involve agricultural projects and restaurants," Niyom Wairatpanij, chairman of the Thai Chamber of Commerce's border trade committee, said yesterday.

Deputy Commerce Minister Alongkorn Ponlaboot reiterated that commercial business with Cambodia was normal. He insisted there had been no violence against Thais in Cambodia, but that a contingent evacuation plan was ready should the situation deteriorate.

The value of Thailand's cross-border trade with Cambodia is generally lower than that with its other immediate neighbours.

Niyom said last year's border trade with Malaysia was the highest at Bt400 billion, followed by about Bt150 billion with Burma.

Laos was ranked third, followed by Cambodia.

In the first nine months of this year, cross-border trade with Cambodia was estimated at Bt32 billion, out of an overall bilateral trade value of Bt39.53 billion. Border trade generally accounts for 80 per cent of the total.

Regarding overall Thai trade with the Kingdom's nine fellow Asean members, the value of exports to Cambodia ranked eighth at US$1.14 billion (Bt38.2 billion) in the first nine months of the year.

This was higher only than Brunei, which imported $88.3 million from Thailand, according to Commerce Ministry data.

Thai businessmen fear trade fallout from spat

12/11/2009
Anucha Charoenpo and Penchan Charoensuthipan
Bangkok Post

PHNOM PENH : Thai businessmen in Cambodia fear the diplomatic stand-off between the two countries will have a disastrous effect on trade.

Amaraporn Pakarat, a member of the Thai Business Council of Cambodia who has operated a tourism business in the country for 11 years, yesterday said some Thais doing business in the Cambodian capital were concerned the situation would worsen if the two countries fail to quickly mend relations.

"I still remember the incident in January 2003. I had to catch the last flight to Bangkok on that day," she said, referring to the anti-Thai riots that erupted in Phnom Penh. The Thai embassy and many Thai firms were torched, looted and vandalised.

Thai business people dealing with their Cambodian counterparts fear the Thai government will eventually order the closure of border checkpoints.

Preeda Samkaeo, managing director of PD Intertrade 92 Co, told a seminar at Thammasat University it was very likely the diplomatic dispute would escalate to the point that the Thai government could order the border closed, which would be disastrous for trade.

Mr Preeda, who has 10 years of experience in exporting consumer products to Cambodia, said he wanted to ask the government to reserve border checkpoint closures as a last resort in its efforts to pressure Cambodia.

Border closure would also affect the employment of Cambodian workers by Thai industry, he said.

Cambodians had begun to stock oil, dry and canned food and drinking water as though they were preparing for war. "Nobody wants a war to take place," Mr Preeda said.

"Thailand has never got involved directly in a war, and it should not get involved in one. A war is dangerous for the country and also the people."

Thai Business Council of Cambodia chairman Somsak Rinrueangsin echoed Mr Preeda at the forum saying border closures should be a last resort.

Q+A-How much damage will the Thai-Cambodia spat cause?

By Martin Petty

BANGKOK, Nov 9 (Reuters) - Thailand and Cambodia are embroiled in a diplomatic stand-off over the appointment of former Thai premier Thaksin Shinawatra, on the run from a graft conviction, as an adviser to the Cambodian government.

Rivalry between the two neighbours dates back centuries and tensions are never far from the surface. But ties have sunk to their lowest in almost seven years, with both sides recalling their ambassadors and freezing agreements.

WHY HAS THAILAND REACTED SO STRONGLY?

The Thai government sees Thaksin's new job as a slap in the face, but what seems to have irked Bangkok so much is Cambodia's refusal to extradite Thaksin, should a request be made, on the grounds that his graft conviction was politically motivated.

That is seen as an attack on Thailand's judicial system.

There are other reasons, however. Thai Prime Minister Abhisit Vejjajiva has had enough trouble from the self-exiled Thaksin as it is, and the prospect of him wielding his sizable influence from across the border could hamper his efforts to bring stability to his deeply polarised country.

WHAT IS THE HISTORY OF TENSIONS?

There is no love lost between the two countries. Cambodia's Khmer Empire, dating back to the ninth century, was once the dominant power in the region and ruled over much of modern Thailand from its Angkor Wat complex, prompting a series of rebellions.

A big source of tension is Preah Vihear, an 11th century temple that straddles their disputed border. Although an international court ruling awarded it to Cambodia in 1962, it is still the source of nationalist squabbles that have led to deadly border skirmishes.

Diplomatic ties were severed in 2003 for almost three months after Cambodians went on the rampage in Phnom Penh, torching the Thai embassy and vandalising Thai businesses over an unsubstantiated rumour that a famous Thai actress claimed Angkor Wat belonged to Thailand.

WHAT IMPACT WILL THE FREEZING OF TIES HAVE?

Both Abhisit and his Cambodian counterpart Hun Sen have said they will not close the border, which would disrupt trade and tourist movements between the two countries.

Thailand sought to hit impoverished Cambodia where it hurts by halting a 2001 agreement to jointly develop a disputed area of the Gulf of Thailand believed to have abundant natural gas reserves. Both countries have already awarded concessions to firms such as Chevron.

Thailand believes Thaksin, a former negotiator on the issue while in office, could get involved from the Cambodian side, but it has no evidence to prove it. Hun Sen might also get a more favourable deal if Thaksin or his allies return to power, so it would be in his interests to give the billionaire a helping hand.

However, the suspension of the agreement is unlikely to have much of an effect, since negotiations were moving at a snail's pace, with the issue years away from being resolved.

IS THERE A RISK OF MILITARY ESCALATION AT THE BORDER?

Both sides have repeatedly pledged not to engage in any confrontation but it remains to be seen how much control politicians have over their trigger-happy troops. Cambodia reduced its military presence a few months ago and Hun Sen pledged on Sunday to pull more troops out.

WHAT WILL THE IMPACT BE ON TRADE, INVESTMENT?

Not a big one. Cambodia's economy depends heavily on South Korea and China, and very little on Thailand, which it turn relies on its neighbour for just 0.05 percent of total imports.

Despite endemic corruption and various internal problems, investors are still drawn to Cambodia and it is unlikely the latest tit-for-tat row with Thailand will change anything.

Providing the border remains open and peace prevails, it will not make much difference. However, the thousands of Thais that flock to Cambodia's border casinos each week might think twice about a flutter while tensions remain high.

(Editing by Alan Raybould and Dean Yates)

Hun Sen Upsets Thailand's Apple Cart

Monday, 09 November 2009
Written by Simon Roughneen
Asia Sentinel

The Cambodian prime minister's own lesson in economics

Cambodian Prime Minister Hun Sen's offer to employ the fugitive Thai ex-premier Thaksin Shinawatra as an "economics advisor" comes at a time when Thailand's political house is in disarray, and seemingly is a daring – or perhaps foolhardy – gamble to provide Thaksin with a possible springboard to return to power in Bangkok.

Both countries have recalled their respective ambassadors, with some navel-gazing in Thailand wondering whether this was an over-reaction. There is talk of closing the land border between the two – although it is doubtful whether vested business interests operating across the frontier would be happy. Thailand is also reviewing a maritime agreement with Cambodia, threatening to undermine a deal to collaborate on oil and gas exploration.

Thaksin was overthrown in a 2006 royalist coup and has since remained out of Thailand, evading corruption charges, while his allies won back power democratically only to have the military and the courts oust them again. Despite the political setbacks, the absent Thaksin probably remains the second-most popular figure after the ailing King Bhumibol Adulyadej. He has been content to stay outside the country but has raised considerable hell from abroad through inciting his Red Shirt followers to continue to march, demonstrate and object to the government of Prime Minister Abhisit Vejjajiva and his Democrat Party.

Relations between the two countries have been strained for months. Hun Sen first offered Thaksin a home in Cambodia in October, embarrassing Abhisit just before he played host to his counterparts in the Association of Southeast Asian Nations as well as the leaders of Australia, China, India, Japan, New Zealand and South Korea, at the resort town of Hua Hin, a couple hours south of Bangkok.

Thaksin has been stranded in Dubai for several months after the British government revoked his passport. If he moves to Cambodia, that gets him considerably closer to the scene of the action in Bangkok, where he remains committed to taking over. Thitinan Pongsudhirak, a political science professor at Chulalongkorn University in Bangkok, told the Associated Press that the move constitutes a new offensive by Thaksin to return to power.

The move comes at a particularly sensitive time, with Bhumibol, the 86-year-old monarc, having just emerged from hospital after more than a month of illness. The royal succession is in flux, with Crown Prince Vajiralongkorn the presumptive heir. With the Red Shirts harrying the government on one side, the royalist Yellow Shirts of media tycoon Sondhi Limthongkul are forming up on the other.

In particular Newin Chidchob, who defected from Thaksin's surrogate People Power Party in 2008 to join Abhisit's Democrats, is viewed with distrust as someone who could either could re-defect and force Abhisit to call new elections, or who possibly has lost control over his faction.

Thai media have taken potshots at Hun Sen, decrying the lack of media freedom in Cambodia. Reporters without Borders ranks Thailand a lowly 130 in its media freedom index. Cambodia, often decried for its authoritarian leanings, sits a few notches above, at 117.

Cambodia historically has been wary of its larger neighbor since the Siamese army conquered the Khmer capital in 1353. Thailand sees a poorer, smaller, somewhat paranoid client state, while Cambodia sees an aggressor responsible for cultural identity theft and continued commercial exploitation.

The Thai and Cambodian armies fought briefly over the disputed 10th Century Preah Vihear temple, which straddles the border between the two countries although maps show it to be inside Cambodia. Thailand's current foreign minister Kasit Piromya, called the Cambodian leader "a thug." Previously, in 2003 Cambodian security forces looked on as rioters torched the Thai embassy in Pnomh Penh following an alleged claim by a Thai actress that the famed Angkor Wat temple belonged to Thailand.

Abhisit called Hun Sen's action an "interference in Thailand's domestic affairs," which earned the Thai premier a strong bounce in popularity. He dared the fugitive telecoms billionaire to "review his role and consider what he is doing" and asked "does he give priority to the national interest and care about the good ties between Thailand and the neighboring country?"

Hun Sen, said one western observer in Bangkok, "must figure he doesn't have much to lose in upsetting Abhisit and Kasit, particularly since they led the nationalist charge on Preah Vihear last year. He also must be betting Thaksin's allies will be back in power soon enough."

If not, Cambodia could be in trouble because it needs Thailand a lot more than Thailand needs Cambodia. Thai businessmen virtually run the Cambodian economy. Cambodia ranks a minute 18th as Thailand's export partner, according to Bloomberg, with Thai exports to Cambodia such as sugar, cement and oil accounting for 96 percent of Cambodian imports. Thailand and Vietnam remain by far Cambodia's biggest fixed asset investors, amounting to US$178 million in the first half of 2009, with Vietnamese investment a distant second at US$114.2 million, primarily in sugar cane plantations and processing plants, rubber, telecommunications and transportation.

Both Hun Sen and Abhisit are to attend the Asia-Pacific Economic Cooperation summit which is taking place this week in Singapore and which will be attended by, among others, the leaders of Singapore, Malaysia, Australia, China, Chile, Indonesia, Mexico, Russia and the United States. Singapore's Foreign Ministry is getting jittery, not wanting the row to spoil their gala APEC and Asean week, with US President Barack Obama in town for meetings that will include the first-ever US-ASEAN summit.

"It is not good for Asean," the ministry said in a statement. "We hope that both our friends will keep that larger interest of Asean in mind and find a way to resolve their differences quickly in a spirit of good neighborliness," the ministry said.

Abhisit will co-chair the meeting with President Obama, another photo-op for him to boost his Thai poll ratings. So what odds something dramatic again from Phnom Penh, to try overshadow that?

Businesses wary of border closure

Thais and Cambodian tourists travel freely across the border at a checkpoint linking Trat province with Cambodia’s Koh Kong. Thai officials yesterday threatened to close the borders as a diplomatic row between the two countries continues to escalate. JAKKRIT WAEWKLAIHONG

Protecting people and assets the concern

7/11/2009
Bangkok Post

Amid the rising tension after fugitive former prime minister Thaksin Shinawatra's appointment as an economic adviser to Cambodia, Thai businesses are highly concerned about the safety of their people and assets, but they say closing the borders should be a last resort.

Thailand's national energy flagship PTT has valuable assets in Cambodia and is monitoring developments closely. Should violence occur, it said its assets in the country would be protected by the Royal Thai Navy.

"So far we are in alarm mode since we have facilities worth billions of baht in Cambodia, even though they are located in areas far from conflict," said Kampong Kittitornkul, vice-president for international marketing.

PTT has a 50% market share from six service stations and three oil tank farms in Phnom Penh and Siem Reap. The rest of the market is held by France-based Total.

PTT's oil products stored in tanks include jet fuel, petrol, diesel, lubricant and fuel oil used in power plants. The oil tanks are located in Navy areas.

"The Thai business community has not seen any impact yet, but we have to be cautious," he said. "Our major concern is if the situation comes to the point of a border closure, whether our business can run as usual or not. We also need to prepare for immediate evacuation if riots break out.

"We hope the situation will not lead to violence as happened in 2003. So far, high-ranking officials in Cambodia are still attempting to calm down the local business community."

Logistics operators are wary a border closure will hurt not only trade with Cambodia but also within the Greater Mekong Subregion (GMS).

Sealing border trade with Cambodia affects co-operation to integrate GMS logistics networks. Last month, a trial run trucking goods from the Thai border to Ho Chi Minh City via Cambodia took place successfully, said Yoo Chienuenyongpong, a counsellor to Thai Logistics Alliance Co.

Chemical product shipments to factories in southern Vietnam would be affected, said Mr Yoo, also the president of the Land Transport Federation of Thailand.

"We should not let politics cause problems for people who are not involved in the dispute," he said.

"Vietnam is more important to us than Cambodia in terms of business opportunity. Our counterparts in China are concerned about growing disputes between Thailand and Cambodia because it might further delay our regional economic integration."

Land transport takes two nights and three days to reach Ho Chi Minh City from the Thai border, compared with 10 days by sea from Laem Chabang Port to Sihanoukville in Cambodia.

Thanet Sorat, vice-president of logistics service provider V-Serve Group, said tens of local logistics companies operating at the border and with Vietnam would be affected.

"These logistics companies are the second group of casualties after local residents if the disputes intensify and lead to border closure," Mr Thanet said.

"I think the issue should not be blown up to become a national agenda item to minimise the damage for the sake of the people and the business sector."

The Commerce Ministry is calling on people and business operators of both nations not to panic, as Thai trade officials and commercial counsellors in Cambodia have not been recalled yet even though the two countries' ambassadors have left their posts.

Border trade represents up to 80% of trade between the countries worth at least 50 billion baht a year.

Traditionally, commercial ministers are not recalled as the recall of Thailand's ambassador to Cambodia is strong enough to show the kingdom's disapproval with Hun Sen's embrace of Mr Thaksin.

Commerce permanent secretary Yanyong Phuangrach said that during emergencies, all Thai trade officials are told to be ready to help Thais doing business in Cambodia.

Thai business remains positive over Cambodian conflict

November 6, 2009
The Nation

Thai businessmen with a presence in Cambodia are positive that the Thai-Cambodian conflict will not adversely affect their businesses.

Between August 1994 and June 2009, Thai companies have invested US$226.59 million (Bt7.57 billion) on 81 projects in Cambodia, according to Phnom Penh's Office of Trade Development.

According to Deputy Commerce Ministry Alongkorn Ponlaboot, there are four major pending projects worth $30.67 million, including a sugar-cane plantation for the Thai Beverage Group; a logistics system and port for Khon Kaen Sugar Industry; and the Krungthep Hospital. The bilateral trade, according to the Commerce Ministry, is worth $2.13 billion per annum, with Thailand exporting $2.04 billion and importing goods worth $90 million.

Alongkorn said the conflict would be affecting the trade and investment directly, though the exact damage is still to be determined. Commerce Minister Porntiva Nakasai is due to ask Prime Minister Abhisit Vejjajiva if Thai commercial consultants in Phnom Penh should also be recalled.

Still, despite Alongkorn's worries, most Thai businessmen believe their interests in Cambodia will remain intact.

Watchai Vilailuck, president of Samart, said he did not think the conflict would affect the company's businesses in the neighbouring country. Samart has been operating air-traffic control services in Cambodia for more than 18 years now.

Tanyapas Chuaychoo, corporate communications manager of Thaicom, said his company and its subsidiary in Cambodia were in no way related to any political issues.

"We will continue running our business in Cambodia as usual," she added.

CMO Group's chief executive director Sermkhun Kunawong noted that the conflict should affect only Thai companies that have contracts with the Cambodian government, but not events held privately to boost tourism. His company had earlier won a contract to organise a light-and-sound show at Angkor Wat. CMO Group had earlier shut down its Cambodian subsidiary and now operates directly from Thailand.

"I don't think the situation will worsen, because the leaders should put mutual benefits above anything else. Cambodia is a major market for Thai products, while Thailand is the main gateway for the Cambodian tourism industry," Sermkhun said.

As of yesterday, Bangkok Airways had not introduced any changes to its services to and from Thailand to Cambodia. Its three daily flights to Phnom Penh and six daily flights to Siem Reap were continuing as usual, the airline's spokesperson said, adding that the Cambodian government had sought to discuss the issue with Thai businessmen.

According to the Phnom Penh trade office, there are eight Thai hotels are operating in the country including the Phokeethra Resort & Spa and Royal Angkor, both owned by the Thai Nakorn Pattana Group - the biggest Thai hospitality investor in Cambodia. The Phokeethra hotel was built to replace one that burned down in 2003.

Sanan Angubolkul, chairman and president of Srithai Superware, said business should continue as usual provided Thai businesses offer good-quality products at reasonable prices, because then Cambodia would have no reason to import goods from other countries. Srithai exports a small percentage of its products to Cambodia.

According to Mitr Phol Group's chairman Isara Vongkusolkit, the group has delayed its investment in Cambodia not just because of the conflict but also because it is focusing more on Laos. The group had earlier conducted a test on sugar plantations in Cambodia.

CMO Group's Sermkhunand Kantana Group executive chairman Jaruek Kaljaruek supported the Thai government's reaction, saying that Cambodia should not have given fugitive ex-PM Thaksin Shinawatra the job of being an economic adviser.

"Hun Sen's motives are in question. Personally, I see this move as inappropriate," Jaruek said, noting that his businesses in Cambodia, involving a TV station and telecom infrastructure investment, were still operating as usual. He explained that though the conflict was affecting government-to-government ties, it had yet to hit private investment in the country.

Business as usual for Thai firms in Cambodia

November 7, 2009
The Nation

FTI seeks urgent measures to resolve conflict; warns of rapid degeneration

The government is being urged to support Thai businesses that have a presence in Cambodia even though the latest tensions between the two countries have not yet affected them.

"Despite reports of no effects now, the situation could degenerate quickly. Aside from supportive measures, the government should try to end this conflict quickly through diplomatic means," Federation of Thai Industries official Thaworn Techakraisri said yesterday.

FTI chairman Santi Vilassakdanont also expressed concern about border trade, which constitutes 80 per cent of bilateral trade between the countries.

The two-way trade amounted to US$2.13 billion (Bt71 billion) last year. Major Thai exports are sugar, fuel, pigs and cement. Major goods imported from Cambodia include cassava, maize and scrap aluminium.

To date, all business activities are continuing as usual.

Pongsak Viddayakorn, an executive adviser to Bangkok Dusit Medical Services (BDMS), said company executives were not concerned about the diplomatic rift possibly hurting healthcare operations in Cambodia.

BDMS operates Royal Angkor International Hospital in Seam Reap and Bangkok Hospital Medical Centre in Phnom Penh.

He said the hospitals are partially owned by Cambodian officials, and since the rift was not at the grass-roots level, the company's healthcare services should not be affected.

However, if the worst comes to the worst, the company is prepared to evacuate all physicians, nurses and medical staff to Thailand on Bangkok Airways.

BDMS founder and CEO Prasert Prasarttong-osoth is also the founder of Bangkok Airways.

At present, BDMS still plans to add 100 beds to the present 50 in the Phnom Penh property. Pongsak said the economic environment played a bigger role in investment decisions than did diplomatic relations.

Meanwhile, a source at pharmaceutical manufacturer Thai Nakorn Pattana, owner of the Phokeethra Country Club in Seam Reap, said the hotel-sponsored Johnnie Walker Cambodian Open golf tournament would still take place from November 19-22 as planned.

The source said the tournament had the full backing of the Cambodian government and that the rift would not affect the company's new Bt2-billion hotel in Phnom Penh or its Bt400-million golf course.

Krung Thai Bank president Apisak Tantivorawong, while expecting a solution soon, reported no unusual movement at the bank's two Cambodian branches.

Na Bhengbhasang Krishnamra, vice president of Siam Commercial Bank - owner of the Cambodian Commercial bank - said it was business as usual yesterday at the Cambodian properties and that there were no signs of huge withdrawals. The unit, which has a 10-per-cent share of the local lending market, deals mostly with Thais in Cambodia. With four branches throughout the country, the 18-year-old bank employs 60 Cambodians and has $100 million in assets.

Na Bhengbhasang said there was a contingency plan to evacuate all 11 Thai staff to Thailand if need be.

During a videoconference yesterday with commercial counsellors throughout Thailand, Deputy Commerce Minister Alongkorn Ponlaboot said the counsellors in Phnom Penh had not been recalled and urged all businessmen to remain calm.

He said some 40 Thai businessmen continued to operate normally in Cambodia but that a contingency plan was in place if needed.

"We're worried about the diplomatic trouble, but I want to emphasise that the commercial counsellors and other staff are working as usual," said Alongkorn. "We hope the prime minister will speak with Prime Minister Hun Sen in Tokyo [during the Greater Mekong Subregion meeting]."

The ministry is monitoring border trade in seven provinces. Alongkorn will lead a survey team to Sa Kaew province today.

Si Sa Ket province yesterday decided to delay next Wednesday's planned opening of Chong Sa-Ngam Market in Phu Sing district by at least six months, said the border-trade coordinator for the provincial chamber of commerce.

He said the delay was advised by Second Army Region commander Lt-General Wiwalit Jonsamphan and that the chamber had agreed for security reasons.

Bank of Thailand Governor Tarisa Watanagase expects a solution soon, given the long relationship between the two countries. Moreover, the conflict is only at the national level and both countries' citizens are acting in good faith with each other.

Export-Import Bank of Thailand chairman Narongchai Akrasanee said there should be no effect on trade, due to Cambodia's economic potential.

His bank has extended a Bt1.3-billion loan to finance road, railroad and other infrastructure projects in that country and another Bt1 billion to private companies involved in tourism and infrastructure-construction projects there.

Logistics operators have felt no impact from the diplomatic tussle, given that there are no land-transport links between the two countries.

Triple i Logistics Group CEO Tipp Dalal said problems would arise only if the conflict dragged on.

TNT Express Worldwide (TNT), which has a substantial land-transport on the Asia Road Network (ARN), yesterday said its business remained normal.

"The recent events do not affect TNT's services on the ARN [connecting Thailand with Laos, Vietnam, Cambodia and southern China]. TNT continues to provide the same high level of solutions for customers doing business in Thailand and Cambodia," said a high-ranking TNT official.

Thailand's Kasikorn Research Center expects trade between Thailand and Cambodia to expand in the second half of the year

KResearch: Trade between Thailand and Cambodia to expand in H2

BANGKOK, 8 August 2009 (NNT) – Kasikorn Research Center (KResearch) expects trade between Thailand and Cambodia to expand in the second half of the year, after a drop by 25.5 per cent during the first half in terms of value.

With the global financial crisis, the Cambodian economy became severely sluggish since the second half of 2008. During the first half of this year, trade value between Thailand and Cambodia had decreased by 25.5 per cent year on year. However, Thailand still had trade surplus, because the import value from Cambodia decreased more than the export value.

KResearch expected that trade between Thailand and Cambodia would improved in the second half of the year, although the Cambodian economy would shrink by 0.5 per cent for the first time in many years, but the global economic recovery sign in the second half of this year would boost its export to the main markets as the United States and the European Union. Thus, the Cambodian economy was supposed to be improved in the rest of the year.

However, there are some negative factors, which may affect trade between Thailand and Cambodia as the tension of Preah Vihear temple dispute, and the bubble in property sector of Cambodia, which can affect its economic stability.

Thai firms say crisis will pass

July 29, 2008
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.

No slowdown in trade with Cambodia

Monday, July 28, 2008
TNA

Deputy Commerce Minister Wiroon Techapaiboon on Monday affirmed that the Thai government has no policy to slow investment and trade in Cambodia despite continued border tension from the military standoff related to the Preah Vihear temple dispute.

Although there is some misunderstanding between Thailand and Cambodia over the issue, Mr. Wiroon said, the overall relations between both neighbours remains sound.

Nevertheless he said he believes the dispute will last only for the short run, and that it could be settled within one month.

At present, bilateral trade value has increased by up to 70 per cent with Thailand's importation of Cambodian products doubling, showing that normal trading activities are continuing smoothly.

He said that some Cambodians had reduced their purchase orders to import Thai goods, but believed the situation would improve after the talks between Cambodian and Thai foreign ministers are held, and the new Cambodian government is installed.

Mr. Wiroon reiterated that the Thai government had no policy to slow investment or shift production bases from Cambodia because the government sees bilateral trade cooperation as remaining good.