Cambodia’s worker recall may hit Thai construction, fruit trade

Tensions along the Thai-Cambodian border continue to simmer following a military clash between Thai and Cambodian troops in Nam Yuen district, Ubon Ratchathani province, on May 28, 2025. What began as a confrontation has since evolved into a broader bilateral dispute with implications for both countries’ diplomatic and border relations.

Cambodia has formally proposed bringing the matter before the International Court of Justice (ICJ), citing unresolved territorial issues. Thailand, however, has rejected international adjudication, opting instead to resolve the issue through the existing framework of the Joint Boundary Commission (JBC).

The JBC convened in Phnom Penh on June 14 -15, but no conclusive outcome was reached. Foreign Ministry spokesman Nikorndej Balankura stated that both sides had made efforts to bridge their differences, and that Thailand hoped the dialogue would help ease tensions.

On June 14, Cambodian Senate President Hun Sen took to social media, urging Cambodian migrant workers in Thailand to return home voluntarily before Thai authorities begin forced deportations. He added that the Cambodian government would welcome back all nationals regardless of their documentation status.

Thailand’s Ministry of Labour reports that there are currently around 500,000 Cambodian nationals working in the country, categorised into four groups:

• Workers under Cabinet Resolutions (Sept 24, 2024, and Feb 4, 2025): 40,942 workers have received work permits, 154,607 are undergoing processing
• Undocumented workers registered under the Sept 24, 2024 resolution: 110,771 individuals
• Cross-border or seasonal workers: 24,220 individuals
• Workers under the Thailand-Cambodia MOU framework: 184,810 individuals

A source from the Thai Chamber of Commerce said that the escalating tensions between Thailand and Cambodia have raised serious concerns within the private sector. Businesses are urging both governments to resolve the dispute swiftly through diplomatic dialogue, warning that prolonged uncertainty will be detrimental to both countries, which rely heavily on each other for trade and investment.

The source added that Cambodia’s call for its nationals to return home could impact the construction sector in Thailand, which employs a significant number of Cambodian workers. However, this shortfall could potentially be offset by workers from other neighbouring countries.

Still, the loss of income for Cambodian workers forced to return home would be significant, and any tit-for-tat escalation between the two governments, such as raising retaliatory measures, could derail or render the Joint Boundary Commission (JBC) negotiations ineffective.

Regarding calls for a boycott of Thai products circulating in Cambodia, the source said the impact has so far been minimal and that consumer decisions will likely depend on product quality. However, if Cambodia were to impose a ban, it could increase imports from countries like China or Vietnam.

Ukris Wongthongsalee, President of the Chanthaburi Chamber of Commerce, also voiced concern, noting that Cambodian workers play a critical role in the province’s agricultural sector, particularly in fruit harvesting, sorting, and packaging. Cambodian labour accounts for more than 80% of the agricultural workforce in the region.

"The closure of the border checkpoints doesn’t just affect trade figures—it directly impacts the Cambodian labour force employed in Chanthaburi’s fruit processing facilities,” he said.

He also warned about the economic implications of temporary closures at two key checkpoints: Ban Laem in Pong Nam Ron district and the permanent crossing at Ban Phakkad in Khlong Yai district. Both are vital for cross-border trade, and even a one-week or one-month closure could lead to economic losses exceeding one billion baht.