Exports grew 72% in first half

Somsak Rinruengsin, chair¬man of the Thai Business Council of Cambodia, said Thai busi¬nessmen were still operating in Cambodia as usual.

"Private enterprises believe any 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," Somsak said.

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 operating normal¬ly. Most Cambodian people still had a positive attitude towards Thailand and Thai goods.

However, exports dropped slightly recently due to a slowdown in consumption in the leadup to its national election.

Jiranun Wongmongkol, min¬ister counsellor (commercial) at the office of commercial affairs at the Thai Embassy in Phnom Penh, said: twoway trade was still running smoothly. "Bilateral trade and investment are normal. But the antiThai goods and currency campaign that started on July 25 has slightly affected Thai goods."

She believed the situation was returning to normal.

According to the Commerce Ministry, exports to Cambodia grew sharply by nearly 72 per cent in the first half of the year, the highest growth in five years, thanks to rising demand for Thai goods and growing trade.

Exports to Cambodia reached US$1.08 billion (Bt36.19 billion), while imports jumped 134 per cent to $39.9 million. Exports were expected to reach the target of $1.69 billion this year, an increase of 25 per cent.

At a seminar called "Investment overseas: Challenges for Thai Private Enterprises", com¬panies were urged to strengthen trade and investment in neigh¬bouring countries, particularly Cambodia.

Thai enterprises had the potential to invest in neighbouring countries, increasing winwin 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 would be to expand agricultural and indus¬trial investment in countries where cheap labour costs and abundant raw materials reduce costs. Thai companies also 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 them," he said.

Narongchai Akrasanee, executive chairman of the ExportImport 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.