Workers at a light-manufacturing facility in the Sihanoukville Special Economic Zone (SSEZ). SSEZ
Exports of Cambodian-made goods are expected to rise significantly in 2025. Last year, 326 new large factories began operations, bringing the number of large manufacturing plants in Cambodia to 2,425. In 2020, the figure was 1,864, according to the Ministry of Industry, Science, Technology and Innovation.
A ministry report noted that in addition to the new openings, 26 factories were shuttered in 20224.
Last year, the industrial sector employed approximately 1.16 million people, with women accounting for 73.68% of the workforce.
Phnom Penh was home to the largest number of major factories, with 818, followed by Kampong Speu with 381, Kandal with 358, Preah Sihanouk with 257, Svay Rieng with 232, Takeo with 139, Kampong Cham with 38 and Kampong Chhnang with 37.
Other large manufacturing facilities could be found in Kampot, Banteay Meanchey, Tboung Khmum, Battambang and Kampong Thom.
According to the report, in 2020, the Kingdom saw 235 factories open and 101 close.
In 2021, these figures were 163 opened and 148 closed.
In 2022 and 2023 respectively, these numbers were 186 and 83 and then 241 and 98.
Lor Vichet, vice-president of the Cambodia-Chinese Commerce Association (CCCA), told The Post on March 5th that the influence of external factors, combined with the Kingdom’s beneficial investment laws, have attracted more international investors many of whom have opened factories.
He reiterated how Cambodia is known for its political stability, robust economic growth and young labour force.
Opening factories in Cambodia provides investors with high profits due to the country’s excellent infrastructure, trade agreements with many countries and Cambodia's special tax relief system for exporting goods to certain countries.
“Economic conflicts between major powers – especially the US and China, as well as many other developed countries – are pushing factory owners to move their factories to developing nations like Cambodia, where they can access special customs conditions,” explained Vichet.
He also mentioned that under the current administration of US President Donald Trump, there is increased pressure on tariffs for goods produced in emerging economies, which means Cambodia will definitely attract more foreign investors.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), stated that the government is focused on expanding employment opportunities for Cambodians by attracting investors who will establish factories here.
He believed that the number of factories in Cambodia will continue to increase, and the Kingdom will benefit through more diverse and varied production.
In the past, he noted, Cambodia’s export potential was mainly in the garment industry. He added that Chinese investors are the largest group of investors.
Heng also explained that the government's efforts to develop infrastructure, including roads, airports and seaports, are all aimed at preparing for new investments.
“The number of large, modern factories will continue to grow. What Cambodia is currently experiencing is the result of strong cooperation between the government and the private sector,” he continued.
In 2024, Cambodia's exports and imports with all its trading partners reached $54.74 billion, an increase of 16.9% compared to 2023.
Exports totalled $26.2 billion, rising by 15.7%, while imports amounted to $28.54 billion, increasing by 18%, based on data from the GDCE.
Cambodia's five main trading partners are China, the US, Vietnam, Thailand and Japan.
