When Thailand's unilateral closure of the border boosts production made in Cambodia

In a border context still marked by military and diplomatic tensions, the President of the Senate, Samdech Techo Hun Sen, surprised everyone by expressing his 'gratitude' for Thailand's decision to keep its borders closed. Paradoxically, this measure would have led to a significant rise in domestic production and increased consumption of Cambodian-made goods.

Hun Sen and his son, current Prime Minister Hun Manet. Photo AKP

An imposed closure, an opportunity seized

While the border conflict remains framed by a ceasefire designed to avoid further loss of life and destruction of infrastructure, Bangkok has unilaterally chosen to extend the closure of its land crossings with Cambodia.

Phnom Penh, far from calling for an immediate reopening, merely pointed out that the responsibility lay exclusively with Thailand:

"If Bangkok closes the border, it is up to them to decide whether to reopen it. Cambodia will follow five hours later, without begging or negotiating", Hun Sen hammered home.

In his remarks, the former Prime Minister insisted that even if the border remained closed for ‘a hundred years’, Cambodia would not be doomed to decline. On the contrary, the scarcity of Thai imports had created an unprecedented space for local producers: ‘Thanks to this closure, consumption has been redirected towards our domestic goods, supporting both our entrepreneurs and our agriculture’.

Economic resilience and popular support

The figures bear this out to some extent. According to data from the Ministry of Commerce, the proportion of ‘made in Cambodia’ products sold on urban markets has jumped by almost 25% over the past three months. The government also points to price stability and a controlled inflation rate, a sign that the country has been able to adjust its logistics system and supply chains.

The Cambodian Rice Producers' Union (CRF) has stated that exports to third markets, notably China and the European Union, have been ‘boosted by the increase in domestic demand’. For other sectors - textiles, agri-food, construction materials - the closure acted as a catalyst, encouraging Cambodians to develop a national preference.

Diplomatic dimension and regional issues

On the diplomatic front, Phnom Penh is reiterating its desire to settle territorial disputes through negotiation, ruling out any return to military escalation. Hun Sen has also urged his fellow citizens to ‘remain patient’ and support the government's peaceful efforts.

One sensitive issue remains unresolved: the request from Japan, which is investing in both Thailand and Cambodia. Tokyo requested passage for its goods; Phnom Penh agreed, passing the quid to Thailand.

A closure with unexpected effects

In the midst of a crisis, the paradoxical effect of a closure imposed by its neighbour offered Cambodia a rare opportunity to consolidate its economic sovereignty. Many observers believe that if the country manages to maintain this momentum in favour of local products, it could emerge more independent in the face of regional economic pressure.

For Hun Sen, it's a message of resilience: "We won't end up ruined by a closed border. On the contrary, we are building our economy from within".