Thailand-Cambodia Economic Cooperation under ACMECS

Abstract

The Ayeyawady - Chao Phraya - Mekong Economic Cooperation Strategy (ACMECS) is a political, economic and cultural organization among Thailand, Laos PDR, Vietnam, Cambodia and Myanmar. The objectives of this initiative are to bridge the economic gap among the members and to promote sustainable development with negotiation mechanism in several aspects such as trade and investment facilitation. In general, ACMECS is intended to act as a catalyst to build upon existing regional cooperation programs and complement bilateral frameworks with a view to transform the border areas of f ive member countries into zones of economic growth, social progress and prosperity. They aim to blend local, national and regional interests to be common interests and common benef its and to create regional peace, stability and good neighborliness. ACMECS emphasis on the concept of self-reliance and be complement with other related cooperationframeworks such as Greater Mekong Sub-region Economic Cooperation (GMS) and Bay of Bengal Initiative Multi-Sector Technical and Economic Cooperation (BIMSTEC). As members of ACMECS, Thailand and Cambodia have several bilateral projects. So far there are at least 72 bilateral projects between these two countries. There are 27 projects on agricultural and Industrial Cooperation, 18 projects are on tourism and travelling facilitation; such as the implementation of ACMECS single visa. It may say that Thailand and Cambodia are the country members with having the highest number of bilateral projects among ACMECS members.

The objective of this paper is to investigate the development of economic cooperation between Thailand and Cambodia under the Ayeyawady - Chao Phraya - Mekong Economic Cooperation Strategy (ACMECS.) Then the article explains whether ACMECS programs have provided the positive environment for Thai investors investing in Cambodia. Finally, the policy recommendations to utilize the ACMECS for investing in Cambodia are explained.

Thailand’s investment in Cambodia is likely to make a prof it for Thailand entrepreneurs as well as to achieve Cambodia’s economic growth. More importantly, economic cooperation agreement between Thailand and Cambodia should ease Thai investors determining to relocate their manufactures in Cambodia; such as lower the relocating costs. However, it is found that the ACMECS mechanism has failed to provide this benef it. Seemingly there are several bilateral projects under the ACMECS that have been cancelled or pending, while, most of completed projects are “not so signif icant” and could not create “big push” for foreign direct investment from Thailand to Cambodia.

When the ACMECS should be able to provide a good opportunity for Thailand’s private sector to invest in Cambodia, the reality is different. Therefore there are plenty of rooms for improvement in order to utilize the benef it of ACMECS fully. The active policy concerning the ACMECS should be one of the priorities that both countries should consider seriously.