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Uncertainty along the border with Thailand is disrupting trade, tourism and supply chains while prolonging humanitarian needs for tens of thousands of displaced people, UNICEF and foreign business leaders warned.
At an event in Phnom Penh Tuesday hosted by the European Chamber of Commerce in Cambodia (EuroCham) and the U.N. children’s agency, speakers called for closer coordination between the private sector, government and aid groups, citing the ongoing impacts of last year’s deadly border clashes before a ceasefire.
Kelly Wyett of the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) said at the event that lingering border tensions is affecting Cambodia through multiple economic chokepoints, including declining tourism, precarious conditions for returning migrant workers, supply-chain disruption, displacement and broader uncertainty that is also weighing on businesses.
She pointed to a 20% drop in Angkor Wat ticket sales, a common measure of tourism in Cambodia, in the second half of 2025, adding that international pressure over scam centers has also pushed arrivals from countries such as South Korea to “nearly zero.”
The return of nearly one million migrant workers from Thailand since last year into Cambodia’s mostly informal job market has also raised concerns, including for Bangkok, which has struggled to fill resulting labor gaps.
The government says roughly 620,000 returnees have found work, though Wyett said many face mismatches between their skills and the jobs available, as well as challenges tied to where the work is located.
“There are many shocks hitting Cambodia at once,” Wyett said, citing tariffs, commodity price declines, sanctions and impacts related to the scam industry alongside the border crisis. She said Cambodia’s push to attract greater agro-processing investment may offer some relief.
From a trade perspective, Sothea Rami Sambath, chairperson of EuroCham and CEO of Auskhmer Import Export, said Cambodia has long relied on Thailand and Vietnam for fast-moving consumer goods, with many international brands produced or repackaged in Thailand.
Land crossings with Thailand have remained largely closed since tensions between the neighbors flared last year.
Tensions and consumer boycotts have disrupted supply, Sambath said, with some shoppers avoiding goods perceived as Thai-linked even when they are European or international products packaged in Thailand.
Businesses are now shifting sourcing toward Vietnam and other neighboring countries, and in some cases considering relocating packaging or manufacturing to Malaysia or India, he said, calling for greater coordination between the private and public sectors.
Other logistics disruptions have also mounted. Rutger Heijsteeg, vice-chairperson of EuroCham’s Transport and Logistics Committee, said roughly 7,000 trucks normally crossed the Poipet border point each week before the first round of clashes in July 2025.
Since Cambodia banned Thai imports such as vegetables and fuel that month, cross-border trade has fallen sharply. Imports from Thailand dropped nearly 50% in January compared with a year earlier, the General Department of Customs and Excise said.
When crossings close, cargo must shift to slower and more expensive sea transport, extending delivery times from one day to about 12, Heijsteeg said.
Alongside economic disruption, humanitarian needs remain significant. Cho Seaving, communication officer at UNICEF Cambodia, said the agency and its partners have mounted a multi-sector emergency response for displaced families.
Clashes in December displaced nearly a million people on both sides. While hundreds of thousands of Cambodians – mostly women and children – have returned home, at least 85,000 remain in displacement camps or have yet to return, according to the government.
“We have taken a comprehensive approach because the needs of children do not exist in isolation. They require health care, education, protection and social support together,” Seaving said, adding that private-sector engagement will be essential to strengthen emergency response and help affected communities rebuild.
National Committee for Disaster Management (NCDM) spokesperson Soth Kimkolmony said the government is working with the Ministry of Economy and Finance, provincial authorities and other institutions to prepare more durable shelters for people unable to return home.
A spokesperson for the ministry, Meas Soksensan, did not immediately respond to a request for comment.
Displaced families from Banteay Meanchey have said they remain in the dark about when they can move to the temporary housing site proposed by the government.
NCDM is coordinating with international aid groups such as the World Food Programme to mobilize assistance for displaced communities, Kimkolmony said, adding that immediate efforts are focused on ensuring shelters meet humanitarian standards.
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