Conflict resolution at the borderfront
Thai-Cambodian Border Conflict Affects Northeastern Thailand's Economy and Communities
The ongoing Thai-Cambodian border conflict in 2025 has taken a significant toll on the economy and communities in Northeastern Thailand, particularly in provinces such as Ubon Ratchathani, Surin, Sisaket, and Buri Ram.
The disruption of cross-border trade is one of the most immediate impacts. With the closure of several checkpoints along the border, trade loss in these provinces alone is estimated at up to 500 million baht per month [2]. Before the conflict, Thai-Cambodian border trade averaged 10 billion baht per month, with 95% happening through eastern checkpoints [3].
The conflict has also caused a substantial reduction in tourism. Ubon Ratchathani experienced complete cancellations of tour group accommodations, while Surin lost 80%, Sisaket faced total cancellations, and Buri Ram lost about 70% of hotel bookings. Important tourist sites, such as the historic Phanom Rung temple, have been closed, and key events like motorcycle racing championships and races at the Chang International Circuit have been postponed [4].
The economic impact extends beyond lost trade and tourism. Local agriculture has been affected by shelling damaging farmland and delaying harvests. Financial institutions have responded by offering relief programs such as extended loan repayments and extra credit to support affected individuals and businesses [2].
Many villagers are returning home to tend to livestock left behind for more than two weeks. About 180,000 villagers have been uprooted due to the conflict and are now beginning to return to their homes [3]. Cross-border agricultural efforts have been disrupted, with reports of Cambodian shelling damaging farmland and delaying harvests in affected Isan communities.
The conflict has also resulted in an estimated monthly trade loss of up to 500 million baht for four provinces [2]. Over 10,000 Cambodians who typically cross into Thailand each month for services like retail and medical treatment have been prevented from doing so, further harming local economies [1].
Several hundred Cambodian workers who used to cross the border daily have returned to Cambodia and cannot return to Thailand. The border tensions have caused a sudden loss of manpower for local businesses in Trat's Khlong Yai district due to the barring of Cambodian daily wage earners from re-entering Thailand via permanent checkpoints [1].
The Thai government has taken safety measures, including issuing public advisories to avoid high-risk border areas, setting up tourist assistance centers with military protection, and closely monitoring the situation to mitigate impacts on local populations and visitors [4]. However, the border conflict directly affected locations within Ubon Ratchathani province, where air strikes and artillery fire targeted Cambodian positions nearby, indicating the intensity of the military engagement in this region [1][3].
In conclusion, the border conflict has substantially harmed the economy and social fabric of Northeastern Thailand by disrupting trade, drastically reducing tourism, damaging agriculture, and forcing government interventions to manage the crisis and support affected communities [2][4][1].
- The escalating border conflict has forced financial institutions in Northeastern Thailand to implement relief programs, such as extended loan repayments and additional credit, to support businesses and individuals impacted by the disruptions in trade, tourism, and agriculture.
- Beyond the direct impacts on trade, tourism, and agriculture, the ongoing Thai-Cambodian border conflict has also caused a significant reduction in the number of Cambodians who cross into Thailand for services like retail, medical treatment, and daily wage labor, which indirectly harms local economies in affected provinces.
