PHNOM PENH: Cambodia has recorded a sharp decline in imports of Thai consumer goods as a nationwide boycott reshapes purchasing patterns, even as industrial materials continue to dominate bilateral trade, according to the customs chief.
General Department of Customs and Excise (GDCE) director-general Kun Nhem told the department’s Feb 12 annual meeting that imports from Thailand totalled more than $151 million in January, a steep 49.3 per cent drop from the US$297 million recording during the same period in 2025, before border tensions disrupted trade.
Nhem emphasised how the composition of imports has shifted significantly, with consumer goods falling by about 60 per cent as boycott sentiment weakens demand in the local market.
“If we look at the imported goods for consumption, there has been a significant decrease, while prohibited goods such as fuel, fruit and vegetables have dropped to zero,” he said.
He noted that many Thai-branded products have struggled to sell, forcing some importers to return shipments or dispose of expired stock.
“For example, beverages, milk, etc., because the boycott movement is so strong, goods with Thai characters or Thai brands are very difficult to sell,” he explained, adding that unsold beverages may soon be destroyed.
Of the $151 million in imports, capital goods — including machinery, equipment, production inputs and medicines — accounted for roughly $123 million, while consumer goods were valued at only $27 million.
“Production inputs, production means, production equipment, production facilities, things that are not visible in the market but are used in factories… The import value of all of these is more than the import price of food,” Kun Nhem said, urging the public to interpret trade data more carefully.
The customs chief explained that most imports serve the manufacturing and agricultural sectors, including tractors, harvesters and assembly components used by large industries producing for Japanese firms and vehicle assembly operations.
He stressed that such inputs are essential to maintaining Cambodia’s production chains and safeguarding long-term investments. Companies, he said, are likely exploring alternative supply sources to ensure factory operations remain uninterrupted.
“The public only sees the overall figures and thinks that we spend all that money on Thai food… no, we have to think about it comprehensively,” he added.
He predicted consumer imports would continue to decline as long as the boycott persists, noting that goods may still enter the country but remain unsold.
“Even though the government has not banned their import, there are no users, no buyers,” he said.
Nhem underscored that while consumer goods are relatively easy to replace, protecting industrial supply lines is critical after years of effort to attract investors and generate employment.
The European Chamber of Commerce in Cambodia (EuroCham) and Unicef warned that prolonged disruptions could reshape trade patterns while increasing risks for vulnerable border communities.
Unicef representative Will Parks stressed that economic shocks and humanitarian pressures are increasingly interconnected, particularly for displaced families, adding that “the challenges faced by children and youth cannot be addressed without the active engagement of the private sector”.
Business representatives reported early signs of strain across sectors, including declining tourism, rerouted supply chains, rising logistics costs and labour shortages, alongside a growing consumer preference for locally produced goods amid boycotts of Thai-affiliated products.
Martin Brisson, executive director of EuroCham, said the situation should serve as a wake-up call.
“The current border situation highlights the importance for Cambodia to diversify its sourcing and strengthen self-sufficiency,” he said, pointing to alternative markets such as Vietnam, Malaysia and Indonesia, while urging investment in domestic capabilities to reduce dependence on the Thai market.
Trade flows in the opposite direction have also weakened. Exports from Cambodia to Thailand reached more than $58 million in January, down 19.6 per cent, bringing total bilateral trade to just over $209 million — a 43.5 per cent contraction.
The latest figures suggest that although political tensions and public sentiment have dampened retail trade, Cambodia’s manufacturing sector continues to rely on cross-border inputs, highlighting a structural shift rather than a complete halt in economic ties. - The Phnom Penh/ANN
