Issue 14: 31 October 2014

With the advent of the AEC, many Thai companies are turning their eye to their eastern neighbour. A recent fair in Phnom Penh opened many business opportunities for the Kingdom’s exporters.

Thai companies were in evidence at CamFood ’14 in the Cambodian capital of Phnom Penh

Commercial ties between Thailand and Cambodia look set to strengthen as ASEAN integration creeps closer. More than 20 Thai F&B-related businesses descended on Phnom Penh to showcase their wares as part of CamFood ’14, an annual international food and drinks industry show that took place at the Cambodian capital’s Diamond Island between October 8 and 10.

Some of the Thai products on display included spices, fish paste, fruit drinks, automated till systems and noodles. They sat alongside sections promoting international goods from countries such as Singapore, the US and Malaysia.

Confectionary company GCP, is hoping to break into the Cambodian market. The Bangkok-based business has been producing and exporting sweets for 30 years. Currently, its main export markets are America, the Middle East and parts of Asia, including India and Pakistan. Up until recently it never considered Cambodia a suitable export candidate. But the advent of the ASEAN Economic Community (AEC) in December 2015 has thrown open new opportunities for Southeast Asian businesses.

“This is the first time we’ve really looked at the Cambodian market or markets in this region,” says the company’s export manager Mohammed Salahuddin Ansari. “ASEAN makes it much easier to do business with Cambodia and there is a lot of potential here.”

Thai companies were in evidence at CamFood ’14 in the Cambodian capital of Phnom Penh

Extensive market research carried out by GCP reveals confectionary remains an untapped market in the country, and is a gap the company is keen to fill. Add into the mix being able to keep Thai labelling and packaging and the ease of exporting, and Cambodia’s potential becomes more attractive.

Another Thai company present at CamFood ’14 was Jim’s Group, which specialises in manufacturing powdered food, coffee and batter mix. Its representative, Pakornpan Phuaksawat, said interest in the country started upon discovering that Thais were buying goods in bulk and selling them on in Cambodia.

“When I heard this, I thought we may as well do it ourselves,” she says. “After coming here, I believe Cambodia could be a good market. They have similar palettes to the Thais and there is already a demand for our products.” Easy logistics add to Cambodia’s attractions, with exports being across land rather than by sea or air, Phuaksawat adds.

Cambodia was always the next move in NC Bakery Equipment’s plan to conquer Southeast Asia. The company, which mainly distributes to restaurants, currently exports to Myanmar and Laos, and is looking to enter Cambodia and Vietnam.

The AEC is the main motivator behind the move, as it wipes out VAT between trading countries. “Free tax and open borders is a big thing,” says the company’s Thippawan Narathum, who was on the lookout for a Cambodian distributor at the Fair. “Cambodia is also developing very fast and a lot of opportunities are quickly opening up here.”

And with Cambodia’s economy expanding, Narathum is confident that ties between the two countries will continue to grow in the future as well.

For more information, visit: http://www.generalcareproducts.com

Words by Marissa Caruthers