Imagine the vibrant streets of Southeast Asia, where the air is thick with the scent of spices and the hustle of trade fills the air. Nestled within this bustling tableau is the intricate dance of exchange between two neighboring countries: Cambodia and Thailand. The latest figures paint a fascinating picture – Thailand’s imports from the land of Angkor were valued at a robust US$236.93 million, marking a 1.5% uptick. Meanwhile, Cambodia’s treasures flowed the other way to the tune of US$104.87 million, despite a slight stumble of 2.7%.
The tale of Cambodia’s commerce in January reveals a trade deficit haunting its ledger, looming at about US$132.06 million, a nudge from the previous year’s US$125.58 million. Yet, amidst the world’s economic theatre, Thailand shines as the fourth beacon of Cambodia’s international trade relations, trailing behind the colossal players – China, Vietnam, and the United States.
Speaking to The Post with the insight of a seasoned economist, Hong Vanak of the Royal Academy of Cambodia unveils the daily symphony of trade humming between these nations. Cambodia’s cornucopia, rich with natural resources and unrefined agricultural marvels, finds its way to Thailand. Conversely, the Thai kingdom bestows upon Cambodia an array of essentials – nourishing food, indispensable daily necessities, advanced agricultural machinery, vehicles that traverse the Cambodian countryside, chemical fertilisers that breathe life into its soil, and the very materials that construct its future.
But the story doesn’t end here. Vanak hints at a clandestine narrative, where the official records are but a glimpse of the broader exchange facilitated by the extensive land and water borders cradling the two countries. He says, “The limited capacity of processing in Cambodia unfurls a massive tide of agricultural products and natural riches towards Thailand, a crucial marketplace for these treasures.”
Addressing the trade deficit, Vanak sees a silver lining. Cambodia’s economic tapestry is being rewoven, heralding a reduction in its trade deficit with many countries and even turning the tide positive in some cases.
In the verdant Battambang province, which brushes shoulders with Thailand, Kim Hout of the Department of Commerce highlights the seamless trade flow. During the bountiful harvest seasons, a union occurs – local and international buyers gather Cambodian agricultural bounty, which is then whisked away to Thailand. Here, they are transformed, packaged, and dispatched back into the world, with northwest Cambodian farmers watching their produce feed distant lands.
Hout encapsulates the essence of Cambodian-Thai commerce, “Daily exchanges have not only persisted but flourished, becoming a lifeline for our people.”
February 7 marked a historic step as Prime Minister Hun Manet spearheaded a delegation to Thailand, weaving together the futures of these kingdoms through ink and ambition. New Memoranda of Understanding (MoUs) blossomed – from agreements on goods in transit between the General Department of Customs and Excise (GDCE) of Cambodia and its Thai counterpart to collaborative vows between the Cambodian Chamber of Commerce (CCC) and Thailand’s economic pillars.
With eyes set on a horizon painted with US$15 billion, the Cambodian and Thai governments dance towards a future rich with shared prosperity. Despite the dance of figures and percentages, with trade between the neighbors charting US$3.71 billion in 2023, a 17% dip from the previous year, hope remains undiminished. The heartbeats of Cambodia and Thailand remain intertwined, each step forward a testament to their enduring partnership and the promise of growth that lies ahead.
