The escalating Thai-Cambodian border conflict, which is marked by armed clashes since July 2025, has greatly disrupted trade and business. Even as the border checkpoints remained closed, exporters have had to modify operations from land to sea transport, which has caused major delays and damages that are in order of several hundreds of millions of baht.
Carabao Group, an energy drink maker, explained the direct hit to second quarter sales from a decline of 4% in Cambodia, Laos, Myanmar, Vietnam (CLMV) exports. Carabao previously explained plans to establish its Cambodian plant in December, a way to hedge against this future risk. Pan Asia Footwear, a footwear maker, reported that it had received 70% of its Cambodian workers back home and reduced production by as much as 30%.
Major Thai brands including beverages, retail, and construction materials, have paused marketing to Cambodian market because of the sensitive political environment. Industry experts cautioned that a pause in brand activities for Thai producers may provide opportunities for competitors in Vietnam and China. Although Cambodian consumers still prefer Thai products, extended uncertainty could disrupt market share and push back planned projects for more business in the region.
