With renewed fighting along the Thailand–Cambodia border, several Japanese auto-parts and related companies have recently begun suspending operations at production bases in Cambodia near Thailand. Cambodia is an important complementary and extension base for Thailand’s highly concentrated automotive industry, and Japanese companies fear that further deterioration of the conflict could affect wider Japanese supply chains.
The report noted that Cambodia had attracted Japanese factories through relatively low costs and its location, providing support and a complement to their Thai production networks. The current border conflict is occurring in key production areas, putting pressure on Japanese companies through operational disruption and supply-chain adjustments.
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