Commerce Ministry cuts Cambodian border trade target by 1%

Thai exports to Cambodia were valued at 25.60 billion baht, a decline of 11.2%, driven largely by reduced shipments of diesel, down 7.4%, and other refined petroleum products, down 33.3%, following Cambodia’s ban on fuel imports from Thailand.

Border trade in June was particularly hard hit, falling 23.3% year-on-year to 10.91 billion baht. Thai exports through border checkpoints dropped 23.8% to 8.96 billion baht, with sharp declines in key categories such as other beverages, including UHT milk and soy milk (down 23.6%), mineral and flavoured soft drinks such as energy drinks and carbonated beverages (down 24.5%), and non-dairy creamer (down 17.9%). 

Agricultural-based industrial goods such as instant coffee also fell 25.6%, partly due to stricter checkpoint controls introduced in June.

Six-month trade still rising despite June slump

Despite the downturn in June, combined border and transit trade via Cambodia to other countries, including Vietnam and southern China, rose 5.6% year-on-year in the first half of 2025 to 95.15 billion baht. Thai exports accounted for 72.45 billion baht, up 3.33%, while imports rose 13.52% to 22.70 billion baht, leaving Thailand with a trade surplus of 49.75 billion baht.

Key border checkpoints

• Aranyaprathet: Total trade of 60.43 billion baht, comprising exports worth 43.83 billion and imports of 16.60 billion.
• Khlong Yai: Total trade of 15.68 billion baht, with exports of 13.79 billion and imports of 1.89 billion.
• Chanthaburi: Total trade of 14.70 billion baht, with exports of 13.20 billion and imports of 1.50 billion.
• Chong Chom: Total trade of 3.44 billion baht, with exports of 1.20 billion and imports of 2.24 billion.

Major Thai exports included other beverages, mineral and flavoured soft drinks, and internal combustion engines. Key imports were vegetables and vegetable preparations, aluminium scrap, and insulated wire and cable.

Thai-Cambodian border trade growth target cut by 1% amid clashes and boycotts

Arada Fuangtong, director-general of the Department of Foreign Trade, said the value of border and transit trade between Thailand and Cambodia is now expected to grow by only 2% in 2025, down from the original 3% target, due to the impact of border clashes. This would represent a 1% reduction in the growth forecast compared to last year.

She said the impact from border checkpoint closures and fighting can be divided into two main areas.

1. Cambodia’s import ban and business adaptation

Cambodia has banned the import of only four types of products from Thailand, oil, gas, vegetables and fruit, under a Customs Department order issued on July 16, 2025. All other products can still be imported through seaports (Laem Chabang Port or Bangkok Port to Sihanoukville) and by road via Laos or Vietnam. Many Thai exporters have shifted to maritime transport, enabling most Thai products to return to Cambodian shelves, including Meiji and Dutch Mill milk.

Shipping services to Cambodia remain adequate, with freight rates having stabilised after a 20–30% surge earlier, indicating that supply and demand are now in better balance.

2. Anti-Thai product sentiment in Cambodia

There has been a growing wave of online campaigns in Cambodia, led by certain influencers, urging consumers to buy domestic products. On August 2–3, 2025, protests were held in Phnom Penh calling for peace, with the movement also spilling over into boycotts of Thai goods and services.

Thai businesses operating in Cambodia, including Makro, 7-Eleven and Major Cineplex, have reported fewer customers. Some PTT Station franchisees have even discussed rebranding to a local name, “Peace”. However, this remains only a graphic concept for now, as any termination of franchise agreements would require time and legal procedures.

Government speeds up relief measures for affected businesses

Arada said measures are being rolled out to mitigate the impact on businesses. The department is securing new sales channels by providing space and opening sales points, as well as taking entrepreneurs to trade fairs and low-priced “Blue Flag” markets. Products are also being placed in wholesale and retail chains, local stores, and linked to out-of-province sales networks for agricultural produce, particularly seasonal fruit.

Financial support is also being extended through low-interest soft loans for affected businesses. The department is surveying credit needs and coordinating with financial institutions such as the Government Savings Bank and the Small and Medium Enterprise Development Bank of Thailand (SME D Bank). Some businesses have already received loans, while others are awaiting approval.

The department is also organising border trade fairs, enabling affected businesses to showcase and sell products, and to hold free business-matching sessions with domestic and international buyers. In addition, it is working to strengthen entrepreneurs’ capacity by enhancing skills in marketing, value creation, e-commerce, and the use of innovation, technology, and local identity.

“From September 2025, the Department of Foreign Trade will visit border areas to hold discussions with relevant agencies to address trade and investment barriers with neighbouring countries, particularly for businesses affected by the Thai-Cambodian situation. We also plan to hold six more border trade fairs to promote and drive continued growth in border and transit trade,” Arada said.