[PHNOM PENH POST]
The Kingdom’s business community has welcomed the inaugural state visit
of Thai Prime Minister Yingluck Shinawatra, expecting bilateral trade
and investment to improve as a result.
The Thai PM will be
accompanied by a business delegation on her trip, which commences
September 15, commercial counsellor at the Royal Thai Embassy in Phnom
Penh Jiranan Wongmongkol said yesterday.
“Yingluck will be joined
by a group of Thai business people, who are expected to meet with
Cambodian businesses during the visit.”
Although the visit is intended to boost trade and investment, so far no trade agreements have been made public, she said.
“I
don’t think either country has formed a memorandum of understanding
yet, they just want to resume and strengthen business and investment at
this time.”
While the visit of the recently elected Yingluck is
eagerly anticipated by the Kingdom’s business community, no specific
agenda for the trip has been released. Therefore little is known about
how she will spend her time in Cambodia, according to Foreign Affairs
Ministry spokesmen Koy Kuong.
Although an enhancement of trade
relations is expected to be discussed, some experts believe that
business will not be affected immediately.
“It is unlikely that
investment will reach previous heights in the short term. Potential
investors need to conduct research and evaluate, which takes time,”
University of Cambodia business and economics lecturer Chheng Kimlong
said yesterday.
It could take a couple of years before investor
confidence is restored given the deadly border clashes between the two
countries this year and resultant political tensions, he said.
“If the governments can cooperate and restore confidence, the flow of investment, trade and tourism will follow.”
Chheng
Kimlong added that the two governments are unlikely to raise the issue
of the Overlapping Claims Area in the Gulf of Thailand, which is
believed to be rich in oil and gas, while the Thai PM is in Phnom Penh.
“It is not a suitable time to discuss the overlapping maritime area. They should restart talks in a few months.”
ACLEDA
Bank President and Chief Executive Officer In Channy agreed that closer
ties between the neighbouring kingdoms would benefit trans-border
business.
“All neighbouring countries should maintain close
relations to promote a smooth import-export climate across the border,
while encouraging trade activities to increase business and confidence,”
he said.
Bilateral trade between the countries increased more
than 1 percent in the first six months of 2011, hitting US$1.430
billion, compared to $1.412 billion during the same period last year,
according to figures from the Thai Embassy in Phnom Penh’s Foreign Trade
Promotion Office.
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