Market vendors in Chanthaburi Thailand bordering Cambodia on July 30, 2025 Photo: VCG

When news broke about the recent Thailand-Cambodia border conflict, my thoughts immediately turned to Rong Kluea Market. Covering over 66 acres along the border between Thailand's Sa?Kaeo Province and Cambodia's Poipet, this commercial hub features thousands of stalls forming a massive trading belt. Back in early 2011, during another border flare-up, my colleagues and I rushed to the scene to report on the events. Even then, cross-border economic integration was already deeply woven into daily life. Today, this market attracts tens of thousands of Thai and Cambodian shoppers daily, functioning as a vital node in the China-Thailand-Cambodia trade triangle.
Despite thriving trade, why couldn't these economic ties prevent conflict? Politics plays a role, indeed, but colonial-era border maps remain the fundamental issue. Border disputes will require time to be fully resolved. However, the fact that a ceasefire was achieved so quickly in this conflict is noteworthy.

While international media highlights diplomatic mediation in securing the recent ceasefire, I believe economic integration deserves the spotlight. Think of economic ties as roots that have grown so deeply intertwined that pulling them apart damages both trees. Over the past decade, cross-border trade and investment have exploded, binding both nations in a web of mutual interest. Trade between Cambodia and Thailand reached $4.29 billion in 2024, up 15.5 percent from the $3.71 billion recorded the previous year. The eight official border crossings process tens of thousands of people daily, facilitating the trade of everything from agricultural products to electronics.

Labor migration tells another compelling story. According to International Labour Organization data, approximately 650,000 Cambodian workers - both documented and undocumented - work in Thailand. Thailand's hospitality, construction and manufacturing sectors heavily depend on this workforce. When borders close, wages stop, and families suffer immediately. Thai investment in Cambodia has reached nearly $3.8 billion during 2024, spanning food processing, rubber production and machinery assembly. These businesses employ thousands of Cambodian workers and extend supply chains across both sides of the border.

China has played a catalytic role in this regional integration. Between 2013 and 2023, Chinese investment in Cambodia totaled $8.29 billion, focusing on infrastructure, manufacturing and real estate. The $2 billion Phnom Penh-Sihanoukville highway has nearly halved transportation times, dramatically improving logistics efficiency. In border markets, many Chinese companies operate in special economic zones along the border, creating integrated production chains where Chinese goods are processed in Cambodia and exported via Thailand, or vice versa.

ASEAN integration initiatives further strengthen these bonds. After establishing the ASEAN Economic Community, tariffs between Thailand and Cambodia gradually decreased. World Bank statistics show customs clearance times dropped from five hours to three hours, reducing trade costs and boosting cross-border commerce. For border communities, these markets have become central to everyday life. Market vendors, truck drivers, hotel staff and repair shops all need the market to live, which means countless families depend on cross-border trade for survival.

During the recent conflict, economic damage was immediate and severe. Thailand estimates losses of $307.88?million during the first five days of hostilities. When borders closed, transport and tourism revenues plummeted while prices for basic goods spiked. Looking ahead, Thailand-Cambodia trade will continue to grow. Special economic zones and e-commerce will drive further integration. As Belt and Road Initiative projects and ASEAN connectivity deepen, more infrastructure will bridge these economies.

The true driver of peace is this deep economic integration. When livelihoods, supply chains and national development all depend on stability, peace becomes not just desirable but essential. While external mediation can help, sustainable peace requires solid economic foundations - much like two neighboring houses sharing the same electrical system. Cut the power, and both go dark.

The author is a senior editor with the People's Daily and currently a senior fellow with the Chongyang Institute for Financial Studies at the Renmin University of China. dinggang@globaltimes.com.cn. Follow him on X @dinggangchina