Untapped markets beckon

With an uneasy peace settling in Cambodia the first tentative steps towards a normal trading environment are emerging.

The early bird catches the worm, as they say, and in this case it is Vietnam Airlines, which has started the ball rolling to develop the potentially lucrative markets of Indochina.

Although currently trade is barely ticking over, the international community may not be far away from providing financing to rebuild the war-torn country's infrastructure.

Untapped natural resources and low labour costs will eventually prove to be a magnet for private investment.

Vietnam Airlines, for its part, has decided that rather than follow the pack and attempt to be all things to all men, it will look closer to home and provide a gateway to Indochina through its hub at Tanson Nhat airport in Ho Chi Minh City.

The rather antiquated equipment they are using has not deterred shippers from booking space, as the carrier had to triple frequency from HCMC to Phnom Penh before the inaugural flight.

Laos will be slotted into the network next in coming months; again Vietnam Airlines has said it will develop this market slowly through HCMC.

Bangkok has traditionally provided best access to Indochina but HCMC's close proximity to Hong Kong, Taiwan and Korea could provide a niche for Vietnam Airlines.

Money is tight in Asia at the moment and it may take some years for real momentum to build in terms of trade to and from Cambodia and Laos.

But other projects in the region such as Pan-Indochina road and rail networks and better access to southwest China through northern Vietnam will only enhance trade ties within the sub-region.