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Thailand’s Border Trade Slumps 23.6% in August

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File picture courtesy of The Thaiger 

 

Thailand’s border trade fell sharply in August, plunging 23.6% year-on-year to 63.9 billion baht, with trade with Cambodia almost collapsing, according to the Department of Foreign Trade (DFT). Exports to Cambodia dropped 99.9% to just 10 million baht, reflecting the severe disruption in cross-border movement. Overall, combined border and transit trade stood at 150.1 billion baht in August, down 3.1% compared to the previous year.

 

Arada Fuangtong, director-general of the DFT, reported that exports totalled 75.05 billion baht, while imports rose 12.2% to 75.07 billion baht, resulting in a marginal deficit of 18 million baht. From January to August 2025, combined border and transit trade reached 1.33 trillion baht, up 9.2% from last year. Exports in the same period grew 7.6% to 763.5 billion baht, while imports climbed 11.4% to 574.9 billion baht, leaving a surplus of 188.7 billion baht.

 

Trade with neighbouring countries showed broad declines in August. Exports fell 30.1% to 33.95 billion baht and imports slipped 14.5% to 29.98 billion baht, leaving Thailand with a surplus of 3.96 billion baht. Malaysia remained the largest border trade partner, recording 26.96 billion baht (down 5.7%), followed by Laos at 23.13 billion baht (down 0.1%) and Myanmar at 13.82 billion baht (down 20.8%). Cambodia’s figures were nearly negligible at just 10 million baht.

 

Top export items at the border in August included diesel worth 2.05 billion baht, computers and parts at 1.35 billion baht, and refined oil products at 1.11 billion baht. Border trade from January to August totalled 636.2 billion baht, down 3.6% year-on-year. In contrast, transit trade surged 20.9% in August to 86.2 billion baht, led by China at 41.2 billion baht (up 12.9%), Singapore at 14.3 billion baht (up 56%), and Vietnam at 8.4 billion baht (up 27.8%).

 

The Nation reported that key transit exports included hard disk drives worth 7.13 billion baht, fresh durian at 7.09 billion baht and computers and parts valued at 2.33 billion baht. Over the first eight months of 2025, transit trade jumped 24.2% to 702.2 billion baht, with exports rising 26.5% and imports increasing 21.4%. Separately, the DFT highlighted that China continues to dominate Thai agricultural exports, particularly cassava, absorbing more than half of total export value.

 

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Infographic courtesy of Thailand’s DFT underscores China’s commanding lead in Thai cassava exports, absorbing more than half of the total export value | Photo via DFT/Facebook
 

Key Takeaways

 

• Thailand’s border trade fell 23.6% in August to 63.9 billion baht, with Cambodia trade nearly collapsing.

• Transit trade offset losses, rising 20.9% in August, led by China, Singapore, and Vietnam.

• From January to August, combined border and transit trade grew 9.2% to 1.33 trillion baht.

 

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image.png  Adapted by Asean Now from TheThaiger 2025-09-30

 

 

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So, Thailand closes one of its 4 land borders, so border trade goes down 23.6%, no big surprise.

 

About 300,000 Cambodian workers exit Thailand - big win for Thailand right?  No, wrong.

 

Firstly, 300,000 Cambodian workers need to be replaced; by whom, hard-working Thais, flying in 300,000 workers from Sri Lanka?  Wrong, there are no immediate or short-term replacements.  Thus, Thai businesses which employed these workers have had their productions - buildings, farms, etc. - halted.  As these businesses have reduced/halted production, then some Thai workers in these businesses will have to be laid off, as business has slowed or stopped.  Thus, Thai workers also loose out.

 

Secondly, 300,000 Cambodian workers in Thailand are consumers.  They consume Thai-produced food every day, they may also buy some clothing in Thailand, buy wi-fi services, buy phones, buy alcohol, etc.  All these Thai businesses which supply produce to these Cambodian workers have now lost consumers (I bet CP is not happy); 300,000 consumers.  Now re-read these last two sentences of the previous paragraph again.

 

I await criticisms of the above.

 

 

1 hour ago, JimHuaHin said:

So, Thailand closes one of its 4 land borders, so border trade goes down 23.6%, no big surprise.

 

About 300,000 Cambodian workers exit Thailand - big win for Thailand right?  No, wrong.

 

Firstly, 300,000 Cambodian workers need to be replaced; by whom, hard-working Thais, flying in 300,000 workers from Sri Lanka?  Wrong, there are no immediate or short-term replacements.  Thus, Thai businesses which employed these workers have had their productions - buildings, farms, etc. - halted.  As these businesses have reduced/halted production, then some Thai workers in these businesses will have to be laid off, as business has slowed or stopped.  Thus, Thai workers also loose out.

 

Secondly, 300,000 Cambodian workers in Thailand are consumers.  They consume Thai-produced food every day, they may also buy some clothing in Thailand, buy wi-fi services, buy phones, buy alcohol, etc.  All these Thai businesses which supply produce to these Cambodian workers have now lost consumers (I bet CP is not happy); 300,000 consumers.  Now re-read these last two sentences of the previous paragraph again.

 

I await criticisms of the above.

 

 

 

 

Thanks. No criticisms from me living in Cambodia. You are quite correct. 

 

Since the border closures, the Cambodian Government has supported Khmer entrepreneurs (and others) to develop businesses within the country, especially in the farming industries. The on-going ban and boycott of Thai products and produce means we have a wider selection of imported quality products from friendly global markets on our supermarket shelves. Thai businesses are suffering here as people boycott them. The PTT stations, some with 7-11's and Amazon Coffee shops, are  deserted. How they manage to survive to pay the wages I have no idea. At least the Khmer staff are still in employment but doing nothing! Even our local MAKRO is a shadow of its former self, but I must give credit as much fruit and vegetables are from Khmer farmers. The displays have Cambodian flags to show the country of origin. This also includes many other non-perishable Cambodian products. So, as far as I am concerned, the Thai Military can keep the border crossings closed. we are doing nicely without Thailand thank you! 

Additional electricity is now being supplied by Vietnam and Laos.

Our fuel oil, gas and other petroleum products are being imported from Singapore and Vietnam to refineries in Sihanoukville , Thailand sources have been banned.

We are doing nicely without Thailand thank you! 

 

For those whining about border runs, you have Laos and Malaysia on hand. Of course, if you so desire, you can fly from Bangkok to Siem Reap or Phnom Penh (both recently built modern airports), stay the night and fly back the next day - but at a cost!.

 

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