Tensions at the border: Thai brands lose ground in Cambodia

The ongoing tensions on the border between Thailand and Cambodia aren't just causing diplomatic friction: they're also hitting trade hard, disrupting a cross-border market that had been booming until now.

For several weeks, Thai exporters of consumer goods — particularly energy drinks and fast-moving consumer goods — have been reporting shipping delays of up to a week

These logistical delays, exacerbated by traffic restrictions and the climate of uncertainty, could result in losses of several million baht. Some companies, faced with this unpredictability, have postponed the launch of new products on the Cambodian market. Communication and marketing budgets for the kingdom have been frozen, reflecting a climate of high sensitivity.

The crisis has also affected the productive sector. Nearly 70% of Thai factory workers on the Cambodian side have had to return home, leading to a 20-30% drop in production.

Between labour shortages, delivery delays and increased transport costs, manufacturers are seeing their competitiveness threatened. Some experts are already warning that by allowing these flaws to widen, Thailand risks losing ground to its regional rivals, particularly Vietnam and China, which are watching for any opportunity to expand their market share.

The impact is palpable among Cambodian importers and distributors. According to a sector survey published by EuroCham, 61.9% of companies report major disruptions in their supply chains, with many having to redirect or reorganise their flows.

Nearly half (47.6%) report a significant increase in logistics costs, while 42.9% point to cross-border transport delays and 38.1% cite shortages of spare parts, raw materials or finished products.

But the picture is not entirely bleak. Around 28.6% of the companies surveyed report limited or no impact, proving that some market players are managing to circumvent the difficulties. Nevertheless, for the vast majority, border tensions are acting as an economic warning sign: if they become too entrenched, the crisis risks permanently redrawing the trade balance in the region.

Beyond the figures, the message is clear: what the border is blocking today are entire industries, investment strategies and economic networks that, until now, have been a powerful source of growth for the Cambodian market. For both Bangkok and Phnom Penh, every day of tension increases the cost and opens the door a little wider to neighbouring competitors.