Report Thai-Cambodian Border Closures Threaten 60 Billion Baht Loss in Trade

[snoop1130]

Picture courtesy of Bangkok Post

 

Thailand may face a significant hit to its economy if the Thai-Cambodian border checkpoints remain closed until the year's end. According to the Department of Foreign Trade (DFT), this could lead to losses exceeding 60 billion baht in border trade.

 

Arada Fuangtong, the DFT's director-general, highlighted potential losses, with exports expected to dip considerably from last year's total border trade value of 175 billion baht between the two countries. With exports alone accounting for 142 billion baht, the average monthly export stands at 11.8 billion baht.

 

Businesses on both sides have been severely affected since stricter border controls were enforced on June 7, leading to multiple closures of Thai and Cambodian shops. Key sectors like vegetables, fruits, and consumer goods have been the hardest hit by the slowdown.

 

In response, exporters are seeking alternative routes, including coastal shipments through Trat province and Laem Chabang port for industrial goods.

 

Cambodia's imports, which amounted to 32.7 billion baht last year, predominantly consisted of cassava and scrap metal for industrial use. With ongoing closures, Thailand might need to increase imports from Laos, though this would likely incur higher costs and longer transport times.

 

During the first five months of this year, Thai exports to Cambodia showed resilience with an 8.7% increase year-on-year, totalling 146 billion baht. Border exports alone rose by 9% to reach 63.1 billion baht. Meanwhile, imports from Cambodia rose by 7.1% to 21.7 billion baht, with border imports increasing by 20% to 17.7 billion baht.

 

The border closure endangers Thailand's border trade growth target of 3% this year, with trade estimated at 1.87 trillion baht. With current challenges, the DFT now expects growth to be only 1-2%, down from last year's total of 1.82 trillion baht.

 

For 2024, projections include exports of 1.05 trillion baht, a 6.9% increase, and imports of 767 billion baht, up by 5.1%, culminating in a trade surplus of 281 billion baht. However, achieving these figures will depend heavily on reopening the border and mitigating ongoing disruptions.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-30

 

 

[ukrules]

Yeah, there's a lot of big Thai companies doing business down here in Cambodia.
 

Just one example is 7/11 which are building them all over the place.

 

I'll bet they love having their business disrupted by petty politicians and money really talks in Thailand.