Thai businesses trade on strategies to sustain market share in Cambodia

Thai businesses trade on strategies to sustain market share in Cambodia

The closure of land border trade has been a major shock to Thai businesses operating in the Kingdom. The business supply chains of both countries are deeply interconnected, and Cambodia is a prominent market.

Thai businesses in the Kingdom are implementing strategies to sustain their market share as they can’t afford to lose the Cambodian market that offers substantial revenues and profits, according to sources.

Thai business chambers, both national and provincial, have many a time approached their government authorities to peacefully resolve the conflict, often citing the negative outcomes Thai businesses could face.

Speaking to Khmer Times, a distributor for many Thai products in Cambodia, said Thai businesses have already suffered huge losses since the conflict began.

“The closure of land border trade itself has been a major shock to Thai businesses operating in the Kingdom. The business supply chains of both countries are deeply interconnected, and Cambodia is a prominent market for many Thai companies.”

Sinu Keeler, a Thailand-based businessman with business interests in Cambodia, said there was panic among many Thai businesspeople, who have business operations in the Kingdom.

“This is the reason why Thai chambers took the first initiative to resolve the conflict. Vietnamese and Malaysian companies are replacing many Thai products, especially in the retail sector.

Carabao Group Public Company Limited, which has operated in Cambodia for over 20 years with billion-baht investments in an energy drink factory scheduled to begin production in late 2025, has increased stock reserves from 40 million cans monthly to 120 million cans to cover three months of sales, The Nation reported yesterday.

“The company’s Carabao Red energy drink leads the Cambodian market with annual sales of 400-500 million cans worth approximately 2 billion baht ($62 million).”

The report said Thai President Foods Public Company Limited, producer of Mama instant noodles, continues monitoring the situation closely. “The company has operated in Cambodia for over 20 years with a manufacturing facility there, holding an 80 percent market share in the instant noodles sector.”

“Siam Commercial Bank has prepared comprehensive contingency plans covering staff safety, business continuity, and liquidity management. Some Thai branches near the border have temporarily closed based on local risk assessments.

“Kasikornbank’s Phnom Penh branch remains fully operational with no impact on customer financial transactions, though the bank has coordinated with headquarters to prepare business continuity plans across all operational dimensions.

“Land and Houses Bank’s chief executive, Shih Jiing-Fuh, noted that whilst short-term uncertainty may arise from the Thai-Cambodia conflict due to significant economic interdependence, long-term impacts are not expected to significantly affect the bank’s business direction.

“Samart Corporation, which operates aviation radio services in Cambodia through Samart Aviation Solutions, continues normal operations with no flight schedule disruptions, though emergency management measures are in place.”

The report also added that Index Creative Village Public Company Limited has cancelled all 2025 events in Cambodia, including the Cambodia Health and Beauty Expo and Cambodia Architect and Expo, after initially postponing events following the June border closure.

Voratat Tantimongkolsuk, Chairman of the Thai-Cambodia Business Council, said Thai businesspeople in Cambodia must assess whether to return home or remain, depending on individual circumstances. He urged both sides to negotiate an end to the conflict to prevent further losses.

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