Businesses Brace for Impact
Emergency Plans Activated
Thai companies are swiftly revising their operations in Cambodia as border clashes, which began on July 24, 2025, disrupt business activities. Major firms are implementing contingency measures, including event cancellations, increased stock reserves, and evacuation preparations, to mitigate risks posed by the escalating conflict along the Thai-Cambodian frontier.
Border Closures Halt Trade
Economic Disruptions Mount
The closure of all border crossings has frozen bilateral trade valued at over 174 billion baht, with 2024 figures showing 141.85 billion baht in exports and 32.68 billion baht in imports through key checkpoints like Aranyaprathet and Chong Jom. The shutdown, triggered by intensified fighting, has forced financial institutions to activate business continuity plans and temporarily close branches in high-risk areas.
Conflict Spreads Across Six Zones
Fighting Intensifies at Key Sites
The violence, which erupted near Banteay Chhmar temple in Surin, has spread to six critical locations, including Ta Muen Thom and Preah Vihear temples. Thai forces, deploying F-16 jets, have targeted Cambodian positions, neutralizing rocket sites and infrastructure like the Phu Ma Khuea cable car system, while Cambodia escalates its military presence in response.
Corporate Responses Take Shape
Major Companies Adjust Strategies
Index Creative Village has canceled all 2025 events in Cambodia, such as the Cambodia Health & Beauty Expo, following earlier postponements due to June border closures. Meanwhile, Carabao Group has tripled its stock reserves to cover three months of sales, ensuring supply chain stability amid the uncertainty caused by the ongoing hostilities.
Thai-Cambodia Business Council Acts
Prioritizing Safety and Dialogue
Voratat Tantimongkolsuk, chairman of the Thai-Cambodia Business Council, urged Thai businesspeople in Cambodia to evaluate whether to stay or return home based on safety concerns. He emphasized the need for both nations to negotiate a resolution to prevent further escalation, highlighting the council’s efforts to monitor and support Thai investors during the crisis.
Tourism and Investment at Risk
Concerns Over Long-Term Impacts
The conflict has severely impacted Thailand’s tourism sector, with temple sites near the border closed and hotels facing widespread cancellations. Kriengkrai Thiennukul of the Federation of Thai Industries expressed concerns about potential disruptions to maritime trade routes and past incidents of targeted attacks on Thai assets, underscoring the need to protect the $3.785 billion in Thai investments employing thousands in Cambodia.
