PM’s visit set to spur trade with Thailand
PM’s visit set to spur trade with Thailand
Businesspeople and economists are optimistic that Prime Minister Hun Manet’s visit to Thailand will bolster the flow of goods and investment between the two countries, particularly as bilateral trade volume decreased by nearly 20% in 2023.
Manet led his government delegation, along with business leaders from Cambodia’s private sector, to the neighbouring ASEAN member on February 7, at the invitation of Thai Prime Minister Srettha Thavisin.
According to the Ministry of Foreign Affairs and International Cooperation, he was granted a royal audience by King Maha Vajiralongkorn.
The prime minister also met with Thai dignitaries, signed several bilateral cooperation documents and presided over the Cambodia-Thailand Business Forum.
According to the General Department of Customs and Excise (GDCE), imports and exports between the two kingdoms totalled $3.71 billion in 2023, a decrease of 17% from $4.47 billion year-on-year.
Trade value with Thailand accounted for 7.93% of Cambodia’s total international trade volume, which was approximately $46.83 billion in 2023.
Exports to Thailand were valued at $817.57 million, marking a 1.7% decline, while imports from Thailand amounted to $2.89 billion, showing a more pronounced drop of 20.5%.
The country’s trade deficit with Thailand stood at $2.08 billion for 2023, notably less than the $2.81 billion recorded in 2022.
Thailand ranks as Cambodia’s fourth-largest trading partner, following China, the US and Vietnam.
MoUs to promote trade, investment
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC) who accompanied the delegation, told The Post on February 7 that a meeting scheduled for the same day between government leaders and private sector representatives of both countries would undoubtedly enhance the flow of exports, imports and investments.
He noted that Manet presided over a business forum organised by the CCC to boost private sector cooperation between the nations.
“The CCC is set to sign two memoranda of understanding [MoUs] with the Thai side, firstly with the Bank of Thailand and secondly with Thailand’s [Foreign] Business Commission,” he said.
Heng highlighted that the private sectors of both countries are currently keen on a Cambodia-Thailand cross-border trade agreement. He pointed out the existing similar agreement between Cambodia and Vietnam, emphasising its vital role in facilitating trade.
“I am confident that after the visit, the growth of investment and the export-import of goods between the two countries will rise to a new level,” he added.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, said Manet’s visit is integral to fostering cooperation in various sectors.
He noted that the trade imbalance has persisted for decades due to Thailand’s larger population, more extensive industrial base and larger economy. He also acknowledged that many Cambodians appreciate the quality of Thai products.
Vanak highlighted that the actual trade volume between the two neighbours might be higher than recorded due to their shared land and sea borders.
“Cambodia needs to work harder to gain more market share in Thailand,” he added, suggesting that agricultural products are a key area for the country to increase exports to Thailand.
Kim Hout, director of the Battambang provincial Department of Commerce, previously said that Cambodian-Thai trade activities, particularly through the Battambang-Thai border, are progressing well.
He said Cambodia’s main exports are products such as cassava, corn and mung beans, noting that Thailand is a crucial market for these products, as Cambodia lacks adequate warehousing and dry silos.
“During each harvest season, many local and Thai traders come to buy agricultural products from Cambodia for processing in Thailand,” he said.
