Cambodia: Thai brands retreat as local SMEs gain ground
A year after the border clashes, Cambodia's imports of Thai goods have fallen by more than a third. PTT, Mama and Major Cineplex are scaling back or pulling out. Local producers claim an unprecedented share of the market, but are running into a lack of capital, red tape and counterfeiting.
In two years, CP All had made 7-Eleven a familiar sign for Cambodians. The first store opened in Phnom Penh in August 2021. By April 2023 the network had 60 outlets, and the Thai group was aiming for a hundred by the end of that year. Its shelves were stocked heavily with Thai products. That was an asset. Since the summer of 2025, it has become a liability.
Bilateral trade down by a third
The break began before the fighting. In June 2025, Phnom Penh suspended imports of Thai fuel and gas, after banning its neighbour's fruit and vegetables. Bangkok then closed its seven international border crossings. The July clashes, followed by a second round lasting nearly three weeks in December, made the closure a lasting one.
Figures from Cambodia's General Department of Customs and Excise (GDCE) show the scale of the shock. In the first eight months of 2026, bilateral trade stood at $1.81 billion, down 32% year on year. Imports from Thailand fell 37.5% to $1.33 billion. Cambodian exports held up better, at $479.9 million (-10.3%). The kingdom's trade deficit with its neighbour has almost halved, to $849 million.
The contraction is easing, however: the year-on-year decline narrowed from 43.5% in January to 32.7% in July. Thailand remains Cambodia's fifth-largest trading partner, behind China, the United States, Vietnam and Japan. Goods now move through Laos, or by sea and air.
Apart from fuel and gas, no ban targets Thai products. The director-general of customs, Kun Nhem, made the point in November 2025: whether to buy or not is up to consumers. For Lim Heng, vice-president of the Cambodia Chamber of Commerce, the boycott is nonetheless the main cause of the collapse in trade. In shops, some buyers check barcodes to avoid the Thai prefix 885 in favour of Cambodia's 884.
PTT, Mama, Major: Thai groups rethink their plans
For Thai companies, the bill is heavy. Fuel sales by OR, PTT's retail arm, fell 72.8% in the first quarter of 2026 to 46 million litres, against more than 150 million litres a quarter before the fighting. The group has launched a three-stage review that could end in an orderly exit. Cambodia accounts for only 2-3% of its revenue, but OR still runs 91 stations and 136 Café Amazon outlets there.
Thai President Foods, maker of Mama instant noodles, generated around one billion baht in sales in Cambodia, according to its president, Pun Paniangvait. The group has removed the market from its 2026 forecasts, halted its local plant and postponed a new factory in Phnom Penh. It is now counting on China, India, South Korea and Vietnam to make up the difference.
Others are leaving or keeping a low profile. Major Cineplex ended its Cambodian operations in February 2026, after twelve years in the country. Carabao saw its international revenue fall 40% in the first quarter, with Cambodia among the markets to blame. Mistine, which made more than 300 million baht in sales there, has cut its marketing spend. Several brands have shrunk their logos, or even hidden their names on packaging. One maker of household essentials is considering restarting its plant under a Cambodian brand.
Local SMEs claim 30% of the market
On the Cambodian side, business groups are upbeat. According to Te Tangpor, chairman of the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC), local products now account for up to 30% of the domestic market, against around 2% twenty years ago. The same federation estimates that demand has risen by about 30% in a year. These figures are not backed by any official statistics.
Some segments lend themselves to the shift. In fresh milk, Khmer Fresh Milk has run the Kirisu farm since late 2020, 300 hectares in Bati district, Takeo province, officially inaugurated by Prime Minister Hun Manet in April 2024. In 2021, one of its co-founders estimated that around 80% of the fresh milk sold in the kingdom was imported from neighbouring countries. In cosmetics, Boran Care, founded in 2019 by Nhim Sorida, makes its natural care products in Banteay Meanchey, the border province that is home to Poipet.
Several Cambodian brands have also said they will stop manufacturing in Thailand and bring production home.
Capital and red tape: the bottlenecks
Keeping up is another matter. Hem Hema, owner of Yeaksa Laundry Franchise, says registering a business can involve more than a dozen ministries and government departments. Hun Manet has called for urgent reforms to simplify registration and licensing.
Financing remains the main obstacle. Banks usually require land as collateral. Loans to small businesses cost between 6.5% and 8.5%, according to SME Bank of Cambodia. Nuth Samphors, founder of household products maker LSV Industry, points out that imports are often cheaper, made at larger scale, and that big groups buy the best shelf space.
Counterfeiting follows demand
The 'made in Cambodia' wave is also drawing fraudsters. In August 2025, inspectors from the Consumer Protection, Competition and Fraud Repression Directorate-General (CCF) found Cambodian barcodes stuck on sweetened milk imported by KOFI: 144 cartons out of 205 had been relabelled. A recall was ordered within two days. In May 2026, in Kampot, the CCF found Thai sugar repackaged in bags labelled in Vietnamese.
Local producers are victims too. In July, nearly seven tonnes of Chinese-made counterfeits in local packaging were seized in Phnom Penh, copying a product made by LSV Industry. FASMEC itself has warned its members against cashing in on the momentum with counterfeit or substandard goods.
A worsening economic backdrop
This rebalancing comes as the economy slows. In April, the World Bank cut its 2026 growth forecast for Cambodia to 3.9%, after 4.8% in 2025. The ADB expects a sharp slowdown in services, from 3.4% to 2.3%, as the economy absorbs the border closure.
In Bangkok, Thai President Foods has not given up on Cambodia. Pun Paniangvait does not expect a recovery this year, but says the group is ready to sell again as soon as demand returns. The border crossings, for their part, remain closed.
Read also: Boycott of Thai products in Cambodia: first impact — https://www.cambodgemag.com/en/post/boycott-of-thai-products-in-cambodia-first-impact
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