Remittances plummet after Cambodian workers return from Thailand
The return of more than 900,000 migrants has caused the flow of money from abroad to drop by more than 20 per cent, according to a report from the Cambodian central bank. This situation is squeezing households' financial means and creating new pressures on the domestic labour market. Meanwhile criticism of the government and tensions with Thailand along the border continue.
Phnom Penh (AsiaNews) – The return of Cambodian migrant workers from Thailand is impacting the country’s economy due to the sharp decline in remittances and new pressures on the domestic labour market.
According to the latest financial stability report from the Cambodian central bank, inflows from abroad dropped by 23.6 per cent in 2025, to approximately US$ 2.1 billion.
The decline is linked to border tensions between the two countries, which have prompted hundreds of thousands of Cambodian workers to leave.
Overall, Thailand accounts for over 77 per cent of remittances sent home by Cambodian migrants, but the latter saw a sharp contraction of 28.4 per cent.
Transfers from South Korea also decreased (-15.2 per cent), due to a series of legal crackdowns on online scam centres, which led to several repatriations. Remittances from Japan were an exception, recording a 22.5 per cent increase.
Between July and December 2025, more than 900,000 Cambodian workers returned from Thailand, reducing the spending power of many families, now compounded by the energy crisis resulting from the war in the Middle East.
These workers will experience uneven reintegration into the domestic market, partly due to significantly lower wages than in Thailand.
Furthermore, a report by the Center for Alliance of Labor and Human Rights (CENTRAL), published on 21 March, highlighted how migrants who returned in recent months are exposed to deceptive job offers, indebtedness, and limited access to support services.
Cambodia’s Ministry of Labour, however, reported that approximately 650,000 returnees have already found stable employment, while more than 90,000 jobs are still available, primarily in agriculture and industry.
The government's own data, which are different from those of the central bank, indicate that Cambodians abroad sent home US$ 1.86 billion in 2025, a sharp decline compared to US$ 2.95 billion the previous year.
The armed conflict between Cambodia and Thailand, sparked by a border demarcation that is not recognised by either side, has also impacted trade, exacerbating the economic hardship for Cambodian families.
Cambodian Foreign Minister Prak Sokhonn, who reiterated his government’s commitment to a peaceful resolution of the territorial dispute, denied recent claims circulating on social media that Cambodia had ceded territory to Thailand to end the fighting.
Photo: Raywatta chitthipaisan / Shutterstock.com
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