Economy Cambodian Labour Shortage Hits Pattaya’s Economy

[snoop1130]

Photo courtesy of Thai Newsroom

 

As thousands of Cambodian workers return home following border clashes, Thai industries are feeling the strain.

 

Recent border clashes between Cambodia and Thailand, which culminated in a ceasefire on 28th July, have led to asignificant exodus of Cambodian migrant workers. The subsequent shortage is causing disruptions in various sectors in Chonburi, notably construction and shipbuilding, as businesses scramble to cope with the loss of their workforce.

 

Around 50,000 Cambodian workers have reportedly returned via the Baan Laem border checkpoint in Pong Namron district of Chanthaburi by 6th August. Yet, despite the pressure from the Cambodian government to return under threats of revoking citizenship and seizing property, not all have chosen to leave.

 

Thai employers in key sectors have openly acknowledged the challenges posed by the worker shortage. Contracts are at risk of delays, affecting the construction and shipbuilding industries that heavily depend on Cambodian labour.

 

While these sectors attempt to navigate the impact, individual stories highlight the complexity of the situation. Mr. Dam, a Cambodian construction worker in Thailand, explained his predicament. Despite governmental pressure to return, he remains in Thailand, burdened by debts incurred from building a house. Returning home could mean unemployment and an inability to service his loans, amounting to an economic loss and personal hardship.

 

Some Cambodian workers, like Mr. Ta, who works at a speedboat yard in Pattaya, have decided to stay. He cites the supportive relationship with his Thai employer and the general respect shown to Cambodian workers as reasons for his decision. This loyalty underscores the positive experiences some migrant workers have in Thailand, contrasting with the coercive measures reportedly used by the Cambodian authorities.

 

Mr. Ta also pointed out the personal toll of the ongoing situation. The stress from following news of the clashes and their aftermath had driven him to disconnect to avoid pressure to return home, a decision many of his friends have already made.

 

For Thailand, the loss of a significant portion of its migrant workforce could translate to economic setbacks, measured in contract delays and reduced industrial output. This scenario underscores the interdependence between neighbouring countries’ economies and the potential ripple effects of political tensions.

 

The broader ramifications of this situation are likely to extend beyond immediate economic disruptions. Long-term relationships between employers and migrant workers, as well as Thailand’s labour market dynamics, could face enduring changes.

 

As the situation develops, careful navigation of diplomatic relations and worker welfare will be crucial. Balancing economic needs with humanitarian considerations poses a considerable challenge for both Thailand and Cambodia. Negotiating for long-term stability and the rights of migrant workers may prove vital in resolving tensions and fostering resilience in both communities.

 

In the meantime, Thai businesses will need to adapt swiftly, seeking alternative labour sources or adjusting operational strategies to mitigate the impact of this sudden workforce reduction. With economic and human stakes high, the response in the coming weeks will be closely watched by both local and international observers.

 

  Adapted by ASEAN Now from Thai Newsroom 2025-08-13

 

[scubascuba3]

They'll be back soon enough when hungry and broke 

[mikebell]

They do the jobs, Thais feel are beneath them.

[hotchilli]

So difficult for the labour ministry when Thai unemployment is at such a low level, you'd think these would be a good opportunity to get Thais back to work

[Luuk Chaai]

Thai industries are feeling the strain.  poor babies. 

now they will have to PAY  Thai people to do their own work !

[champers]

If they cheese off the Burmese as well Pattaya will be goosed.