The continued closure of the Cambodia-Thailand land border is disrupting regional production networks, with Japanese companies operating under the “Thailand-Plus-One” model facing rising transport costs and logistical uncertainty.
Japanese Ambassador to Cambodia, Ueno Atsushi, highlighted these concerns during a talk on “Cambodia-Japan in the New World,” urging both neighbors to resolve their territorial dispute through dialogue and reopen vital land crossings.
The 800-km border has been largely closed since June last year following military skirmishes triggered by escalating tensions.
The closure severely threatens the “Thailand Plus One” strategy, where Japanese firms use Thailand as a central manufacturing hub while expanding labor-intensive operations into Cambodia for cost reduction.
“Land transportation between Thailand and Cambodia was crucial for these operations,” Ambassador Ueno noted.
As a result, Japanese manufacturers are forced to adopt expensive alternatives.
“Companies have to diversify their transportation by using ships, air-freight, or even taking a long detour from Thailand through Laos and Vietnam just to reach Cambodia,” he explained.
While acknowledging the sensitivity of the territorial issue, Ambassador Ueno confirmed that he and the Japanese Ambassador in Bangkok have formally requested both governments to bring the matter to the border committee. The primary goal is to restore the flow of goods and prevent potential industrial relocation out of the region.
