Page 59 - FoodFocusThailand No.174 September 2020

SURF THE AEC
SURF THE AEC
Dara Sakor:

Competitor or Alliance

China strives to push forward a special economic zone “Dara Sakor”
become Cambodia’s largest port, perhaps, the ultimate port of
ASEAN. Questioned by experts, “Will such a project become a major
competitor to Thailand in the future?”

Opinion and Recommendation as of Two/Three countries in one destination. The new idea is to connect
• Is Dara Sakor project a competitor or an alliance? On the one the marine and cultural attractions from Thailand, Cambodia, and
hand, this project can be considered a competitor to Thailand’s Eastern neighbor countries such as Vietnam and Malaysia. The joint initiative
Economic Corridor (EEC). The threat is greatly significant with a massive can be very beneficial to maritime tourism in the East coast of Thailand
investment and a consistent support directly from China. On the other in the future. As of tourist concern today, there is a worrisome in the
hand, there is a great chance to share resource of jointed development safety of COVID-19 spread. It could be the great opportunity of Thai
and utilization. It will be benefit for investment in the region as of Win- healthcare business to provide the services to tourists on this perspective
Win situation for both parties. For Thai entrepreneurs, this could be the requirement.
great opportunity to expand their businesses into Dara Sakor, especially • Lesson learned from Sri Lanka An excessive dependency on
in construction sector, tourism business, agricultural and food China can lead to difficult problems. It has been the case with Sri Lanka
processing, hotel and resort, restaurant, as well as the logistics business. trying to cease an agreement with China from the previous government
The expansion can lead to supply chain connection to industrial areas leasing the southern Hambantota port for 99 years. The project value
in Ho Chi Minh city in Vietnam which can be recognized as an opportunity of USD 1,100 million where most of loans are from China itself. Sri Lanka
over a threat. In addition, if the project development can achieve their found out that the project was not feasible, and the revenue generated
purposes, the area will become an industrial, trade, investment, tourist was unable to repay an enormous debt. Thus, they had to terminate
zone, a center of logistics and transportation network in the region. It contract to protect their national interest.
will lead a great development to the economic expansion of Cambodia • China-Cambodia FTA shows an inequality The fact is Cambodia’s
and ASEAN in the future. main products are raw agricultural materials while China has advantage
• Opportunities for supply chain from Thailand Although on both industrial and agricultural processing products. So, Dara Sakor
Cambodia is resourceful with low cost labors, the supply chain is still is more likely to gain benefit to China over Cambodia. Moreover, there
very limited. The country requires import items of raw materials, and is a limited availability of technology transferred. Thus, the industries still
semi-raw materials from Thailand and other countries. These include restrain in basic manufacturing such as clothing and shoe. Besides, high
fabric, rubber sheet, and leather materials. Take a look at food for skilled workforces are very limited. At this time of COVID-19 uncertainty,
tourism industry for instance. There is a huge demand for agricultural the Foreign Direct Investment is more likely to flow only from China.
processing products which are still scarce in Cambodia. On twin city However, the FTA may be attractive to Thai entrepreneurs to use
of Dara Sakor, it is a high possibility for Huawei to use it as a production Cambodia as a gateway to China market.
base to penetrate ASEAN market. This could be the great potential of • Thailand is the important supply chain of the region The US
supply chain to Thailand. is currently supporting India as a new hub of factory over China. Likewise,
• Cambodia-Thailand tourist connection UDG plans to make China also invests more to ASEAN. Besides, Japan also relocates their
Dara Sakor as the logistics center to accommodate tourists from all investment more to ASEAN. Regarding to above factors, Thailand will
over the world to Koh Kong province. It should be remarked that Thailand benefit to become the hub of regional supply chain.
Border near Dara Sakor is just 6 hour driving straight to Bangkok. This • Developing a massive urban plan requires enormous supplies
competitive advantage can ease Thai investors to expand their Cambodia still demands a lot of supplies. This is the opportunity for many
operations in hotel and resort, restaurant, tourist business and activities, Thai products and services including construction materials, construction
and many more. UDG still requires a lot of expert investors to join them. engineering, furniture, home decoration, automotive, hospital, golf club,
• Marine Tourism Thai entrepreneurs in nearby provinces such and so on.
as Trat, Rayong, and Chanthaburi may use this opportunity to joint
venture with local partners to develop and promote joint touristic routes

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