The Japan External Trade Organisation (JETRO) has raised alarms over recurring border closures between Thailand and Cambodia, saying they threaten Cambodia’s reputation among foreign investors and disrupt the ‘‘Thailand Plus One’’ model, which sees Japanese firms use Thailand as a base before expanding across ASEAN.

The warning followed the thirtieth Japan-Cambodia Public-Private Sector Meeting in Phnom Penh on September 3.

Japanese Ambassador Atsushi Ueno said Cambodia risks losing investment appeal if the shutdowns continue, as transit times and logistics costs rise sharply.

Koji Fukuhara, Chairman of the Japan Business Association in Cambodia (JBAC), reported that Japanese joint ventures are being directly affected—expansion plans are delayed and economic losses accrued, impacting Cambodian workers too.

Deputy Prime Minister Sun Chanthol acknowledged the damage, committing to reopen crossings and restore logistics routes.

He emphasised that the issue undermines both economic stability and Cambodia’s image with investors.

In addition to concerns about borders, investors flagged four other major impediments: delays in issuing tax-exemption letters tied to Japanese Official Development Assistance (ODA) projects; inconsistent enforcement of environmental regulations; a flourishing illicit cigarette trade; and weak protection of trademarks and unfair competition laws.

Ambassador Ueno questioned whether environmental contribution requirements are applied uniformly, noting that some compliant Japanese companies feel disadvantaged.

He also said the illegal cigarette market hurts government revenues and damages trust.

Sun Chanthol urged all ministries to heed investor feedback and work to provide a clearer, more transparent, and stable environment.

He said Cambodia aspires to become a high-income nation by 2050, and that these reforms are essential to achieving it.