Cambodia Investment Review
Business leaders and humanitarian partners gathered in the capital this week as rising tensions along the Cambodia–Thailand border continue to ripple through trade, tourism, and local communities.
At a breakfast briefing hosted by the EuroCham Cambodia and UNICEF at Raintree, senior executives, economists and logistics operators assessed the economic fallout of the ongoing disruptions, while aid agencies outlined mounting humanitarian needs in affected border provinces.
The event, titled Cambodia–Thailand Border Crisis: Business Updates and Humanitarian Response, underscored how geopolitical strain is increasingly intersecting with supply chains, labour markets and social vulnerability in Cambodia.
Business disruption spreads across sectors
Opening remarks were delivered by Dr. Will Parks, UNICEF Representative in Cambodia, and Gabriele Faja, Chairperson of EuroCham Cambodia. Both stressed that private sector engagement is critical during periods of regional uncertainty, particularly as economic shocks translate into heightened risks for children and vulnerable families.
The business panel included:
- Martin Brisson, Executive Director of EuroCham Cambodia
- Kelly Wyett, Lead Economist of CAPRED
- Sothea Rami Sambath, Chairperson of EuroCham’s FMCG Committee and CEO of Auskhmer Import Export
- Rutger Heijsteeg, Country Managing Director of Maersk Cambodia and Vice-Chair of EuroCham’s Transport & Logistics Committee
Speakers pointed to a broad-based slowdown in tourism and hospitality, driven by uncertainty and shifting travel patterns. Border bottlenecks have forced companies to reroute shipments, increasing transit times and logistics costs. Several firms reported labour shortages as Cambodian migrant workers returned from Thailand, creating imbalances in certain industries.
In fast-moving consumer goods (FMCG), companies described changing purchasing patterns, including a growing preference for locally produced goods amid boycotts of Thai-affiliated products. While some domestic producers have benefited from this shift, importers dependent on Thai supply chains have faced operational strain.
Panelists also highlighted emerging pressure on the financial sector, as heightened uncertainty weighs on investment decisions and business confidence. Companies are reviewing sourcing strategies, inventory buffers and contingency planning in response to the disruptions.
Diversification and domestic production in focus
Beyond short-term impacts, the discussion turned to longer-term structural adjustments.
Brisson noted that the current situation reinforces the need for Cambodia to diversify sourcing and strengthen domestic capabilities. Alternatives from regional markets such as Vietnam, Malaysia and Indonesia are being explored, while sectors like vehicle electronics and agri-processing present opportunities for local value addition.
Cambodia continues to export a significant portion of its raw agricultural output for processing abroad. Expanding domestic agro-processing capacity could increase export value and reduce reliance on external processing hubs, particularly for access to markets such as the European Union.
From a logistics perspective, Heijsteeg said trade can continue to function even in the absence of close political alignment, provided there is mutual economic need. He acknowledged that Cambodia has made progress in customs procedures and documentation, improving efficiency in recent years.
However, he added that administrative costs and built-in buffers for delays continue to inflate trade expenses. Addressing these inefficiencies, alongside ongoing infrastructure upgrades, could enhance competitiveness and reduce the cost burden on businesses navigating cross-border uncertainty.
The panel agreed that while the disruption poses immediate challenges, it has accelerated conversations around economic resilience, supply chain diversification and domestic production capacity.
Humanitarian needs rise in border provinces
The second half of the briefing shifted to conditions on the ground in affected areas.
UNICEF outlined displacement in border provinces and disruptions to essential services, including education, healthcare and water and sanitation. Children, particularly those with disabilities, face heightened risks as families cope with instability and income loss.
The agency detailed its collaboration with government partners to deliver emergency assistance, restore services and support recovery efforts. UNICEF called on companies to integrate children’s rights into corporate policies, provide financial or technical support, and explore partnerships that strengthen both development and humanitarian responses.
Dr. Parks emphasized that safeguarding children’s access to safe water, healthcare and inclusive learning environments requires coordinated action between government, business and aid organizations.
The session concluded with networking among participants, reinforcing EuroCham’s role as a platform for dialogue between the private sector and humanitarian actors.
Founded in 2011 by French, German and British business associations, EuroCham Cambodia now represents more than 400 members across seven national chapters, comprising 23 European countries. The chamber said it will continue facilitating solution-oriented discussions to help businesses navigate uncertainty while contributing to inclusive and sustainable growth.
