Thai Border Closure is a ‘Golden Opportunity’ for Local Industry

Thai Border Closure is a 'Golden Opportunity' for Local Industry

PHNOM PENH: H.E. Dr. Kun Nhem, Delegate of the Royal Government attached to the Prime Minister and Director General of the General Department of Customs and Excise (GDCE), stated on November 14, 2025, that the closure of the Cambodia-Thailand land border by the Thai military is a “good opportunity” and a “golden opportunity” for local enterprises to strive to increase their own production.

The statement was made during H.E. Dr. Kun Nhemโ€™s attendance as co-chair of the 3rd Cambodia Customs Forum, co-organized by the GDCE and the Cambodia Chamber of Commerce (CCC) on the morning of November 14, 2025. The forum was also co-chaired by Oknha Kith Meng, President of the CCC.

H.E. Dr. Kun Nhem specifically noted: โ€œIt is a good opportunity that this border closure has created a chance for our local enterprises to seize this opportunity to work hard on producing goods to supply the domestic marketโ€”a market that previously relied entirely or mostly on imports from Thailand.โ€

Boycott Movement Drives Reduction in Reliance

According to H.E. Dr. Kun Nhem, the Cambodia-Thailand land border has been closed by the Thai military for five months, which has impacted trade flows and various transportation activities.

He pointed out that the imports of specific restricted goods from Thailandโ€”including vegetables, fruits, fuel, and fuel gasโ€”have dropped to zero since the implementation of the ban.

More significantly, he observed that even non-restricted goods saw a sharp decline in imports from Thailand to the Cambodian market due to the impact of the โ€œspirit/movement of boycotting Thai goods.โ€

H.E. Dr. Kun Nhem noted that certain markets previously selling Thai goods are unable to move inventory. Goods that were imported but unsold had to be continuously re-exported in significant volumes, including beverages, consumables, and various foodstuffs. He further added that the spirit of boycotting Thai goods has been so strong that Thai products brought in are not selling, leading to continuous closures of businesses, citing examples such as PTT gas stations, shops, and cafes that have gone quiet despite attempts to change their branding.

Trade Data Confirms Decline

The GDCE report substantiated this impact:

  • In October 2025, the value of goods imported from Thailand to Cambodia was over $239 million, marking a 19.7% decrease compared to the same period in 2024 ($298 million).
  • For the 10-month period of 2025, the total trade volume between Cambodia and Thailand reached over $3.2 billion, representing a 9.3% decrease compared to the same period last year ($3.5 billion).

In conclusion, H.E. Dr. Kun Nhem stressed that while the border situation and boycott movement have negatively affected trade, they have provided a critical strategic opportunity for Cambodia to effectively boost domestic supply self-sufficiency and reduce its reliance on imports from neighboring countries.