"The stronger baht has caused retail prices of Thai goods to be higher than export rivals, so

having manufacturing plants there will bring down the prices," director-general Apiradi Tantraporn said.

Thai and Cambodian officials and the private sector gathered recently under the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy.

The meeting opened up tremendous business opportunities for the two neighbours. Thai goods would enjoy greater access to the Cambodian market and a warmer welcome than merchandise from China and Vietnam, the Kingdom's major competitors.

Promising sectors for investment include construction, which the Cambodian government reported as expanding by 10 per cent a year. Phnom Penh also allows 100-per-cent foreign ownership but prefers to form joint ventures in an attempt to reduce opposition from local people. The Cambodian Businessmen Association invited its counterparts to produce cheaper products in the country instead of exporting there. The strategy would strengthen Thailand's edge vis-à-vis China, Vietnam, South Korea and Taiwan, which have been rushing in to take out land leases to establish manufacturing plants.

Meeting attendees also participated in a business-matching activity. Interesting areas included steel, contract farming for eucalyptus and sweet corn, industrial estates, transportation, biofuels and auto parts.

A Thai firm won a contract to export Bt52 million worth of steel, while the Cambodian government was keen on forming a joint venture with Thai partners in high-potential manufacturing with an estimated investment of Bt851 million up to Bt1.03 billion.