Escalating violence along the Thai-Cambodia border has triggered concerns over regional stability, threatening cross-border trade, tourism flows, and supply chain operations. The conflict, involving sporadic gunfire and troop movements near Preah Vihear, has led to temporary border closures and halted logistics operations.
- Thai-Cambodia border crossings, including Aranyaprathet-Siem Reap, have seen partial closures since December 6, affecting over 12,000 daily cross-border travelers.
- Tourism-related revenues in Siem Reap and Chiang Mai could decline by up to 18% in Q1 2026 due to travel advisories and reduced visitor confidence.
- Logistics firms operating between Bangkok and Phnom Penh report a 27% increase in delivery delays, with shipments of textiles, electronics, and agricultural goods impacted.
- The THB has weakened 1.4% against the USD since the escalation, while the KHR has depreciated 2.1% against the SGD amid capital flight concerns.
- ASEAN diplomatic channels are actively engaged, with regional officials calling for de-escalation to prevent broader economic fallout.
- The KMB and THAI stock indices have both dropped 3.2% and 2.8% respectively over the past five trading days, reflecting investor anxiety over regional stability.
Tensions between Thailand and Cambodia have surged following renewed clashes near the Preah Vihear Temple, a longstanding flashpoint in their territorial dispute. Since December 5, 2025, both nations have reported minor military engagements, resulting in injuries on both sides. The Thai Ministry of Defense confirmed the deployment of 1,200 troops to the region, while Cambodia’s armed forces have mobilized similar forces along the contested stretch near Siem Reap and Aranyaprathet.