On Wednesday, the General Border Committee (GBC) meeting between Thailand and Cambodia resulted in a positive conclusion as both nations agreed to several resolutions.
Those resolutions included the removal of heavy weapons in the border area, the joint operation to defuse landmines within a month, the crackdown on 60 scammer centers in Cambodia, and the management to resolve a dispute in Ban Nong Chan village, Sa Kaeo province.
They also agreed to explore the possibility of opening a few border checkpoints to resume trading between two nations, starting with those that did not affect national security, such as the permanent border checkpoints in the Chanthaburi and Trat provinces. This is considered a positive sign as further checkpoints may open in the future.
Regarding the mentioned checkpoints, they are the second and third most important checkpoints for trade between Thailand and Cambodia, accounting for 32% of the total revenue generated from both nations. The most important checkpoint is located in Aranyaprathet district, Sa Kaeo province, which alone generates 63% of the total trade between the two nations.
Finansia Syrus Securities stated that the improvement of the situation is considered a positive sentiment toward the stocks of exporters to Cambodia, including those of Carabao Group PCL (SET: CBG), Ichitan Group PCL (SET: ICHI), and Neo Corporate PCL (SET: NEO) as 15%, 2 – 3%, and 2% of their revenues, respectively, are derived from this market.
The securities company also added that currently, these three companies are utilizing sea freight to transport their products. With the improvement of the situation, they could resume cross-border transportations, a positive factor in boosting their revenue.
