Japanese firms report delays, rising costs amid Thailand–Cambodia tensions
Japanese firms report delays, rising costs amid Thailand–Cambodia tensions
BANGKOK, Feb. 1, 2026 — Japanese companies operating in Thailand are facing growing operational disruption following heightened border tensions between Thailand and Cambodia late last year, according to a new survey by the Japanese Chamber of Commerce, Bangkok.
The survey, cited by the Bangkok Post on Saturday, drew responses from 521 member companies and found that border closures have severely disrupted regional supply chains, particularly in the automotive and electronics sectors.
About 29% of respondents reported longer delivery times, while 24% cited higher logistics costs after key land routes were cut due to military activity and administrative border closures.
The tensions have forced companies to reassess the “Thailand-Plus-One” business model, under which labour-intensive assembly work is carried out in Cambodia to support higher-value manufacturing in Thailand. To mitigate the impact, 23% of firms shifted to maritime transport, while others rerouted shipments through Laos or Vietnam.
Despite these measures, 19% of companies reported declines in production and sales. Major manufacturers such as Toyota and Yazaki adjusted inventory systems after shipping times on some sea routes lengthened from two days to as much as ten days.
The survey also pointed to labour shortages following the departure of nearly 800,000 Cambodian workers from Thailand during peak tensions, hitting construction and manufacturing sectors.
While a U.S.-brokered ceasefire in late October brought temporary relief, Japanese investors remain concerned about long-term stability after Thailand’s unilateral withdrawal from the interim peace arrangement in November, JCCB officials said. Prolonged border closures could force smaller firms to permanently scale back or exit Cambodia-related operations, the chamber warned.
