Thai Businesses Overhaul Cambodia Plans as Border Clashes Escalate
Companies cancel events, stockpile goods and activate emergency protocols amid military confrontation
- Thai businesses are enacting emergency contingency plans, which include cancelling events, increasing stock reserves, and preparing for evacuations.
- Major companies have taken direct action, with Index Creative Village cancelling all 2025 events in Cambodia and Carabao Group tripling its stock reserves to cover three months of sales.
- The closure of all border crossings has halted bilateral trade valued at over 174 billion baht, prompting financial institutions to activate business continuity plans and temporarily close some branches.
- The tourism sector has been hit by the conflict, with the government closing temple tourist sites near the border and hotels experiencing cancellations.
Thai businesses are scrambling to revise their Cambodia operations following escalating border clashes that began on 24 July 2025, with companies cancelling events, increasing stock reserves, and implementing emergency contingency plans.
The confrontation erupted at 08:30 local time near the Banteay Chhmar temple complex in Surin province, opposite Thailand's Mu Pa base.
Fighting has since spread to six border locations including Ta Muen Thom temple, Ta Krabey temple, Chong Bok, Preah Vihear temple, Chong An Ma, and Chong Jom, resulting in Thai civilian casualties.
The Royal Thai Air Force has deployed F-16 fighter jets to strike Cambodian rocket positions and destroyed Cambodian command centres, including the cable car system at Phu Ma Khuea mountain. Thailand's Foreign Ministry has announced a downgrade in diplomatic relations with Cambodia.
Thailand has closed all border crossings with Cambodia, disrupting trade worth 174.53 billion baht in 2024. This includes exports valued at 141.85 billion baht and imports of 32.68 billion baht through five main customs checkpoints: Aranyaprathet (Sa Kaeo), Khlong Yai (Trat), Chanthaburi, Chong Jom (Surin), and Chong Sa-ngam (Sisaket).
Thai investment in Cambodia, according to the Council for the Development of Cambodia (CDC), totals $3.785 billion, employing 62,733 Cambodian workers, primarily in agricultural industries.
Corporate Response Intensifies
Voratat Tantimongkolsuk, chairman of the Thai-Cambodia Business Council, said Thai businesspeople in Cambodia must assess whether to return home or remain, depending on individual circumstances.
He urged both sides to negotiate an end to the conflict to prevent further escalation and losses.
"The Thai-Cambodia Business Council has already discussed contingency measures with members, but with clashes between both sides, we must monitor the safety of Thai businesspeople in Cambodia," he said.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), expressed private sector concerns about potential repetition of past incidents involving propaganda campaigns that incited attacks on Thai assets and investments in Cambodia, previously requiring air force evacuation of Thai nationals.
The FTI confirmed that Thai investors have not yet suffered direct damage to factories or investments, with current damage limited to border areas. However, concerns are mounting about potential disruption to maritime transport routes.
Major Firms Adjust Operations
Index Creative Village Public Company Limited has cancelled all 2025 events in Cambodia, including the Cambodia Health & Beauty Expo and Cambodia Architect & Expo, after initially postponing events following the June border closure.
Carabao Group Public Company Limited, which has operated in Cambodia for over 20 years with billion-baht investments in an energy drink factory scheduled to begin production in late 2025, has increased stock reserves from 40 million cans monthly to 120 million cans to cover three months of sales.
The company's Carabao Red energy drink leads the Cambodian market with annual sales of 400-500 million cans worth approximately 2 billion baht.
Thai President Foods Public Company Limited, producer of Mama instant noodles, continues monitoring the situation closely. The company has operated in Cambodia for over 20 years with a manufacturing facility there, holding an 80% market share in the instant noodles sector.
Financial Sector Preparations
Siam Commercial Bank has prepared comprehensive contingency plans covering staff safety, business continuity, and liquidity management. Some Thai branches near the border have temporarily closed based on local risk assessments.
Kasikornbank's Phnom Penh branch remains fully operational with no impact on customer financial transactions, though the bank has coordinated with headquarters to prepare business continuity plans across all operational dimensions.
Land and Houses Bank's chief executive, Shih Jiing-Fuh, noted that whilst short-term uncertainty may arise from the Thai-Cambodia conflict due to significant economic interdependence, long-term impacts are not expected to significantly affect the bank's business direction.
Tourism and Aviation Sectors Affected
The Ministry of Tourism and Sports has established emergency coordination centres and closed Ta Muen Thom and Ta Krabey temples to tourists.
Sa Kaeo province's border districts—Aranyaprathet, Ta Phraya, and Khlong Hat—have experienced reduced tourist numbers and accommodation cancellations.
Samart Corporation, which operates aviation radio services in Cambodia through Samart Aviation Solutions, continues normal operations with no flight schedule disruptions, though emergency management measures are in place.
Chai Arunanondchai, chairman of the Tourism Council of Thailand, warned that prolonged conflict could benefit Thailand's tourism competitors, including Vietnam, Taiwan, Malaysia, and China, which are offering financial support packages to tour operators to attract more foreign visitors.
The escalating situation has prompted Thailand's embassy in Phnom Penh to advise Thai nationals to return home, whilst businesses brace for potentially extended disruption to the significant economic relationship between the neighbouring countries.
