Thai businesses worried but still hopeful on Cambodian border trade

"We're worried, but Thai ministers have told us the border will remain open, and we believe Cambodia will not shut down the trade channel. We are now waiting for a clearer policy from both governments on how to address the conflict," said Somsak Rinruengsin, chairman of the Thai Business Council of Cambodia.

There are seven checkpoints along the border, in Ubon Ratchathani, Si Sa Ket, Surin, Buri Ram, Sa Kaew, Chanthaburi and Trat provinces. All but two - Ubon Ratchathani and Buri Ram - are permanent.

Trade value at the checkpoints reached Bt50.78 billion last year, with Sa Kaew being the most active at Bt28.9 billion.

At a Thammasat University-hosted seminar on Thai business and Thais in Cambodia, Somsak yesterday said trade in consumer products continued as usual and demand for some products like instant noodles had spiked on fear the checkpoints could be closed.

An initial estimate showed Thai service companies in Cambodia, such as hotels and restaurants, were suffering the most from the current dispute, as many tourists - particularly from Japan and South Korea - had cancelled trips out of safety concerns.

Service companies constitute the largest portion of more than 100 Thai companies operating in Cambodia.

Si Sa Ket-based Aveeya Angkor Travel has reportedly suffered a loss of a few million baht from the cancellation of trips to the Cambodian destinations of Angkor Wat and Angkor Thom.

Preeda Samkaew, managing director of PD-Intertrade 92, said 80 per cent of Thai companies believed the border's closure was very likely. If this happened, it would hurt millions of locals who trade with Cambodia, while Thai companies would likely suffer from a reduction in orders.

Speaking at the same seminar, he said Thai companies in Cambodia should prepare themselves by reducing inventory and clearing their accounts, as well as devising contingency measures to protect goods and employees.

He urged the Thai government to shut down the border only if all other options for resolving the conflict failed.

"If we open a noodle shop but keep quarrelling with customers, how we can survive? We beg the government not to close the border, as aside from economic damage this would affect Thais living in the country. It's easy to start a war but difficult to end it," Preeda said.

Vichai Kulwutvilas, who has marketed Pop-brand hair- and skincare products in Cambodia for more than 10 years, Thai companies in the neighbouring country have tightened security measures for their offices, goods and employees. Demand for security guards has increased by 10 per cent.

He said a border closure would benefit producers from countries like China and Vietnam.

"Cambodian-goods agents are petrified about developments, and some have increased inventories by 10 times. Thai businessmen need to lift their confidence," he said.

Som Chaiya, editor of the CTN Network in Cambodia, said Thai and Cambodian media were being cautious about how they reported developments, for fear of negative implications.

They learned a hard lesson when careless reporting triggered negative sentiment and led to the burning of the Thai Embassy in Phnom Penh several years ago, he told the seminar.