The second round of clashes along the Thai-Cambodian border began on December 8, 2025, following the first round of fighting from July 24-28, 2025. The renewed hostilities have led to the closure of 18 border checkpoints along an 800-kilometre frontier shared with seven Thai provinces: Trat, Chanthaburi, Sa Kaeo, Buri Ram, Surin, Si Sa Ket and Ubon Ratchathani.

The situation has forced Thai companies investing in Cambodia to adjust their business plans. Thai staff have been brought back home, while some firms have removed projected revenue from Cambodia from their business plans altogether.

Voratat Tantimongkolsuk, president of the Thailand-Cambodia Business Council, said the intensifying tensions along the Cambodian border in recent days made it impossible to predict when the situation would ease, adding that it must be monitored closely.

On the economic side, however, the impact remains “unchanged”, he noted, because the border checkpoints are now 100% closed, without partial openings as seen previously. As a result, the effect on cross-border trade and goods transport is broadly similar to the earlier round.

“If the tension ends in two or three days, the impact will look one way. But if it drags on for another one or two weeks, the damage will be different again, so it is very hard to assess,” Voratat said.

For Thai businesses operating in Cambodia, there has so far been no formal meeting or discussion within the Thailand–Cambodia Business Council. All sides are in monitoring mode, watching developments in both countries very closely. There have been no additional confirmed reports yet of direct damage to Thai businesses on the ground.

Cambodian garment factories cut output

Thavorn Kanokvaleewong, president of the Thai Garment Manufacturers Association (TGMA), said there are currently around 5-10 large Thai companies in the garment industry with production bases in Cambodia. Most of them have already reduced capacity since the closure of trade crossings between Thailand and Cambodia.

The latest clashes have deepened business concerns, he added, making it harder to continue operating in Cambodia given the interstate conflict and the current situation, which is very different from when Thai firms first invested there.

“Most Thai garment manufacturers in Cambodia operate OEM factories as export production bases. The outlook is therefore negative and likely to worsen, so we will have to wait and see how the situation unfolds,” Thavorn said.