As the Thai-Cambodian border skirmishes have erupted intermittently, critics warned that Thailand might lose the market share in many kinds of goods in Cambodia to its ASEAN partner like Vietnam because of the prolonged tension along the Thai-Cambodian border.
Kasikorn Research Center (KResearch) cautioned that the saga of the Thai-Cambodian border conflict might tarnish confidence of Thai exporters and investors operating their businesses with Cambodia.
Although the situation in general is relatively positive, concerns are looming that Thailand might lose the market share, both in terms of trade and investment in Cambodia to investors from neighboring Vietnam as the mutual relationship between those two countries has been healthy.
The market share of Thai goods in Cambodia has been reducing while the market share of Vietnamese goods tends to increase following the Thai-Cambodian border clashes since 2008. In addition, investment value of Thai businesses in Cambodia has been decreasing, opposite investment from other ASEAN nations. Vietnam now is taking the lead in Cambodia while China is playing more roles in investment in the ASEAN region.
Cambodia relies on imports by about 70% of its Gross Domestic Products (GDPs) and import value tends to increase from 1.424 million US dollars in 2000 to 5.390 million US dollars in 2009. Major imported goods are from Thailand, Vietnam, China and Singapore.
Thailand thus far has been enjoying a trade surplus with Cambodia, and the figure in the first quarter this year was expanding well at about 36%. Thai exports to Cambodia rose by 31% while imports from Cambodia surged 135.7%; however, Thai exports to Cambodia in March grew at a slower rate. The border clashes would be blamed if the figure keeps plummeting.
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will go towards an ‘asset warehousing’ program whereby debtors can use their assets as loan collateral but will have the right to redeem their assets under a specific time frame.
Thailand BOI approves Biotech Projects Worth 2.4 Bln Baht ($78 million)
The biotechnology sector is part of the so-called BCG model (Bio, Circular and Green economy) which the Thai government has set as a priority to lead the post-Covid 19 recovery.
The Thailand Board of Investment (BOI) said today it has recently approved new projects in the field of advanced biotechnology, worth a combined 2.4 billion baht (around USD78 million) in investment, reflecting the increased interest of local and foreign investors in the country’s biotech sector.
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The Asia-Pacific (APAC) region saw a 3.9% month-on-month growth in deal activity (mergers & acquisitions, private equity and venture financing deals) from 1,126 deals to 1,170 deals in February 2021, according to GlobalData, a leading data and analytics company.
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