The relationship between Thailand and Cambodia has long been close, especially in terms of economy and border trade. Agricultural products, raw materials, and consumer goods rely heavily on road transport through border checkpoints every day. However, recently, the movement of goods has faced major obstacles due to heightened tensions at the border and strict border control measures, which have had a wide-ranging impact on the economy, businesses, and border communities.

Source: Prepared by HS-TECH Engineering

The uncertain opening and closing of border checkpoints have caused long queues of trucks, significantly increasing transportation costs. Some companies have had to resort to alternative routes or switch to shipping by sea and air, which, however, comes with higher costs and longer transit times.

Thai Government Countermeasures

1.      Controlling the prices of essential goods
The Ministry of Commerce has implemented the "No Shortage, No Overpricing" policy to prevent opportunistic price hikes. This involves daily monitoring of the situation and supplying essential goods to affected areas.

2.      Releasing inventory stock
Coordination with retail networks and distribution points is carried out to release inventory that might be impacted by the border closures.

3.      Addressing logistics issues
Collaborate with relevant agencies to find transportation solutions, such as shipping via Laos, with more shipping lines providing transportation to Cambodia, resulting in some reduction in shipping costs.

4.      Supporting the search for new markets
Efforts are made to promote new markets domestically and abroad, increasing trade opportunities and spreading risk for businesses, including promoting Thai products in Cambodia and alternative markets.

Road transport issues between Thailand and Cambodia are not merely a matter of logistics or goods movement; they also reflect the economic, political, and security relations between the two countries. While they have significantly affected traders and farmers, the combination of urgent measures and constructive negotiations is key to resolving the situation and fostering more stable cooperation in the future.

Information from :

1.      https://tna.mcot.net/business-1567014?utm_source=chatgpt.com

2.      https://www.moc.go.th/th/gallery/article/detail/id/5/iid/1068?utm_source=chatgpt.com

(Sunisa)