Manufacturing output drops 10% as global export demand cools

Manufacturing output drops 10% as global export demand cools

Industrial production in the kingdom saw a marked decline in 2025, with total manufacturing value falling around 10% as cooling international demand hit key export sectors, according to government figures released Tuesday.

A report from the Ministry of Industry, Science, Technology and Innovation revealed that local manufacturers produced goods worth $13.58 billion last year, down from $15.14 billion in 2024. The downturn was largely driven by a global market slump, with exports dropping 11.8% to around $9.92 billion.

Domestic supply also contracted, with goods valued at $3.66 billion reaching the local market—a 6% decrease from the previous year.

Despite the decline in annual output, the country’s industrial sector remains a significant employer. By the end of 2025, there were 3,083 large factories in operation, providing employment for more than 1.16 million people. The workforce remains predominantly female, according to the ministry.

Cumulative investment capital in the industrial sector reached $25.16 billion by the end of the year. Analysts indicate that these figures reflect broader economic challenges affecting Southeast Asian manufacturing hubs, as high inflation and shifting consumer preferences in Western markets continue to influence garment and travel goods order volumes. 

khmertimeskh