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Recent Thai-Cambodian border clashes: a threat to trade stability?

EDITED BY : 4MINS READ

Despite ongoing border tensions and temporary checkpoint closures, trade between Thailand and Cambodia saw notable growth in early 2025, reflecting both resilience and underlying fragility in their cross-border economic ties. According to data released by Thailand’s Commerce Ministry on Monday, bilateral trade rose by 3.33 per cent year-on-year in the first half of 2025, reaching baht 95.147 billion, even as geopolitical tensions began to strain logistics and erode market confidence.

ecent Thai-Cambodian border clashes: a threat to trade stability?

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The 2025 conflict between Thailand and Cambodia was triggered in late May when a Cambodian soldier was killed, reigniting a long-standing territorial dispute. The situation escalated sharply on July 24, when heavy fighting broke out. By July 27, clashes had spread to 12 border locations, resulting in significant casualties and civilian displacement. A ceasefire agreement described as “immediate and unconditional”—was reached on July 28, following peace talks in Kuala Lumpur mediated by Malaysia, with backing from the US and China.

Border trade remains strong – for now

The first half of 2025 brought encouraging signs for Thai-Cambodian trade. Thai exports to Cambodia rose 3.33 per cent to baht 72.447 billion, while imports surged 13.52 per cent to baht 22.699 billion, resulting in a trade surplus of baht 49.748 billion in Thailand’s favour.

Major exports from Thailand include flavoured beverages, soft drinks, and internal combustion engines. Cambodia’s exports to Thailand comprised mostly vegetables, aluminium scrap, and electrical wires—goods feeding into Thailand’s growing downstream and recycling sectors.

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