Border Dispute Has Limited Impact To Date On Thai Business

[webfact]

Border dispute has limited impact to date on Thai business

By Business Desk

The Nation

The border conflict with Cambodia has so far had only a limited effect on Thai business, thanks to the small level of bilateral trade and low Thai investment in the country.

Songtum Pinto, director of the Bank of Thailand's Office of Macroeconomic Policy and Analysis, expects the border fighting will not have a great effect on the economy because of the low level of exports to Cambodia.

Less than 1 per cent of Thailand's overseas sales go to the neighbouring country, accounting for a very small portion of gross domestic product, he said. "Each year, we export [in total] about US$200 billion, some Bt6 trillion, or 50-60 per cent of the country's GDP. Therefore, the impact [of the dispute] cannot be large, as the bilateral trade is only worth hundreds of millions. But it will require an assessment of how long the situation will last."

The Federation of Thai Industries said investment by Thai companies in Cambodia amounted to about Bt10 billion.

The Bank of Thailand urges all concerned to consider long-time relations between Thailand and Cambodia and the Kingdom's image, and not solely the economic impact. The sooner the dispute ended, the sooner both countries would benefit, Songtum said.

Wongwatoo Potirat, senior director of the central bank's Financial Markets and Reserve Management Department, said there was no sign as yet that investors were unduly concerned about the clashes. The baht moved narrowly around 30.80 per US dollar yesterday. "It may be too soon for an assessment. Last week, many Asian markets closed for Chinese New Year. The market was quiet when it opened in the morning [yesterday] and did not talk much about this issue. We have to see whether this matter will affect [the market]. Right now, there is no sign of investor concern," she said.

Much of the impact from the dispute is currently being felt in border trade, particularly in Si Sa Ket, where the gunfire erupted. Cross-border trade at other checkpoints has reportedly carried on as usual.

Stock investors yesterday reacted negatively to the violence. The Stock Exchange of Thailand's composite index languished in negative territory during almost the whole of the two trading sessions. However, thanks to buying in the last half-hour, the SET Index closed slightly higher on the day, on turnover of Bt24 billion.

Stock analysts said the violence had affected investor sentiment, as the earnings of listed companies with businesses in Cambodia would be slightly dented by the turbulence.

-- The Nation 2011-02-08

[jayjay0]

I read on another thread that Thailand is the third largest investor in Cambodia.

Business wise if the facts are accurate in this article trade with Cambodia is next to meaning less for Thailand where as for Cambodia it is vital.

Some where out there is the truth.

[brahmburgers]

The Nation calls itself a newspaper, but it's really a business tabloid. Even when they try to report pure news, the articles wind up being business-slanted. If they reported on a birthday party, it would wind up being a cost/risk assessment on the cake and candles. Sure, business and money and investment are important factors in today's world, but there's a whole lot of other things going on. How about more emphasis on environmental issues? Trouble is, even if the Nation reported on environmental news, the article would devolve to focusing on 'the bottom line' the 'applicable exchange rate' the 'profit margin' ......and miss most of the essence of the news.

[Robby nz]

I would imagine the traders on both sides of the border who rely on cross border trade for a living would have a different viewpoint from the bankers sitting in BKK.

[sirchai]

I read on another thread that Thailand is the third largest investor in Cambodia.

Business wise if the facts are accurate in this article trade with Cambodia is next to meaning less for Thailand where as for Cambodia it is vital.

Some where out there is the truth.

Much of the impact from the dispute is currently being felt in border trade, particularly in Si Sa Ket, where the gunfire erupted. Cross-border trade at other checkpoints has reportedly carried on as usual.

The gunfire erupted near Kantharalak which belongs to Sisaket. And the smuggling of drugs will go on as well. Sisaket is a well known place for Jaba freaks.

[suanpluman]

The business connections may be small as a percentage of Thailand's GDP and larger as a percentage of Cambodia's yet to try to put a positive slant on the situation in this way is ludicrous.

On the whole both countries' businesses stand to lose from what is going on.

The only potentials winners as I see it are politicians - what better to stir up some nationalistic fervor and redirect attention from problems at home (and that goes for both sides!)

[SICHONSTEVE]

The Nation calls itself a newspaper, but it's really a business tabloid. Even when they try to report pure news, the articles wind up being business-slanted. If they reported on a birthday party, it would wind up being a cost/risk assessment on the cake and candles. Sure, business and money and investment are important factors in today's world, but there's a whole lot of other things going on. How about more emphasis on environmental issues? Trouble is, even if the Nation reported on environmental news, the article would devolve to focusing on 'the bottom line' the 'applicable exchange rate' the 'profit margin' ......and miss most of the essence of the news.

The Bangkok post is (probably was now) sympathetic to the PAD whereas historically The Nation has tended to favour the Red shirts so I hardly think that your interpretation of The Nation being business oriented holds true. The Bangkok post is the only "elitist" up-market, farang newspapaer (probably equivalent to The Times whereas The Nation MUST be akin to that trashy rag - The Sun comic inc.

Sorry to the (non-UK + Irish members), as most of you will fail to understand this as it is topical to us Brits only!!