Direct flights with Mongolia on the horizon, FTA explored
CAMBODIA and Mongolia are advancing plans for direct flights to boost tourism, trade and investment, while also exploring a bilateral free trade agreement (FTA).
The potential for enhancing tourism between the two nations was discussed by Minister of Tourism Sok Sokhen and Mongolian culture minister Nomin Chinbat on the sidelines of the 7th International Conference of Asian Political Parties (ICAPP) in the Mongolian capital Ulaanbaatar, as announced by the ministry.
"Both sides exchanged views on strengthening and promoting tourism cooperation … and agreed to push for the signing of a bilateral memorandum of understanding [MoU] on tourism and promote direct flights between the two countries in the future as well," stated the ministry.
Sinn Chanserey Vutha, spokesperson for the State Secretariat for Civil Aviation (SSCA), told The Post that an air-service agreement is already in place, allowing airlines from both countries to operate flights as needed.
"We do welcome the opening up of any direct flights, as it can attract more tourists to our country. At the same time, it allows our people direct access to visit Mongolia," he said.
Thourn Sinan, president of the Cambodian Tourism Federation and chairman of the Pacific Asia Travel Association (PATA) Cambodia chapter, told The Post that the number of Mongolian tourists in Cambodia
remains relatively low.
However, he anticipates that direct flights will lead to an increase in visitor numbers.
"Currently, we don’t receive many tourists from Mongolia, given their small population of just over three million. We welcome the initiative for direct flights, which should bring more tourists from Mongolia, while also allowing our people to visit their mountainous country," he stated.
According to the ministry, Cambodia welcomed approximately 891 Mongolian tourists last year, marking an increase of over 73% compared to 515 in 2022.
In June 2022, the Kingdom and Mongolia signed an MoU to strengthen bilateral trade and investment ties. This agreement is expected to encourage
Mongolian private sector interest in Cambodia's agricultural sector and other key commodities to meet Mongolian market demands.
Ministry of Commerce secretary of state Reach Ra, who met with newly-appointed Mongolian ambassador to Cambodia Jamsran Byambasuren in July 2022, remarked on the efforts made by the government to improve the business and investment environment.
"Cambodia plays a crucial role in contributing to regional economic integration. We have also made efforts to diversify export markets through negotiations to establish the RCEP [Regional Comprehensive Economic Partnership], as well as bilateral trade deals with China and South Korea," said Ra, who is also chairman of a working group on negotiations for an FTA with Mongolia.
At the time, Byambasuren acknowledged Cambodia’s efforts in facilitating trade, attracting investment and developing key sectors of the national economy.
"Mongolia has been exploring trade cooperation between the two countries for a while now," he noted.
In September 2020, Ra led an inter-ministerial delegation to Mongolia to study the establishment of an FTA. The delegation included officials from the ministries of Economy and Finance; Agriculture, Forestry and Fisheries; and Labour and Vocational Training; as well as the Council for the Development of Cambodia (CDC), as per the commerce ministry.