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Border conflict weighs on Cambodia–Thailand trade as demand for local goods grows

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Summary

Cambodia’s trade with ASEAN reached US$10.966 billion in the first eight months of 2025, up 4.15 percent, while trade with Thailand fell 4.58 percent. The report links border disruption with rising demand for Cambodian goods.

Cambodia’s trade with ASEAN countries totalled US$10.966 billion in the first eight months of 2025, up 4.15 percent year on year and accounting for 25.6 percent of its international trade. Exports to ASEAN rose 16.2 percent to US$3.982 billion, while imports fell 1.16 percent to US$6.983 billion.

Vietnam remained Cambodia’s largest ASEAN trading partner, with bilateral trade of US$5.587 billion, up 6.77 percent. Thailand ranked second at US$2.66 billion, down 4.58 percent. Singapore, Indonesia and Malaysia followed at US$1.073 billion, up 20.43 percent; US$704 million, down 4.79 percent; and US$690 million, up 14.53 percent, respectively.

Cambodia’s main exports to ASEAN included agricultural products, garments, footwear, bags, electronics and bicycles. Imports included food, drinks, electronic equipment, construction materials, agricultural machinery and vehicles. Overall international trade reached about US$42.8 billion, up 15.86 percent, including US$20.8 billion in exports and US$21.9 billion in imports, both higher than a year earlier.

Armed clashes erupted along the Cambodia–Thailand border on July 24 and continued for five days before a ceasefire was reached with ASEAN and US mediation. During the conflict, Thailand unilaterally closed all border crossings with Cambodia. Cambodia subsequently took reciprocal measures and restricted some Thai imports, including fuel, food, and fresh fruit and vegetables.

Senate President Hun Sen said Thailand’s closures had affected bilateral trade but also encouraged domestic production. He said Cambodians were supporting locally made goods, supplies were stable, prices remained low and the economy was functioning well. He reiterated that Cambodia would not ask Thailand to reopen crossings but would reopen its own within five hours in accordance with the arrangements.

The report concludes that the conflict has affected bilateral trade in the short term, while Cambodia’s resilience and increased demand for local goods create opportunities for domestic industries.

Compiled by KPS99TV.

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