NationThailand-Aug 12
The ongoing Thai-Cambodian border conflict, which has escalated into armed clashes in several areas, has led to the closure of border trade checkpoints since June 24, 2025. The shutdown has disrupted cross-border business, forcing exporters to switch from road to maritime transport, resulting in significant delays. As the unrest persists, the impact on business has widened, with Thai brands operating in Cambodia suspending marketing communications and companies planning market entry postponing their launches until conditions stabilize. Romtham Sathientham, managing director of Carabao Group Plc, said the closure of the Thai-Cambodian border in June directly affected the company’s energy drink exports. “We were unable to transport goods by land for seven to eight days, so we had to switch to sea freight, which delayed shipments and hit second-quarter sales,” he said. Exports to CLMV markets, Cambodia, Laos, Myanmar and Vietnam, contracted by 4% during the quarter. Given the ongoing conflict, the company has prepared multiple risk scenarios. In the worst case, if shipments are halted entirely, sales in Cambodia could be suspended for up to two months. For now, however, Carabao is continuing to build stock in the market. Its Cambodian energy drink plant is now scheduled to open in December 2025, with the timeline moved slightly forward. “Since the closure of the border trade checkpoints, we couldn’t deliver at all. Our second-quarter sales could have been tens of millions of baht higher than reported if we had been able to sell during those days. Although exports to Cambodia have now resumed, we expect the impact to be more visible in the third quarter,” Romtham said. In Thailand, sales of energy drinks, particularly in areas close to the conflict zone, have so far been unaffected, with a slight increase from purchases by frontline workers and for donations. The escalation of the Thai-Cambodian conflict, which has led to border clashes, has forced Thai brands operating in Cambodia to suspend marketing and advertising activities. Read more at:
https://www.nationthailand.com/blogs/business/trade/40053916
