Thailand’s Border Trade with Cambodia Collapses as Cross-Border Dispute Deepens
August border trading with Cambodia falls nearly 100%, while overall border trade declines; Cambodia checkpoint closures cited as key factor
Thailand’s Department of Foreign Trade (DFT) reported a dramatic 99.9 percent year-on-year decline in border trade with Cambodia for August, relegating bilateral cross-border commerce to merely 10 million baht.
In the same month, total border trade with all neighbours fell by 3.1 percent to 150.1 billion baht.
DFT data indicate that Thailand’s border exports in August dropped by 14.7 percent to 75.06 billion baht, while foreign-origin imports rose by 12.2 percent to 75.07 billion baht.
Among neighbouring countries, Malaysia remained the largest source of cross-border trade (26.9 billion baht, down 5.7 percent), followed by Laos (23.1 billion baht, down 0.1 percent) and Myanmar (13.8 billion baht, down 20.8 percent).
The near-collapse of Thai-Cambodia border trade followed two successive months of steep declines: July trade had already contracted by 97.5 percent year-on-year, before August’s record plunge.
In July, bilateral trade fell to just 376 million baht after the closure of all 18 border checkpoints, triggered by escalating border clashes earlier in the month.
In August’s diminished Cambodia trade tally, Thailand’s exports to Cambodia accounted for around 5 million baht in wine, 1 million baht in minerals and fuel, and 1 billion baht in whisky among other categories.
The DFT attributed the collapse to the continued closure of checkpoints on the Cambodian border.
In the first eight months of 2025, cumulative border trade reached 1.34 trillion baht, reflecting a 9.2 percent rise compared to the same period in 2024.
Within that span, border exports increased by 7.6 percent to 763.5 billion baht, and imports climbed by 11.4 percent to 574.8 billion baht.
The DFT maintains a full-year border trade forecast of 1.81 to 1.85 trillion baht, projecting modest growth in the range of 1 to 2 percent.
Transactions designated as transit trade — to destinations such as China, Singapore and Vietnam — are expected to contribute to the projected growth.
In response to the collapse in Cambodia-border trade, the DFT is implementing relief measures for affected exporters.
An initial survey identified approximately 100 firms in sectors such as food and beverages, consumer goods and auto parts.
These firms will be prioritised for participation in six border trade fairs in 2026.
The department has also organised business-matching events and negotiated with transport operators to offer special freight rates for exporters.
The DFT is also reconsidering its 2026 border trade target, although no specific goal has been assigned for trade via the Cambodian border.
Officials noted that maintaining Cambodia-border trade at 2025 levels would itself be viewed as a significant outcome.
An initial target for 2027 of 2 trillion baht has been proposed, but officials cautioned that adjustments or alternate strategies may be needed, especially given uncertainty around Cambodian-border flows.
Against the backdrop of these developments, earlier in 2025 Thailand’s trade with Cambodia (inclusive of cross-border transit) had shown signs of growth.
In the first half of the year, trade between the two nations rose by 3.33 percent to 95.147 billion baht, producing a surplus for Thailand.
However, authorities have since revised Thailand’s Cambodia border trade growth forecast downward to 2 percent for 2025 (from an earlier 3 percent target), in light of intensifying border tensions and recent retaliatory measures.
The DFT has also warned that continued border checkpoint closures could result in as much as a 60 billion baht drop in border export value by year-end.
In recent months, Thailand has maintained near-total closure of land border crossings with Cambodia, allowing exceptions only for humanitarian purposes, medical emergencies or student transit.
Observers estimate that Thailand’s attempts to reroute trade flows, combined with cross-border transit activity, have partially cushioned the broader impact of the Cambodia trade collapse.
Nonetheless, several private sector groups warn that sustained disruption at the Cambodian border could impose longer-term costs on supply chains and regional commerce.
In the same month, total border trade with all neighbours fell by 3.1 percent to 150.1 billion baht.
DFT data indicate that Thailand’s border exports in August dropped by 14.7 percent to 75.06 billion baht, while foreign-origin imports rose by 12.2 percent to 75.07 billion baht.
Among neighbouring countries, Malaysia remained the largest source of cross-border trade (26.9 billion baht, down 5.7 percent), followed by Laos (23.1 billion baht, down 0.1 percent) and Myanmar (13.8 billion baht, down 20.8 percent).
The near-collapse of Thai-Cambodia border trade followed two successive months of steep declines: July trade had already contracted by 97.5 percent year-on-year, before August’s record plunge.
In July, bilateral trade fell to just 376 million baht after the closure of all 18 border checkpoints, triggered by escalating border clashes earlier in the month.
In August’s diminished Cambodia trade tally, Thailand’s exports to Cambodia accounted for around 5 million baht in wine, 1 million baht in minerals and fuel, and 1 billion baht in whisky among other categories.
The DFT attributed the collapse to the continued closure of checkpoints on the Cambodian border.
In the first eight months of 2025, cumulative border trade reached 1.34 trillion baht, reflecting a 9.2 percent rise compared to the same period in 2024.
Within that span, border exports increased by 7.6 percent to 763.5 billion baht, and imports climbed by 11.4 percent to 574.8 billion baht.
The DFT maintains a full-year border trade forecast of 1.81 to 1.85 trillion baht, projecting modest growth in the range of 1 to 2 percent.
Transactions designated as transit trade — to destinations such as China, Singapore and Vietnam — are expected to contribute to the projected growth.
In response to the collapse in Cambodia-border trade, the DFT is implementing relief measures for affected exporters.
An initial survey identified approximately 100 firms in sectors such as food and beverages, consumer goods and auto parts.
These firms will be prioritised for participation in six border trade fairs in 2026.
The department has also organised business-matching events and negotiated with transport operators to offer special freight rates for exporters.
The DFT is also reconsidering its 2026 border trade target, although no specific goal has been assigned for trade via the Cambodian border.
Officials noted that maintaining Cambodia-border trade at 2025 levels would itself be viewed as a significant outcome.
An initial target for 2027 of 2 trillion baht has been proposed, but officials cautioned that adjustments or alternate strategies may be needed, especially given uncertainty around Cambodian-border flows.
Against the backdrop of these developments, earlier in 2025 Thailand’s trade with Cambodia (inclusive of cross-border transit) had shown signs of growth.
In the first half of the year, trade between the two nations rose by 3.33 percent to 95.147 billion baht, producing a surplus for Thailand.
However, authorities have since revised Thailand’s Cambodia border trade growth forecast downward to 2 percent for 2025 (from an earlier 3 percent target), in light of intensifying border tensions and recent retaliatory measures.
The DFT has also warned that continued border checkpoint closures could result in as much as a 60 billion baht drop in border export value by year-end.
In recent months, Thailand has maintained near-total closure of land border crossings with Cambodia, allowing exceptions only for humanitarian purposes, medical emergencies or student transit.
Observers estimate that Thailand’s attempts to reroute trade flows, combined with cross-border transit activity, have partially cushioned the broader impact of the Cambodia trade collapse.
Nonetheless, several private sector groups warn that sustained disruption at the Cambodian border could impose longer-term costs on supply chains and regional commerce.
