Never in recent memory have Cambodians demonstrated a spontaneous and unparalleled unison as in the recent border dispute between Cambodia and Thailand. It wasn’t just a falling out between the two neighbouring kingdoms; it was a full-scale aggression that left a deep scar on every Cambodian. The national dignity and consciousness of the people were challenged. The outright rejection of Thai products has resulted in some companies scaling back their operations. Six major Thai companies have withdrawn from Cambodia, while CP Company (Thailand’s largest private company), operating in Cambodia, has minimised its business activities. According to the General Department of Customs and Excise of Cambodia, bilateral trade between the two countries was down by 14.86 percent in 2025. Destruction and human loss apart, the boycott of Thai products instead opened a new vista for local farmers and businesses to strengthen and expand their potential. It has prompted Cambodian producers to raise product quality, enhance brand recognition, and improve competitiveness. With effective government support, this transition could help bolster sustainable growth across domestic industries
The boycott of Thai products is not only a protest against aggression by a neighbouring country; it has also become an opportunity for Cambodia to strengthen and expand its own potential, drive growth for farmers, factories, and domestic enterprises.
As Cambodian consumers turn away from Thai products, and as some Thai companies withdraw while others have scaled back their operations, experts view this as a tectonic shift in Cambodia’s economy.
How does this decision stimulate the national economy, particularly in promoting domestic production, value-added processing by enterprises, and supporting producers directly?
For many years, Thai goods — from fresh vegetables and meat to processed food, beverages, and household products — have filled Cambodian markets. These products were widely available and competitively priced, becoming deeply embedded in Cambodia’s supply chains.
However, following the border tensions between Cambodia and Thailand, both exports to and imports from Thailand declined in 2025.
According to a report by the General Department of Customs and Excise of Cambodia (GDCE), bilateral trade between Cambodia and Thailand reached $3.65 billion in 2025, down 14.86 percent year-on-year. Cambodia’s exports to Thailand were valued at about $732 million, a decrease of 14.15 percent, while imports from Thailand totaled $2.9 billion, down 15 percent.
Thailand’s invasion of Cambodia has prompted Cambodian citizens to boycott Thai goods and instead shift toward locally produced goods as well as products imported from other countries.
Prior to the border dispute, Cambodia’s main exports to the Thai market were largely agricultural products, including rice, millet, maize, paddy, mangoes, rubber, and wood products, which Thailand processed for re-export. In addition, Cambodia also exported electronic products, spare parts, and automotive wiring harnesses to Thailand.
Meanwhile, Cambodia’s imports from Thailand have mainly consisted of food products, construction materials, fuel, daily consumer goods, electronic devices, cosmetics, medicines, and medical equipment.
For certain Cambodian products that previously relied heavily on the Thai market, particularly agricultural goods produced in Cambodia-Thailand border areas, purchases have increasingly shifted toward local companies. These products are now being supplied to the domestic market and exported to alternative destinations such as China, Vietnam, and other countries.
Beyond the boycott
As Cambodia navigates this period of economic adjustment, the country has positioned itself to strengthen domestic industries and build more competitive local brands, laying the foundation for greater self-reliance and long-term resilience.
The boycott of Thai products has opened new opportunities for Cambodian farmers and local enterprises by increasing demand for domestically produced goods. As imported products gradually lose market share, local businesses are gaining improved access to the domestic market, encouraging business expansion, job creation, and the development of stronger and more integrated supply chains.
At the same time, this shift is prompting Cambodian producers to raise product quality, enhance brand recognition, and improve competitiveness, while reducing dependence on imports. With clear and effective government support, particularly in areas such as financing, standards, infrastructure, and market access, this transitioning period could help strengthen Cambodia’s economic resilience and support sustainable growth across domestic industries.
Keo Mom, President of the Chamber of Professional Micro and Enterprises of Cambodia (CPMEC), told Khmer Times that since Cambodian consumers began boycotting Thai products, there has been a strong shift toward supporting and using Cambodian-made products. Even products originating from abroad continue to receive support as long as they carry Khmer-language labels.
She said the boycott has opened a new chapter and created fresh opportunities for farmers, artisans, and local enterprises. Prior to the conflict, Thailand had purchased Cambodian products, processed them into finished goods, and then sold them back to Cambodian consumers or exported them under Thai branding. In reality, many high-quality agricultural products originated in Cambodia.
“We can clearly see this in the case of aromatic coconuts,” Mom noted. “Previously, we thought the sweet and delicious aromatic coconuts we bought from Thailand were Thai products. But when the border between the two countries was closed, we realised that the coconuts we had been buying from Thailand were actually Cambodian. Thailand simply purchased them from Cambodia, processed or repackaged them, and then re-imported them labelled as Thai products.”
Mom further says that this example illustrates how the boycott is creating real opportunities for Cambodia. It encourages local producers to improve quality, branding, and competitiveness while reducing reliance on imports. If effectively supported by government policies, this period can serve as a catalyst for strengthening Cambodia’s economic resilience, boosting domestic industries, and promoting long-term growth for farmers, enterprises, and the broader economy.
Regarding supply chains, Keo Mom supported saying that the situation emerged suddenly, leaving local producers unprepared to compete and meet market demand, which resulted in shortages.
She expressed hope that in the near future, domestic enterprises will strengthen and expand their production and supply chains to better serve Cambodian consumers.
Advantage Agripreneurs
Speaking at the 2026 Agri-Entrepreneur Forum for Crop Cultivation and Livestock Raising, Kao Thach, Royal Government Delegate in Charge and CEO of the Agricultural and Rural Development Bank (ARDB), said that the Pentagonal Strategy – Phase I has enabled Cambodia’s economy to recover rapidly, recording growth of around 6 percent in 2024, which is higher than the regional average, followed by 5.2 percent in 2025. Economic growth is projected at about 5 percent in 2026 and 5.5 percent in 2027, alongside the achievement of many notable socio-economic development outcomes that ensure macroeconomic stability.
He noted that at present, around six major Thai companies have withdrawn from Cambodia, while CP Company (Thailand’s largest private company), operating in Cambodia’s agricultural sector, has scaled back its business activities. This situation, he said, presents a major opportunity for Cambodian entrepreneurs.
“I believe this is a very big opportunity for all of our entrepreneurs to build domestic products to replace imports, including in areas such as construction materials and food products. CP Company is still present, but its production activities have declined significantly due to the rising level of economic nationalism among our people. If a business operates without buyers, even if it remains, it is meaningless and will eventually withdraw automatically. Therefore, Cambodia must develop products to replace imported goods,” Thach said.
Thach added that Cambodia can achieve significant progress in key priority sectors, including job creation; promotion of the private sector and entrepreneurship; human capital development; enhancement of social protection and public welfare; strengthening environmental sustainability and climate change response; promotion of digital transformation across society and the economy; revitalisation of existing growth pillars; and the development of new potential sectors. These also include investment in micro, small and medium enterprises (MSMEs) and the development of the informal economy.
Emphasising that entrepreneurs are a vital component in the current fragile context and in Cambodia’s path forward, Thach said that they play a crucial role in the economic system, as they are not only business owners but also change-makers who transform ideas into actions and solutions through six key functions, such as creating innovation, generating employment, driving economic growth, allocating resources, enhancing competitiveness, and promoting social and environmental values.
He further stressed that in the journey toward building lasting peace and achieving strong and sustainable economic development, entrepreneurs remain the lifeblood of the economy. In other words, entrepreneurs will continue to be powerful actors across the entire economic value chain by increasing economic activity, enhancing diversification and resilience, boosting innovation, and promoting inclusiveness.
Push for self-reliance
Yang Peou, Secretary General of the Royal Academy of Cambodia, told Khmer Times that to date, Thailand has continued to commit brutal and aggressive violations against Cambodia by repeatedly breaching newly agreed ceasefires and unlawfully encroaching deep into Cambodian territory without respecting the ceasefire, causing Cambodia to suffer widespread harm and hardship.
Peou continued that as a result of the pain caused by this aggression, Cambodian citizens have come together to boycott Thai products. This action, he said, reflects the national dignity and consciousness of a people whose country has been invaded by Thailand.
“Of course, a boycott brings both positive and negative impacts. The negative aspect is that Cambodia’s production chains are not yet able to fully meet domestic demand. However, it aligns with the national dignity and conscience of people who are deeply hurt. Therefore, they are willing to endure shortages in consumption and daily necessities, because it corresponds with the will and dignity of a nation that has been invaded,” he said.
Peou noted that when looking at the positive aspects of the boycott, first, it aligns with the dignity of a nation with conscience, civilisation, and sovereignty of its own.
“The second benefit is that it teaches the Cambodian people to support their own domestic products. The third benefit is that it encourages the Cambodian government and competent authorities to rethink and strengthen domestic production chains, so as to support local production rather than relying on neighbouring countries,” he said.
Another key benefit, Peou added, is that it demonstrates Cambodia’s need to be self-reliant, to build its own production chains, diversify trade, and further strengthen diplomacy for trade exchanges, without depending on any single country — a dependence that has led like current vulnerabilities.
Speaking to Khmer Times, socio-economic researcher Chey Tech said that a permanent boycott of Thai goods by Cambodian citizens would bring numerous benefits. These include responding to pressure stemming from Thailand’s aggression against Cambodia, as well as addressing the economic imbalance in which Thailand acts as the seller and Cambodia as the buyer. By halting imports from Thailand, Cambodia can shift toward purchasing goods from other countries and producing them domestically.
Another key benefit is the strengthening of Cambodia’s self-reliance in the supply of consumer goods and other materials that the country is capable of producing on its own. This includes expanding production capacity, increasing output volumes, improving product quality, lowering production costs, and supporting Cambodian-made products.
“These efforts would contribute to national economic development, create jobs for Cambodian citizens, strengthen the domestic supply of goods, and boost exports to international markets,” Tech added.
He further noted that this situation has encouraged increased investment by domestic investors. According to foreign direct investment (FDI) reports, in 2025, the largest source of investment in Cambodia came from China, followed by domestic investors ranked second, with many other countries following.
Tech went on to say that another important opportunity lies in supporting farmers, growers, and producers involved in the production of raw products and primary inputs. In the past, Cambodia exported raw agricultural products and unprocessed products abroad, resulting in the loss of value-added opportunities — such as exports of paddy rice and cashew nuts — which led to significant economic losses.
“It is a positive development for Cambodia to use its own raw products or primary products for processing and manufacturing to supply the domestic market, as well as for export. This allows the country to gain higher value-added returns, generate greater profits, and create employment for its people,” he said.
Another opportunity is that Cambodia can reduce its dependence on imports from other countries by relying more on domestic production and exporting its own products, which is more beneficial than continued reliance on foreign imports, Tech stressed.
Kim Eoun, Chief Executive Officer of the CEO Institute, also said that as companies from neighbouring countries that have lost the support of Cambodian consumers withdraw from the market, this creates an opportunity for Cambodian farmers and livestock raisers. Therefore, farmers, livestock breeders, and processors must strengthen product quality and ensure sustainable production in order to gain consumer trust and access larger markets.
“To further strengthen Cambodia’s agricultural and agro-processing sectors, strong cooperation is needed among government institutions, farmers as producers, and entrepreneurs involved in production and processing, so that challenges can be transformed into opportunities in Cambodia,” he said.
He added that the Royal Government already has policies in place to support the agricultural sector, and it will continue to provide support as an indispensable pillar. However, another crucial pillar is that farmers must learn to unite and work together, alongside private companies that provide technical support and banks that provide capital. Only through the integration of these pillars can Cambodia become strong.
