Thai investors are again exploring business opportunities in Cambodia, nearly 18 months after anti-Thai rioting in and around Bangkok's embassy in Phnom Penh, said businessman Somsak Ringruangsin as the Thai Board of Investment (BoI) paid a visit.

Saying his company would soon finish rebuilding its plastics factory in Cambodia, Somsak affirmed that the country still has great business potential.

His firm's Phnom Penh plant was badly damaged during |the rioting of January 29, 2003, which was sparked by a |misunderstanding over a Thai actress' passing remark about Angkor Wat.

The rioters, likely incited by domestic political rivalries, targeted Thai diplomatic and business properties in the belief that the actress had suggested the venerable temple complex actually belonged to Siam and should be returned.

But the gradual stabilisation of the political environment prompted Somsak to spend Bt200 million to rebuild the factory and expand into drinking water and ice.

"I've been in Cambodia for 13 years and I believe it has the investment potential," he said, despite having had to start over almost from zero.

Thai investors are content with the compensation they received from the Cambodian government, Somsak said, "but we have to be more cautious, and we have to swap information among ourselves all the time".

The cost of damages from the rioting was calculated at around Bt1.7 billion. Somsak's company lost about Bt500 million.

Seventeen Thai companies attacked in the melee have invested to re-establish their business in Cambodia, said Piyawat Niyomrerks, Thailand's ambassador to Phnom Penh.

Somsak said more investors would be keen to come if the Cambodian government provided special incentives.

He urged prospective investors to carefully study the situation |and secure personal connections there.

Piyawat said the torching of the Thai embassy during the 2003 rioting marked the all-time low in modern bilateral relations, but both governments have since tried to restore fellowship to its previous level.

"We can say that the bilateral relations have gradually improved," he said.

BoI secretary general Sompong Wanapha brought representatives of 15 Thai companies to explore commercial opportunities in Cambodia.

Cambodia wanted more Thai investment in agro-business, mining, petroleum, hydropower, hotels and tourism, he said.

The BoI signed a memorandum of understanding with its Cambodian counterpart to |promote an exchange of information.

Thai firms have invested US$242.5 million (Bt10.1 billion) in Cambodia in the past 10 |years.

Watcharapong Thongrung