Kingdom adds 366 new factories in 9 months

Kingdom adds 366 new factories in 9 months

Industrial expansion underscores the Kingdom’s economic momentum, creating stronger ties between manufacturing and local agriculture.

Cambodia registered 366 new factories in the first nine months of this year, bringing the total number of operational factories to 3,417, as the country continues to expand its industrial base and attract investment in manufacturing, according to the Ministry of Industry, Science, Technology and Innovation (MISTI).

The ministry’s report, released on Monday, showed that registered industrial investment capital has reached nearly $29 billion, reflecting the growing scale of Cambodia’s industrial sector and efforts to move towards higher-value manufacturing.

The manufacturing sector remains a key pillar of the national economy, employing more than 1.35 million workers and contributing to export growth, job creation and broader economic development, the report read.

MISTI Minister Hem Vanndy said the expansion of the industrial sector reflected the Kingdom’s economic dynamism and created greater opportunities to strengthen linkages between manufacturing and domestic agriculture.

Speaking at the second Cambodia Agriculture Forum and Expo in Phnom Penh on Saturday, Vanndy highlighted the growing demand for agricultural raw materials as Cambodia expands its food-processing industry.

“The growth increases demand for agricultural raw materials for food production,” he said.

He stressed the importance of diversifying Cambodia’s industrial base by increasing value-added production and making more efficient use of locally available raw materials.

“Cambodia has to continue diversifying its industrial sector by increasing value addition and using raw materials more efficiently,” he said.

According to the ministry, industry’s contribution to Cambodia’s gross domestic product rose from 12.6% in 1993 to 43.2% in 2025, highlighting the sector’s growing role in the country’s economic transformation.

The government has prioritised industrial diversification and investment in higher-value manufacturing to strengthen domestic production capacity, create quality employment and improve Cambodia’s competitiveness in regional and international markets.

Under strategic frameworks, including the Cambodia Industrial Development Policy (IDP), the Kingdom is working to modernise its industrial base, diversify export markets and promote sustainable economic growth.

Alongside industrial development, MISTI is implementing reforms to improve the business environment through regulatory simplification and the digitalisation of public services.

The reforms aim to enhance transparency, reduce administrative burdens and minimise businesses’ reliance on intermediaries when accessing government services.

These initiatives form part of broader efforts to attract domestic and foreign investment, improve the efficiency of public administration and create a more predictable and investor-friendly business environment.

As Cambodia seeks to move up the manufacturing value chain, strengthening industrial capacity, expanding local supply chains and improving the business climate will remain important to sustaining growth and enhancing the Kingdom’s position in regional and global markets.

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