A former 7-Eleven outlet in Phnom Penh, replaced by another retail brand. KT/Chor Sokunthea

Months of border tensions between Cambodia and Thailand are beginning to reshape the economic landscape, with Thai businesses losing ground in a market they once dominated.

Trade between the two neighbours fell sharply after June 2025, when periodic border closures disrupted supply chains and dented investor confidence. Figures from Cambodia’s General Department of Customs and Excise show bilateral trade at around $925 million in the first four months of 2026 — a notable drop compared with previous years.

For decades, Thai companies were embedded in Cambodia’s economy, from retail and banking to food, construction and hospitality. Their success relied heavily on stable cross-border conditions. But with uncertainty now the norm, many firms are scaling back expansion plans, delaying reinvestment or quietly losing market share to competitors from Singapore, Malaysia, Indonesia, Japan and Western markets.

Analysts warn that the impact is less about immediate collapse and more about “hidden casualties” — businesses that remain present but steadily lose influence. Cambodian consumers, meanwhile, are diversifying their choices, increasingly turning to alternative brands. “Economic disputes and geopolitical tensions often influence consumer behaviour,” said socio-economic analyst Chey Tech, noting that once buyers switch to new products, regaining loyalty can be difficult.

The shift is reinforced by Cambodia’s broader trade diversification strategy. Japan, Singapore and Malaysia have all increased their share of the market, while imports from the US have risen as part of efforts to balance external relationships.

Chea Chandara, President of the Logistics Supply Chain and Brokers Business Association, pointed out that while Thai firms continue to operate, the absence of significant new investment projects signals caution. “Existing businesses may continue, but expansion plans depend on confidence in long-term stability,” he said.

The longer tensions persist, the greater the risk that temporary adjustments become permanent. Thai companies are unlikely to vanish overnight, but their dominance in Cambodia’s economy may steadily erode, leaving them one competitor among many in an increasingly diversified marketplace.

-2026-06-08

Understandable that Khmers don't feel like buying Thai products whenever they have an alternative. Another boost for Vietnam's economy.

Yeah, but are they cutting their nose off to spite their face, I've noticed, as have many others, a giant uptick in Myanmar labour in Thailand.

Well-educated people as well.

On 6/8/2026 at 9:18 AM, geovalin said:

Thai businesses losing ground in a market they once dominated.

Very much so - most noticeably PTT petrol/gas stations, Amazon Coffee Shops, 7-11's, MAKROs and CP Foods outlets.

Quote - Japan, Singapore and Malaysia have all increased their share of the market

Also, Australia and New Zealand with fruit, dairy and meat products, also vast ranges of non perishable food products from the UK, EU, Vietnam, USA and other friendly nations.

Thai electrical products are banned so China (as one would expect) and Vietnam are now alternative sources. Cabling and plugs in my apartment are Vietnamese.

Being a UK citizen retired in Siem Reap, the range of products imported from the UK Supermarkets CO-OP and Morissons is superb.

On 6/8/2026 at 9:18 AM, geovalin said:

Cambodia’s economy may steadily erode, leaving them one competitor among many in an increasingly diversified marketplace.

That seems contradicted by:

On 6/8/2026 at 9:18 AM, geovalin said:

Cambodia’s broader trade diversification strategy. Japan, Singapore and Malaysia have all increased their share of the market, while imports from the US have risen as part of efforts to balance external relationships.

Same strategy as Canada as it leaves the US economy as a major (albeit destructive) market for Canada to seek other foreign reliable markets, ie., EU and Asia.