The recent clashes along the Thailand-Cambodia border have had a severe economic impact in Thai border areas, and though there is a current pause in fighting, many businesses are suffering amid the uncertainty, with many eagerly hoping for lasting peace and a return to normalcy.
The armed conflicts between Cambodian and Thai soldiers erupted on July 24 over a territory dispute, resulting in over 30 fatalities and forcing over 100,000 people to be evacuated. A ceasefire was agreed upon on four days later, but the repercussions of the conflict linger on.
The Kantharalak District in northeastern Thailand's Sisaket Province borders Cambodia's Preah Vihear Province and is one of the most sensitive regions along the border. Despite the ceasefire, border trade and daily life have been significantly disrupted, resulting in a stark decline in a once-bustling night market in the area.
The popular local market remains largely deserted, with few customers around, while many food stalls remain empty as vendors have not returned to set up shop.
"The market is very quiet now. The number of vendors has decreased by about 80 percent, and customer traffic has also dropped nearly 80 percent. It's really tough right now. If the economy could return to normal, it would be much better. It would be even better if the conflict could settle down, as the Thun-Jai Market is a major market in our Kantharalak district, an essential place for people to shop," said a local vendor named Noi.
The heightened concerns about border security has led to the temporary closure of several tourist attractions and a significant reduction in border tourism.
Pongchai, a hotel manager in the neighboring province of Ubon Ratchathani, noted the broader impact.
"It's not even my business, but it is [affecting] things across the city of Ubon Ratchathani. Restaurants, spas, [distribution], also like the transportation business is like canceled. Starting from the last week of July, [it could continue] until August and September," he said.
Pongchai added that people are all hoping for a peaceful resolution as soon as possible so business can get back to normal.
The financial toll of the conflict is shown in the latest statistics from Thailand's Ministry of Finance, which revealed economic losses from the border conflict have exceeded 10 billion baht (about 31 million U.S. dollars), not including the losses from border trade.
Thailand-Cambodia border clashes continue to impact economy in Thai border areas
