Cambodia Factory Closures Displace 4,000 Workers After Border Disruptions

Three factories in Cambodia's Banteay Meanchey province have closed or are preparing to shut down as soaring transportation costs and falling orders linked to disruptions along the Thailand-Cambodia border put pressure on businesses, Cambodia's Ministry of Labour and Vocational Training said. The closures affect nearly 4,000 workers. ML Intimate Apparel (Cambodia), which employed 683 workers, and Hi-Tech, which employed 2,532 workers, have already closed, while Nidec Die-casting Cambodia, with 724 workers, is scheduled to cease operations in October.

The ministry said workers at the two closed factories have received their wages and other benefits required under Cambodian labor law. It will monitor the third closure to ensure workers receive all legally required payments.

Ministry spokesman Sun Mesa described the closures as regrettable, linking them to sharply higher transportation costs following what he called Thailand's unilateral border closure. Before the disruptions, goods from Banteay Meanchey factories could reportedly reach production facilities in Thailand within one to two hours. The ministry said transport costs have since increased by dozens of times because goods must be routed through Cambodian sea routes before entering Thailand, with some shipments even requiring air freight.

The ministry is helping affected workers find new jobs through the National Employment Agency and provincial labor authorities. Officials said factories producing similar goods are seeking workers and authorities are arranging transportation to new workplaces. Workers seeking to change careers can also access free vocational training at 32 technical and vocational training schools across Cambodia. The ministry said more than 90,000 job vacancies are currently available nationwide.