The Thai-Cambodian border conflict jeopardizes daily trade worth 500 million baht, posing risks to investments. The FTI calls for an immediate ceasefire, highlighting rising shipping costs, potential property damage, and disruptions to tourism. Investor confidence remains wary.
Key Takeways
- The FTI cautions that the Thai-Cambodian border conflict could result in a daily loss of 500 million Thai baht in trade, primarily impacting Thai exports and Cambodian imports. Checkpoint closures force goods to be rerouted via sea, substantially increasing shipping expenses for businesses.
The private sector urges both nations toward swift negotiations and a ceasefire to prevent long-term damage to the investment climate. Prolonged conflict could disrupt tourism, escalate costs, and negatively affect Thai investors reliant on Thai raw materials.
ADVERTISEMENTWhile Thai investors aren’t yet withdrawing, they’re cautious amid concerns of escalating conflict, incitement, and potential property damage. The Royal Thai Embassy advises non-essential Thai nationals to leave Cambodia as a safety precaution
The land route disruptions force costlier sea transport and compel Thai investors in Cambodia to seek alternative raw material sources. The private sector urgently seeks negotiations and a ceasefire, fearing prolonged conflict will damage tourism and deter investment.
The Federation of Thai Industries (FTI) cautions that the ongoing Thai-Cambodian border conflict could trigger significant economic losses, potentially costing 500 million Thai baht daily in trade. FTI Chairman Kriengkrai Thiennukul highlights the immediate impact of checkpoint closures, disrupting approximately 400 million Thai baht in exports and 100 million Thai baht in imports.
Concerns are mounting over potential escalation, including incitement and property damage targeting Thai investors, prompting the Thai Embassy’s advisory for non-essential nationals to leave. While investors remain cautious, they are not yet withdrawing. The FTI urges patience and hopes to avoid past incidents of property damage. Bilateral trade in 2024 totaled 366.73 billion Thai baht, with border trade accounting for 181.32 billion Thai baht.
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