The Nation (Thailand)
Sun, September 10, 2006
Supachai Verapuchong has seen his investments destroyed, but he just cannot stay away from Thailand's neighbour
His Royal Phnom Penh hotel in Cambodia's capital was burned down and property was looted from the hotel during the anti-Thai riot three years ago. His personal Pajero four-wheel-drive car was attacked.
The damage was thought to be beyond repair, and nobody expected the Thai investor to return to Cambodia. But Supachai Verapuchong, a long-term Thai investor in his neighbouring country, decided to give it a shot.
He began with a golf course in 2004 and later totally rebuilt his ravaged hotel in Phnom Penh.
His bravery in continuing to invest in Cambodia encouraged other Thai investors to return to the formerly war-torn country, a diplomat said.
"Doing business in Cambodia is quite risky, as foreign interests could easily become the victim of nationalistic sentiments so often voiced by local politicians and the media," said Supachai, the deputy managing director of Thai Nakorn Patana. The company's assets in Cambodia sustained the worst of the damage meted out during the anti-Thai riot in January, 2003. He has been investing in Cambodia since 1991.
Just how risky is it?
Supachai gave the following example: A few days before the announcement that Prime Minister Thaksin Shinawatra would visit Cambodia last month, a local nationalist newspaper called Rasmi Kampuchea launched an attack on Supachai's hotel in Siem Reap, reporting that it had hung the Cambodia national flag upside down.
"When I saw the newspaper I knew it had doctored the picture of Thailand and Cambodia's flag. The paper aimed at building anti-Thai sentiment," he said, adding that the paper's editors knew that Thaksin was scheduled to talk about the border demarcation at Preah Vihear temple with Cambodia's prime minister Hun Sen.
Thaksin ended up cancelling his plan after an alleged assassination plot was uncovered in Bangkok on August 24.
Local Khmer media have played a significant role in building public sentiment against Thailand. For example, the 2003 riot was sparked by a groundless story that Thai television star Suwanan Khongying had demanded Cambodia return the ancient temple of Angkor Wat to Thailand.
Following the riot, Supachai temporarily stopped doing business in Cambodia for about a year.
"The riot was discouraging for us, but we couldn't do anything to avoid it. Let bygones be bygones and think about how we will go on," he said.
A factor in support of Supachai's decision to continue doing business there was Cambodia's offer to compensate him for the damage caused in the riot in the form of tax incentives, rather than cash.
"That meant that we would have to continue investing here if we wanted to be compensated," he said.
He made his official return in 2004, when he created the Bt400-million Phokeethra Country Club, which opened last month.
Early this year the damaged Royal Phnom Penh Hotel was rebuilt and given a new name - the Sofitel Phokeethara Convention, Resort and Spa hotel. It was developed by a joint venture between Thai Nakorn Patana and the Accor Group, one of the world's leading hotel chains, in order to reduce political risk.
"My feeling toward this country has not changed," Supachai says. "We understand the government did not have anything to do with the [2003] incident. The riot mainly was driven by an internal rift among local politicians," he said.
"I'm realistic enough to understand that they looted our hotel because of poverty. We understand the condition of this country, which has experienced so much pain because of war. We can forgive them," he said.
In addition to the hotel and golf course, Thai Nakorn Patana currently operates Sofitel Phokeethra Royal Angkor Golf & Spa Resort Hotel in Siem Reap. Its other businesses include Tiffy brand pharmaceuticals, a drinking water called Lyyon and a TV station based in Phnom Penh.
Doing business in Cambodia is a bit more expensive than it would be elsewhere because "unexpected" expenses occasionally arise.
When asked how much he had to pay to run business, Supachai simply said, "Plenty".
"Luckily we do transparent business that brings development to their country. We never take advantage of the people here. We want to train Cambodian people to be good human resources and have their own careers so they can raise their families," he said.
Supachai said he was confident in the country's growth potential. He forecast that in the next 10 years, the two neighbours could function in a community like the European Union, allowing trade without boundaries.
Yet despite the great potential, relations between the two countries are occasionally shaky and require a lot of careful work.
Supachai is helping to inject some much needed stability into the two countries' relations, said former Cambodian Ambassador to Thailand Roland Eng.
"Supachai is the best [informal] ambassador between people of the two nations," said Eng, who is now an ambassador-at-large.
His Royal Phnom Penh hotel in Cambodia's capital was burned down and property was looted from the hotel during the anti-Thai riot three years ago. His personal Pajero four-wheel-drive car was attacked.
The damage was thought to be beyond repair, and nobody expected the Thai investor to return to Cambodia. But Supachai Verapuchong, a long-term Thai investor in his neighbouring country, decided to give it a shot.
He began with a golf course in 2004 and later totally rebuilt his ravaged hotel in Phnom Penh.
His bravery in continuing to invest in Cambodia encouraged other Thai investors to return to the formerly war-torn country, a diplomat said.
"Doing business in Cambodia is quite risky, as foreign interests could easily become the victim of nationalistic sentiments so often voiced by local politicians and the media," said Supachai, the deputy managing director of Thai Nakorn Patana. The company's assets in Cambodia sustained the worst of the damage meted out during the anti-Thai riot in January, 2003. He has been investing in Cambodia since 1991.
Just how risky is it?
Supachai gave the following example: A few days before the announcement that Prime Minister Thaksin Shinawatra would visit Cambodia last month, a local nationalist newspaper called Rasmi Kampuchea launched an attack on Supachai's hotel in Siem Reap, reporting that it had hung the Cambodia national flag upside down.
"When I saw the newspaper I knew it had doctored the picture of Thailand and Cambodia's flag. The paper aimed at building anti-Thai sentiment," he said, adding that the paper's editors knew that Thaksin was scheduled to talk about the border demarcation at Preah Vihear temple with Cambodia's prime minister Hun Sen.
Thaksin ended up cancelling his plan after an alleged assassination plot was uncovered in Bangkok on August 24.
Local Khmer media have played a significant role in building public sentiment against Thailand. For example, the 2003 riot was sparked by a groundless story that Thai television star Suwanan Khongying had demanded Cambodia return the ancient temple of Angkor Wat to Thailand.
Following the riot, Supachai temporarily stopped doing business in Cambodia for about a year.
"The riot was discouraging for us, but we couldn't do anything to avoid it. Let bygones be bygones and think about how we will go on," he said.
A factor in support of Supachai's decision to continue doing business there was Cambodia's offer to compensate him for the damage caused in the riot in the form of tax incentives, rather than cash.
"That meant that we would have to continue investing here if we wanted to be compensated," he said.
He made his official return in 2004, when he created the Bt400-million Phokeethra Country Club, which opened last month.
Early this year the damaged Royal Phnom Penh Hotel was rebuilt and given a new name - the Sofitel Phokeethara Convention, Resort and Spa hotel. It was developed by a joint venture between Thai Nakorn Patana and the Accor Group, one of the world's leading hotel chains, in order to reduce political risk.
"My feeling toward this country has not changed," Supachai says. "We understand the government did not have anything to do with the [2003] incident. The riot mainly was driven by an internal rift among local politicians," he said.
"I'm realistic enough to understand that they looted our hotel because of poverty. We understand the condition of this country, which has experienced so much pain because of war. We can forgive them," he said.
In addition to the hotel and golf course, Thai Nakorn Patana currently operates Sofitel Phokeethra Royal Angkor Golf & Spa Resort Hotel in Siem Reap. Its other businesses include Tiffy brand pharmaceuticals, a drinking water called Lyyon and a TV station based in Phnom Penh.
Doing business in Cambodia is a bit more expensive than it would be elsewhere because "unexpected" expenses occasionally arise.
When asked how much he had to pay to run business, Supachai simply said, "Plenty".
"Luckily we do transparent business that brings development to their country. We never take advantage of the people here. We want to train Cambodian people to be good human resources and have their own careers so they can raise their families," he said.
Supachai said he was confident in the country's growth potential. He forecast that in the next 10 years, the two neighbours could function in a community like the European Union, allowing trade without boundaries.
Yet despite the great potential, relations between the two countries are occasionally shaky and require a lot of careful work.
Supachai is helping to inject some much needed stability into the two countries' relations, said former Cambodian Ambassador to Thailand Roland Eng.
"Supachai is the best [informal] ambassador between people of the two nations," said Eng, who is now an ambassador-at-large.
7 comments:
The thai are getting richer and more Cambodians become their slave. Cambodian workers: making beds, clean bathroom, sweep floor, washing dishes, beer promoter, lawn care, laundry, picking up trash. Thai workers: managers, executives, supervisors, accountants, sipping champaign in the lobby, all the high positions.
I am just amazed how the way these Thai talked like they are doing Cambodian people a favor by doing business in Cambodia! Fuck all the Thai for say shit like this! The Thai are no different than that of the Viet! The Thai are in Cambodia to take advantage of AH HUN SEN stupidity!
The Thai are monopolizing Cambodian businesses and suppressing fair competition from Cambodian businesses! The rice business would be a good example!
The very reason that the Thai like to come to Cambodia to do businesses because Cambodia is the source of everything! Cambodia have tourism, agriculure products, cheap labors,....and what Cambodia need is the right kind of technology to mass produce and bring the products to international market and no need for the Thai!
Cambodian people can no longer afford to be consumers and they need to be producers as well!
Most government in the world help their own people do businesses but AH HUN SEN government help Cambodian enemy the Thai and the Viet to do businesses in Cambodia!
Why! Why! Why!
Rejection of foreign investment = rejection of employment opportunities.
And it's not as if Cambodians - like you loudmouths - are doing such a wonderful job in investing in your own economy and providing employment for your people.
To 8:07 am
You think that I haven't try over the years! You can kiss my ass because of what I said is right! You are just an economic animals and the rest of Cambodian people are too! These Cambodian people worked for one dollar aday and pay one liter of gasoline cost $3.00 and not including the food, electric bill, health fee, school fee for young children...You better prove me wrong fool! Why don't you tell AH HUN SEN to pass anti-corruption laws?
The Viet and Thai pay AH HUN SEN to shut up and Cambodian people are used as economic animal! If you want to play fair and let play fair by the law! Just pass the fucken law! I need law to protect my ass too! You are such a fool! Business without law is monkey business!
Hello all, stop fighting. Each country must start from cheap labor. In 60's Japanese were USA's slaves. In 70's Taiwanese were USA's slaves, followed by Koreans, followed by Thais Malaysias... In the 80's were chinese worked like dogs to inject junks into US economy. Now look at all of these countries... Cambodia will be one of them. President Park Chung Hee were shot, Suhatoo collapsed.. Hun Sen is not god.. time will come.
And don't you Cambodians want to enjoy the high standard of living of the Japanese, Koreans, Malaysians and Thais?
If you want wealth, you have to WORK for it.
The NGOs won't be around forever, you know!
To 11:53am
ahahahah! NGOs should be out Cambodia now! NGOs is nothing than a private business enterprise! I like to see AH HUN SEN regime collapse on it face!
Alot of people use NGO name to do illegal activities!
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