Cambodia-Thailand trade tops $1.87B in first 5 months

Cambodia-Thailand trade tops $1.87B in first 5 months

Synopsis: Thailand remains a key partner in Cambodia’s regional trade strategy, ranking behind China, Vietnam, and the US but ahead of Japan and Canada.

Trade between the two Kingdoms reached $1.87 billion during the first five months of 2025, solidifying Thailand’s status as one of Cambodia’s top five trade partners, according to the latest report from the General Department of Customs and Excise (GDCE).

The report highlighted that Cambodian exports to Thailand totalled $395 million between January and May, representing a modest 1.1 percent year-on-year increase. Imports from Thailand, meanwhile, surged to $1.48 billion, a 10.4 percent rise compared to the same period last year.

Thailand remains a key partner in Cambodia’s regional trade strategy, ranking behind China, Vietnam, and the United States but ahead of Japan and Canada. The data underscores the growing importance of Cambodia’s economic ties with its neighbouring country as both nations navigate a shifting global trade landscape.

The report noted that during the first five months of the year, China remained Cambodia’s largest trade partner ($7.63 billion), followed by the US ($4.47 billion), Vietnam ($3.84 billion), Thailand ($1.87 billion), Japan ($1.02 billion), and Canada ($518 million).

Lim Heng, Vice-President of the Cambodia Chamber of Commerce, told Khmer Times that trade between Cambodia and Thailand has continued to grow steadily each year, underlining the importance of maintaining good relations between the two neighbouring countries.

He noted that although Cambodia’s exports to Thailand remain smaller in volume than its imports from the Thai market, Thailand is still a crucial destination for Cambodian goods, particularly unprocessed and semi-processed products produced by farmers living along the border areas.

“Although there has been a recent incident of border confrontation between the two countries, there has not been a significant impact on trade so far—it has been minimal,” Heng said.

He stressed that both countries should work to prevent the border dispute from disrupting trade, as any obstacles would cause losses to both sides.

“Most of the goods that Cambodia exports to Thailand are agricultural products, including raw materials and semi-processed goods,” he said, adding, “If the dispute worsens, it would directly impact the income of farmers who rely on the Thai market.”

Cambodia must strengthen its domestic processing capacity to address the significant trade imbalance with Thailand and create more jobs for its citizens, according to Seun Sam, a policy analyst at the Royal Academy of Cambodia.

Speaking to Khmer Times, Sam noted that Thailand’s population of over 70 million far surpasses Cambodia’s 17 million, and that the nature of trade between the two countries is inherently imbalanced.

“Thailand exports mostly processed, finished, and packaged products to Cambodia, while Cambodia primarily exports raw materials like rice, fresh cassava, and fresh cashews,” he said. “This is a key reason behind the trade imbalance between our two countries.”

To address this issue, Sam urged the Royal Government to prioritise investment in domestic processing and packaging facilities, along with vocational training programmes to upskill the local workforce.

“When Cambodia can process its products domestically, it can extend their shelf life and secure higher prices on the international market,” he explained. “Moreover, domestic processing creates employment opportunities for Cambodians and strengthens the economy.”

Highlighting the longstanding ties between Cambodia and Thailand as neighbouring nations with shared cultures and religions, Seun Sam stressed that trade should be a cornerstone of cooperation.

“Trade between Cambodia and Thailand is very important,” he said. “Both sides should focus on common ground, particularly trade cooperation, to foster mutual development and progress, rather than generating border conflicts.”

He warned that tensions along the border disproportionately affect those involved in cross-border trade.

“The first people to suffer in times of conflict are those engaged in cross-border commerce: Cambodians who sell Thai goods, Thais who sell Cambodian goods, Thai skilled workers in Cambodia, and Cambodian workers in Thailand,” he said.

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