Cambodia and Thailand Set to Sign Peace Agreement on Sidelines of ASEAN Summit

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Cambodia and Thailand Set to Sign Peace Agreement on Sidelines of ASEAN Summit
Cambodia and Thailand Set to Sign Peace Agreement on Sidelines of ASEAN Summit./Image credit: AKP.

Cambodia and Thailand have announced the successful negotiation of a peace agreement following a four-party meeting that was facilitated by the ASEAN Chair and also attended by representatives of the United States.

Returning from negotiations in Malaysia on October 18, 2025, H.E. Prak Sokhonn, Minister of Foreign Affairs and International Cooperation, confirmed to the press that both Cambodia and Thailand had agreed on the terms of a peace accord, which is set to be signed on the sidelines of the upcoming ASEAN Summit from October 26–28, 2025.

These terms include withdrawing troops and removing heavy weapons, restoring diplomatic relations that were downgraded on July 24, repatriating the 18 Cambodian soldiers captured on July 29, and determining demining conditions. Both sides have also committed to cooperate further on combatting cross-border crimes like online scams.

“As permanent neighbours, Cambodia and Thailand share a common responsibility to restore normalcy and to bring peace and prosperity to both nations and peoples,” H.E. Prak Sokhonn said while speaking to the state-owned TVK news station.

U.S. President Donald Trump and Malaysian Prime Minister Anwar Ibrahim are expected to preside over the signing of the peace accord, acting as witnesses.

The eruption of conflict along the Cambodia-Thailand border, which led to the closure of all border crossings since June 2025, has had a significant impact on bilateral trade and business between the two countries. The mass return of Cambodian migrant workers has also led to labour shortage concerns in Thailand and a rise in unemployment rates in Cambodia. 

In light of these impacts, agencies like the ADB and Mekong Strategic Capital have downgraded their economic growth forecasts for Cambodia in 2025-2026, predicting a period of recession. However, with a new peace deal on the horizon, and cross-border trade activity expected to resume, the short-term economic outlook for Cambodia is likely set to improve.