Cambodia industrial growth surges as factory numbers jump 27%

Cambodia industrial growth surges as factory numbers jump 27%

Cambodia’s industrial landscape expanded rapidly through 2025, solidifying its role as a key driver of the kingdom’s economic recovery, according to the Ministry of Industry, Science, Technology and Innovation.

Speaking on Sunday, Minister Hem Vanndy revealed that the number of large-scale manufacturing plants in the Southeast Asian nation reached 3,083 by the end of last year. This represents a significant 27% increase over 2024, with 658 new facilities beginning operations—primarily within the garment, footwear, and travel goods sectors.

The surge in physical infrastructure was reflected by a significant inflow of capital. Total investment in the sector reached $25.16 billion by the end of 2025, up 23% year-on-year.

While foreign direct investment remains the leading influence, domestic contributions are establishing a significant presence. “Of this total, domestic investment accounted for $3.9 billion, representing roughly 15% of the total capital,” Vanndy noted.

The rapid expansion has led to a shift towards stricter oversight. At a workshop focused on factory layout and pollution management, Vanndy emphasised that the next phase of Cambodia’s industrial development must be characterised by “good governance” and safety rather than just volume.

“A well-designed and carefully planned factory technical layout is the first line of protection,” Vanndy told attendees. “It not only improves operational efficiency, but most importantly, helps protect the lives of our workers.”

The Minister urged factory owners to strictly adhere to new guidelines regarding:

• Technical Layouts: Maximising floor safety and workflow.

• Pollution Management: Mitigating the environmental footprint of heavy manufacturing.

• Risk Mitigation: Reducing threats to life, property, and the “business reputation” of the kingdom.

Failure to comply, the Minister warned, would result in penalties from competent authorities, as the government seeks to professionalise the sector to compete on a global stage. 

khmertimeskh