Thursday, March 09, 2006

VN Relations: Huge trade deficit, Empty border promises, Unchecked Vietnamese immigration

While officially claiming that Vietnam never demanded a centimeter of Cambodia land after a more than a decade of occupation of Cambodia, Vietnam in fact forced the Hun Sen regime to renew the illegal treaties it imposed on Cambodia in the late 70s and 80s during its occupation. These border treaties caused huge loss of Cambodian territories to the benefit of Vietnam. Furthermore, border encroachments are frequent as reported recently in the provinces of Rattanakiri and Svay Rieng. Other border provinces have also seen their share of Vietnamese encroachments on Cambodia with the explicit participation of Vietnamese troops: Takeo, Kampong Cham, Kratie, Stung Treng, Kampot, etc... As it did in the 70s with the US, the Vietnamese communist tactic is to sign all agreements but never comply with any of them. This scenario is current being played in Cambodia, in spite of the US claim that the 1991 Paris Peace Agreements on Cambodia calling for the cancellation of illegal treaties is still valid. (Photo Reuters)

Wednesday, March 8, 2006

PM and VN Leader Agree on Economic Zones

BY KAY KIMSONG THE CAMBODIA DAILY

Prime Minister Hun Sen and Vietnamese Prime Minister Phan Van Khai pledged on Tuesday to turn the common border of the two countries into the engine of Cambodia's economy by eliminating tariffs and establishing special economic zones.

To increase Cambodian exports, the two leaders said they had agreed to remove all Vietnamese tariffs and quotas on 40 agricultural products. These include Cambodian crops such as pepper, cashew, banana, rubber and sugar cane.

"The battle area where machine guns attacked each other is turning into a goods processing zone," Hun Sen told the Cambodia-Vietnam Trade Forum in Phnom Penh, in a speech that was heavy on wartime references.

Hun Sen said that for the cooperation to work the countries must address the huge trade deficit between the two countries.

According to Vietnamese statistics, there was $700 milon in trade between the two countries last year, which the two leaders said they hoped win increase to $1 billion in 2006.

Thon Virak, deputy director of the Ministry of Commerce's foreign trade department said milled rice would still be subject to quotas, white rice paddy would be quota-free.

Phnom Penh Chamber of Commerce President Kith Meng said exports can be increased, but only if Cambodian bureaucracy is hacked back.

"If the export documents are stuck for three days, it can be too slow," he said.

Touching on the subject of the recent border agreement between the two countries—the discussion of which landed several Cambodian activists in jail last year—Phan Van Khai said both countries have ensured that they will never violate one another's territory.

"When Vietnamese troops pulled out from Cambodia, Vietnam never demanded a centimeter of Cambodian land," he said.

Hun Sen urged Vietnamese investors to build two toll bridges in Phnom Penh and announced that Vietnam has agreed to fund a $40 million business center in the Cambodian capital.

The leaders also announced in a statement that King Norodom Sihamoni will make a state visit to Vietnam from March 16 to March 18.

"I am very happy to see the new face of both countries' development," Phan Van Khai said, though he remarked that he had spotted some visible differences in Cambodia during this trip.

"I have noted that Phnom Penh has a lot of expensive vehicles, while Vietnam still has a lot of bicycles on the street," he said.

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