Cambodia’s industrial product value surpasses $15 billion

Cambodia’s industrial product value surpasses $15 billion

Cambodia’s total value of industrial products in 2024 exceeded $15 billion, with nearly $4 billion allocated to the domestic market and over $11 billion attributed to exports, according to the 2024 Annual Report and 2025 Planning of the Ministry of Industry, Science, Technology & Innovation (MISTI) released on Tuesday.

Regarding the development of the industrial sector in 2024, Cambodia has 2,425 large factories in operation, including 326 newly established factories and 26 that had closed. The workforce in 2024 totalled more than 1.1 million, of which 850,000 were women, representing 73 percent—an increase of 11,000 compared to 2023.

Regarding special economic zones in 2024, there were a total of 30 operating zones across 12 capitals and provinces, an increase of 4 zones or more than 15 percent. Among them, industrial parks accounted for 20 operating zones in 5 capitals and provinces, reflecting an increase of 3 zones or 17 percent compared to 2023.

As for investment sources in 2024, there were 32 domestic and foreign investment sources, an increase of 2 sources or more than 6 percent compared to 2023.

Regarding investment capital in 2024, total investment in the large-scale industrial sector amounted to more than $20 billion, marking a 10 percent increase compared to 2023. Domestic investment capital accounted for nearly $4 billion, representing over 19 percent of the total investment.

“In 2024, the sector’s total product value was more than $15 billion, reflecting a 7 percent decrease compared to 2023. Of this, the value of products serving the domestic market amounted to nearly $4 billion, a decline of more than 5 percent, while exports totaled more than $11 billion, a decrease of 8 percent compared to the same period in 2023,” the report said.

Speaking at the closing ceremony on Wednesday, Hem Vanndy, Minister of Industry, Science, Technology & Innovation, said the achievements and progress made by the Ministry in 2024 demonstrate that the Industry, Science, Technology and Innovation sector is developing sustainably, diversifying, and upholding high environmental and social responsibility standards.

Additionally, it has strengthened economic interactions between processing, manufacturing, agriculture, trade, and services, fostering economic integration, value chains, and Cambodia’s competitiveness in the region and globally, he said.

“Cambodia’s economy is projected to continue growing at around 6 percent of Gross Domestic Product (GDP) in 2024 and approximately 6.3 percent of GDP in 2025, as outlined in the medium-term public finance framework.

“The industrial sector is expected to contribute about 8.5 percent to GDP growth in 2024, with an estimated increase to 8.6 percent in 2025,” Vanndy said.

Vanndy went on add that to advance the industrial and service sectors, the Ministry has prioritized Industry 4.0 development in alignment with global trends, preparing for the digital economy, leveraging opportunities to expand the technology business market, promoting research and innovation.

The Ministry is also committed to fostering entrepreneurship and supporting the growth of small and medium-sized enterprises (SMEs), he said, adding that, efforts include formalizing the informal economy to create new and decent jobs, as well as developing and revising legal frameworks and regulations.

“These initiatives aim to support Cambodia’s successful graduation from Least Developed Country (LDC) status by 2029,” he said

Speaking to Khmer Times, Lim Heng, Vice President of the Cambodia Chamber of Commerce (CCC), expressed optimism about the country’s industrial investment outlook. He highlighted the critical role of large-scale infrastructure projects in attracting investors.

“In the years ahead, we anticipate industrial investment will continue to rise due to significant infrastructure projects, including airports, shipping ports, and transport links with other countries and international markets—all of which are crucial factors,” he said.

According to Heng, several key factors drove investment growth in 2024. “The driving forces behind the industrial investment in 2024 are economic growth, political stability, and the peace guaranteed for investors in Cambodia,” he said. These elements, he noted, create a stable and favourable environment for local and foreign investors.

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