Issue 60

With the establishment of the ASEAN Economic Community (AEC), Thai investors are looking to expand their businesses to fast-developing neighbouring countries, such as Cambodia.

Thai and foreign investors alike are keen to take part in Cambodia’s growing economy. As Thailand’s 14th largest exporting country, Cambodia received US$3.574 billion of Thai exports in the first nine months of 2016. While large Thai corporations, from CP to PTT and SCG have invested in manufacturing bases in Cambodia, the service sector is also growing, especially in hotels, hospitals, television, insurance and banking.

Oranooch Pakarat, President of the Thai Business Council of Cambodia (TBCC), was one of the first Thai businesspeople to do business in Cambodia, in 1986, in air freight and travel. Founded in 1999, the TBCC holds year-round activities, providing information and guidance to Thai investors interested in doing business or investing in Cambodia while also serving as a communication channel between the embassy and Thai people residing in Cambodia.

“The TBCC tries to match visitors from Thailand with members in similar businesses in Cambodia to form partnerships,” she says. With her three decades of experience, Pakarat also runs Bangkok-based Intra Mekong company, which specialises in logistics, travel and education in Cambodia and other ASEAN countries.

Pakarat reveals that Thais are interested in investing and trading in Cambodia for several reasons including the availability of young workers and abundance natural resources.

“Cambodians love Thai products, moreover, the law in Cambodia is open to foreign investors who are able to own businesses in Cambodia. Another advantage of Cambodia is that the US dollar, Thai baht and Cambodian riel are used locally,” she says. “Labour costs are still low, with more than 60% of the population in the working age. Also, tourist destinations in Cambodia enable a steady cash flow so the local population has some purchasing power.”

Thailand also has the advantage of having a long border with Cambodia and the ability to use AEC privileges in cross-country trading.

“My advice to those interested in investing in Cambodia is that you have to change your mindset: Cambodia is changing rapidly. Parents of the new generation of Cambodians are investing in their children, sending them to universities abroad, so they get the best education,” says Pakarat. “Many countries are keen on investing in Cambodia, from China, Japan and Vietnam to South Korea.”

The Thai government has been continuously supporting international trade between Thailand and Cambodia. The Department of International Trade Promotion has held ongoing trade promotional activities in Phnom Penh while the Department of Business Development brought Thai franchise owners to seek partners in Cambodia in 2016.

However, Pakarat insists that entrepreneurs should not be afraid to expand their businesses alone.
“If you want to start a business overseas, you can also do it without waiting for the government’s help. Make yourself ready, because the more prepared you are, the higher your chance of success.”

For more information, visit www.tbcccambodia.org
Words by Pimsirinuch Borsub