The advice, coming yesterday from private sector and government representatives, suggested that Cambodia, as a close neighbour with abundant resources, should be drawing more attention from Thailand.

Cambodia's Senior Commerce Minister Cham Pasith said his country had been granted many privileges by developed countries which can benefit investors.

"Thai companies should take advantage of these privileges by investing in Cambodia as a manufacturing base for export trade with third countries," he said.

Despite recent comments from the UN special representative for human rights to Cambodia, Yash Ghai, that the current Cambodian government is "stifling democracy", Cham Pasith advised skeptics to look at the "peaceful voters" at an election for the country's senate earlier this year as a sign of political stability.

Ghai, who is a professor of human rights and public law at the University of Hong Kong, reported instances of rampant land-grabbing, corruption and meddling in the court system.

The call for greater Thai investment came yesterday at a meeting in Bangkok between Thai and Cambodian officials to plan progress in a "strategic partner" idea between the countries. About 100 private and government representatives from Cambodia came to Bangkok, eager to find partners for new ventures in their country.

The meeting followed an agreement made in February this year aiming to double trade, investment and growth in tourism between the nations. Targets set under the pact include the virtual doubling of both two-way trade between the two countries and investment from Thailand in Cambodia.

It is hoped that trade will rise by US$2 billion (Bt73.2 billion) above the current figure of $1.27 billion in the first 10 months of the year, while investment will exceed $60 million before the end of 2008, from the present $30.66 million.

The number of Thais visiting Cambodia is also targeted to double to more than 120,000.

Cham Pasith said Cambodia had set up nine economic zones to facilitate investment, and two more will be established next year. Investors in the zones get incentives such as well-operated infrastructure, income tax exception for up to nine years, 100-per-cent ownership and 99-year land leases.

However, some participants in the meeting warned investors to be aware of cross-cultural problems.

Thai Chamber of Commerce deputy secretary-general Phairush Burapachaisri said Cambodia was developing special zones to attract foreign investors and many industries have high investment potential, including infrastructure, construction and garments.

However, Thai investors should study the cultural differences very carefully to avoid cross-cultural conflicts and ensure smooth business operations in Cambodia.

"Thai investors should prepare very well before make a decision to invest in any business," he added.

The managing director of Neo Suki Thai Restaurants, Sakon Kubpiyajanya, suggested Thai investors form joint ventures with local enterprises to minimise risks. He said service businesses such as hotels and restaurants had high potential for success.

Trade Negotiations Department director-general Chutima Bunyapraphasara said the political situation in Cambodia was now more stable and Thai investors should take the opportunity to invest to enjoy the advantages and benefits of privileges granted by developed countries. She said interesting sectors for Thai enterprises included agriculture, agro-business, energy, processed food, sugar, furniture and tourism.

Petchanet Pratruangkrai

Ki Nan Tsui

The Nation