Thai Times

Covering the Thai Renaissance
Friday, Jul 04, 2025

Thailand-Cambodia border closure could impact trade by 500 million baht daily

Border checkpoint adjustments amidst military regulations may lead to daily trade losses estimated at 500 million baht.
Thailand's recent border measures with Cambodia, which involve regulated opening and closing of checkpoints based on military schedules, are anticipated to impact bilateral trade significantly.

According to Kriengkrai Thiennukul, president of the Federation of Thai Industries (FTI), these measures could lead to disruptions in the transportation of goods across the border.

He pointed out that some members of the FTI have already begun to feel the ramifications, although a full assessment of the damages remains elusive at this stage.

The annual border trade between Thailand and Cambodia is valued at approximately 170 billion baht, with the Aranyaprathet checkpoint in Sa Kaeo province being pivotal, handling about 110 billion baht or roughly 64% of the total trade value.

Kriengkrai estimated that based on the overall daily export metrics, the potential financial impact could reach around 500 million baht per day.

However, he clarified that not all of this figure represents lost revenue, as only a portion is directly affected by the current situation.

He expressed hope that the disruptions would not extend over a prolonged period, emphasizing that extended delays could exacerbate adverse effects.

He acknowledged the necessity of such extraordinary measures in facilitating peaceful negotiations, while also noting the economic burden on both countries due to these disputes.

Thailand boasts a trade surplus, mainly from exports of consumer goods, fuel, machinery, and engines, all of which may be at risk from the ongoing border issues.

The Royal Thai Army has recently established new protocols governing border cross points, a response to rising tensions near Chong Bok in Ubon Ratchathani province.

These measures are being overseen by the 1st and 2nd Army Regions in conjunction with local military commands.

The protocols include limiting border crossings to essential activities, such as trade and labor transport, with intensified scrutiny of high-risk groups, reduced operating hours for border points, closure of insecure crossings, and total shutdown of border points in crises.

The Thai government, under Prime Minister Paetongtarn Shinawatra, has directed the Thai-Cambodian Joint Boundary Commission (JBC) to convene on June 14 to address these tensions, while Cambodia continues to advocate for resolution through the International Court of Justice (ICJ).

In 2024, the trade volume at the Thailand-Cambodia border reached approximately 174.53 to 175.53 billion baht, with the Aranyaprathet checkpoint recording a trade value of 110.72 billion baht, making up 63.4% of the total.

For the first four months of 2025, border trade has amounted to 344.03 billion baht, reflecting a 5.3% increase compared to the same period the previous year, with April 2025 alone witnessing a trade value of 15.8 billion baht.

Thailand's trade surplus stood at 109.16 billion baht in 2024.

In early 2025, preliminary data indicated a trade surplus of 8.49 billion baht in April, contributing to a cumulative surplus of 89.30 billion baht for the first four months.

As of June 7, 2025, Thailand recorded a trade surplus of 35.84 billion baht with exports valued at 50.23 billion baht against imports of 14.39 billion baht.
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