Inside ASEAN Column

Inside ASEAN

Written by the Committee on Commerce, Industry and Labour, National Legislative Assembly

Translated by Bureau of Foreign Languages

The Committee on Commerce, Industry and Labour, National Legislative Assembly welcomed Under Secretary of State of Ministry of Commerce, the Kingdom of Cambodia

The Committee on Commerce, Industry and Labour led by Gen. Singsuk Singpai, Chairman, welcomed H.E. Mr. Sok Sopheak, Under Secretary of State of Ministry of Commerce, the Kingdom of Cambodia in the courtesy call on Thursday 4 October 2018 at the Reception Room, 2^nd Floor, Parliament Building 2. The key points of the discussion are as follows:

1. Pushing forward routes in bordering areas for transportation

Thailand has allowed trucks to cross borders to enter Cambodia and allowed trucks from Cambodia to enter Thailand. About 10 years ago, Cambodia and Thailand signed an agreement regarding the cross - border cargo trucks stating that only one route should be plied. However, there are several transporting routes including Ban Pakkoud and Koh Kong required to be opened to facilitate transportation with required charge. Nevertheless, there are security problems, resulting in not reaching an agreement on this requirement. Cambodia requires permanent routes for goods distribution. Currently, Cambodia imports up to 60% of construction materials from Thailand. It will be more convenient if the agreement is amended and transporting routes for trucks are opened. The Under Secretary of State of Ministry of Commerce of Cambodia requests the Committee to push forward routes in other provinces or all possible routes to be opened. Discussing such topic, the Committee asks the Cambodia Under Secretary of State of Ministry of Commerce to submit further information which will be forwarded to the NLA Committee on Transportation to consider and steer it to great achievement.

2. The Promotion of Cambodian workers to work in Thailand

The Committee considers that having many Cambodian workers in Thailand’s construction and fishery industries is beneficial. If more Cambodian workers would like to work in Thailand in the future, they are welcome. The Cambodian side is also glad that Thai entrepreneurs do business in Cambodia and give employment to Cambodian workers.
The Ministry of Commerce of Cambodia is responsible for supporting export and investment and will not increase burden to entrepreneurs. For instance, the garment export values 12% per year and the cost of exporting is 25 USD. The Cambodian Government waives this expense to lessen entrepreneurs’ burden. At present, the Government also receives loan from Japan to construct ports and roads for more investment.

3. Construction of silos for storing more corns to delay sales and to prevent oversupply

The problem of Cambodian corn farmers is that they do not have silo to store corps. As a result, they rush to sell their corns. The price they need is at 8 baht to gain cost effectiveness. Both Thai and Cambodian harvest corn planters and sell their corps at the same period and such corps can be stored only for 2-3 weeks. The more silos they have, the demand of corn in the longer storing period will increase prices.

The Committee expressed that in 2017-2018, the demand of corn in Thailand is increase and it lacks of 4.30 million ton. Wheat is used to replace such demand. The 1:3 measure is applied: importing wheat for one portion and purchasing corn domestically for three portions. However, there are additional problems as follows:

1. In harvest season, Cambodian farmers do not store their corns in silos which causes the suppression price. On the other hand, if the farmers store their corns in silos, they can sell their produces in higher price.

2. Thailand sets the import quota for corn from Cambodia. It will be beneficial to both countries if corn quotas for quota period to take turn importing and exporting corns. In addition, Vietnam has a high demand for corns. An effective cooperation in corn management will result in higher price of corn.

4. The import of cassavas (shredded cassava)

The Committee expressed that currently Thailand imports cassavas freely. However, the Council of Ministers has a resolution to control the import of corn-like produces. It also announced a policy about harvesting rice, corn and cassavas stating that such crops shall not be immediately sold and shall be stored in silos. Therefore, importing of cassavas during the harvest season will be slowed down to prevent crops overflow and price suppression from intermediaries. It is informed that cassavas has made good price so far this year. Nevertheless, fungal infection is found among harvested cassava. Shredded cassava can reach better price because there are not enough supplies within both countries. The management technique in both counties should be applied for the ultimate benefit. The Under Secretary of State mentioned that this topic will be considered and brought into practice in the future.

Upon this courtesy call, both parties are pleased to take advices and solutions, which will be beneficial for the improvements and developments. The two countries will urge the relevant parties to proceed hastily for the national interests.

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