Rising Border Tensions with Thailand


1. Rising Border Tensions with Thailand

Cambodia and Thailand have recently deployed troops along their undemarcated border following a deadly skirmish on May 28, which resulted in the death of a Cambodian soldier. Both nations agreed to reposition troops to previously established lines from 2024, aiming to ease tensions. Cambodia has also threatened to bring unresolved issues before the International Court of Justice (ICJ), while Thailand prefers bilateral talks 

2. Airport Expansion & Infrastructure Boom

Cambodia is gearing up for major upgrades:

  • Techo International Airport, near Phnom Penh, will kick off operations in late 2025 and is expected to exceed existing capacity dramatically 

  • The Funan Techo Canal, a $1.7 billion project, aims to strengthen waterway connectivity between Phnom Penh and the Gulf of Thailand, with completion targeted by 2028 

3. Tourist Industry Surges

Following a strong 2024, Cambodia projects 7.5 million international tourists in 2025—a jump from 6.7 million the previous year. Boosted by enhanced air links (e-Visa, direct flights) and attraction-focused infrastructure, tourism now contributes ~12% to GDP  Particularly noteworthy is Siem Reap—the gateway to Angkor Wat—seeing a 529% uptick in Australian travel searches .

4. Strong Economic Outlook

The IMF forecasts Cambodian GDP growth of ~5.8% in 2025, driven by strong sectors like tourism, garment exports, and agriculture—roughly in line with government estimates of ~6.3% 

5. Echoes of a Scam Economy

A recent investigative report indicates that Cambodia’s emerging online scam centers—especially in cyber fraud—generate income equal to over 60% of GDP. Politicians and state institutions are implicated in facilitating these operations

6. Cultural Flourish & Social Action

  • Celebrations like the Khmer New Year and major parades in Phnom Penh and Siem Reap are seeing vibrant turnout with traditional dance, performances, and water festivals (Songkran).

  • Cambodia will host an ASEAN-supported summit in May 2025 to combat misinformation and "fake news" across the region

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