The relationship between Thailand and Cambodia is likely to improve once the incoming Pheu Thai-led government takes power, a member of the National Economic and Social Development Board (NESDB) said Thursday.

Narongchai Akraseranee was speaking at a seminar on “Moving Forward to Investment in the Asean Economic Community (AEC)” held by the NESDB office this morning.

Member countries of the Association of Southeast Asian Nations now have less concern about political problem in Thailand as the July 3 general election passed through without any situation., said Mr Narongchai.

They also believed the PheuThai-led administration would be able to improve ties with the neighbour that has turned sour for two years, he added.

The improved relationship between Thailand and Cambodia would allow Asean to move smoothly ahead with its plan to establish the Asean Economic Community (AEC) in 2015, he said.

Mr Narongchai said Thai manufacturers must prepare for being part of the AEC in the fields of logistic management, foreign languages and the investment-related laws of other countries.

Public and private agencies must help provide information about the AEC and assist manufacturers that want to make overseas investments,.

Overseas investment promotion is a policy set down in the 11th National Economic and Social Development plan to be unveiled today, Mr Narongchai said.

Under the 11th plan, the government will support private firms to invest in foreign countries after the large industrial projects in Thailand faced problems of environmental impact and opposition by local people, he added.

He said he could not tell at the moment how the 300 baht daily minimum wage policy promised by the Pheu Thai Party would affect the industry sector and have to wait and see.

On the concern that this policy would weaken trade competitiveness of Thai manufacturers, the business sector would make its own judgment.

“If labour cost is increased but workers are skilled labourers, it would be acceptable. Otherwise there would be problems,” said Mr Narongchai.