Cambodia Investment Review
Cambodian business leaders have convened an urgent high-level discussion to address the growing economic fallout from rising border tensions with Thailand. The Government-Private Sector Forum (G-PSF), led by Neak Oknha Kith Meng, President of the Cambodian Chamber of Commerce, brought together co-chairs of private sector working groups and representatives from international chambers to assess the short-, medium-, and long-term impact of the escalating situation.
The meeting aimed to identify key challenges, propose actionable solutions, and reinforce collaboration between government and private actors. Sectors most affected include trade, tourism, agriculture, and microfinance—each facing disruption with potentially significant economic consequences.
Cross-Border Disruptions Prompt Industry-Wide Concern
Among the forum’s findings, six key pressure points were identified:
- Trade Disruption: The border dispute is interrupting trade routes and logistics, severely affecting the flow of goods and labor.
- Supply Chain Displacement: Factory relocations away from border areas have proven difficult, with sourcing alternatives still uncertain.
- Tourism Downturn: Cambodia’s tourism industry—particularly in Siem Reap and Phnom Penh—has seen sharp declines. International arrivals are down 20%, according to initial estimates.
- Supply Chain Realignment: Cambodian food producers are looking to diversify markets beyond Thailand, with Malaysia, Vietnam, and Canada emerging as key new partners.
- Agriculture Sector Risks: Volatility in agricultural supply chains is raising concerns over national food security.
- Microfinance Vulnerability: Institutions are flagging potential systemic risk, as Cambodian migrant workers in Thailand face return or job loss—leading to increased loan defaults.
Strategic Responses and International Support
Canada has reportedly expressed interest in strengthening trade ties with Cambodia, particularly in agriculture and food manufacturing. Cambodian firms are also exploring more robust links with regional partners to fill gaps caused by disrupted Thai trade flows.
Read More: Private Sector Working Group D Engages GDT on Key Tax Issues at March Meeting
Forum participants stressed the need for swift, coordinated action to prevent further economic stress and ensure market stability. Stakeholders agreed to pursue continued dialogue and propose specific policy recommendations to the Royal Government of Cambodia.
For more information, stakeholders are encouraged to contact H.E. Okhna Nguon Meng Tech, Director General of the Cambodian Chamber of Commerce.
This marks one of the strongest private-sector calls to action in recent years, underscoring growing concerns over geopolitical risks affecting Cambodia’s regional trade relations.
