Business Insiders Call for Increased Investment, Support for Local Products
Amid escalating border tensions, Cambodian commerce leaders are urging greater investment in local product production and processing. Senate President Hun Sen warns about potential threats from Thailand and stresses independence from Thai supplies. Trade data shows significant interaction with Thailand, but the local economy stands ready to adapt. Calls to support domestic production could yield economic benefits, even as tourism faces challenges due to political friction.
In light of escalating tensions along the Cambodia-Thailand border, experts in commerce are calling for a significant increase in investment aimed at boosting the production and processing of local products. Concerns have surfaced regarding provocative actions from the Thai military, such as possible threats to shut down border checkpoints or disrupt essential services like electricity and internet to Cambodia.
Cambodian Senate President Hun Sen addressed these issues via social media on June 13, cautioning that alarming information has emerged regarding threats from certain Thai extremist factions regarding power and internet supplies. “To avoid uncertainty or difficulty for Thailand in deciding whether or when to cut supplies, Cambodia has decided to ensure its own electricity and internet supply without relying on imports from Thailand anymore,” he declared.
Hun Sen directed government authorities to brace for implementing robust measures should these threats manifest, particularly since border closures could lead Cambodia to reduce its dependency on Thai imports. This could foster a shift towards domestic products or goods sourced from other countries, different from Thailand.
According to the General Department of Customs and Excise, trade figures reveal that from January to May 2025, Cambodia’s trade with Thailand reached $1.879 billion — an 8.3% increase compared to 2024. During this time, Cambodia exported approximately $395.95 million to Thailand, showing a modest rise of 1.1%, while imports surged to $1.483 billion, up by 10.4%. Thailand currently ranks as Cambodia’s fourth-largest trading partner, following China, the US, and Vietnam.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, commented on the ramifications of border tensions and political pressures, asserting that the situation is detrimental for both sides. Nevertheless, he remains optimistic, stating that Cambodia’s production capabilities have been on an upward trajectory, enabling access to alternative markets like Vietnam and China.
While acknowledging that border closures could impact farmers exporting agricultural products, Heng highlighted the potential to redirect these goods to neighboring markets or enhance domestic processing through local factories. “This issue arises at a time when Cambodia has been actively working to strengthen and expand its production and processing capacity for domestic products,” he pointed out.
Lor Vichet, vice-president of the Cambodia-China Commerce Association, emphasized the urgent need for Cambodia to promote local production, although he noted that trade ties with Thailand have not collapsed yet. He observed that fostering local products would provide numerous benefits to the national economy, including jobs and invigorating the export market. “This is an opportunity for Cambodia to strive to strengthen and expand its production capacity,” he remarked.
In terms of tourism, the Ministry of Tourism reported that from January to April 2025, Cambodia saw 2.4 million international visitors, marking a 13.6% increase. Thai nationals represented the largest segment with around 674,134 visitors. However, Thourn Sinan, chairman of the Pacific Asia Travel Association’s Cambodia Chapter, cautioned that ongoing border conflicts and political friction, driven by Thai nationalism, are harming the tourism sector for both countries.
Sinan noted that recently, many Thai tourists visiting Cambodia were primarily interested in border casinos. He pointed out the imbalance in tourism benefits, explaining that Thailand draws greater revenues from Cambodian visitors compared to what Cambodia earns from Thai travelers. Following a violent incident along the border on May 28, many travel packages and flight bookings between the two nations were abruptly cancelled, with only essential trips remaining.
Sinan expressed support for Hun Sen’s calls for mutual respect, stating, “As a Cambodian citizen, I fully support the six-point statement made by Senate President Hun Sen on the morning of June 13… recently on social media, some Thai politicians have made offensive and degrading remarks toward the Cambodian nation, which is unacceptable.” He categorized Cambodian tourists to Thailand primarily as those seeking medical services, shopping, or those engaging in business, while Thai travelers to Cambodia largely include casino visitors and businesspeople.
In summary, the rising tensions between Cambodia and Thailand have sparked calls for increased support for local production. Both government officials and commerce experts believe that bolstering domestic capabilities can mitigate reliance on Thai imports and promote economic growth. Although trade and tourism have seen some effects from these developments, Cambodia appears poised to redirect its economy towards self-sufficiency. The dual approach of strengthening domestic production and encouraging respectful international relations may prove crucial for Cambodia’s future economic landscape.
Original Source: www.nationthailand.com
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