Prime Minister Hun Manet urged Thai investors and businessmen to explore four key untapped sectors in Cambodia: tourism, the digital economy, infrastructure development and agriculture.
The call for expansion was made during his speech at the Cambodia-Thailand Business Forum in the Thai capital Bangkok on February 7 as part of his official visit.
At the forum, the premier noted that Cambodia-Thailand cross-border trade, spanning over seven decades, holds significant potential for driving regional prosperity and improving the lives of citizens.
He emphasised areas for cooperation, particularly in tourism. He said both countries, endowed with unique cultural and natural assets, can transform tourism into a thriving sector.
Manet stressed that joint marketing initiatives, cross-border travel packages and infrastructure development are key to unlocking the potential and attracting tourists from other destinations, under the slogan “Two Kingdoms, One Destination”.
Regarding the digital economy, he encouraged both nations to embrace the digital revolution together, fostering innovation and creating opportunities for their people.
“The transformative potential of the digital and green economies could be leveraged for socio-economic recovery, poverty eradication and sustainable development,” he stated.
The prime minister highlighted the launch of the KHQR cross-border payment system by the National Bank of Cambodia (NBC) as an important step towards promoting local currency usage and facilitating seamless tourism and trade between the two kingdoms.
“Cambodia warmly welcomes Thai investors to explore business opportunities in digital technology, a powerful engine for growth and progress,” he added.
Manet noted his government’s commitment to a comprehensive technological transformation, outlined in the Cambodia Digital Economy and Society Policy Framework 2021-35, an initiative to develop a robust digital economy, fuel economic growth, boost productivity and enhance citizens’ lives.
In terms of infrastructure development, he said both countries are working to enhance connectivity in an ongoing effort to facilitate trade between the two nations.
“Cambodia is at the heart of the Southern Economic Corridor [SEC] within the Greater Mekong Subregion [GMS], creating links with Thailand, including Bangkok, Vietnam, encompassing Ho Chi Minh City, and Laos,” he explained.
Regarding agriculture, he said both countries can collaborate by sharing expertise and resources to enhance food production and ensure regional food security, stressing that over the past two decades, Cambodia has evolved into a major producer of various agro-industrial crops, including rice, cassava, cashew, rubber and mango.
“There is still immense potential in the area of processing,” he noted.
“I strongly encourage Thai investors to explore business opportunities in Cambodia. The success of Thai companies such as CP Cambodia, a subsidiary of CPF [Charoen Pokphand Foods], in our agro-industrial and food industry sectors highlights the potential for further collaboration.
“We extend our full support to Thai investors who are seeking to expand their existing businesses or to venture into new markets across various sectors,” he added.
Bilateral trade on the rise
Kith Meng, president of the Cambodia Chamber of Commerce (CCC), said at the forum that since 2004, bilateral trade has flourished, growing from $750 million to over $9 billion in 2022.
He noted that during the visit of Thai Prime Minister Srettha Thavisin in Cambodia last September, both governments pledged to strengthen economic relations, aiming to boost cross-border trade to $15 billion by 2025.
“Thai companies have significantly penetrated various Cambodian industries. In agriculture, they are deeply involved in rice, corn, cassava and rubber production, which contributes to Cambodia’s agricultural output and export earnings. Thailand has also invested in processing and packaging facilities for these products,” he said.
Meng highlighted that there has been a notable increase in Thai investment in the tourism sector, with the establishment of hotels, resorts and travel agencies to accommodate the rising number of Thai tourists.
He said the retail sector has also seen a growth trend, with Thai brands opening stores across Cambodia, offering a range of products and contributing to the modernisation of the country’s retail landscape.
“Despite global challenges, Cambodia and Thailand can utilise our strong partnership to foster trade and investment opportunities, thereby enhancing regional stability and prosperity.
“Capitalising on established trade facilitation and connectivity mechanisms like the GMS and the [Ayeyawady-Chao Phraya] Mekong Economic Cooperation Strategy [ACMECS] presents strategic advantages for both Cambodian and Thai businesses. These include reduced trade barriers, enhanced infrastructure development and facilitated trade finance and investment,” he added.
Manet, citing data from the General Department of Customs and Excise (GDCE), highlighted that Thailand ranked fourth among Cambodia’s top 10 trading partners in 2023.
According to the GDCE, Thai exports to Cambodia mainly include refined fuels, beverages, livestock and vehicles, while Cambodian exports are primarily precious stones, fruits and vegetables, and metal products.
The Council for the Development of Cambodia (CDC) reported that Thailand’s investment in Cambodia has accumulated to approximately $1.6 billion, placing it among the top 10 foreign financers.
“I firmly believe that there is still potential for growth and expansion for Thai businesses in Cambodia, particularly through the ‘Thailand plus one’ concept, which can benefit both countries,” Manet said.
“I envisage a collaborative model where main factories are located in Thailand and subsidiaries supplying parts or intermediate goods are situated along the border in Cambodia,” he added.
